Importance of Ethics in Human Recourse management

 

Introduction to HR Ethics 

 



HR ethics refers to the moral principles and standards that guide the behavior and actions of human resources professionals in managing an organization's workforce. It includes a broad spectrum of activities, including recruitment, training, employee relations, performance management, compensation, and termination. HR ethics aims to ensure fairness, transparency, and respect in workplace interactions, promote the rights and dignity of employee and fulfill the organization's objectives and legal obligations  (Akhil Goyal, 2022).

Key components of HR ethics 

    

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1.FairnessEnsure equal treatment and equal opportunities for all employees,                                      regardless of their background or personal characteristics.

2. Integrity: Acting honestly and transparently in all HR practices, from recruitment                             process to handling disciplinary actions.

3. Confidentiality: Respecting data privacy and ensuring the confidentiality of sensitive                                 information are fundamental priorities.

4. Compliance: Comply with labor laws, regulations and organizational policies and                                 promote ethical behavior within the workplace.

5. Respect: Create a workplace where diversity, equity and inclusion are important and                      where everyone's contributions are recognized and valued.

6. Accountability: Make sure HR professionals and the organization follow ethical                                       practices and decisions that match our core values and principles (Han,   2023).






Ethical issues faced by HR


·Personal influence for recruitment 

 

It’s important for HR to ensure hiring decisions are based on skills, qualifications, and experience rather than personal relationships. Nepotism can affect the overall morale and fairness of the workplace  (The People Lab, The Golman School.Berkeley, 2022).



· Submission of inaccurate credentials by job applicants


HR is responsible for verifying credentials and ensuring that applicants are honest about their skills and qualifications. Failure to do so can compromise the integrity of the hiring process.


· Determination of pay, increments and incentives especially for outstanding performers

Deciding how to reward employees, particularly top performers, can be a sensitive area.HR must ensure that performance reviews and compensation are handled objectively, ensuring fairness and transparency for all employees. Merit-based incentives should be aligned with clear criteria. Discrimination against employees based on religion, gender, or disabilities in the areas of recruitment, performance evaluations, and training processes. HR is responsible for ensuring an inclusive and non-discriminatory environment. All employees should have equal opportunities for growth and development, irrespective of personal characteristics.

 


· Respect employee privacy in terms of IT policies, health checkups and disciplinary matters

 Employees personal data and health information should be handled with care, respecting confidentiality and following privacy laws. Disciplinary matters should be approached in a fair and transparent manner, ensuring due process is followed.


· Maintain fairness in a restructuring environment

HR needs to communicate clearly with employees and offer support where possible. Any decisions regarding layoffs or role changes should be based on objective criteria, and affected employees should be treated with respect and provided with appropriate resources. During restructuring or downsizing, employees may face job loss, demotion, or reassignment. HR must ensure that decisions are made fairly and transparently.


MAS Holdings, one of the largest apparel manufacturers in Sri Lanka, is known for its commitment to ethical practices and corporate social responsibility (CSR) in its operations. By integrating ethical principles such as Employee Welfare/Fair Labor Practices/Training and Development/  Community Engagement into their HR practices, MAS Holdings not only enhances employee satisfaction and retention but also builds a strong corporate reputation both locally and internationally.


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Conclusion

In conclusion, HR ethics plays a vital role in fostering a positive, fair, and respectful workplace environment. It emphasizes the importance of integrity, fairness, transparency, and respect for employees' rights. Ethical HR practices not only build trust and enhance employee morale but also contribute to the long-term success of an organization by promoting a healthy corporate culture, improving productivity, and ensuring legal compliance. By adhering to ethical principles, HR professionals can effectively navigate complex issues, manage diversity, and handle sensitive situations while upholding the organization's values and fostering a supportive work environment for all employees.


