Abstract
The problem of implementing business ethics and values in human resource management (HRM) needs to be explored due to its influence on the company’s operations and overall success. The organization’s compliance with the established code of conduct promotes universal human values, improving employees’ loyalty and enhancing organizational performance. A comprehensive ethical framework can be developed to define core values and provide guidelines for ethical behavior for employees. There are two opposing viewpoints regarding business ethics and values in HRM, where a company focuses on either ethical behavior or profitability. The formers strategy is preferred by organizations aiming at long-term success, while the latter approach is typically implemented by a short-term business. A biblical perspective on the issues reveals the compliance of business ethics with Christian values. Overall, the problem of business ethics and values in human resource management plays a critical role in in modern public administration by defining core processes and procedures of organizations.
Thesis
In today’s public administration, the problem of implementing business ethics and values within the field of human resource management (HRM) is crucial to address in order to optimize the company’s operations and performance.
Background
The Importance of Business Ethics and Values in HRM
Business ethics and values are of great importance for any organization. According to Al-Tarawneh (2020), corporate culture has a significant effect on the behavior of employees and the overall company’s performance. In today’s public administration, business ethics and values constitute a problem within the field of human resource management (HRM) as public and private companies struggle with implementing and adhering to the code of conduct. At the same time, research shows that compliance with the ethics of business relations is one of the main criteria for assessing the professionalism of both an individual employee and the organization as a whole (Kreismann & Talaulicar, 2021). The competence of any worker involves the observance of ethical norms in communication with colleagues, subordinates, and partners.
Ethical standards of business relations are centered around universal human values, norms, and rules. Managers need to know that the success of the entire organization depends on its ability to establish and adhere to its core values (Kreismann & Talaulicar, 2021). The main task of management in this regard is to ensure that employees are perceived as individuals, and labor relations are formed as a mutually beneficial partnership. As Al-Tarawneh (2020) argues, “human resources, represented by intellectual capital, have become the basis of achieving competitive advantage” (p. 402). In this regard, it is crucial to ensure positive conditions for employees to promote their loyalty to the company. Work environment must be characterized by equality and fairness to improve organizational performance.
How to Implement Business Ethics and Values in HRM
As can be seen, it is crucial to implement business ethics in HRM. As a rule, when faced with a moral dilemma, managers base their decision-making on a normative viewpoint. The concept of normativity refers to the use of established ethical norms and values, according to which decisions are made (Kreismann & Talaulicar, 2021). However, most organizations develop a comprehensive ethical framework that defines core values and addresses common issues in a holistic manner.
In human resource management, several measures can be implemented to ensure ethical behavior within a company. For instance, a set of ethical norms that reflect the system of general values, public preferences, and conventional rules of behavior can be introduced in the organization (Nigro et al., 2014). Moral standards are needed to prohibit bribes, violations of laws, illegal payments, unreasonable demands, disclosure of sensitive data, the use of prohibited information, and other unethical behaviors and processes (Westerman et al., 2021). Furthermore, ethics committees can be created and incentive mechanisms can be introduced to encourage ethical actions. Social audits can be conducted to clarify the impact of social factors on the organization.
Another measure to implement business ethics and values in HRM is to provide training in ethical behavior to managers and other employees. As reported by Westerman et al. (2021), “within organizations, effective strategic HRM engagement is essential in navigating this transition [to human capital practices], and business higher education must provide the training to address this need” (p. 2). Furthermore, employees need to be informed about cases of highly ethical behavior through various information channels to encourage a moral approach to problem-solving. Ethical or immoral business practices are a reflection of the value system that has formed in a certain organization (Nigro et al., 2014). Therefore, ethical norms of behavior must be implemented by raising people’s cultural awareness and providing training to each member of the team.
Opposing Viewpoints
There are two opposing viewpoints with regard to business ethics and values in HRM. Companies often find themselves faced with a dilemma where they have to choose whether to act ethically and lose potential profits or to achieve certain goals by any means (Kreismann & Talaulicar, 2021). As practice shows, if the company plans its activities in the short term, without focusing on long-term development, it generally prefers to prioritize profits above business ethics (Al-Tarawneh, 2020). If the company seeks to obtain a stable position in the market, establish mutually beneficial and loyal relations with its partners, and ensure a successful and profitable business in the long run, its business processes must be based on the compliance with ethical standards and values (Al-Tarawneh, 2020). The strategy of ethical behavior sometimes forces enterprises to refuse offers that are considered attractive from a commercial point of view. Nevertheless, this practice proves more efficient in the long term as it emphasizes social responsibility and improves customer loyalty.
Biblical Worldview and Business Ethics and Values in HRM
A biblical perspective on business ethics and values in human resource management can provide a framework for improving relevant practices in the company. According to Al-Tarawneh (2020), Christian values are generally compliant with core business values and thus, can be applied in HRM processes. As noted in the King James Bible (2017), “better is the poor that walketh in his integrity, than he that is perverse in his lips, and is a fool” (Prov. 19:1). In other words, honesty and transparency are critical in business settings and public administration. Furthermore, fairness and equality are two other values supported by the Christian worldview and applicable in HRM (King James Bible, 2017, Lev. 25:14). As can be seen, a biblical perspective on ethics and values is rooted in the concepts of dignity and mutual respect.
Conclusion
To conclude, companies run businesses following certain sets of moral norms, principles, and rules. In modern public administration, the problem of business ethics and values in human resource management plays an essential role in defining processes and procedures of public and private organizations. By considering opposing viewpoints and a biblical perspective on the issue, one can obtain a comprehensive view of business ethics and values in HRM and implement measures to enhance the company’s performance.
References
Al-Tarawneh, K. I. (2020). Business ethics in human resources management practices and its impact on the organizational performance. Verslas: Teorija ir praktika/Business: Theory and Practice, 21(1), 402-411. Web.
King James Bible. (2017). King James Bible Online. Web.
Kreismann, D., & Talaulicar, T. (2021). Business ethics training in human resource development: A literature review. Human Resource Development Review, 20(1), 68-105. Web.
Nigro, L., Nigro, F., & Kellough, J. (2014). The new public personnel administration (7th ed.). Cengage Learning.
Westerman, J. W., Nafees, L., & Westerman, J. (2021). Cultivating support for the sustainable development goals, green strategy and human resource management practices in future business leaders: The role of individual differences and academic training. Sustainability, 13(12), 6569. Web.