Business Ethics for the HR Manager Nov 2009

Transcription

1 Business Ethics for HR Professionals Prepared by the SHRM Ethics Special Expertise Panel Ethical Issues in Human Resources Ethics is learned by modeling, not by reading a bunch of books over the weekend. -- John Bruhn Former Provost Penn State University - Harrisburg Agenda What is ethics? The Business Case The HR Professional s Role 1

2 Part I: What is Ethics Definition of Ethics The rules of conduct or moral principles guiding individual or group behavior Source: 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 Moral Decisions Where does one learn to make moral decisions? In the home In their social community From the media In the workplace 2

3 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? Ethical Principles Ethical Principles in the Workplace Ethical Decision-making Principles Utilitarianism Judged on consequences Net benefits over costs are greatest for the majority The greatest good for the greatest number 3

4 Ethical Decision-making Principles Universalism The means justify the ends Intention of an act treats all persons with respect Everyone should act this way Ethical Decision-making Principles Rights Entitlement Individual rights guaranteed to all Ethical Decision-making Principles Justice Fairness and equality Opportunity, wealth, and burden are fairly distributed 4

5 Situational Opportunity Improper Behavior Rationalization Pressure or Motive Source: Choosing Ethical Excellence 2006 Part II The Business Case 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

6 Business Ethics Corp Social Responsibility Culture Ethical Leadership 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 The 4 Rs Does an ethical organization have a competitive advantage? Risk Recruiting Reputation Raking in the dough 6

7 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 Sarbanes-Oxley Act of 2002 Intended to foster truthful communication between company officers and shareholders Code of ethics required Requires training Protects Whistleblowers Old and New Company Ethics Old Ethic Do the minimum required by law Keep a low profile Downplay public concerns Reply to shareholders inquires when necessary Communicate on a need-to-know basis Make decisions on the bottom line & laws only Do the right thing New Ethic Show you are doing the right thing Seek to indentify and address public concerns Be responsible to stakeholders Communicate openly Integrate all of the above into decision-making 7

8 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 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 The HR Professional s Role 8

9 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 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 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: 9

10 The CLICK Rule: 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 Six Essential Elements of an Ethics Program 1. Written standards of conduct 2. Training on ethics 3. Mechanisms to seek ethics advice or information 4. Means to report misconduct anonymously 5. Discipline of employees who violate ethical standards 6. Evaluation of employees performance based on ethical conduct Resources - > 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 - Ethics Resource Center > Choosing Ethical Excellence Alan V. Funk > Business Ethics: A Managerial, Stakeholder Approach Joseph W. Weiss 10

11 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 11