2.pdf

Global Journal of Enterprise Information System

Organizational Blunders – Role of HR in Promoting Ethical
Values
Kapil Bansal*

Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India; [email protected].

Abstract

Corporate ethics is a hotly debated issue nationally and internationally. In the race to get bigger, and richer, we have left ethical
values behind. As Human resource managers, we could help turn the tide by ensuring HR leaders play a pivotal role in promoting
corporate ethics, identifying and counteracting the challenges HR will face in enforcing the ethical values. However ‘trouble’ in
corporate ethics is just the tip of the iceberg. There are a number of parties with vested political interests ready to claim their share in
the business booty. Every now and then we read about corporate scams and crooked politicians trying to cover up for their corporate
buddies. These merchants of unethical values reap billions of rupees while the people in general and bright young corporate staff
in particular suffer. The objective of the paper is to explore the role of HR in promoting ethical value. Furthermore, the paper also
examines how HR ethical values in corporations will reduce government complicity. Our methods, assumptions and conceptual
tools will emphasize the fact that HR Professionals can make a difference by enforcing strong ethical values in Corporations. The
recommendations suggested by the researcher, if implemented, we hope will make people more aware of ethical values leading to
a win-win situation for organizations and the public at large.
Keywords: Business, Challenges, Ethics, Government

1. Introduction
Today business organizations are synonymous with scan-
dals. Market rigging scandals around the globe have exposed
the inadequacy of HR practices in corporations. The human
resource seems to avoid the Implementation of basic ethical
values on which the crucial decisions are based. Corporation
top brass design parameters under which HR experts need
to set and enforce norms and standards of ethical values.
Corporations have to decide on the ethical stance it’s going to
take – a compliance, a fair-dealing or/and a good citizen orien-
tation? Fundamentally, it has to enforce ethics as about acting
fair and responsible in everything it does. Many companies
are taking a piecemeal approach. They have a program – on

compliance, diversity, stakeholder engagement and involve-
ment in different areas, safety in every area, privacy, and so
on. Essentially, human resource professionals have to graft the
ethics onto the organization which is most important through
these stand-alone programs. A different and easy approach is
to unite ethics into the organization’s usual activities – its deci-
sion-making, its performance management systems, and above
all its management processes3.

2. Literature Review
The moral infringement happens when people, associations,
expert and social s neglect to manage esteems like genuine-
ness, equity and an unmistakable meaning of what is good and
bad6.

*Author for correspondence

DOI: 10.18311/gjeis/2018/21427

Paper Code (DOI): 21427; Originality Test Ratio: 2%; Submission Online: 05-June-2018; Manuscript Accepted: 06-Jun-2018;
Originality Check: 16-Jun-2018; Peer Reviewers Comment: 18-Jun-2018; Double Blind Reviewers Comment: 21-Jun-2018;
Author Revert: 23-Jun-2018; Camera-Ready-Copy: 25-Jun-2018; Editorial Board Excerpt: 26-Jun-2018.

Editorial Board Excerpt: At the Time of Submission (ToS) submitted paper had a 02% plagiarism which is a good indication as far
as originality report is concerned and falls under an established percentage for publication. The editorial panel is of an scrutiny that
paper had a following shadowing by the blind reviewer’s which at a in a while stages had been set right and revise by an author(kapil
bansal) in a variety of phases as and when essential to perform consequently. The reviewer’s had in an original stages comment
with minor revision with a subsequent aside which at a short span restructured by an author. The comments related to references,
abstract and body text is noticeable both subject-wise and research wise by the reviewers during evaluation and further at blind re-
view process too. All the comments had been collective at a variety of dates by the authors’ in due course of time and same had been
integrated by the author in addition. By and large all the editorial and reviewer’s comments had been incorporated in a paper at
the end and further the paper had been earmarked and strong-willed under “View Point” type as its highlights and emphasize the
Organizational Blunders and how HR impact in Promoting Ethical Values

