Chapter 12: Ethics in Human Resource Management

INTRODUCTION
Human Resource Management is the process of acquiring, training, appraising and compensating
employees and attending to their labor relations, health, and safety and fairness concern. The policies and
practices involved in carrying out the ‘People’ or HR aspects of a management position, including
recruiting, screening, training, rewarding and appraising. HR management activities like recruiting,
hiring, training, compensation, apprising and developing employees is part of every manager job. It’s also
a separate ‘staff’ function and that the H.R. managers assist all managers in many important ways. As far
as HRM is concerned, what is ethical and what is unethical in general may not be easy to answer. As we
know that ethics is the discipline dealing with what is good or bad and with moral duty and obligations.
An organizations human resource policies and practices represent important forces for shaping employee
behavior and attitudes. Thus there is a close linkage between HRM and ethics. Ethics in HRM can be
defined as — Functioning and Performing HRM policies and practices with some standards norms,
managing human resources so that mutual benefits can be achieved. To understand the role of ethics in
HRM, we go through the separate parts of human resource management and see how each one is related
with ethical implications.

ETHICS IN JOB DESIGN

An understanding of job/work design can help executives to design and redesign job in such a way that it
positively affects employee motivation. It includes work simplification, job rotation, job enlargement, and
job enrichment, job sharing, independent work teams, dejobbing and empowering the workforce.
 Job Rotation
Job rotation takes place when any employee suffers from over reutilization of his work. Then the
employee is rotated to another job, at the same level that has similar skill requirements but sometimes we
find some unethical issues like rotating the worker in the kinds of jobs where no innovative perspectives
are present and the periodic shifts of workers may be the outcome of some conflicts among workers and
employees who are involved in job design.
 Work Simplification
It means simplifying the work of the employee, so they can understand it well and perform to full of their
skills. The unethical issue has come in to the picture when work is over simplified that lead to boredom,
more mistakes, less interests and tendering resignations.
 Job Enlargement
Job enlargement is nothing but the horizontal expansion of jobs. This concept was introduced ground 40
years back. It increases the number and variety of tasks that an individual has to perform. Though
motivational impacts are there of job enlargement, yet it may sometimes result in much more boring
tasks.
 Job Enrichment
Job enrichment is nothing but the vertical expansion of job. In fact to deal with the short comings of job
enlargement, it has been introduced to deal with the shortcomings of enlargement. In an enriched job, an
employee would do the work with complete activities, more freedom and increased responsibility. The
only thing which should be handled carefully is to take care while selecting the employee whose job
should be enriched.
 Job Sharing
Job sharing is simply the practice of having two or more people split a 40 hour week job. So people find it
as an opportunity to get an experience of two heads. The unethical issue involve here is to intentionally
involve two person to do single job who do not successfully coordinate.
 Dejobbing
Dejobbing is the practice in this global environment which checks the companies from overstaffing to
prepare committed employees. But it is more suitable for the competitive markets. It is not ethical to go
for dejobbing if not required at all.
 Empowerment
In this option employees go for requiring skills and additional knowledge to do the job in which they have
their interest and aptitude.
ETHICS IN HUMAN RESOURCE PLANNING:
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Human resource planning is a wide process; before entering into ethics prevailing in it there is need to
understand the planning process clearly.
Human resource planning can be considered as:
One of the strategic steps for building the strong foundation of an efficient workforce in an
organization
The term includes, its management, which primarily involves issues related to the workforce.
The human resource planning process, demands the HR manager to first understand the business
requirement. Only if he comprehends the nature and scope of the business, will he be able to employ
those who will deliver the required performance. When it comes to engaging the manpower, the manager
should have a keen eye for spotting the talent. It ensures that the workforce is competent enough the meet
the targets.

Additionally, the existing 'talent pool' in the workplace should be taken into consideration, so that people
with complimentary skills can be employed. The functions of the HR manager are varied; he has to assess
the currently employed workforce and their shortcomings. Identifying these shortcomings goes a long
way in choosing an efficient workforce. While recruiting the new employees, the HR manager must
calculate the expected workload. This way the HR department can design an accurate job profile and job
expectations.

