Business Ethics Unit 4
Business Ethics Unit 4
Definition of HRM
According to Invancevich and Glueck, "Human Resource Management is concerned with
the most effective use of people to achieve organizational and individual goals. It is the way
of managing people at work, so that they give their best to the organization".
Objectives of HRM
1. Societal Objectives
● To manage human resources in an ethical and socially responsible manner
● To ensure compliance with legal and ethical standards.
● To minimize the negative impact of societal demands upon the organization.
2. Organizational Objectives
● Human Resource department, like any other department in an organization,
should focus on achieving the goals of the organization first. If it does not meet
For this purpose, the Human Resource department cannot exist in the long run.
● Human Resource department should recognize its role in bringing about
organizational effectiveness.
● Human Resource Management is not an end in itself. It is only a means to assist the
organization with its primary objectives.
3.Functional Objectives
● To maintain the Human Resource Management department's contribution at a level
appropriate to the organization's needs. Resources are wasted when Human
Resource Management is either more or less acceptable to suit the organization's
demands.
● The department's level of service must be adjusted to fit the organization it serves.
● Human Resource Management should employ the skills and abilities of the workforce
efficiently. It should aim at making the people's strength more productive and
beneficial to the organization.
● It should aim at providing the organization with well trained and well-motivated
employees.
4. Personnel Objectives:
● It should increase employee's job satisfaction to the maximum.
● It should also meet the needs of the employees.
● It should assist the employees in achieving their personal goals, at least in so far as
these goals enhance the individual's contribution to the organization.
● It should develop and maintain a quality of work life.
2.Operative Functions
A} Procurement: Procurement is the process by which an organization appoints candidates
to the job. Through the process of recruitment and selection, the HR manager identifies the
right type of people required in the organization and puts in some effort to develop to get
better performance.
B} Maintenance: Maintenance is one of the important functions to perform in HRD. HRM
undertakes all the activities which includes maintaining people in the organization. All the
facilities must be given to the employees and also ensure that they feel satisfied puts
to work in an organization.
C} Development: It is known that the development of employees leads to the overall
development of organizations. Through training and development the present and future
skills which are required are imparted to employees. All the employees must be encouraged
to improve their skills.
D} Work Culture: Work culture is defined as the cumulative effect that leader practices,
employee behaviour, workplace amenities and organizational policies create on a work or
internal stakeholder. It can be measured as either positive or negative work culture. HRM
introduces to pattern, the procedures in which the carries out its function. It is this definite
way of word that created a definite work culture in the organization.
E}Educating the Managerial Personnel: Personnel Development programs tries to
educate the managerial executive of the market situations and trends which helps in forming
new plans and strategies of products.
F}Conducting Research: The main focus of HRM is to come up with different ways in
order to control and regulate the personnel towards the right direction thereby achieving the
organization's objectives. In order to attain HRM, it should focus towards continuous
innovative methods which help to communicate, understand and integrate the workforce.
Research plays a pivotal role.
G} Developing a Communication System: HRM promotes free flow of communication in
organization, that is, upwards, downwards and lateral communication, which helps in
building a suitable environment of work and builds culture link in the organization.
H} Compensation: Compensation is concerned with securing adequate and equitable
remuneration to persons working in the organization. It should be fixed in such a way that it
attracts and retains suitable persons in the organization.
I}Employment: Employment is concerned with stabling and employing the people
possessing the required kind and level of human resources necessary to achieve the
organizational objectives. It includes functions like job analysis, human resource planning,
recruitment, selection, placement, induction and internal mobility.
J} HR Development: HR development efforts are described in terms of the training and
educating programs and the number of people who are exposed to these programs. Unless
a systematic and constant monitoring of these programs and a systematic appraisal of the
actual effect of these programs, in terms of actual results achieved, can be determined. It
may not be possible to understand whether the real purpose is served by these programs.
K}Human Relation: This process leads to the human relations movement with its
emphasis on the fact that employees need to be understood in order to be satisfied and
productive. The idea that good human relations in and of themselves will increase
productivity failed to be consistently supported and many of the movement's ideas were
abandoned.
Workplace Ethics
Meaning
Ethics in the workplace refers to the moral code that guides the behaviour of employees
with respect to what is right and wrong in regard to conduct and decision making.
In other words, workplace ethics refers to a set of behavioural rules that create a positive
environment at work. A strong work ethic can lead to employees being fairly treated, which in
turn motivates them and develops a sense of loyalty towards the organization
1. Personal Code of Ethics: A man’s personal code of ethics that is what one considers
moral is the foremost responsible factor influencing his behaviour.
2. Legislation:It is already stated that the Government will intervene and enact laws only
when the businessmen become too unethical and selfish and totally ignore their
responsibility to the society. No society can tolerate such misbehaviour continuously. It will
certainly exert pressure on the Government and the Government consequently has no other
alternative to prohibit such unhealthy behavior of the businessmen.
3. Government Rules and Regulations:Laws support Government regulations regarding
the working conditions, product safety, statutory warning etc. These provide some guidelines
to the business managers in determining what are acceptable or recognized standards and
practices.
4. Ethical Code of the Company:When a company grows larger, its standard of ethical
conduct tends to rise. Any unethical behaviour or conduct on the part of the company shall
endanger its established reputation, public image and goodwill. Hence, most companies are
very cautious in this respect. They issue specific guidelines to their subordinates regarding
the dealings of the company.