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Organizational Blunders – Role of HR in Promoting Ethical Values

As a few creators state in late productions, morals additionally
turn out to be increasingly an inward worry of associations. Though
once the interests of workers were disregarded or just viewed as one
of a few partners’ interests, the “moral administration of representa-
tives”36 picks up in centrality. Johns (1995:32) states that “the ideal
opportunity for the moral initiative has come”. Particularly human
asset administration (HRM) assumes a definitive part in presenting
and actualizing morals. The work diagrams a few parts of morals in
HRM. It portrays moral worries that developed in late HRM faces
off regarding the perspective that morals ought to be a vital issue for
HR experts. Various moral structures and their application in HRM
arrangements and practices are checked on. Here, the attention is
predominantly on obstructions and impediments to presenting
moral gauges in HRM exercises31.

The National Business Ethics Survey (NBES) (2000) discovers
much that is empowering for associations that are putting their
endeavors into working environment morals. For instance, work-
ers have elevated standards for morals inside their associations.
More than nine out of 10 respondents say that they “anticipate
that their associations will make the wisest decision, not exactly
what is beneficial.” This finding proposes that most representa-
tives are not all that sceptical about morals at work*.

Dark colored (2003) brought up a great part of the current
concentrate on business morals has been coordinated against
budgetary defilement, particularly a worry with bookkeeping
principles. However, concern has been raised over an extremely
wide scope of issues.

The deceptive routine with regards to HRM itself has addi-
tionally hit open consideration:

1. Off-shoring and misusing “shabby” work markets;
2. Using youngster work;
3. Reneging on organization annuity assertions;
4. Longer working hours;
5. Increasing work push; and
6. The utilization of questioned and questionable practices in

contracting and terminating of workforce.

Cambridge Advanced Learner’s Dictionary characterizes
Ethos as “the arrangement of convictions, thoughts, and so forth
about social conduct and relationship of a man or gathering”
while Oxford Advanced Learner’s Dictionary characterizes it as
“the ethical thoughts and demeanours that have a place with a
specific gathering or society”. Indian Ethos is about what can be
named as “national ethos”.

Satyendra Dubey (Indian Express, 2003), an eminent fellow
who was working for National Highway Authority of India who was
punished for basically making the best decision. He was gunned

around by mafia in Gaya in the year, 2003 morning, almost a year
after he had griped of defilement on the Golden Quadrilateral task
to the Prime Minister’s office. Knowing the perils that encompass
genuine individuals kicking the entire degenerate framework24.

The demonstration of passing up an individual is now and
again considered as being unfaithful to the association or organi-
zation that he or she is joined with. The by and large winning
perspective of the shriek blower inside the business, with respect
to the administration and partners, is that this individual is a
trickster to the association11.

Marshal et.al. (1979) opined that in the discerning perspec-
tive of the firm, the representative’s fundamental good obligation
is to move in the direction of the objectives of the firm and keep
away from any exercises that may hurt those objectives. To be
exploitative, fundamentally, is to go astray from these objectives
to serve one’s own particular advantages in ways that, if unlawful,
are considered a type of “office wrongdoing**”.

3. Research Methodology
This research paper endeavors to toss light on the applied
issues related with Role of HR in advancing Ethics. It is engag-
ing examination where the attention is on a reality discovering
examination with sufficient elucidation. For this reason, second-
ary information was gathered. The secondary information was
gathered from daily papers, magazines, books, diaries, meeting
procedures, Government reports, and sites.

3.1 Changing Face of Ethical Values
Through the times we have seen the importance and role of
ethics in many kinds of corporations undergoing massive
changes. Not only in the corporate have ethical values under-
gone a paradigm change, the change is visible in each and every
field of human endeavor. Let us try and plot the ‘progress’ of
the corporate through its changing areas of interest (Figure 1).