Benefits of HR planning:
There are numbers of benefits listed for HR planning process:
 It highlighting opportunities for strategic partnerships in organization to share the benefits, risks
and training cost.

 By going through HR process it become easy to encourage and motivate the different activities
proceeding under it and provide a balance check that either the programme is on track or not.

 It makes the easier to evaluate the progress ( by taking feedback from clients).

Major challenges:
 A real very need to see results makes planning seem wasteful of time. Impatience with planning
is always a challenge.

 Careful assessment may turn up more human resource development need than the projected or
existing resources and funding can handle, and this may require challenging choice.

ETHICS IN RECRUITMENT ANDSELECTION:

Ways of recruitments:
There are following ways of recruiting:
• Short listing

• Other forms of assessment

• The interview

• References

• Equal opportunities form

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ETHICS IN RECRUITMENT AND SELECTIONS:

Recruitment is the process of searching for prospective employees and stimulating them to apply for job
in an organization. In corporate world we have two kind of recruitment
 Internal Recruitment

 External Recruitment

First any organization search for a suitable person for its requirement internally, so people say it is been
ethical towards the employee, they would get good changes of their promotion if the company opts
internal recruitment.
But as we know, now the world demands highly skilled and talented people. So suppose if the internal
sources are not as skilled as required, the company should hunt for suitable candidates outside, if the
company recruits internal candidates, even though they are not suitable to the job requirement. It would
be unethical.
Though people say that an organization is more ethical if it goes for internal recruitment and further
provides training and development to the employees, if required. But how far is it ethical to make
compromises as far as skill and talent concern? In any organization so many selection devices have been
used like interviews written tests, performance simulation tests etc.

Unethical practices during selection:

There are also some practical ethical questions arise like.

(a) Sometimes the organizations select unsuitable employees due to pressure from top level, some internal
politics etc. If it happens in selection process, it directly Leads towards inefficiency and then has impact
on organization growth and productivity.
(b) Selection of a candidate as he/she suits the job is ethical but when people make some adjustment in
job specification according to the suitability of the candidate just because of any corrupt activity, it is
called as unethical!
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(c) The practice of taking more employee than the need is also a common unethical practice in selection
procedure.

Ethics in Training & Development

Training and development are planned learning experiences that teach workers how to effectively perform
their current or future jobs. Training focuses on present jobs, while development prepares employees for
possible future jobs. Training and development practices are designed to improve organizational
performance by enhancing the knowledge and skill levels of employees.

Ethical Issues In Training & Development:

1- Lack of interest & qualification:

Most of the time it happens that trainer’s qualification is not up to the mark. He does not have
sufficient knowledge that is required to be delivered to the trainees. Sometimes they do not show
interest in delivering the desired knowledge to the trainees which is the biggest discrepancy in the
training program. It results in the employee distrust on the officials and the company. So trainers
should be loyal and transparent in delivering the required knowledge to their employees so they can
prove to be a better performer.

2- Trainees have been selected not as per needs, but based on favoritism and nepotism:
Another issue during training is that mostly trainees are selected not on the basis of their capability
and performance. Instead managers choose them based on their own choice and biasness. This may
create a discriminatory environment in the organization and most of the deserving employees don’t
get the chance of enhancing their skills. So managers should treat all the trainees equally and reward
them on the basis of their abilities.

3- Failing to provide training:

To comply with the wide range of laws and regulations, companies are required to show that
employees not only have complete knowledge about the regulations but also when and how to apply
them. Most of the time companies fail to train employees about such issues which is mainly because
of the reason that managers don’t give much attention to rights and regulations or sometimes
organizations willingly ignore such trainings in order to keep employees ignorant about their rights
and employment regulations. Organizations should train their employees about Civil Rights Act, The
Age discrimination in employment act, or health insurance portability and accountability act.

4- Incurring employee injury during a training activity:

On the job training and simulations often involve the use of work tools and equipments that could
cause injuries if incorrectly used. Managers should explain and ensure that (1) employees are warned
and trained about that usage and dangers associated with equipments. (2) Safety measures to be used
while operating equipments.

