Ethics and Human Resources Managementusers.metropolia.fi/~pervil/ipw/Sachet_Milliat/Ethics and HRM S1... · Ethics and Human Resources Management ... IPW 2013 - Ethics and HRM

Ethics and Human

Resources Management International Project Week

Metropolia Business School - Helsinki

14-20 May 2011

Anne Sachet-Milliat

Professor of Management and Business Ethics

ISC Paris

1 IPW 2013 - Ethics and HRM - Anne SACHET-MILLIAT - ISC Paris

Course Presentation


Course objectives and aimed skills

Course objectives

Help the students become aware of ethical issues

with which firms and managers have to deal

Help students understand ethical dimensions of

the various choices in HRM

Aimed skills

Understanding the ethical decision making

process

Knowing how to solve ethical dilemmas

Identifying the major ethical stakes of HR policies


Plan of the course

S1: Ethics and HRM: why is ethics essential

in the relationship between employees and

their employers?

S2: Ethical dilemmas and Management

S3:Equal opportunity and diversity

management

S4:Ethics and HRM processes


Teaching methodology and assesment

Academic contribution

Case studies

Writing and analyzing a case study

The student will be graded on the individual

writing of an ethical dilemma in management

(for the session 3) and on a collective

analysis of the dilemmas (for the session 4)

that will be presented during the final day

presentations.


Session 1: Ethics and HRM: why is

ethics essential in the relationship

between employees and their

employers?


Session 1: Ethics and HRM: why is ethics

essential in the relationship between

employees and their employers?

1/ Ethics, moral, deontology and law

2/ Corporate Social Responsibility: the social

side

3/ The major ethical stakes in HRM

4/ Ethics and workplace comitment


Definition of business ethics

Ethics can be defined as a set of values and

principles that guide acceptable behavior

within organizations and go beyong legal

requirements


Ethics and Morality (adapted from de Ballet J. and De Bry F., 2001)

Ethics Morality

Greec definition: thoughts that guide

human activity

Latin Definition: imposed by Law

Foundation: freedom of judgment and action Foundation: social code, rules by

which one should abide

Hypothetical: you can, you can not Categorical imperative: you shall, you

shall not

Long term: experience Immediat: rules which apply to all

Secular: distinction between right and

wrong

Ideal: wisdom

Theocentered: distinction between

good and evil

Ideal: saintliness

Relativ: accessible to man Absolute: inaccessible to man

How to live?

Specific values of the norms

Que dois-je faire?

Universal values of the des norms


Ethics et Morality

« La morale commande,

l’éthique recommande »

« Morality commends and

ethics recommend »

A. Comte-Sponville


Ethics and law

ILLEGAL

ETHICAL

UNETHICAL

LEGAL

IPW 2013 - Ethics and HRM - Anne SACHET-MILLIAT - ISC Paris 11

Two main criteria can be identified to study deviant behaviors:

legality and ethics

The Carroll pyramid

• Be a good corporate citizen

Philanthropic

Responsibility

• Be ethical

Ethical Responsibility

• Obey the law Legal Responsibility

• Be profitable

Economic Responsibility


Professional Deontology

Professional deontology means the rules by

which a profession abide


Several factors are driving the move

towards business ethics since the 70’s

The drifts of globalization

The new concerns that arise from the stakeholders in the context of globalization

The increase of bankruptcy caused by fraud

Increased concern about the damage caused by economic activity to the environment


The stakeholders’approach (1)

The growing interest of the business

community for business ethics can be

explained by the increased pressures by

stakeholders

A stakeholder is an individual or a group that

is affected by the organization objectives and

which in turn can influence its success


Typologies of Stakeholders

Stakeholders who have a financial

agreement

Stakeholders who have invested in

trust

Internal stakeholders

External Stakeholders


The concept of sustainable

development

Sustainable development is defined as

« Development that meets the needs of the

present without compromising the ability of

future generations to meet their own needs »

(Bruntland report 1987)


Three fundamental components to

sustainable development

Economic Growth

Social Equity Environment Protection


And its application within firm

« Corporate Social Responsability is a

concept whereby companies integrate social

and environmental concerns in their business

operations and in their interaction with their

stakeholders on a volontary basis »

(Green paper. Promoting a european framework for Corporate

Social Responsability. Commission of the European

Communities 2001).


The main texts that frame CSR

integrate the social dimension

• The Universal Declaration of Human Rights 1948

• The ILO’s Declaration on Fundamental Principles and Rights at work 1998

• The United Nations Global Compact 2000

• The new ISO 26000 norm 2010


The Universal Declaration of Human

Rights

“All human beings are born free and equal in

dignity and rights.“ The declaration recognizes the following rights

To work and to equal pay for equal work

To just and favourable remuneration ensuring for the worker

and the worker's family am existence worthy of human

dignity.

To form and join trade unions,

To rest and leisure,

Reasonable limitations on working hours and periodic

holidays with pay


The ILO’s Declaration on Fundamental

Principles and Rights at work

Freedom of association

Right to collective bargaining

Elimination of all forms of forced or compulsory labour

Effective abolition of child labour

Elimination of discrimination in

respect of employment and

occupation


The global compact: 10 principles

Human Rights

The universal Declaration of Human rights

(2 principles)

Labor

The ILO’s Declaration on Fundamental Principles and

Rights at work

(4 principles)

Environment

The Rio Declaration on Environment and

Development

(3 principles)

Anti- corruption

The United Nations convention against

corruption

(1 principle since 2004)


The major ethical stakes in HRM

Importance of social bargaining: numerous

agreements with trade-Unions on CSR issues

in Europe

In the CSR Reports: employability, training,

safety, diversity, equal opportuniy, social

bargaining….

The problem of managerial processes and

practices and psycho-sociological risks:

institutionnal moral harassment


Ethics and workplace comitment

« The psychological contract can be seen

as the promisses perceived by boss the

employees and the employers. It is based on

mutual trust. »

The breach of the psychological contact leads

to the employee feeling betrayed which can

cause demotivation and lack of implication


Evolution of the psychological contrat

(Adapted from Hilltrop 1995)

Characteristics Former contract New contract

Basis Job security Employability

Model Structured Flexible

Lenght Life-long Variable

Underlying principes Traditions Market rules

Employer’s

expectations

Time and efforts Knowledge and skills

Expected results Loyalty and

implication

Added value

Employee’s expectation Stable income and

promotion

Opportunities for

fulfilment

Employer’s main

responsibility

Fair compensation

for a satisfactory

work

High compensation for

high performances 26 IPW 2013 - Ethics and HRM - Anne SACHET-MILLIAT - ISC Paris

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Ethics and Human Resources Managementusers.metropolia.fi/~pervil/ipw/Sachet_Milliat/Ethics and HRM S1... · Ethics and Human Resources Management ... IPW 2013 - Ethics and HRM