Business Ethics

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HR RELATED ETHICAL ISSUES

INTRODUCTION:
Ethics refers to a system of moral principles - a sense of right and wrong, and goodness and badness of actions and the motives and consequences of these actions. In the business, businessmen must draw their ideas about what is desirable behavior from the same sources as anybody else would draw. Ethical values channelize the individual energies into pursuits that are benign to others and beneficial to the society. Ethical issues abound in HR activities, such as remuneration, labour relations, health and safety, training and development etc. This article offers insight into a detailed discussion of how ethical issues related to HR situations. HR Of all the organisational issues or problems, ethical issues are the most difficult ones to handle or deal with. Issues arise in employment, remuneration and benefits, industrial relations and health and safety.

Diagrammatic representation of HR Ethical Issues

Cash and Compensation Plans
There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The HR manager is often under pressure to raise the band of base salaries. There is increased pressure upon the HR function to pay out more incentives to the top management and the justification for the same is put as the need to retain the latter. Further ethical issues crop in HR when long term compensation and incentive plans are designed in consultation with the CEO or an external consultant. While deciding upon the payout there is pressure on favouring the interests of the top management in comparison to that of other employees and stakeholders.

Race, gender and Disability
In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised employee behaviours...
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