5- Incurring injuries to employees outside a training session:

Managers should ensure that trainees have the necessary knowledge of competence in knowledge,
skills and abilities before they are allowed to operate equipment or interact with customers. A
company that contracts out vendors or consultants should ensure that it has liability insurance. Also
trainers should be sure to keep copies of notes, activities and training manuals that show that training
procedures were correct.

6- Incurring breach of confidentiality or defamation:

Trainers should ensure that the information they place and share with the trainees about other employees
or their own organization should be accurate. Also before using any employee’s information managers
should take them into confidence and tell them openly that in what way their information will be used.

7-Reproducing and using copyrighted material in organizations without permission.

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Most of the time in training sessions the manuals and learning aids are being used without seeking
permission of the creator which is illegal. Managers should ensure that the material they are using is
being purchased or being used after complete consent of the creator or in case of reproducing they have
been granted permission by the owner.

8-Excluding women, minorities and older employees from training programs:

Women, minorities and older employees are often illegally excluded from the training programs either by
not being made aware of the opportunities or purposeful exclusion from the enrolment programs. To
avoid this managers and trainers should ensure that organizational culture and policies are neutral.
Decisions should not be made on the basis of stereotypes; in fact it should be on the basis of job relevant
factors.

9- Workforce diversity:

The future success of any organizations relies on the ability to manage a diverse body of talent that can
bring innovative ideas, perspectives and views to their work. The challenge and problems faced of
workplace diversity can be turned into a strategic organizational asset if an organization is able to
capitalize on this melting pot of diverse talents. . Thus, a HR manager needs to be mindful and may
employ a ‘Think Global, Act Local’ approach in most circumstances. many local HR managers have to
undergo cultural-based Human Resource Management training to further their abilities to motivate a
group of professional that are highly qualified but culturally diverse. In order to effectively manage
workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view
("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways").
This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her
planning, organizing, leading and controlling of organizational resources. . Usually, such a program will
encourage organization’s members to air their opinions and learn how to resolve conflicts due to their
diversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members
to move beyond their own cultural frame of reference to recognize and take full advantage of the
productivity potential inherent in a diverse population.

Ethical Issues In Development:

1- Glass ceiling:

Major development issue faced by companies today is glass ceiling i.e, barrier to advancement to the
higher levels of organizations. This barrier may be due to stereotypes that adversely affect the
development of women or minorities. This is mostly caused by lack of access to training programs or
developmental job experiences etc.

2-Plateauing:

It is the likelihood of the employee receiving future jobs assignments with incresed responsibility is
low. it may be due to

 Lack of ability

 Lack of training

 Unfair pay decision

 Confusion about responsibilities

 Reduced developmental opportunities

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in order to reduce this employees should be motivated to participate in the developmental [programs
and decision making. This will increase the confidence of employees their performance will also be
improved.

3-Skills Obsolescence:

It is the reduction in employee’s competence resulting from the lack of knowledge of new processes
and technology due to rapid advancements. Mostly organizations do not emphasis on training
employees about new technology which in turn prove to be a hurdle in their development. So it is the
responsibility of organizations to conduct training programs and offer courses for teaching employees
about the usage of new technology.

4-Work life conflict:

Work life conflict arises when employees at any organization tend to show negative attitude against
any particular employee. This may be due to stereotypical nature or discriminatory attitude which can
be against women or minorities. Such conflict results in blocking progress of that person.
Organizations should take measures in resolving such kinds of conflicts by conducting mentoring
programs and different kind of activities.

Example:

WALMART:

 Wage And Hour Violations :

Not only does the company have a history of methodically violating workers’ right to join a union, the
Wal-Mart record on worker rights is a laundry list of abuse. Wal-Mart has racked up a striking
number of wage and hour violations.

 Decreased health care coverage:

Wal-Mart has decreased health care coverage to employees while touting its commitment to offering
affordable care. Evidence suggests that Wal-Mart may have even adopted a strategy of eliminating long
time workers and discouraging overweight or otherwise unhealthy workers from applying—both as
measures to reduce payroll and health care costs.

