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Business Ethics for HR Professionals

Business Ethics for HR Professionals. Prepared by the SHRM Ethics Special Expertise Panel. © SHRM2012. “Ethics is learned by modeling, not by reading a bunch of books over the weekend.” -- John Bruhn Former Provost Penn State University - Harrisburg. Ethical Issues in Human Resources.

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Business Ethics for HR Professionals

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  1. Business Ethics for HR Professionals Prepared by the SHRM Ethics Special Expertise Panel ©SHRM2012

  2. “Ethics is learned by modeling, not by reading a bunch of books over the weekend.” -- John Bruhn Former Provost Penn State University - Harrisburg Ethical Issues in Human Resources ©SHRM2012

  3. Agenda • What is ethics? • The Business Case • The HR Professional’s Role ©SHRM2012

  4. Part I: What is Ethics The rules of conduct or moral principles guiding individual or group behavior Definition of Ethics Source: www.shrm.org ©SHRM2012

  5. Moral Principles What are the rules of conduct or moral principles? • No single, universal standards or rules • Individual or cultural self-interests, customs, and religious principles • Serves one’s self interests and needs ©SHRM2012

  6. Moral Decisions Where does one learn to make moral decisions? • In the home • In their social community • From the media • In the workplace ©SHRM2012

  7. Values • What are your personal values? What matters most to you? • What are your organization’s values? What matters most to the organization? • What happens when your values and your organization’s values do not match? ©SHRM2012

  8. Ethical Principles Ethical Principles in the Workplace ©SHRM2012

  9. Ethical Decision-making Principles Utilitarianism • Judged on consequences • Net benefits over costs are greatest for the majority • The greatest good for the greatest number ©SHRM2012

  10. Ethical Decision-making Principles Universalism • The means justify the ends • Intention of an act treats all persons with respect • Everyone should act this way ©SHRM2012

  11. Ethical Decision-making Principles Rights • Entitlement • Individual rights guaranteed to all ©SHRM2012

  12. Ethical Decision-making Principles Justice • Fairness and equality • Opportunity, wealth, and burden are fairly distributed ©SHRM2012

  13. Source: Choosing Ethical Excellence 2006 ©SHRM2012

  14. Part II The Business Case ©SHRM2012

  15. Definition of Business Ethics The art and discipline of applying ethical principles to examine and solve complex moral dilemmas. Source: Business Ethics: A Managerial, Stakeholder Approach 1994 ©SHRM2012

  16. Business Ethics Corp Social Responsibility Culture Ethical Leadership Legal Compliance Ethical Conduct ©SHRM2012

  17. “What executives do and value is minutely watched throughout the whole organization. And nothing is noticed more quickly – and considered more significant – than a discrepancy between what executives preach and what they expect their associates to practice.” -- Peter Drucker ©SHRM2012

  18. The 4 Rs Does an ethical organization have a competitive advantage? Risk Recruiting Reputation Raking in the dough ©SHRM2012

  19. Top Ethics/Standards Practices • Discipline for employees who violate their organization’s ethics standards • Formal ethics program including written standards • A means for anonymous reporting of ethics standards violations • Written non-retaliation policy for employees who report perceived violations Source: The Ethics Landscape in American Business 2008 ©SHRM2012

  20. Sarbanes-Oxley Act of 2002 • Intended to foster truthful communication between company officers and shareholders • Code of ethics required • Requires training • Protects Whistleblowers ©SHRM2012

  21. Old and New Company Ethics ©SHRM2012

  22. How to nurture employees to make ethical decisions • Position ethics as the #1 value and consideration for the organization • Don’t pigeon hole employees by their demographic • Need check and balance for how results are achieved to ensure ethical practices were followed in the process ©SHRM2012

  23. Corporate Social Responsibility Business commitment and contribution to the quality of life of.. • Employees • Employee’s families • Local community • Overall society ..to support sustainable economic development ©SHRM2012

  24. The HR Professional’s Role ©SHRM2012

  25. Role of HR Professionals in Organizational Ethics • The HR department is a primary resource for ethics-related issues in the organization – 83% • HR is involved in formulating ethics policies for their organization – 72% Source: The Ethics Landscape in American Business 2008 ©SHRM2012

  26. Role of HR Professionals in Organizational Ethics • HR is held to a higher standard • You are the guardians of organizational culture • HR determines and facilitates training needs for the organization • HR employs reward and punishment systems to reinforce what kind of behavior is valued • HR uses information gleaned from exit interviews to support and improve the ethical environment ©SHRM2012

  27. The PLUS Rule: Framework for Ethical Decision-Making • P - Policies and Professional Standards • L - Laws and Regulations • U - Universal/Organizational Values • S - Self/Personal Values or Standards Source: www.ethics.org ©SHRM2012

  28. TheCLICKRule: Framework for Ethical Decision-Making • What are the CONSEQUENCES if I do this? Who will benefit? Who will suffer? • Is it LEGAL? • Would I like to see this as my IMAGE on the front page of the newspaper? Would I like to tell this to my kids? • Does this decision support or damage our corporate CULTURE and values? • Does it cause a KNOT in my stomach? Source: Developed for Florida Power Corp by Lee Gardenswartz, Anita Rowe, and Patricia Digh ©SHRM2012

  29. Six Essential Elements of an Ethics Program • Written standards of conduct • Training on ethics • Mechanisms to seek ethics advice or information • Means to report misconduct anonymously • Discipline of employees who violate ethical standards • Evaluation of employees performance based on ethical conduct ©SHRM2012

  30. Resources • www.shrm.org - • The Ethics Landscape in American Business • Business Ethics: The Role of Culture and Values for an Ethical Workplace • Ethics and Generational Differences: Interplay between Values and ethical business decisions • www.ethics.org - Ethics Resource Center • Choosing Ethical Excellence Alan V. Funk • Business Ethics: A Managerial, Stakeholder Approach Joseph W. Weiss ©SHRM2012

  31. SHRM Special Expertise Panel - Ethics This training product would not be possible without the creative work and contributions of the following Members of the SHRM Ethics Special Expertise Panel: • Marty Val Hill, SPHR, Live your Legacy • Linda Magyar, SPHR, Pillsbury Winthrop Shaw Pittman LLP • Cathie Bishop, SPHR, Great West Casualty Co. • Nancy Volpe, SPHR GPHR, Center for People Solutions LLC • Michael J. Colledge, SPHR, CCP, Brigham Young University • Joyce LeMay, SPHR, Bethel University • Bonnie Turner, SPHR, Ph.D., MBCI ©SHRM2012

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