CHAPTER 5 Ethics and Diversity in Human Resource Management Ethics and people What’s special about human resources? • First, they aren’t owned by the organisation. • Second, they choose to enter into a contract. • That contract is often continuing in form, for a range of reasons. • Anyway, human beings are special, with special rights, that must be respected. Approaches to ethics • Duties – Things that must always be done (or refrained from) – Link to rights and principles • Consequences – Good or bad according to what happens as a result • Virtues – Desirable character qualities Ethics and businesses • Businesses (and other employing organisations) are not the same as people. • However, they do behave with intent ... • … and their actions do result from decisions made by groups of individual people. • The importance of defining clearly the purpose of the organisation – a key aspect of whether a corporate action is good or bad. Business purpose • Some see businesses as existing to make money for their owners, in competition with other businesses and within the law. • Others see businesses as having a broader set of responsibilities to society – The ‘corporate social responsibility’ of business. • Interesting implications for how a business should behave – eg as an employer. Codes of conduct • Help to define desirable behaviours in business • May relate to organisations, sectors or professions • Provide a balance between aspiring to ideals and offering relevant guidance for real-life situations Equal opportunities • The equal opportunities (EO) approach stands against unfair discrimination – Hiring or promoting only on the basis of ability to do a specified job • Strong ethical justification – Duties and consequences • Often underpinned by legal obligations • EO is not the same as ‘positive discrimination’ Cost/benefit perspective: Direct costs Indirect costs DIVERSITY MANAGEMENT Direct benefits Indirect benefits Factors which affect international employee performance • • • • • The compensation package The task Headquarters support The performance environment, and Cultural adjustment See, for example: Dowling, P. J., Festing, M. and Engle A. D. (2008) International Human Resource Management, 5th edition. London: Thomson Performance focus factors v individual valance Workplace diversity: a business success factor 1. A driver for a diverse workforce? – expansion of many large business organisations into international, European and global markets 2. A driver for a diverse workforce? – The (perceived) need for an ethnically/socially wellbalanced workforce 3. A driver for a diverse workforce? – Improve and or maintain organisational ‘image’ 4. A driver for a diverse workforce? – Increases in labour mobility (perhaps linking to:) – Changes in the supply and demand for labour Diversity behaviours in the workplace Source (adapted): Robbins, S. P. (2005) Organizational Behaviour, 11th edition. Harlow: Pearson/Prentice Hall; p.600