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In the name of ALLAH, the most Beneficent & the most


Submitted by: Yawar Ali Raja (007)

Momin Ashfaq (022)
Sameed Malik (026)
Syed Ali Abbas (027)
Omar Ahmad (037)
Submitted to:
Ma’am Saima Aftab
13th May 2019
“Ethics in Human Resource”
Ethics role in HR: Human resource management deals with manpower planning
and development related activities in an organization. Arguably it is that branch of
management where ethics really matter, since it concerns human issues specially those
of compensation, development, industrial relations and health and safety issues.
Paying attention to business ethics is an important part of any business owner or
manager's job. The human resources function deals with a variety of ethical challenges;
being the department that deals directly with people employed by a company, HR
includes numerous ethical pitfalls that can damage a company's reputation or financial
sustainability if not handled properly. Understanding the importance of ethics in human
resources is crucial for any business owner, whether in a local startup or a multinational

Ethical Issue in HR: Of all the organizational 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
favoring the interests of the top management in comparison to that of other employees
and stakeholders.

Race, gender and Disability: In many organizations 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
standardized employee behaviors towards each other. In good organizations the only
differentiating factor is performance! In addition, the power of filing litigation has made
put organizations on the back foot. Managers are trained for aligning behavior and
avoiding discriminatory practices.

Employment Issues: Human resource practitioners face bigger dilemmas in

employee hiring. One dilemma stems from the pressure of hiring someone who has
been recommended by a friend, someone from your family or a top executive.

Yet another dilemma arises when you have already hired someone and he/she is later
found to have presented fake documents. Two cases may arise and both are critical. In
the first case the person has been trained and the position is critical. In the second case
the person has been highly appreciated for his work during his short stint or he/she has
a unique blend of skills with the right kind of attitude. Both the situations are sufficiently
dilemmatic to leave even a seasoned HR campaigner in a fix.

Privacy Issues: Any person working with any organization is an individual and has a
personal side to his existence which he demands should be respected and not intruded.
The employee wants the organization to protect his/her personal life. This personal life
may encompass things like his religious, political and social beliefs etc. However certain
situations may arise that mandate snooping behaviors on the part of the employer. For
example, mail scanning is one of the activities used to track the activities of an employee
who is believed to be engaged in activities that are not in the larger benefit of the

Similarly, there are ethical issues in HR that pertain to health and safety, restructuring
and layoffs and employee responsibilities. There is still a debate going on whether such
activities are ethically permitted or not. Layoffs, for example, are no more considered as
unethical as they were thought of in the past.

Six Guidelines for HR teams in ethics: The moral heart of a company can
seem like an overwhelming task. But no matter the issue, HR professionals that uphold
strong ethical standards and strive for a fair work environment will maintain employee
confidence and attract new candidates. Here are six HR ethics guidelines organizations
can follow to master the art of ethical decision-making and become a valuable resource
for their employees.

1) Know the laws: As a representative of an organization, HR professionals

need to make tough decisions and hold employees accountable for wrongful
actions and that's not an easy task. To do so effectively requires confidence and
authority. Knowing important labor laws and compliance practices will help
manage these issues as they arise, as opposed to after the fact.

For example, if an employee were to request short-term disability, you would

need to understand your benefits provider’s short-term disability policy and
eligibility. You will also be expected to know insurance laws and explain them to
your employee. Familiarizing yourself with these laws early on will save you time
and equip you with knowledge to navigate legal challenges in the future.

2) Prioritize professional development: HR is a constantly changing

field, especially as new conversations arise and technology continues to change
the way we work. Staying on top of these changes requires a new set of skills and
knowledge. Participating in trainings is one way to stay ahead of the curve.

Many HR professionals also pursue advanced degrees and certifications specific

to the field. Some become specialists in a particular area, like payroll, recruiting
or benefits. Others, like HR generalists who have a broader set of responsibilities,
may choose to continue their professional development through workshops and
continued education. There is no one-size-fits-all approach to learning. HR
professionals, especially those who are new to the industry, should assess their
progress and consult their managers to find a career path that works for them.

3) Be an ethical HR leader: Conflict between colleagues is inevitable in the

workplace. Imagine, for example, an employee tells you that their manager, a
high-level executive, has treated them unfairly. A situation like this requires you
to engage in tough conversations with everyone involved. Being an ethical HR
leader means being confident in your moral decisions and effectively
communicating them to employees. Ethical decision requires three things:

 Commitment: ‘The desire to do the right thing regardless of the


 Consciousness: ‘The awareness to act consistently & apply moral

convictions to daily behavior.’

 Competency: ‘The ability to collect & evaluate information, develop

alternatives & foresee potential consequences & risks.’

4) Understand conflicts of interest: Conflicts of interest are detrimental

to how a business operates because they create internal politics that distract
from a company’s bottom line and cause the quality of work to deteriorate. Take
favoritism for example—the practice of giving certain employees preferential
treatment. It is not illegal to play favorites, unless in doing so you are
discriminating against someone else on the basis of race, gender, sexual
orientation or another protected class. While you can’t change the law, you can
implement company policies that prohibit this behavior.

In the case of favoritism, according to the Employment Law Handbook, the first
step is to distinguish between favoritism and fair recognition based on
measurable performance. Once you have written standards in place, make sure to
also determine consequences for employees who fail to abide by the rules.

5) Implement diversity and inclusion practices: Diversity is about

making people feel like they belong. In his interactive session at First Round
Capital’s Summit Conference, Hooper-Campbell used the metaphor of a school
dance. Everyone is invited to this school dance, he says, but only the jocks are

“If diversity is being invited to the dance party, inclusion is being invited to
dance,” he said. A company might recruit and hire a diverse workforce, but if only
certain groups of people feel valued and included, there’s a problem.

By working with colleagues to develop a list of company values and morals, HR

professionals set the standard for diversity and inclusion at their organization.
This list will help professionals zero in on what’s important to their organization,
and hold employees accountable.
6) Keep information confidential: From social security numbers to
medical records, HR professionals have access to a lot of confidential information
about employees. By making sure paperwork and electronic systems are secure,
you can rest easy that your company’s information is protected.

As an HR professional, you also have a legal obligation to keep everything an

employee tells you confidential, unless otherwise specified or discussed. For
instance, if an employee comes to you with a concern about a colleague or tells
you they have witnessed sexist or racist behavior in the office, it is your job to
manage this information without revealing your sources.

While HR professionals face a number of hurdles that can make the job
challenging, it can also be equally rewarding. After all, HR professionals give a
company meaning by improving and enhancing the employee experience. Once
you navigate the ethical challenges of the job, you will be able to effectively
attract and retain a talented workforce.