ETHICS IN HR PRACTICE:
Role of HR Professionals as ethics champions
12 July 2018
Sindiswa Maseko
@SABPP1 @sabpp_1
Recent ethical “scandals”
The last 6 months was not a good time for
ethics and governance:
• State Capture
• KPMG
• McKinsey
• SARS
• Steinhoff
• VBS Bank
Definition of Ethics Competence
Behaving ethically as HR Professionals and
living our professional code in driving ethics
and values within our organisations, being
champions of ethics, integrity and honesty in
the workplace.
SABPP HR Competency Model (2013)
Current Current reality
• Fraud
• Corruption
• Theft
• Espionage
• Sabotage
• Money laundering
• Lies
• Crime
• Conflict of interest
• Cyber crime
• Nepotism
• Favouratism
• Price fixing
• Exploitation
• Mismanagement
• Poor governance
• Plagiarism
• Bribery
King IV™ – 3 principles
The governing body should:
1. Set the tone and lead ethically and
effectively.
2. Ensure that the organisation’s ethics is
managed effectively.
3. Ensure that the organisation is a
responsible citizen.
IODSA (2016)
King IV™ Ethical characteristics
Indepen-dence
Inclusivity
Diligence Informed Courage
Compe-tence
IODSA (2016)
King IV™ - Role of governing body: Ethics
• Set the example and tone for an ethical culture.
• Provide clear strategic direction on the management of the organisation’s
ethics.
• Ensure that ethics, values, norms are clearly articulated in codes of conduct,
and in its policies.
• Ensure that ethics policy encompasses the relationship with internal & external
stakeholders, including the conduct of organisations within the supply chain +
address ethical risk profile of organisation.
• Ensure that structures are in place to give effect to the organisation’s ethics,
values, norms, including safe reporting mechanisms & appropriate oversight &
resources for ethics management.
• Oversee that there are processes to ensure that employees, business
associates, contractors and suppliers are familiar with the organisation’s ethics
norms as set out in codes of ethics & conduct, e.g. incorporating these in
employment & supply contracts.
• Oversee that recruitment processes, promotion criteria and performance
evaluations of employees recognise adherence to ethics norms (codes,
sanctions).
• Disclosure of structures, processes for ethics management + monitoring.
IODSA (2016)
Responsible corporate citizenship
Governing body should ensure that the organisation
is a responsible corporate citizen:
1. Provide strategic direction for organisation to be
a responsible corporate citizen and to respond to
economic, social, environmental outcomes of its
activities;
2. Oversee that the performance as a corporate
citizen is monitored against targets;
3. Disclosure of structures, processes, monitoring.
IODSA (2016)
Corporate citizenship include:• Sustainable development
• Human rights
• Impact on communities
• Protection of the natural environment
• Fair labour practices
• Fair & responsible remuneration
• Employee wellbeing & development
• Employee & public health & safety
• Compliance with legislation
• Prevention, detection & response to fraud/corruption
• Economic transformation, including EE & BEE
• Fair treatment of customers
• Fair competition with industry peers
• Fair treatment of associates, suppliers, contractors
• Responsible tax policies
Source: King IV™
BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
StrategicHRM
TalentManagement
HR RiskManagement
HR ARCHITECTURE
I
HR VALUE & DELIVERY PLATFORM
Work-force
planning
Learning&
Deve-lopment
Perfor-manceMana-
gement
Reward &
Recogni-tion
Em-ployee
wellness
Employ-mentRela-tions
Organi-sationDeve-
lopment
HR Service Delivery
HR Technology(HRIS)
Prepare
Imple-ment
Review ImproveHR MEASUREMENTHR Audit: Standards & Metrics
H R
C O
M P
E T E N C
I E S© SABPP HR MANAGEMENT SYSTEM STANDARD MODEL
Ethics in the HR Standards
3.3.1 Position HR as a strategic partner in the risk governance structures
and processes of the organisation.
6.2.4 Ensure fair, ethical and organisational cultural practices focusing on
the achievement of performance targets in a sustainable way.
7.2.2 Deliver a fair & equitable reward system and process that is ethical,
cost effective and sustainable.
7.2.4 Ensure compliance with organisational governance principles and
practices aligned to national and relevant international governance codes
of practice and relevant legislation.
10.3.2 Ethics of interventions is observed.
11.3.7 Provide independent professional oversight, guidance and
consulting with regard to HR policy, strategy and organisational people
practices and ethical values.
National HR Management Standards (2013) SABPP.
Biggest lesson in ethics
You can get away doing something unethical
over the short term.
But how long will it last? A day, a week, a
month, a year, a few years…
Eventually the truth comes out.
It takes years to build a good reputation and
only a moment to destroy it.
Build and maintain your ethical reputation.
Guidelines for HR ethics
• Ethical organisation culture
• Explicit values – make alive
• Leaders actively working against fraud, behaving
in an ethical way – Leadership Standard
• Ethics and anti-fraud orientation and training
• Recognise and reward good ethics
• Communication - publicity
• Put procedures and controls in place
• Take strong action if things go wrong
• Evaluate strengths/gaps in your system
Conclusion
Ethics in business is an important aspect for
board members, managers, HR, reward and
payroll professionals and employees.
Leadership plays a key role.
We need to infuse ethics into our mindset and
behaviours as individuals, teams and
organisations. I invite HR & Reward to
become ethics champions & responsible
active citizens. It is an honor to be part of this
journey with SARA, SAPA & SABPP.
We set HR standards!
[email protected] (Professional Registration)
[email protected] (Ethical issues/complaints)
[email protected] (HR Standards & Audits)
[email protected] (Operations)
[email protected] (Projects/Marketing)
[email protected] (Research)
[email protected] (Learning & Quality)
[email protected] (Strategy inputs)
[email protected] (Social media)
Website: www.sabpp.co.za Blog: www.sabpp.co.za/blog
Tel: +27 11 045 5400 or 010 007 5906
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