 Payment of low wages:

Wal-Mart pays low wages and appears to aggressively seeks to keep wages down.

 Gender Discrimination

The company faces the largest gender discrimination case in the history of this country.
Discriminatory policies are as follows:

1. Denied Training: Women had been denied training and promotion opportunities that are offered
to men.
2. Under payment: women are underpaid in relation to men.

According to Hoover’s handbook of American business, “in June 2001 a group of six current
and former female Wal-Mart employees filed a sex discrimination lawsuit (seeking to represent up
to 500,000 current and former Wal-Mart workers) against the company. The suit was filed because
Wal- Mart failed to provide equal employment for women.
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 Less Managerial positions to women:

In fact, there are over 70 percent of women working at Wal-Mart, but only a small amount of those
women are managers. So, men are holding more management positions than women.

 Less dignity and respect to women:

“Wal-Mart is the nation's largest employer of women, but unfortunately they are being treated
without dignity and respect." (www.arkansasnews.com)

 Wal-Mart injury developed cancer - Wal-mart does not care *rebuttals

In a unfortunate incident an employee was hurt and compensation was asked but was completely
denied and the small wound was converted into cancer because she was poor and couldn't afford
medical treatment. So in wall mart employees are not treated as a part of the family and business and
have no values in the eyes of management and board as was reported by the ex-employee.

HRM ethics is a root cause of many important problems in business ethics, and may represent the solution
to even more
Ethics in Performance Evaluation
• Performance evaluation lends itself to ethical issues. Assessment of an individual’s
performance is based on observation and judgment. HR manager are expected to observe the
performance in order to judge its effectiveness. Ethics should be the cornerstone of
performance evaluation, and the overall objective of high ethical performance reviews should
to provide an honest assessment of the performance and mutually develops a plan to improve
the ratee’s effectiveness
• Many HR professionals will be involved in regular performance evaluations of their co-
workers. Because these appraisals are made for co-workers, the professional may be tempted
to make their evaluations based not solely on the employee's performance, but on personal
feelings about the employee as well. An HR professional may have a bias towards a friend in
the office and a prejudice against an office rival.
POST-HIRING PHASE
Through the performance evaluation process, organizations measure the adequacy of their employees' job
performances and communicate these evaluations to them. One aim of evaluation systems is to
motivate employees to continue appropriate behaviors and correct inappropriate ones. Management
also may use performance evaluation as tools for making HRM-related decisions, such as
promotions, demotions, discharges, and pay raises

Ethical Dilemmas in Performance Evaluation /Appraisal Revisited

"Janus-headed" evaluation of inaccuracy in performance ”

In managers' dynamic, real-world environments, they often feel it is necessary to exercise some creative
discretion over employee ratings. Most managers do not describe their ratings of subordinates in
performance appraisals as completely honest or accurate. The inaccuracy is often in the form of inflated
ratings. They justify the inaccuracy by sighting, among other things, the need to avoid confrontation with
subordinates, damaging working relationships, and creating permanent written documents which may
later harm a subordinate's career. Many of these motives are not only well intentioned, but are designed to
enhance individual, unit, and organizational performance (some of the ultimate objectives of performance
appraisal systems.) This paper examines the ethics of this sort of deliberate manipulation of performance
appraisal systems. It suggests that at the organizational level, performance appraisal is usually seen as an
end in itself, and a formalist ethical critique is applied. At the managerial level, performance appraisal or
evaluation is usually seen as a means to an end, and a utilitarian critique is applied. Since both
perspectives are essential, we conclude that a Janus-Headed analysis is needed. We suggest some duties
and obligations for both the organization and the manager engaged in performance appraisal.
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Clinton O. Longenecker is an Associate Professor of Management at the University of Toledo and has
published a variety of articles in both academic and professional journals on the topic of performance
appraisal
Solution/Prevention
• To avoid becoming entangled in ethical issues, HR professionals should attempt to identify
conflicts of interest and other possible ethical complications before they arise. In many situations,
HR professionals should rescue themselves from certain duties. For example, an HR professional
should find someone else to perform a performance evaluation on a person with whom they are
friends. In some cases outside parties should be consulted, such as in setting compensation for
senior executives.
A Performance Evaluation Tool (PET)

