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Ethics in human resources: 6 guidelines for HR teams

Cornerstone Editors

Today's human resources professionals manage more moral, ethical and legal responsibilities than ever before. Beyond compensation and benefits, HR teams are now tasked with challenges like fostering workforce diversity, addressing inequality issues and setting standards around workplace conduct.

Human resources ethics policies around these issues can directly impact how a company attracts and retains talent. While HR ethics conversations that challenge the status quo in the workplace are marks of progress, they require HR departments to make tough ethical decisions. Acting as the moral heart of a company can seem like an overwhelming task. But no matter the issue, HR professionals who uphold strong ethical standards and strive for a fair work environment will maintain employee confidence and attract new candidates.

6 HR ethics guidelines organizations can follow to master the art of ethical decision-making

1) Know the laws – As a representative of an organization, HR professionals need to make tough decisions and hold employees accountable for wrongful actions — and that's not an easy task. To do so effectively requires confidence and authority. Knowing important labor laws and compliance practices will help manage these issues as they arise instead of after the fact.

For example, if an employee requests short-term disability, you must understand your benefits provider's short-term disability policy and eligibility and understand insurance laws. Familiarizing yourself with these laws early on will save you time and equip you with knowledge to navigate legal challenges in the future.

2) Prioritize professional development – HR is a constantly changing field, especially as new conversations arise and technology continues to change how we work. Staying on top of these changes requires new skills and knowledge. Participating in training is one way to stay ahead of the curve. Many HR professionals also pursue advanced degrees and certifications specific to the field. Some become specialists in areas like payroll, recruiting or benefits. HR generalists with broader responsibilities may choose to continue their professional development through workshops and continued education. There is no one-size-fits-all approach to learning. HR professionals, primarily those new to the industry, should assess their progress and consult their managers to find a career path that works for them.

3) Be an ethical HR leader – Conflict between colleagues is inevitable in the workplace. Imagine, for example, an employee telling you that their manager, a high-level executive, has treated them unfairly. This situation requires you to engage in sensitive conversations with everyone involved. Being an ethical HR leader means being confident in your moral decisions and effectively communicating them to employees. According to the Josephson Institute of Ethics at UC San Diego, making an ethical decision requires three things:

  • Commitment: "The desire to do the right thing regardless of the cost."
  • Consciousness: "The awareness to act consistently and apply moral convictions to daily behavior."
  • Competency: "The ability to collect and evaluate information, develop alternatives and foresee potential consequences and risks."

Understanding where you and your organization stand on important issues will be critical in this process. Once you define these ethical standards, you can determine how to respond to any human resources ethics issue — and maintain your employees' trust and respect.

4) Understand conflicts of interest – Conflicts of interest are detrimental to how a business operates because they create internal politics that distract from a company's bottom line and cause the quality of work to deteriorate. Take favoritism, for example — giving certain employees preferential treatment. It's not illegal to play favorites unless, in doing so, you're discriminating against someone else based on race, gender, sexual orientation or another protected class. While you can't change the law, you can implement company policies that prohibit this behavior.

One way to establish these policies is to update your employee handbook to define and discourage conflicts of interest — your employees might be partaking in this behavior without realizing it. In the case of favoritism, according to the Employment Law Handbook, the first step is to distinguish between bias and fair recognition based on measurable performance. Once you have written standards, determine consequences for employees who fail to abide by the rules.

5) Implement diversity and inclusion practices – Today's discussions about diversity are often focused on recruiting efforts across race, class and gender. While these are important considerations, it's only one piece of the diversity and inclusion puzzle. A company might recruit and hire a diverse workforce, but if only certain groups of people feel valued and included, there's a problem. By working with colleagues to develop a list of company values and morals, HR professionals set the standard for diversity and inclusion in their organizations. This list will help professionals zero in on what's essential to their organization and hold employees accountable.

6) Keep information confidential – HR professionals can access confidential information about employees, from social security numbers to medical records. By making sure paperwork and electronic systems are secure, you can rest easy that your company's information is protected. As an HR professional, you're legally obligated to keep everything an employee tells you confidential unless otherwise specified or discussed.

For instance, if an employee comes to you concerned about a colleague or tells you they have witnessed sexist or racist behavior in the office, it's your job to manage this information without revealing your sources. While HR professionals face many hurdles that can make the job challenging, it can be equally rewarding. After all, HR professionals give a company meaning by improving and enhancing the employee experience. Once you navigate the ethical challenges of the job, you can effectively attract and retain a talented workforce.

Get in touch with one of our experts to explore how we can tailor our solutions to your organization's needs.

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