Apply Ethical Frameworks

Workplace ethics, also sometimes referred to as business ethics or organisational ethics, refers to a set of rules that guide the individual and group behaviour of the people in an organisation. These rules affect how employees and customers interact with the organisation. They are often laid out in a code of conduct, which establishes the moral and ethical requirements that employees and the organisation must follow.

Ethics in human resource management means treating employees equally and with fairness. HR managers should not discriminate against employees based on factors like colour, culture, appearance, religion, or employment status. When a business follows ethical practices, it helps achieve its goals because employees feel motivated, work efficiently, and contribute effectively.

When employees start working at an organisation they should know how the business works and what is expected of them in terms of their behaviour and contributions. It is the HR department's job to give employees guidance on what is considered right and wrong behaviour. This is usually done through an employee handbook. Building trust among employees is crucial in an organisation retaining staff.

The human resources professional is expected to be a positive role model and demonstrate high standards of ethical behaviour. Ethical requirements associated with human resources functions and processes may include:

• Advertising e.g. crafting job advertisements that are inclusive, unbiased, and free from discriminatory language.
• Recruitment e.g. treating all candidates fairly, regardless of their background, and evaluating them based on their qualifications, skills, and experience relevant to the job requirements.
• Interviewing e.g. conducting interviews based on objective criteria and assessing candidates fairly and consistently.
• Referee checks e.g. checking references to assess a candidate's interpersonal skills, teamwork abilities, and overall compatibility with the organisational culture.
• Identity checks e.g. checking identity to foster trust among existing employees, who can be assured that their colleagues have undergone a legitimate screening process.
• Onboarding e.g. regularly checking in with new employees, providing them with opportunities to ask questions, seek clarification, and provide constructive feedback to support their growth and development. This helps ensure that employees feel supported and valued throughout their onboarding journey.
• Training and development e.g.training and development initiatives are offered in a transparent and inclusive manner, accessible to all employees, regardless of their background, position, or tenure. 
• Performance management e.g. performance management processes align with legal requirements, including non-discrimination laws, privacy laws, and regulations related to performance evaluations and feedback.
• Monitoring e.g. offering constructive feedback, highlighting areas of strength and areas of improvement enabling employees to understand their progress, make necessary adjustments, and develop their skills and capabilities. 
• Apply principles of the Privacy Act 1988 e.g. obtaining informed consent from employees and job applicants before collecting or using their personal data for HR-related purposes. 
• Security and storage of personal information e.g. personal information is securely stored and protected from unauthorised access, use, or disclosure, safeguarding employees privacy and maintaining their trust.
• Ensuring the accuracy and source of information before it can be used in employment-related decisions e.g. verifying the accuracy and source of information, ensures that decisions are based on reliable and objective data, promoting fairness and equal opportunity. It also protects the reputation of both individuals and the organisation.
• Ensuring only appropriate information is used in decisions e.g.adhering to legal and regulatory requirements concerning the use of information in decisions. 
• Maintaining current and accurate human resources information e.g. ensuring the accuracy of employees' information demonstrates a commitment to professionalism, integrity, and respecting the confidentiality of employees' data.
• Earning respect and credibility with employees e.g. earning respect and credibility demonstrates a commitment to ethical conduct, treating employees with fairness, honesty, and respect. This fosters a positive work environment and contributes to building trust between employees.

Important Readings

Read the following article about ethical and unethical behaviours titled “23 Ethical & Unethical Behaviour Examples in Workplace” by FormPlus Blog.

Watch the following video on code of conduct and ethics by Knowledge City titled “Code of Conduct and Ethics for Employees.”

Check your understanding of the content so far!

Ethical Requirements

In the module forum, discuss examples of positive and negative examples of “ethical behaviour” in business.