The performance evaluation is conducted between the employee and his/her immediate supervisor, in
which the supervisor evaluates the performance of the employee. The supervisor provides feedback to the
employee regarding his/her performance and areas of concern. The evaluated performance level during
the evaluation will be used for justifying personnel actions relative to promotion, transfer, and salary
adjustments.

• Outstanding: Performance substantially and consistently above required standards for the
position.
• Competent: Consistently meets objectives and produces the desired results that are expected for
a qualified employee in this position. Performance meets required standards for the position.
• Needs Improvement: Areas of improvement are noted. Performance is less than expected, and
below required standards for the position. Consideration must be given to probationary status
pending improvement of performance.
• Unsatisfactory: Does not meet objectives. Performance substantially and consistently below
required standards for the position. If significant improvement is not made, termination will
follow

Meaning of Ethical Wage and Salary Administration

Wage and Salary Administration is the group of activities involved in the development,
implementation and maintenance of a pay system
It can also be called the ongoing process of managing a wage and salary structure

The main objective of wage and salary administration is to have a scientific, rational, and balanced
wage & salary structure
In salary administration, the employer should not feel that the employees are paid more than they
deserve and the employees should not feel that they are underpaid. Unless there is a scientific
approach /method we cannot solve this conflict
Here wage and salary administration includes allowances, leave facilities, housing, travel, etc and
non-cost rewards such as recognition, privileges and symbols of status.
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Developm
Ethics in layoff

Discharging the unneeded workers temporarily but sometimes termination becomes permanent.
• Layoff is common for industries where goods are produced on seasonal basis. For example in
construction, where building activity typically slows or stops in the winter months and resumes in
spring.

• Layoffs also take place in times of economic down-turn because overall demand declines.
Conduct Job
Producers will cut back from three shifts to two or one or release some employees even when
only operating one shift. It can be due to lack of resources needed; hence production goes down
resulting in layoffs.

• evaluation
In still other situations, layoffs are conducted to improve an already good situation. Such layoffs
may come about in mergers or acquisitions. Here two companies become one, and frequently
plants or offices are closed and their employees lay off to reduce duplication. These layoffs are
also conducted to reduce labor costs, but the motivating factor (or at least the precipitating factor)
is the merger or acquisition.
• Another circumstance in which layoffs are conducted to improve an already good situation
involves outsourcing. The theory of core competency suggests that a company can perform best
by identifying its core competency, concentrating its efforts and its employees on performing
core functions, and contracting with other companies to perform other functions. In practice, this
can lead to layoffs if a company decides to stop performing certain functions and not to employ
those people who formerly carried them out.

• Based on statistics collected by the U.S. Department of Labor (DOL), extended mass layoffs have
affected on average 1.9 million employees in the period 1996 through 2008.

Layoff examples in Pakistani context:

