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    Ethics and HRMEthics and HRMMargaretMargaret SenkaaliSenkaali

    07/HR/W/12707/HR/W/127

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    What is Ethics?What is Ethics?

    Ethics: the philosophical study of theEthics: the philosophical study of themoral value of human conduct andmoral value of human conduct and

    the rules and principles that ought tothe rules and principles that ought togovern it.govern it.

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    ConvictionConviction

    The degree of conviction to yourThe degree of conviction to yourvalues can be described as primary,values can be described as primary,

    secondary, or peripheralsecondary, or peripheral PrimaryPrimary core values, unchangingcore values, unchanging

    SecondarySecondary Important, but changeableImportant, but changeableoccasionallyoccasionally

    PeripheralPeripheral Values that are known butValues that are known butnot lived bynot lived by

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    Ethics, Morality and ValuesEthics, Morality and Values

    Ethics is the study of moralityEthics is the study of morality

    Morals are the standards used toMorals are the standards used to

    judge right and wrongjudge right and wrong Values are the degree of convictionValues are the degree of conviction

    about the way to conduct lifeabout the way to conduct life

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    How DoWe Get Values?How DoWe Get Values?

    Parents, family and friendsParents, family and friends

    ExperiencesExperiences

    The environment (media, education)The environment (media, education)

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    What are work ethics?What are work ethics?

    Work ethics include not only how oneWork ethics include not only how onefeels about their job, career orfeels about their job, career or

    vocation, but also how one doesvocation, but also how one doeshis/her job or responsibilities. Thishis/her job or responsibilities. Thisinvolves attitude, behavior, respect,involves attitude, behavior, respect,communication, and interaction; howcommunication, and interaction; how

    one gets along with others. Workone gets along with others. Workethics demonstrate many thingsethics demonstrate many thingsabout whom and how a person is.about whom and how a person is.

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    Characteristics ofWork EthicsCharacteristics ofWork Ethics

    Work ethics involve suchWork ethics involve suchcharacteristics as honesty andcharacteristics as honesty and

    accountability.E

    ssentially, workaccountability.E

    ssentially, workethics break down to what one doesethics break down to what one doesor would do in a particular situation.or would do in a particular situation.The begging question in a situationThe begging question in a situation

    involves what is right andinvolves what is right andacceptable, and above board, versusacceptable, and above board, versuswhat is wrong, underhanded, andwhat is wrong, underhanded, and

    under the table.under the table.

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    Essential Work EthicsEssential Work Ethics

    Business and industry leaders haveBusiness and industry leaders haveidentified essential work ethics thatidentified essential work ethics that

    should be taught and practiced inshould be taught and practiced inorder to develop a viable andorder to develop a viable andeffective workforce.effective workforce. The ten workThe ten workethics traits identified are statedethics traits identified are stated

    below:below:

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    Attendance: Reports on duty /leaves on time;notifies supervisor advance of planned absences;

    and makes up assignments punctuality.Character: Displays loyalty, honesty,trustworthiness, reliability, dependability, initiative,self-discipline, and self-responsibility.

    Teamwork: Respects rights of others; is a teamworker, is cooperative; is assertive; displays acustomer service attitude; seeks opportunities forcontinuous learning; and displays mannerlybehavior.

    Appearance: Displays appropriate dressed,grooming, hygiene, and etiquette.Attitude: Demonstrates a positive attitude; appearsself-confident; and has realistic expectations of self.

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    Productivity:Productivity: Follows safety practices; conservesFollows safety practices; conservesmaterials; keeps work area neat and clean; and followsmaterials; keeps work area neat and clean; and follows

    directions/procedures.directions/procedures. Organizational Skills:Organizational Skills: Manifests skill in personalManifests skill in personal

    management, time management, prioritizing, flexibility,management, time management, prioritizing, flexibility,stress management, and dealing with change.stress management, and dealing with change.

    Communication:Communication: Displays appropriate nonverbal andDisplays appropriate nonverbal and

    verbal skills.verbal skills. Cooperation:Cooperation: Displays leadership skills; appropriatelyDisplays leadership skills; appropriately

    handles criticism and complaints; demonstrateshandles criticism and complaints; demonstrates

    problemproblem--solving capability;solving capability; maintains appropriatemaintains appropriaterelationships withrelationships with supervisors and peers; and followssupervisors and peers; and follows

    chain of command.chain of command. Respect:Respect: Deals appropriately with cultural/racial diversityDeals appropriately with cultural/racial diversity

    and does not engage in harassment of any kind.and does not engage in harassment of any kind.