60s

Employee
interests

Society and
country
interests

Global
interests

Business
interests &

growth prospects

Customer
interests

Co
rp

or
at

e
re

sp
on

si
bi

lit
y

2000

Source: AT Lawrence, J Weber (2014)***
Figure 1. Changing face of ethical values.

* National Business Ethics Survey (NBES) – “How employees view ethics in their organization”, Ethics Resource Centre, 2003.
** Marshal B. Clinard, corporate corruption: The Abuse of power (Praeger, 1990).
***Business and Society: Stakeholders, Ethics Public Policy/AT. Lawrence, J. Weber (2014).

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77Vol 10 | Issue 1 | January-March 2018 | www.informaticsjournals.com/index.php/gjeis GJEIS | Print ISSN: 0975-153X | Online ISSN: 0975-1432

Kapil Bansal View Point

So with corporations now ready to conquer the globe, what is
it that will make them stand apart from the hoard that is ready to
crush them under the hoofs of competitive pricing and promo-
tions. We intend to make ethics that bane which will take our
national talent forward onto the world scene and the government
will help us, albeit ethically.

3.1.1 Ethics in Business
But before we move forward, let us take a look at the world’s
richest corporations, the ‘government empires’ that have been
‘contributing’ a lot to our changing ethical values. One fears the
law more than one respects it, and one respects ethics more than
one fears it. That significantly brings out the spirit of a code of
ethics both by connotation and obligation. Mores embark on
where the laws end. Thus the doctrines of ethics are much more
venerated than the philosophy of law, and rest above and ahead
of their functions and scope. Punishment in the episode of dis-
regard for ethics is more self-inflicted. Unethical behavior of a
single person working a particular profession injures and belit-
tles the entire profession together with those who practice it.
Such is the case of the infamous lawmakers of our country – the
political bodies. A few glaring examples where the government
forgot to clean up its act and the corporations made the most of
the lack of values are as follows. In all the cases under mentioned,
the common man paid the price:

1. Political nexus in stamp paper scam under scrutiny (www.
frontline.in/static/html/fl2023/stories/20031121002204700.
htm),

2. Piper Alpha disaster: how 167 oil rig workers died (https://
www.theguardian.com),

3. Karen Silkwood: Plutonium Whistleblower (time.
com/3574931/karen-silkwood),

4. Space Shuttle Challenger disaster (www.history.com/topics/
challenger-disaster), and

5. DC10 and the Famous Cargo Doors (www.airliners.net ›
Technical/Operations)

In all the mentioned cases, warnings with an alertness of
the hazards and risks went unheeded, and the whistleblowers
suffered harsh penalties for their public-spiritedness. And the
government did nothing, but tries and covers – up their abysmal
performances and failures.

• 300 feared drowned in Kenyan ferry sinking (From Herald
Scotland) and that warning had gone unheeded,

• The emission of Union Carbide popularly known as Bhopal
gas disaster, India, 3,000 killed and 2,00,000 injured but were
ignored by the local authority, and

• Nuclear tragedy, Chernobyl enclosed similar ingredients.

3.2 Corporate and Political Nexus
Corporation’s investment in political parties to an amount
that could be seen as a corporate capture of the foundation.
Critics spot this as a fair and ethical setback, because of the
level of business control over government policies and deci-
sions which accompanies the funding. Critics do not suggest
that the company should give up, returned, or even limited.
The protest is regarding the corporate control, which they see
as threatening ‘government autonomy’, and as inimical to the
public good.

Such is the case even with the highly ‘advanced’ and ‘demo-
cratic’ societies of the world. A few examples are:

• The pharmaceutical companies of the United States,
• The nuclear power corporations of Japan, and
• Meatpacking industries of Europe.

The scams involving politicians of cabinet ministerial levels
and companies with ‘goody’ reputations have been a severe rage
to public poise previously falling in the shadow of financial
inequality. The companies socially unconscious appeared to
justify their irresponsible behavior with the mentality “everyone
is doing it”.