Gas shortage in Punjab may cause big layoffs

You all are well aware of energy crises in Pakistan. All Pakistan Textile Mills Association (APTMA)
fears massive layoffs in case the textile industry in Punjab is refused gas availability. Prime Minister
issued instruction on December 23, 2010 not to subject at least the textile industry to gas load shedding
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for more than two days a week even during severe winter months.
The President of Pakistan declared 2011 as year of textiles on February 8, 2011. The SNGPL, he added,
gave the first ''gift'' after this announcement by announcing a cut in gas supplies to five days a week.
''How could we survive and execute export orders by working two days a week?''. Around million textile
workers are fired in Punjab because closed mills are not able to pay their salaries. The decline in
industrial activities is being experienced in other provinces as well but workers in Punjab suffer the more
as most labor intensive industries are in Punjab. Over 80% of textile units are in Punjab. This industry is
in deep trouble, over 40% of the knitwear and garment units have closed down while the spinning and
weaving activities have gone down by 30%, rendering at least a million workers jobless. The textile
sector accounts for 38% of the total industrial workforce in the country.
The majority of car assemblers are located in Sindh while the auto vending industry is based in Punjab.
The auto assemblers have a workforce of only 7,000 to 8,000. The auto vendors employ a workforce of
over 250,000. After a decline in car sales, the number of workers removed by car assemblers has reached
3,000 while the number of worker relieved from jobs by the auto vending industry is around 125,000.
Similarly, Punjab is the hub of home appliances manufacturing whose sales are on the decline. There is a
substantial decline in the production of television sets, washing machines, split air conditioners or
microwave ovens. The decline in production was accompanied with reduction in workforce.
Punjab accounts for 56% of the total population of Pakistan. Any decline in employment opportunities
hits the people of Punjab more than other provinces because its industries are based on labor intensive
jobs. The fear of job loss has created panic among all class of workers in the province.
When is it ethical?

Ethics is the branch of philosophy that deals with the morality of human decisions and actions, and
business ethics deals with them in a business setting. One approach to determining the morality of a
decision or action is utilitarianism, which holds that a moral decision or action is one that results in the
greatest good for the greatest number of people. It is common to justify layoff on the basis that
terminating 500 people will save the company from bankruptcy and hence preserve the jobs of 2,500
others.

When is it unethical?

• Firing an employee without any notice when his performance is satisfactory or even exemplary
• Layoff is based on personal relations with employees.

• Random layoff, without considering potential of employee. John Dorfman, a Boston-based

money manager, analyzed the post-layoff performance of a sampling of companies. The review
included 11 to 34 months of data for the companies’ sample. His article Job Cuts Often Fail to
Bolster Stocks reports an average performance gain by the companies that had announced job
cuts at 0.4% while the performance for the S&P 500 during the comparable time period was a
gain was 29.3%.

Impact of layoffs:

• From the stock market's point of view, such a decision is usually a good thing - a company's stock
price often rises on the day that a layoff decision is announced.
• From top management's point of view, such a decision can seem to be the best, or even the only
one, available to solve serious problems that the top manager must address.
• From the point of view of the managers or supervisors assigned to deliver the news to individuals
about to be terminated, the decision often produces sorrow or guilt, or both.
• From the point of view of the terminated employees, shock, disbelief, and anger are among the
typical reactions.

Alternative to layoff and ethical ways to handle layoff:

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• For ethical reasons, companies should avoid layoffs whenever possible by tightening the
corporate belt in other ways. The community may be better served if everyone takes a pay cut or
seize all benefits or a cutback in hours rather than having some people put out of work.

• One of the most effective and most immediate of these is restructuring. These often include
things such as closing of obsolete plants or branches, administrative overhauls, selling of non-
core operations, or improving internal processes.

• A company may lay off employees it considers the low end producers, but in doing so it creates a
climate of personnel uncertainty. That uncertainty causes others to leave. The first people to leave
due to uncertainty in the company are the best people, because they can always get another job
somewhere else. The climate of uncertainty that follows a layoff, therefore, always guarantees a
reduction in the quality of the staff, not just the quantity. In order to ensure innovative and stable
environment, layoff system should be transparent.

• State clearly in contract that in case of any hard times to cut operating cost of organization layoffs
can be the mechanism.

• Explain complete reason of layoff to the employee, not just straight away throw him out of job.

Ethical guidelines:
As we have seen ethics is involved in each and every corner of HRM. Thus here in the following section
some guidelines have been provided to HR professional by which they would be able to handle it in much
better ways.

Ethical Leadership
Human resource professional should exhibit individual leadership as a role model for maintaining the
highest standard of ethical conduct. The intention behind ethical leadership is like –
• To earn individual respect.
• To earn our credibility with those whom we serve.
• To set example and standard for others.
Some guidelines have been developed for the HR managers which would help them to exhibit Ethical
leadership –
1. be ethical and act ethically in every sphere of professional interaction.
2. To check out individual and group actions regarding the ethical decisions are implemented in an ethical
manner.
3. To for expert opinion and guidance if any doubt about the ethicality of any situation.
4. Generate more ethical leaders in organization by teaching and monitoring.

