Ethics in Human Resource Management

Ethics in Human Resource Management
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Ethics in Human Resource Management
Overview of the Topic
Human resource management (HRM) is an important part of organizations due to employees' value in attaining business goals. In a business environment characterized by rapid technological and related changes, staying competitive is essential. One of the ways to stay competitive is empowering employees, who are often considered to be the most important assets organizations have. With the primary role of HRM being the management of the employees' affairs, there emerges an essential need to observe human dignity, which brings forth the issue of ethics. From the perspective of HRM, ethics is the moral treatment of employees (Greenwood & Freeman, 2011). As per the stakeholder theory, organizations must respect employees as rational individuals with their own rights (Greenwood & Freeman, 2011). In this sense, the organization is responsible for its behaviors towards employees. Ethics from the HRM perspective concerns itself with some key issues, including fairness in recruitment and selection, wage discrimination, career development, code of ethics, workforce diversity, and corporate social responsibility (Greenwood & Freeman, 2011; Simões et al., 2018). These are the main aspects that characterize ethics in HRM today.
Fairness in recruitment and selection is a key aspect of HRM ethics. Hiring managers have to adhere to legal frameworks governing recruitment and selection and have to ensure the process is done ethically. Hiring managers must recruit and select ethical employees and do it so that they do not discriminate against other candidates (Villegas et al., 2019). In this sense, therefore, the issue of fairness in recruitment and selection is a major part of ethics in HRM.
Wage discrimination is another issue that falls under ethics in HRM. In this case, the role of the HRM is to ensure that there is fairness in compensation and benefits package. Concerns arise when the rewards systems in an organization discriminate against some employees based on things like gender, country of origin, and race (Fays et al., 2021). In general, any form of discrimination in the workplace falls under ethics as it directly impacts human dignity. Wage discrimination is not only unethical but also illegal. HRM managers, therefore, familiarize themselves with the legal guidelines relating to employment discrimination, which can help them uphold ethical practices in their organizations.
Ethics in HRM also focuses on fairness in career development. One of the biggest roles of HR departments in organizations is to foster career development. Career development opportunities is a major consideration for employees when deciding whether or not to work in an organization. As noted by Simões et al. (2018), one of the most unethical practices in HRM is career development based on friendships with top management. In this case, an individual's friendly relationship with the top management determines career development activities such as participation in research activities, education continuity, increased responsibilities, and promotions. As such, ethics in HRM is concerned with ensuring that there is no discrimination in career development opportunities.
Ethics in HRM also covers the code of ethics that has become an important part of modern organizations. Competitive business organizations, particularly large ones, have in place a code of ethics to guide the behaviors of employees. Adelstein and Clegg (2016) define a code of ethics as a formal and documented manifestation of the organization's expectations of ethical behaviors that ought to be observed by its employees. Furthermore, Adelstein and Clegg (2016) point out that the visibility that comes with having such a code helps the organization to be judged as ethical. Nevertheless, codes of ethics in organizations help in promoting behaviors that are deemed ethical.
Corporate social responsibility (CSR) is also another facet that falls under ethics in HRM. While CSR is often an initiative of the whole organization, many studies have linked it with the HRM function. Typically CSR activities in an organization involve participation in addressing societal challenges and aligning organizational activities with the interests of stakeholders within and without the organization (Stahl et al., 2020). The internal focus of CSR covers employees, and therefore, HRM plays a role in linking its activities with the organization's sustainability goals. HR can thus foster employees' commitment to CSR, which is a key ethical component for organizations.
Ethics in HRM also concerns itself with the increased diversity in the workforce. With globalization and the consequent internationalization of business organizations, many workplaces are increasingly becoming diverse, encompassing individuals from different social and cultural backgrounds. Effective management of workplace diversity aspects such as ethnicity, race, and sex is essential for the success of organizations (McCann et al., 2017). Diversity is linked to aspects such as differences in religion, sexuality, traditions, and racial background, and ensuring inclusion is a key ethical issue for HR practitioners. In addition, what may be deemed ethical from one cultural or social background may be unethical in another. In this sense, it is the role of HR to understand how diversity affects employee behavior and to put in place measures to foster inclusion and engagement throughout the organization.
Importance of Topic for Today's Organizations
Ethics in HRM is not only important in boosting performance but also plays a significant role in enhancing organizational reputation. Implementing ethical HRM practices promotes a culture of transparency and accountability in the communication of a company's values, principles, and practices (Grigoropoulos, 2019). In essence, ethics for HRM and the organization go hand in hand primarily because an organization cannot be said to be ethical without the input of one of its important stakeholders, that are, the employees. The performance of organizations in the modern business environment depends to a great extent on the implementation of ethical practices in its HR function. The HR function has to ensure that its employees are treated fairly to minimize occurrences of conflicts, which often disrupt operations. Ethics in HRM helps organizations in employee retention, enhancing motivation, protection against lawsuits, and boosting reputation.
One of the challenges facing organizations is employee turnover. Given that regularly recruiting new employees can be a costly understanding for an organization, it is in its best interest to engage in practices that bolster employee retention. Ethics in HRM can be a key strategy in preventing employees from leaving the organization to join others. As noted by Bal and Jong (2017), ethics changes the meaning that employees attribute to their jobs. The authors point out that when HR commits to human dignity, it shifts its focus to enhance what it means for employees to work in the organization (Bal & Jong, 2017). Therefore, given the meaning ethics gives to jobs, employees would be proud to work with the organization, and the result of this is a potential reduction in employee turnover. One of the ways of promoting ethics in an organization is fostering workplace democracy. When workplace democracy is implemented, the goal is to involve all members of the organization in job decisions, empower them, and generally enhance engagement (Bal & Jong, 2017). In such an environment where the inputs of employees are valued, the chances of employees quitting to join other organizations are limited. Therefore, ethics in HRM is crucial in boosting employee retention, which is an essential goal for modern organizations.
Employee motivation and creativity is another area that an organization stands to benefit when ethical behaviors are fostered by HRM. According to Feng et al. (2018), when employees are committed to ethical causes, they work harder compared to when they are primarily motivated by social and economic reasons. In this sense, therefore, the promotion of ethical causes fostered by employees in an organization can motivate employees to be creative and generate productive ideas. It is essential to note that CSR comprises activities such as environmental protection and promoting social causes, which are considered ethical practices. Therefore, when employees participate in CSR activities that have become a norm for most organizations today, their motivation and creativity can be enhanced. Organizations can benefit to a great extent from creative ideas developed by motivated employees.
Understanding ethics and implementing it in HR practices also helps organizations avoid lawsuits that result in financial losses. When it comes to employment discrimination, legal and ethical issues go hand in hand. When HRM implements an ethical framework, it can help avoid legal hurdles due to employment discrimination. In the U.S., it is illegal to discriminate in employment based on sex, national origin, color, race, religion, and age (Cavico et al., 2016). Harassment based on these characteristics is also prohibited, according to the Equal Employment Opportunity Commission (EEOC). These characteristics are directly linked to ethics, and such discrimination ca...