References

Akhil Goyal, V. N. (2022). Ethics in Human Resource Management: A Conceptual and Theoretical Analysis. Social sceince Journal, 1821-1831.Available At : (PDF) Ethics in Human Resource Management: A Conceptual and Theoretical Analysis [Accessed on 13th Mar2025]

 

Han, E. (2023). Harvard Business School, Online. Retrieved from online.hbs.edu. Available At : https://online.hbs.edu/blog/post/ethics-and-accountability-in-the-workplace [Accessed on 13th Mar2025]


The People Lab, The Golman School.Berkeley. (2022). Ecidence Based Strategies for Hiring a Strong and Diverse Workforce.Available At: https://peoplelab.hks.harvard.edu/wp-content/uploads/2022/06/Evidence-Based-Strategies-For-Hiring-a-Storng-and-Diverse-Workforce_Final.pdf  [Accessed on 13th Mar2025]



 

 

 

 

 

 

Comments

  1. There is a sensitive area when HR try to implement merit based incentives , where it should be aligned with clear criteria else it can leads to unsatisfactory among employees

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  2. This post captures some of the most pressing ethical challenges HR professionals face, from fair recruitment to maintaining employee privacy and ensuring transparency in compensation and restructuring. Upholding ethical standards in these areas is important for creating a fair and inclusive workplace. The example of MAS Holdings demonstrates how ethical HR practices contribute to employee well-being and corporate reputation. Organizations that prioritize integrity and fairness in HR policies are more likely to build a positive work culture and longterm success.

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  3. Ethics involve maintaining transparency within organizations. Most organizations foster positive interconnections among employees through ethical HR functions, enhancing outcomes for everyone.

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  4. HR ethics is often the foundation of trust and success within an organization, and this post covers the most vital aspects. It’s reassuring to see the emphasis on fairness, transparency, and respect for employees’ privacy. These principles ensure a positive work culture, and companies like MAS Holdings show how integrating ethical practices benefits both employees and the organization as a whole. Truly essential reading for HR professionals!

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  5. This comment has been removed by the author.

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  6. The ethics of HRM are well explained in your blog post. As per my perspective HR ethics emphasizes the importance of integrity, fairness, transparency, and respect for employees' rights. I appreciate the detailed insights on this. Looking forward to more content like this!

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  7. This article highlights the importance of HR ethics in building a fair, transparent, and successful workplace. A well-researched and insightful read!

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  8. You have clearly conveyed the importance of ethical practices in HRM. It seems some Sri Lankan HR professionals may not fully understand their responsibilities in this area.

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  9. This comment has been removed by the author.

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  10. Insightful article.Developing Code of Ethics in the organization and communicate a clear code of conduct that meet ethical expectations, including behavior, decision-making, and responsibilities is an important practice to ensure Ethics in HRM in a sustainable manner.

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  11. Work place ethics are one of important building block for a strong work place culture. This article has comprehensively analysed how its important from recruitment to day to day activities in an organisation

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  12. There is a point to add that ethical HR practices can enhance a company's reputation, making it more attractive to potential employees and customers. This positive image can lead to business growth and success. HRM ensures that the organization operates within legal boundaries and maintains a positive work environment.

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  13. Nice discussion.industrial ethics in HRM,finally fostering trust,ensuring legal compliance and promoting fair treatmenr,ultimately leading to a positive work enviroment and improved employee engagement ,retention and productivity.

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  14. agree that HR ethics are crucial for creating a positive and fair workplace. Upholding integrity, transparency, and respect for employees' rights not only builds trust but also strengthens the organization's culture and long-term success. Ethical practices help HR navigate challenges, improve productivity, and ensure a supportive environment for all employees.

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  15. Ethics in Human Resource Management is fundamental to building trust, fairness, and integrity within an organization. Upholding ethical practices ensures transparency, promotes a positive work culture, and strengthens employee engagement and organizational reputation.

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  16. This is a really insightful breakdown of HR ethics! I love how you’ve highlighted key principles like fairness and integrity and how they shape a positive work culture. The MAS Holdings example really brings the point to life, showing how ethics can boost both employee satisfaction and a company’s reputation. Overall, great job showcasing how ethical practices in HR can make a big difference in creating a respectful and successful workplace

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  17. Your blog post effectively highlights the critical role of ethics in Human Resource Management, emphasizing principles such as fairness, integrity, and confidentiality. The inclusion of real-world examples, like MAS Holdings, illustrates the practical application of these ethical standards in fostering a positive organizational culture. Your insights contribute to understanding how ethical HR practices enhance employee trust and organizational success.​

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