Ethical Challenges that Mold HR Leaders

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1 Ethical Challenges that Mold HR Leaders Is it getting hot in here or what? Kim Silvers, SPHR-CA Silvers HR, LLC It s not always about rendering the right answer, but asking the right questions. A quick evaluation 1. Is it okay to move to better seats at a sporting event if no one is sitting there? 2. Is it okay to make a long distance call after work hours if my company pays a flat LD rate? 3. If I mistakenly receive 2 orders of fries at the drive thru window can I keep them? 4. If Payroll makes an error on my check can I keep it? 5. If I can get a highly qualified candidate for seriously less money (than market rates) because he s been out of work for a long time, should I? 1

2 What makes it an ethical dilemma? a) Significant value conflicts among differing interests, b) Real alternatives that are equally justifiable, and c) Significant consequences on "stakeholders" in the situation. An ethical dilemma exists when one is faced with having to make a choice among these alternatives. Source: Doug Wallace, Consultant Values Morals Ethics Values Important beliefs (e.g., honesty, integrity, compassion, courage, honor, responsibility, patriotism, respect and fairness.) Morals a person s or group s standards of right and wrong or good and bad. Ethics the study and assessment of those standards & values 2

3 What isn t Ethics? Feelings Religion Law Science Cultural Norms How do your employees know? Does your organization have values or ethical standards outlined? See sample at SHRM 3

4 What are the negative effects of ethical violations within an organization? Energy declines Gossip and rumors abound Attendance wanes Turnover increases Clients lose trust Profitability drops - to the point of extinction A couple of ethical approaches Utilitarian Approach Take the action that does more good or the least harm We act to produce the greatest possible balance of good over bad for everyone affected by our actions. 4

5 Rights Approach Respect and protect others rights Rights include: Treat others as ends and not merely as a means to other ends Make choices Be told the truth Degree of privacy Free from injury Virtue Approach Our action should be consistent with ideal virtues that allow us to act to our highest position Virtues include: Honesty, courage, generosity, tolerance, integrity, self control, fairness 5

6 Considerations for our situations What s the dilemma? What s at stake? The facts as you know them Who are the stakeholders? What are the options? What are benefits/consequences of each option? Impact on/support of stakeholders (ST & LT) Is there a conflict with corp. or your values? Will it pass the Light of Day test? A Day in the Life at YoCoDoW Meeting with the Chairman Package 1 6

7 Consider What s the dilemma? What s at stake? The facts as you know them Who are the stakeholders? What are the options? What are benefits/consequences of each option? Impact on/support of stakeholders (ST & LT) Is there a conflict with corp. or your values? Will it pass the Light of Day test? A Day in the life at YoCoDoW Inc. Package 2 7

8 Consider What s the dilemma? What s at stake? The facts as you know them Who are the stakeholders? What are the options? What are benefits/consequences of each option? Impact on/support of stakeholders (ST & LT) Is there a conflict with corp. or your values? Will it pass the Light of Day test? What is HR s Role? How often are you called to evaluate the strategic ethical decisions before your organization? 8

9 How do you influence leaders to consider ethical standards? Six Elements Necessary for a Comprehensive Ethics and Compliance Program 1. Written standards for ethical conduct 2. Training on ethics 3. Mechanism to seek ethics-related advice or information 4. Process to report misconduct anonymously 5. Disciplinary action for employees who violate the organization's ethics standards or law 6. Inclusion of ethical behavior within each employee s regular performance review Source: Ethics Resource Center based on Federal Sentencing Guidelines 9

10 The bottom line It s not always about rendering the right answer, but asking the right questions. Examples of ethical values Trustworthiness: honesty, integrity, promise-keeping, loyalty Respect: autonomy, privacy, dignity, courtesy, tolerance, acceptance Responsibility: accountability, pursuit of excellence Caring: compassion, consideration, giving, sharing, kindness, loving Justice and fairness: procedural fairness, impartiality, consistency, equity, equality, due process Civic virtue and citizenship: law abiding, community service, protection of environment Source: "Six Pillars of Character" developed by The Josephson Institute of Ethics 10