3.3 An Analysis with Respect to Role of Ethics
in Combating Corruption in Business

Following areas are to be considered while making a plan for
combating corruption and increased role of ethics in performing
business activities:

1. Ethical attribute; which inculcates wisdom/self-control/
moral values/courage/justice/social responsibilities in our
activities
• If he exhibits some or even one of them then it is highly

possible that the person will tend towards ethical or ‘mor-
ally correct’ decision-making.

2. Policy aspect; by deciding the plan of action to be taken in
respect of a certain situation

3. Study the consequences; social benefits and/or personal
benefit

4. Evaluate the outcome on the TRUST scale:
T = Transparency; truly open, which an individual could feel

free in expression to all- (Employers, peers, subordinate
and even to family and friends)

R = Responsibility; feel committed to the interests of all to the
maximum as far as possible.

U = Uncompromising; assuring activities towards higher
moral values

S = Successful; producing results with strong values

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Organizational Blunders – Role of HR in Promoting Ethical Values

T = Temperate; taking care, avoiding risks, wild decisions,
extravagancies in the form of bribes etc.

• Decision making; Compare the results: ethical vs. unethical.

3.4 A Proposed Solution to Unethical Activities

3.4.1 Resolve the Ethical Dilemma Through the
Personal Values of Ethicists

Based on the extensive literature review, the researcher has found
that if following suggested ethical attributes are being implemented
in any of the organizations will lead to overcoming the problem
of organizations blunders which ultimately lead to the promotion
of business ethics and develop prosperity and lead to the achieve-
ment of organization goals (Figure 2).

Self-control

Courage

Wisdom

Justice

Ethical Values

Social Responsi-
bilities

Moral
Attributes

Source: Journal of Business Ethics 15: 827-838, 1996. © 1996
Kluwer Academic Publishers, Printed in the Netherlands

Figure 2. Resolve the ethical dilemma through the personal
values of ethicists.

3.5 Self-Control
• Deal with their impetuous thoughts and distressing emotions

as well,
• Stay cool, calm and collected, affirmative, even in difficult

moments, and
• Reflect visibly and stay focused under stress.

3.6 Courage
• To present with self-assurance, self-confidence; having cha-

risma, and
• Able to formulate decisions regardless of fears and

pressures.

3.7 Moral Attributes
• Act ethically and beyond reproof,
• Construct reliance all the way through their trustworthiness

and authenticity,
• Confess their own mistakes and meet head-on with unethical

actions in others, and
• Take strong ethical stands, even if they are unpopular.

3.8 Social Responsibility
• Feel empathic and taking the active care of their concerns, and
• Exhibit compassion and value others perspective.

3.9 Justice
• Find a sense of harmless purpose of doing something,
• Utilize the groups’ core values in building decisions and illu-

minating choices, and
• Abide by human and legal laws in pursuing any kind of a goal

or mission.

3.10 Wisdom
• What should one do and what not to,
• Intuitive intelligence analyzing the consequences of one’s

actions, and
• Ability to differentiate between right and a wrong approach.

3.11 Challenges
• The government will have a role to play. There may be more

hardships and challenges to face given the active role of gov-
ernments in the industry,

• Imposing a uniform code of ethics is an uphill task given the
diversity of the workforce in Indian conditions,

• Even if such a uniform code is enforced, the fact that it will
gain compliance from the workforce is questionable,

• Enforcing ethical practices is both time and money consum-
ing, and

• Ethics is more than obeying the law.

3.12 Suggestions
• Corporations must have the policies to promote, if not

require, peers to bring dilemmas to one another’s attention,
• Corporations should have set rules and policies to resolve

dilemmas and conflicts of interests,
• HR professionals need to be equipped with methods, tools,

and equipment to evaluate one’s performance on ethical
standards already communicated to employees, and

• HR professionals and initiators should set paradigms of
attaining progress with ethical attributes.