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    Factors shaping ethical behaviourFactors shaping ethical behaviour

    atwork

    atwork

    IndividualIndividual

    Everyones ownEveryones ownpersonal moralpersonal moral

    philosophyphilosophy

    Individual stage ofIndividual stage ofmoral developmentmoral development

    Laws andLaws andregulationsregulations

    OrganizationalOrganizational

    The organisationsThe organisationscultureculture

    CoCo--workers andworkers andleadersleaders

    Opportunities to beOpportunities to be

    ethical or unethicalethical or unethical Laws,Laws,

    requirements andrequirements andregulationsregulations

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    Factors shaping ethics inFactors shaping ethics in

    worklife

    worklife

    Influence of leaders and managersInfluence of leaders and managersvery importantvery important

    Companys ethical policies and codesCompanys ethical policies and codes Organizations cultureOrganizations culture

    Companys metricsCompanys metrics

    Company oriented vs ethicallyCompany oriented vs ethicallyorientedoriented

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    Environmental FactorsEnvironmental Factors

    Over the last decade, ethicalOver the last decade, ethicalscandals in business have been onscandals in business have been onthe risethe rise

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    How To Stop Unethical BehaviorHow To Stop Unethical Behavior

    A combination of external regulationsA combination of external regulationsand compliance programs andand compliance programs andvoluntary corporate ethics programsvoluntary corporate ethics programsis the most effective way to combatis the most effective way to combatinappropriate corporate behavior.inappropriate corporate behavior.

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    Organizational ResponsesOrganizational Responses

    Codes of ethics including:Codes of ethics including:

    Explicit standards of rules to be followedExplicit standards of rules to be followed

    Corporate values statementsCorporate values statements

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    Explicit StandardsExplicit Standards

    Explicit standards define preciselyExplicit standards define preciselyacceptable and unacceptable conductacceptable and unacceptable conductsuch as accepting gifts and thesuch as accepting gifts and theamount allowableamount allowable

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    Corporate Values StatementsCorporate Values Statements

    Describes the core values theDescribes the core values thecompany wants its employees tocompany wants its employees toexhibit including:exhibit including:

    How employees are to treat one anotherHow employees are to treat one another

    How employees are to treat customersHow employees are to treat customersand stockholdersand stockholders

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    Effective Values StatementsEffective Values Statements

    Must come from the top with theMust come from the top with theCEO being directly involved in itsCEO being directly involved in itsdevelopmentdevelopment

    Top management must activelyTop management must activelydisseminate the values statementdisseminate the values statementand then live by itand then live by it

    The values statement must beThe values statement must befocusedfocused

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    HR ResponsesHR Responses

    Conduct surveys to determine:Conduct surveys to determine:

    What behaviors are routinely beingWhat behaviors are routinely beingrewarded and reinforcedrewarded and reinforced

    What values and attitudes are prevalentWhat values and attitudes are prevalent

    How strong the pressure to engage inHow strong the pressure to engage inmisconduct ismisconduct is

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    HR Responses ContinuedHR Responses Continued

    Take steps to eliminate andTake steps to eliminate anddiscourage reasons for misbehaviordiscourage reasons for misbehaviorand introduce and encourageand introduce and encouragereasons to behave ethicallyreasons to behave ethically

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    HR Responses ContinuedHR Responses Continued

    Develop an appraisal system thatDevelop an appraisal system thatrewards individuals for ethicalrewards individuals for ethicalbehaviors and punishes those whobehaviors and punishes those whoact unethicallyact unethically

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    HR Responses ContinuedHR Responses Continued

    HR can use its expertise toHR can use its expertise tocommunicate with the workforce tocommunicate with the workforce toget out the ethical messageget out the ethical message

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    Human CostsHuman Costs

    Unethical business environmentsUnethical business environmentscan:can:

    Demotivate individualsDemotivate individuals

    Make good employees leave theMake good employees leave thecompanycompany

    Attract unethical employeesAttract unethical employees

    Lead to the lack of trust by theLead to the lack of trust by theemployees for the companyemployees for the company

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    Guidelines forFostering an EthicalGuidelines forFostering an Ethical

    CultureCulture

    Have a well developed policy andHave a well developed policy andprocedures manualprocedures manual

    Enforce policies

    Enforce policies

    Reward complianceReward compliance

    Recruit ethical employeesRecruit ethical employees

    Create a division to oversee ethicsCreate a division to oversee ethics

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    ConclusionConclusion

    Whenever you are required to makeWhenever you are required to makea difficult decision, especially onea difficult decision, especially onethat is ethically challenging, select anthat is ethically challenging, select anoption that you would be comfortableoption that you would be comfortabledescribing to the nation on thedescribing to the nation on theevening newsevening news

    Business ethics is not an oxymoron.In fact, good ethics is good business.