Professional Responsibility
In today’s scenario the important responsibility of HR professional is to add value to the organization
which they serve and contribute to the ethical success of the organization.
The purposes and aims behind developing professional responsibility are –
• To influence workplace and recruitment practices
• To assist the organizations in achieving their objectives and goals.
• To encourage professional decision making and responsibility.
• To build up credibility, respect and strategic importance for HR profession internal as well as external.

Guidelines
Some guidelines which make HR professional to discharge there professional responsibility –
1. Strive to achieve the highest levels of service, performance. and social responsibility.
2. Achieve and maintain the highest standards of ethical and professional behavior.
3. Practicing the appropriate use and appreciation of human beings as employees.
4. Comply with the law.
5. Consistency of work with the value of the profession should be maintained.
6. To influence decision making and results, advocate open debate well within the established forums.
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Fairness and Justice

The care ethical responsibility of HR professional is to promote and faster fairness and justice for all
employees and their organizations. The basic intention behind that is to create and sustain an environment
that encourages all individuals and the organization to reach their fullest potential in a positive and
productive manner.
Guidelines
1. Treat people with respect, dignity and compassion to develop an environment which would be free
from harassment, intimidation and discrimination.
2. Plan, develop, manage and advocate policies and procedure that foster fair consistent and equal
treatment to all.
3. The organization’s decision legal and ethical irrespective of personal interests must be supported.
4. Each individual has some uniqueness and intrinsic worth, so respect for it.
5. An inclusive approach in the organization should be followed which ensure that each and every one in
the organization has an opportunity to develop the skills
6. If the organization deals in international businesses then sound management practices with full of
responsibilities should be shown.

Professional Development
As professional development is a non-ending continuous process. The professionals must strive to meet
the highest standards of competence and commit to strong them the competencies. The basic purposes
behind the development are –
(a) To broaden the understanding of how organization carry out the work.
(b) To expand and advance the knowledge about HRM to better understand how the organization
function.
Guidelines
Some guidelines for HR professionals for their professional development:
1. Commitment for continuous learning and skill development.
2. Try to pursue formal academic opportunities.
3. Contribute to the evolution of the profession and the growth of individuals through research and
development teaching.

Conflicts of Interest
The HR professionals must maintain a high level of trust with their stake holder. They should protect the
professional integrity and the interest of all the stakeholders. They should not engage in the kind of
activities which create potential conflict of interests. This principle has been developed with the intention
to avoid conflicts which may appear with any of the provisions of this code of ethical and professional
standards in HRM.
Guidelines
1. Make a list of priority obligations to identity conflicts of interest.
2. Advocate the use of published policies on conflicts of interests within the organization.
3. Never-ever indulge in giving or seeking preferential treatment in human resources.
4. Using the power of the position for personal material or financial gain is unethical.

Use of Information
It is the basic duty of HR professionals to ensure that there is a flow of truthful communication and
informed decision making in the organization where they serve. They should maximize the open
exchange of information by this they would be able to build trust among all organizations constituents
and it would reduce the worries about inaccurate and inappropriate information among the members of
the organization.
Guidelines
1. Acquire and provide information through ethical and responsible means.
2. Maintain up to date as well as accurate HR information.
3. Proper investigation about the accuracy and source of information before it is to be used in decisions.
4. Take care and safeguard measures for restricted or confidential information.
5. Take proper steps to ensure the accuracy and competence of all communicated information about HR
Policies.
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6. Take proper steps to make it sure that the above information is used in HR related training.

Conclusion:

A man without ethics is a wild beast loosed upon this world. Now we have seen importance of Ethics in
all phases of HRM. The strength of any business is heavily reliant on the quality of its human resource.
Also, how employees are treated will largely determine the extent to which they will perform. The HR
professionals must therefore manage employees’ ethical conduct, in order to construct an organizational
climate and culture to support and encourage ethical behavior.