1. Ethics in Human Resource Management Myrna L. Gusdorf, MBA, SPHR 2010

2. As modified for Presentation to NNMHRA June 12, 2012 Paul Biderman, JD Instructor SHRM© 2010 2

3. Ethics Compliance Programs Written code of ethics. Written standards of conduct. Ethics training. Mechanism for employees seeking advice. Reporting network where employees can report inappropriate behavior without fear of retaliation. Ethical behavior as a part of the performance appraisal system. Fair, consistent and predictable discipline and corrective action for violating ethical standards. SHRM© 2010 3

4. Components of an ethics code What should a company or agency include in its ethics code? SHRM© 2010 4

5. Ethics Compliance Programs “But we’ve been doing that …and ethical violations are still commonplace.” Even Enron had a code of ethics! SHRM© 2010 5

6. Creating a Culture of Ethics It’s not the compliance program–it’s the culture. Management sets the tone. > Managers must model ethical behavior. They must “walk the talk.” > Employees must trust management at all levels. > Employees learn appropriate behavior by what they see managers doing. > The importance of ethics must be communicated at all levels of the organization. > Reward ethical behavior. Assess how the job was done, not just “making the numbers.” SHRM© 2010 6

7. HR’s Role in Organizational Ethics Develop policies. Communicate with employees. Provide training. Handle inquiries. Provide assistance in resolving difficult situations. Be The Impenetrable Wall against unethical conduct SHRM© 2010 7

8. Fostering Ethical Organizations Strategic Management > Align organizational systems to support ethics. Ethics must be an integral part of the organization’s strategy and values. > Organization leaders must champion ethics. Management sets the tone. Leaders must demonstrate and foster integrity. Should empower HR or other appropriate department > Champion diversity and equity across the organization. > Ensure stakeholder balance that addresses conflicting interests. > Focus on the long-term perspective. SHRM© 2010 8

9. Fostering Ethical Organizations Staffing: Recruitment and Selection > Ensure equal opportunity practices. > Recruit ethically responsible people. > Make ethics a necessary selection criterion. > Interview for ethical values. SHRM© 2010 9

10. Fostering Ethical Organizations HR Development Provide ethics training for all employees. Ensure equal access to development and career opportunities. Performance management and employee appraisal. > Balanced scorecard assessment. > Appraise ethical behavior as well as task accomplishment. “Hitting the numbers” is not enough. > Give employees specifics on how to improve. SHRM© 2010 10

11. Fostering Ethical Organizations Compensation and Reward Systems > Decrease pay inequities. Control executive compensation. > Reward group or organization success. > Provide incentives for cooperation. Gainsharing. > Focus on intrinsic motivation. > Continuous learning. > Quality management. SHRM© 2010 11

12. Fostering Ethical Organizations Employee Safety and Health Ensure safety goes beyond compliance. Make health and safety a priority and not just words on paper. Provide safety training and protective equipment. Incorporate policies that protect employees and the organization from risk. Encourage open dialog and communication. SHRM© 2010 12

13. Fostering Ethical Organizations Employee Relations Full compliance with all employment and labor regulations. Training for all supervisory employees. Open communication. Equity in promotion and retrenchment processes. Skip-level interviews. Employee grievance systems. Whistleblower protection. Exit interviews. SHRM© 2010 13