Description
The role of ethics in hrm and business world....how ethics is shoved out of the door in businesses and what are its consequences.
Prithwiraj Deb
Ethics, Morality and HRM
? Ethics is the study of morality
? Morals are the standards used to judge right and
wrong
? Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there
Costs of Corporate Ethics Violations
? $7 trillion in stock market losses
? Loss of jobs and retirement savings of employees
Human Costs
? Unethical business environments can: ? Demotivate individuals ? Make good employees leave the company ? Attract unethical employees ? Lead to the lack of trust by the employees for the company
? Over the last decade, ethical scandals in business have
been on the rise:
? Enron ? WorldCom ? Tyco ? Big tobacco ? Satyam
How To Stop Unethical Behavior
? A combination of external regulations and compliance
programs and voluntary corporate ethics programs is the most effective way to combat inappropriate corporate behavior (Trevino, Weaver, Gibson, & Toffler, 1999).
External Regulations
? Sarbanes-Oxley Act (SOX) ? Requires CEOs and CFOs to sign statements making them personally responsible for the accuracy of the quarterly financial statements ? Knowingly misrepresenting the financials opens them up to punishments including fines and jail time ? Protection for whistleblowers
Other External Regulations
? Other external regulations include regulations related
to:
? Minimum wage ? Overtime compensation ? Discrimination ? Health and Safety ? Privacy
Corporate Values Statements
? Describes the core values the company wants its
employees to exhibit including:
? How employees are to treat one another ? How employees are to treat customers and stockholders
Effective Values Statements
? Must come from the top with the CEO being directly
involved in its development ? Top management must actively disseminate the values statement and then live by it
HR Responses
? Take steps to eliminate and discourage reasons for misbehavior and introduce and encourage reasons to behave ethically
? Develop an appraisal system that rewards individuals for ethical behaviors and punishes those who act unethically ? HR can use its expertise to communicate with the workforce to get out the ethical message
Guidelines for Fostering an Ethical Culture
? Have a well developed policy and procedures manual
? Enforce policies ? Reward compliance
? Recruit ethical employees
? Create a division to oversee ethics
Conclusion
? Whenever you are required to make a difficult
decision, especially one that is ethically challenging, select an option that you would be comfortable describing to the nation on the evening news
? Thank You
doc_494960658.pptx
The role of ethics in hrm and business world....how ethics is shoved out of the door in businesses and what are its consequences.
Prithwiraj Deb
Ethics, Morality and HRM
? Ethics is the study of morality
? Morals are the standards used to judge right and
wrong
? Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there
Costs of Corporate Ethics Violations
? $7 trillion in stock market losses
? Loss of jobs and retirement savings of employees
Human Costs
? Unethical business environments can: ? Demotivate individuals ? Make good employees leave the company ? Attract unethical employees ? Lead to the lack of trust by the employees for the company
? Over the last decade, ethical scandals in business have
been on the rise:
? Enron ? WorldCom ? Tyco ? Big tobacco ? Satyam
How To Stop Unethical Behavior
? A combination of external regulations and compliance
programs and voluntary corporate ethics programs is the most effective way to combat inappropriate corporate behavior (Trevino, Weaver, Gibson, & Toffler, 1999).
External Regulations
? Sarbanes-Oxley Act (SOX) ? Requires CEOs and CFOs to sign statements making them personally responsible for the accuracy of the quarterly financial statements ? Knowingly misrepresenting the financials opens them up to punishments including fines and jail time ? Protection for whistleblowers
Other External Regulations
? Other external regulations include regulations related
to:
? Minimum wage ? Overtime compensation ? Discrimination ? Health and Safety ? Privacy
Corporate Values Statements
? Describes the core values the company wants its
employees to exhibit including:
? How employees are to treat one another ? How employees are to treat customers and stockholders
Effective Values Statements
? Must come from the top with the CEO being directly
involved in its development ? Top management must actively disseminate the values statement and then live by it
HR Responses
? Take steps to eliminate and discourage reasons for misbehavior and introduce and encourage reasons to behave ethically
? Develop an appraisal system that rewards individuals for ethical behaviors and punishes those who act unethically ? HR can use its expertise to communicate with the workforce to get out the ethical message
Guidelines for Fostering an Ethical Culture
? Have a well developed policy and procedures manual
? Enforce policies ? Reward compliance
? Recruit ethical employees
? Create a division to oversee ethics
Conclusion
? Whenever you are required to make a difficult
decision, especially one that is ethically challenging, select an option that you would be comfortable describing to the nation on the evening news
? Thank You
doc_494960658.pptx