Ethical values and organizational culture, are roles of a company that frequently overlap with the functions of Human Resource (HR). However, this is a big issue in some companies as this two dimension do not always collaborate together as they should.
HR and ethics
HR is responsible for key systems and processes and moreover, through HR, ethics can be given credibility and aligned with how businesses run. Topics which HR can help to integrate ethics into business processes are for example employer branding, recruitment, induction, appraisal, retention, motivation, reward, diversity, coaching and training. Furthermore, HR plays an important role when it comes to monitoring how ethical values are embedded into the organizations. Staff survey, appraisals, and exit interviews can provide valuable information on ways to evaluate how ethics program is working and whether the company is living up to its values in practice.
HR and ethics can perfectly work together and develop employee incentives systems for their organization to reward employees who demonstrate ethical behavior. This includes remuneration, promotion or ethics rewards. Therefore, the human resource department is very important when it comes to support workplace culture and staff within the organization, as they are the main point of contact for all within the organization.
Employees and HR
People are the most valuable resource of a company. Without HR and its appropriate staff planning’s, employee and labor relations, training and development, and retention efforts most of the business would cease operations. Employees rely on HR team to exercise discretion, good judgement and solid business principles which goes hand in hand with the business ethics. Therefore, employees expect to be treated fairly and with respect and HR role is to guarantee that the company meets that expectation.
Moreover, HR can assure that employees who complete orientation are then assigned to their work areas and expected to accomplish their tasks while upholding the values and principles of the organization. Regardless of whether an employee is in a back-office role or a customer-facing position, it's important to uphold the values and principles they learned during new-employee orientation. The ethics training that HR develops is essential for employees to build and sustain customer relationships. Without HR guidance on business ethics, the company reputation could be damaged or even broken.
HR ethics and compliance
Ethical HR practices are fundamental when it comes to company’s compliance with federal, state and local employment laws and regulations. The expenses associated with noncompliance may cause businesses to see red if HR is engaging in unethical business practices. For this reason, the “Civil Rights Act of 1964 prohibits discrimination based on factors such as age, race, ethnicity, sex and disability.” It is the HR’s duty to ensure that the company follows the rules. A solid reputation as an ethical employer does not happen on its own. Therefore, it is important to have comprehensive ethics programs in place to show a company’s commitment to ethics in every business area and therefore, it is the duty of HR to put ethics policies in place. The most important fact about HR and ethics is to lead by example and to create a culture of mutual respect and dignity, where ethical decision-making is valued and rewarded.
Business Reputations and Ethics
The employment relationship typically begins with HR-sponsored orientation, which provides information about the company history, mission and values, code of ethics and business principles. Gaining a reputation as an ethical employer can help to attract the top talent in your industry from a wider area, as employees seek to find the most beneficial employment relationships they can. The opposite holds true, as well, if job applicants see the company as an unethical employer, the most skilled, experienced, creative and productive applicants are likely to put their resumes elsewhere.
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