Who cares about ethics?
Horizon Point Consulting, Inc.
2025
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What is Ethics in HR?
Ethics refers to moral principles guiding professional behavior. HR ethics ensures fairness, transparency, and integrity in workplace decisions.
Why Ethics Matter in HR:
HR sets the tone for ethical behavior across the organization. Ethical lapses can lead to legal, financial, and reputational risks.
HR’s Role in Upholding Ethics:
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Common ethical challenges in HR
Conflict of Interest
Confidentiality and Data Privacy
Discrimination and Bias
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Example: Favoring a personal friend in hiring or promotions.
HR handles sensitive employee data —violations can lead to legal issues.
Bias in hiring, promotions, or performance reviews can lead to unethical outcomes.
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Conflicts of Interest
Definition: A situation where personal interests could improperly influence professional decisions.
Examples:
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Avoiding Conflicts of Interest
Best Practices for Avoiding Conflicts of Interest:
Real-World Example: Requiring all hiring decisions to go through an unbiased third-party review. (See MSPB.gov for more.)
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Scenario 1
You learn a hiring manager is giving preferential treatment to a family member. What do you do?
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Confidentiality and Data Privacy
Definition: HR professionals handle sensitive personal and company data that must be protected.
�Why It Matters:
�Common HR Confidentiality Challenges:
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Confidentiality and Data Privacy
Best Practices for Protecting Confidentiality:
Real-World Possibility: A company that experiences a data breach leading to leaked salary information might face employee distrust and increased turnover.
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Scenario 2
An employee shares a personal medical condition with you. Later, you hear a colleague discussing it. How do you respond?
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Discrimination and Bias in HR
Definition: Unfair treatment of employees or candidates based on race, sex, age, disability, or other protected characteristics.
Types of Bias in HR
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Discrimination and Bias in HR
Common HR Bias Pitfalls:
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Discrimination and Bias in HR
Best Practices for Reducing Bias in HR:
Real-World Example: A company that requires structured interviews may see an increase in demographic variety and a reduction in bias-related complaints.
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Best Practices for Ethical Decision-Making
Follow company policies and ethical guidelines.
Seek guidance when faced with dilemmas.
Act with integrity, even in tough situations.
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Building an Ethical HR Framework
Develop a Code of Ethics
Conduct Training Programs
Monitor and Enforce
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Outline clear ethical expectations for all employees.
Regular training ensures employees understand ethical standards.
Create mechanisms for anonymous reporting of ethical concerns.
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Corporate Social Responsibility (CSR)
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Aligning CSR with HR Ethics: Fair labor practices, diversity, and employee well-being.�
Benefits of CSR in HR: Enhances employee engagement and brand reputation.�
Practical Ways to Integrate CSR into HR: Promote ethical sourcing, sustainability, and community engagement.
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Case Studies
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Case Study 1: Ethical Success Story
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Company X noticed an increase in employee complaints regarding favoritism in promotions. HR introduced a structured, transparent promotion policy that included a standardized evaluation system, bias training for managers, and an anonymous reporting hotline. Over two years, employee complaints decreased by 40%, and trust in HR improved significantly.
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Company Y had a high-performing senior executive accused of bullying and harassment by multiple employees. Despite repeated complaints, leadership ignored the reports due to the executive’s strong performance and client relationships. Eventually, an employee filed a lawsuit, leading to a public scandal, financial penalties, and a damaged company reputation.
Case Study 2: Ethical Failure and Consequences
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Key Takeaway: Ethical HR leadership is proactive, transparent, and committed to fairness.
Ethics isn’t just about avoiding legal trouble—it’s about fostering a positive and trustworthy workplace culture.
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Reading Recommendations
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Our behaviors create deep grooves in our personalities, like a heavy chair forming impressions in a shaggy rug, and it becomes harder and harder to escape them.
The best thing about Aristotle's “constant learning, constant trying, constant searching” is what results from it: a mature yet still pliable person, brimming with experiences both old and new, who doesn’t rely solely on familiar routines or dated information about how the world works.
– Michael Schur
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Q&A
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Key Learning
Applying Ethics to Your Role
HR is the gatekeeper of ethics in organizations.
Common challenges include conflicts of interest, confidentiality, and bias.
A strong ethics framework and CSR efforts enhance HR’s role.
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Commit to ethical leadership.
Encourage accountability and transparency.
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Thank you!
Jillian Miles Massey
jmm@horizonpointconsulting.com