One of the challenges that continually forces itself on HR Leaders is that of ensuring that the highest level of ethics is firmly in place at all times, in all situations, in the workplace. I remember way back (in the olden days as my grandson reminds me) I was told by my boss, the President of the organization, to “not hire any more Hispanic applicants because we don’t need any more lazy employees”. At that point we had a very low number of Hispanics, a fact which had already been brought to my attention by the only Hispanic manager. I let the President’s comment slide and continued interviewing and hiring the best candidates for each open position. After hiring a Hispanic woman into our Accounting department, he brought me into his office and made it crystal clear that if I hired another one, I’d be fired. I explained to him that I was going to hire the best qualified person for each job and whether that best candidate was Hispanic or not, it would not influence my decision, nor would his concerning ultimatum. He said that I’d be making a huge mistake.
It got me thinking. If HR can’t be that “true North” compass point and steer management through not only the legal minefields brought on by unethical behavior, but also be counted on to do what’s best thing for the employees and the company, then HR has failed not only in the professional sense, but also as valued, trustworthy people. I had been fortunate to have great HR mentors who believed in compromise and collaboration, but not when it crossed legal or moral boundaries. HR has its limits.
The Ethics Resource Center conducted research in 2013 which found that 41% of US workers reported they had observed unethical or illegal misconduct on the job. When employees see this type of behavior, often they report it to HR, making it critical once again for HR to uphold that high ethical standard, to be the ethic’s champion. Working in an organization where misconduct and unethical behavior is tolerated results in the loss of bottom dollar profits from high turn-over rates, low morale, compromised company reputation, and lower productivity. HR professionals are in a unique position to influence the ethical culture within their organizations. HR has a hand in selecting candidates, in managing employee performance and in providing training and procedures for workplace conduct, all which gives HR the ability and the obligation to serve as the Ethics Guardian for an organization.
The SHRM Foundation Report “Shaping an Ethical Workplace Culture” described an ethical workplace as “one that gives priority to employee rights, fair procedures, equity in pay and promotion, and one that promotes tolerance, compassion, loyalty and honestly in the treatment of employees and customers”. It found when employees see management and HR acting in a fair and ethical manner, in builds trust in their leaders and creates the base on which an ethical culture can thrive. What better role for HR than to be a leader employees trust?
So, back to the beginning: What did I do with the ultimatum from the unethical boss? I provided him with several recent employment action claims that were based on similar hiring practices to show him that his demand would most likely result in a huge financial impact to the company. It was easy to establish a clear and frightening vision for him based on the potential loss of lots and lots of profit dollars. There was actually a case eerily similar to this potential one (where the jury awarded the plaintiff over 2 million dollars), that he thanked me for giving him this additional perspective. It’s fortunate and unfortunate at the same time how powerful money is in matters of ethics. HR may not have been his “true North” but at least HR was the voice of reason which led my boss to do the appropriate thing.
Eileen has practiced HR for over 30 years and has served in both large companies and boutique companies, including Disney, Hasbro, and Umpqua Bank. She currently serves on the board of directors for the EDD/EAC as well as the NCHRA. A Bay Area native, Eileen enjoys visiting Lake Tahoe, reading, and spending time with her family.