Ethical behaviours refer to how employees conduct themselves in the workplace based on principles that the workplace, society or colleagues agree upon that dictate behaviours and actions. Working ethically involves demonstrating that you can follow and obey these required procedures and organisational requirements and rules. Ethical behaviour examples in the workplace  include:

• Punctuality - Being punctual means showing up on time to work, meetings and other work-related appointments, which is a sign of respect, reliability, and professionalism. It shows respect for others who would otherwise have to wait for you. It also indicates that you value your own time and the importance of the event you are attending. When you consistently arrive on time for work, meetings, and other work-related events, work colleagues see you as reliable and trustworthy. 
• Following organisational codes of conduct - Every organisation will have its own internal set of rules or guidelines that employees are expected to follow. These rules shape the organisation's public image and create a positive work environment for all employees. Working ethically means adhering to the code of conduct and showing respect and valuing the well-being of others. 
• Respecting other people - Respecting customers and colleagues is a fundamental ethical behaviour in most organisations. When working with others, close proximity, frequent communication, and occasional disagreements are inevitable. Showing respect helps individuals acknowledge and accept their differences, fosters trust among team members and ensure that everyone operates under fair and safe conditions. 
• Maintaining professionalism - Acting professionally at work means showing respect, remaining composed, and resolving issues constructively, which reflects positively on both the individual and the organisation.
• Respecting authority - Working ethically involves respecting and cooperating with supervisors and executives, working to the best of your ability, and contributing to the overall functioning of the organisation. 
• Exercising accountability - Accountability means taking full responsibility for your actions in the workplace, irrespective of whether they resulted in favourable or unfavourable outcomes. In certain cases, facing unfavourable consequences can make it daunting to accept responsibility, particularly if the outcome results in financial losses for the organisation. However, demonstrating accountability can contribute to mitigating more severe repercussions, as it involves acknowledging the mistake and taking the initiative to rectify it.

Every manager, team leader and staff member responsible for human resources functions must understand their own requirements regarding ethical behaviour and be able to apply ethical obligations to their role and the various decisions that they make. The best way to ensure that all employees know their roles, responsibilities and required ethical behaviours is to:

• Provide clear job descriptions that outline roles, responsibilities and required ethical behaviours
• Organise regular performance reviews that include expectations related to ethical behaviour
• Provide clear employment contracts that include ethical behaviour expectations that are signed, dated and agreed by the employee
• Ensure that all human resource functions and data is confidential, secure and only accessible to the right staff for their roles
• Provide the employees with an employee handbook
• Ensure staff have access to finance policies and procedures relating to purchasing and procurement
• Provide extensive onboarding and on-the-job training
• Provide training and access to the organisation’s code of conduct
• Provide training and access to all the organisation’s policies and procedures
• Develop individual and measurable performance plans and objectives that include expectations related to ethical behaviour
• Have regular staff meetings with staff that include discussions on organisational expectations related to ethical behaviour
• Provide all staff access to the organisation’s strategy, values, mission statement, objectives and team objectives

It is imperative that the necessary and essential information about the organisation’s values, code of conduct, policies and procedures and ethical obligations are provided to all employees prior to and during their employment. This along with the required training and easy access to information will provide employees the required knowledge to perform their duties and meet the required standards of behaviour and expectations of the organisation.

In the real world

An irrigation supplies company has a large warehouse and head office in an inner capital city suburb and stores located in various locations across Australia including metropolitan and regional areas. The human resources officer has been approached by an employee and requested a confidential meeting outside of the organisation. The employee is concerned that the new manager may be stealing from the store as several items were discovered missing in the recent stocktake. When the employee asked the manager about the missing items, the manager refused to acknowledge the issue and tried to blame the previous manager. The human resources officer had to treat the concern discreetly, remain objective and then follow the correct internal procedure with dealing with a grievance, examine the code of conduct and potential theft and if required, the dismissal procedure.

Important Readings

Read the following article on workplace ethics by Sampson Quain titled “Workplace ethics and Behavior.”

Read the following article on workplace ethics by Victorian Public Service Commission titled “Workplace ethics.”

Read the following article on human resource confidentiality by Suzanne Lucas titled “What Does HR Confidentiality Mean?”

Watch the following video on the privacy principles by OAICgov titled “The Australian Privacy Principles (APP) guidelines.”

For further information on ethical behaviour, read the article on the following website by GRC Solutions titled “Top Tips to Encourage Ethical Behaviour in the Workplace.”

Check your understanding of the content so far!

Prior to moving on to the next topic, have a conversation with someone that is not in Human Resources or studying this qualification and in your own words:

• Describe some of the ethical requirements of an organisation in relation to human resources.
• Explain, using three examples, ethical requirements associated with various human resources functions
• and processes.
• Describe which act should be followed in relation to privacy.
• Explain four examples of ethical behaviours and working ethically.
• Describe why it is important to provide information about ethics to employees.