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Ethics in Human Resources

Ethics in Human Resources. Module 1. Ethics and HR Management. Firms with High Ethical Standards Are more likely to reach strategic goals. Are viewed more positively by stakeholders Are better able to attract and retain human resources. Ethics and Global Differences

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Ethics in Human Resources

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  1. Ethics in Human Resources Module 1

  2. Ethics and HR Management • Firms with High Ethical Standards • Are more likely to reach strategic goals. • Are viewed more positively by stakeholders • Are better able to attract and retain human resources. • Ethics and Global Differences • Different legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers. • Foreign Corrupt Practices Act (FCPA) • Prohibits U.S. firms from engaging in bribery and other practices in other countries.

  3. Leaders are Readers • The Smartest Guys in the Room (2004) • McLean and Elkind • “The tale of Enron is a story of human weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t’ work; and of smart people who believed their next gamble could cover up their last disaster—and who couldn’t admit they were wrong”.

  4. Business Ethics and HR Management Consequences

  5. Ethics Program Elements Written code of ethics and standards of conduct Advice to employees on ethical situations Confidential reporting of ethical problems Employee training on ethical behaviors Ethical Behavior and Organizational Culture

  6. Legal Question Ethical Question • Does the behavior or result meet all applicable laws, regulations, and government codes? • Does the behavior or result meet both organizational standards and professional standards of ethical behavior? HR’s Role in Organizational Ethics

  7. Examples of HR-Related Ethical Misconduct Activities

  8. HR Ethics and Sarbanes-Oxley (SOX) • Reduce the likelihood of illegal and unethical behaviors by: • Having a written code of ethics and conduct standards • Providing ethical behavior training and advice • Establishing confidential reporting systems for ethical misconduct • Providing whistle-blower protection • Supporting HR’s role as “keeper and voice” of organizational ethics

  9. Ethical Behavior and Organizational Culture • Classic Management Article • “The perpetuation of unethical practices in organizations” • Socialization • Attrition • Justification from small to large

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