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Kapil Bansal View Point

4. Conclusions
Any organizations efforts to raise ethical standards are noteworthy.
They aim at increasing the accountability of governments and busi-
nesses and curbing corruption. If one is always to the right and leaves
no loopholes, the task may become uphill, but at least at the end of the
day one can answer one’s own conscience and meet the eyes of those
who should always profit – the masses. Unethical practices under-
mine good governance, distort public policy and lead to the wrong
allocation and misutilization of wealth and damage the private sec-
tor. Most of all, though, unethical practices hurt those who can afford
it the least. Managing it is possible only with the HR implications of
those entire stake-holders in the integrity and transparency of that
system. HR professionals by unification can raise ethical standards
in the industry and in turn the government. Enforcing ethical values
is about stamping out scandals, scams, and corruption.

“Corporation’s only social responsibility is to make the most
of the return so long as it stays within the purview of the game; in
open and free competition without deception or fraud”.

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Organizational Blunders – Role of HR in Promoting Ethical Values

Annexure-I

2%
SIMILARIT Y INDEX

1

2

3

4

EXCLUDE QUOTES ON

EXCLUDE BIBLIOGRAPHY ON

EXCLUDE MATCHES OFF

Organizational Blunders – Role of HR in Promoting Ethical
Values

ORIGINALITY REPORT

PRIMARY SOURCES

www.humanrightsinitiative.org
Int ernet

Steven M. Mintz. “Aristotelian virtue and business
ethics education”, Journal of Business Ethics, 08/1996
Crossref

highered.mcgraw-hill.com
Int ernet

www.publishingindia.com
Int ernet

18 words — 1%

16 words — 1%

12 words — < 1% 10 words — < 1% 2% SIMILARIT Y INDEX 1 2 3 4 EXCLUDE QUOTES ON EXCLUDE BIBLIOGRAPHY ON EXCLUDE MATCHES OFF Organizational Blunders – Role of HR in Promoting Ethical Values ORIGINALITY REPORT PRIMARY SOURCES www.humanrightsinitiative.org Int ernet Steven M. Mintz. "Aristotelian virtue and business ethics education", Journal of Business Ethics, 08/1996 Crossref highered.mcgraw-hill.com Int ernet www.publishingindia.com Int ernet 18 words — 1% 16 words — 1% 12 words — < 1% 10 words — < 1% 2% SIMILARIT Y INDEX 1 2 3 4 EXCLUDE QUOTES ON EXCLUDE BIBLIOGRAPHY ON EXCLUDE MATCHES OFF Organizational Blunders – Role of HR in Promoting Ethical Values ORIGINALITY REPORT PRIMARY SOURCES www.humanrightsinitiative.org Int ernet Steven M. Mintz. "Aristotelian virtue and business ethics education", Journal of Business Ethics, 08/1996 Crossref highered.mcgraw-hill.com Int ernet www.publishingindia.com Int ernet 18 words — 1% 16 words — 1% 12 words — < 1% 10 words — < 1% Source: http://www.ithenticate.com/ Citation: Kapil Bansal “Organizational Blunders – Role of HR in Promoting Ethical Values”, Global Journal of Enterprise Information System. Volume-10, Issue-1, January-March, 2018. (http://informaticsjournals.com/index.php/gjeis) DOI: 10.18311/gjeis/2018/21427 Conflict of Interest: Author of a Paper had no conflict neither financially nor academically. Prevent Plagiarism in Publication The Editorial Board had used the ithenticate plagiarism [http://www.ithenticate.com] tool to check the originality and further affixed the similarity index which is 02% in this case (See Annexure-I). Thus the reviewers and editors are of view to discover it suitable to publish in this Volume-10, Issue-1, January-March, 2018. 4.4 VP-4 21427-mayura.indd 80 9/20/2018 9:26:03 AM http://www.ithenticate.com Copyright of Global Journal of Enterprise Information System is the property of Kedar Amar Research & Academic Management Society (KARAMS) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.