6. Ethical Climate of the Industry:Modern industry today is working in a more and more
competitive atmosphere. Hence only those firms, which strictly adhere to the ethical code,
can retain its position unaffected in its line of business. When other firms, in the same
industry are strictly adhering to the ethical standards, the firm in question should also
perform up to the level of others. If the company’s performance is below than other
companies in the same industry, it cannot survive in the field in the long run.
Employee code of conduct
Meaning
An employee code of conduct refers to a set of principles that describes how an
organisation's workers should follow up on an everyday premise. It mirrors the association’s
day by day tasks, beliefs and organisation culture.
To begin with, it seems that there are four big areas of computer ethics. They are "(1)
computer crime; (2) responsibility for computer failure; (3) protection of computer property,
records and software; and (4) privacy of the company, workers and customers”.
With the changing social landscape that naturally follows changes in technology comes
a new wave of ethical issues. These issues must be addressed and resolved for computers,
technology and the Internet to have a positive influence in society. Internet privacy,
electronic communication and computer crimes add a new layer of ethical issues that plague
those who use computers and technology on a daily basis. By identifying the main societal
issues in computer usage, you can take a stand for electronic ethics.
Information security refers to the processes and methodologies which is designed and
implemented to protect print, electronic, or any other form of confidential , private and
sensitive information or data from unauthorised access, use , misuse, disclosure,
destruction, modification or disruption.
By definition, security policy refers to clear, comprehensive, and well-defined plans, rules,
and practices that regulate access to an organization's system and the information included
in it. Good policy protects not only information and systems, but also individual employees
and the organization as a whole.
7. Email/Communication Policy
A company's email policy is a document that is used to formally outline how employees can
use the business’ chosen electronic communication medium. I have seen this policy cover
email, blogs, social media and chat technologies. The primary goal of this policy is to provide
guidelines to employees on what is considered the acceptable and unacceptable use of any
corporate communication technology. An example of an email policy is available at SANS.
Information Protection
Failure to design for inclusiveness and accessibility may constitute unfair discrimination.
● Avoid Harm
● Be honest and trustworthy. ...
● Respect privacy. ...
● Know and respect existing rules pertaining to professional work. ...
● Maintain high standards of professional competence, conduct, and ethical practice.
● Foster public awareness and understanding of conputing, related technologies and
their consequences.
Threats and risks to information technology (IT) systems and data are an everyday
reality for most modern businesses. You should put in place measures to protect your
systems and data against theft and hackers.
Practical steps to improve IT security
Cyber laws contain different types of purposes. Some laws create rules for how individual
and companies may use computers and the internet while some laws protect people from
becoming the victims of crime through unscrupulous activities on the internet. The areas of
cyber law include:
1. Fraud: Consumers depend on cyber laws to protect them from online fraud. Laws are
made to prevent identity theft, credit card theft and other financial crimes that happen online.
A person who commits identity theft may face confederate or state criminal charges. They
might also encounter a civil action brought by a victim. Cyber lawyers work to both defend
and prosecute against allegations of fraud using the Internet.
2.Copyright: The Internet has made copyright violations easier. In early days of online
communication, copyright violations were too easy. Both companies and individual need
lawyers to bring actions to impose copyright protections. Copyright violation is an area of
cyber law that protects the rights of individuals and companies to prof from their own creative
works.
3. Defamation: Several personnel use the Internet to speak their mind. When people use
the Internet to say things that are not true, it can cross the line into defamation. Defamation
laws are civil laws that save individuals from fake public statements that can harm a
business or someone's personal reputation. When people use the internet to make
statements that violate civil laws that is called Defamation law,
4. Harassment and Stalking: Sometimes online statements can violate criminal laws that
forbid harassment and stalking. When a person makes threatening statements again and
again about someone else online, there is violation of both civil and criminal laws. Cyber
lawyers both prosecute and defend people when stalking occurs using the internet and other
forms of electronic communication.
5.Freedom of Speech: Freedom of speech is an important area of cyber law. Even though
cyber laws forbid certain behaviours online, freedom of speech laws also allow people to
speak their minds. Cyber lawyers must advise their clients on the limits of free speech
including laws that prohibit obscenity. Cyber lawyers may also defend their clients when
there is a debate about whether their actions consist of permissible free speech.
7.Trade Secrets: Companies doing businesses online often depend on cyber laws to protect
their trade secrets. For example, Google and other online search engines spend lots of time
developing the algorithms that produce search results. They also spend a great deal of time
developing other features like maps, intelligent assistance and flight search services to name
a few. Cyber laws help these companies to take legal action as necessary in order to protect
their trade secrets. agree
8. Contracts and Employment Law: Every time you click a button that says you to the
terms and conditions of using a website, you have used cyber law. There are terms and
conditions for every website that are somehow related to privacy concerns.
The Information Technology Act, 2000 or ITA, 2000 or IT Act, was notified on October
17, 2000. It is the law that deals with cyber crime and electronic commerce in India. The
Information Technology Act, 2000 provides legal recognition to the transaction done via
electronic exchange of data and other electronic means of communication or electronic
commerce transactions. This also involves the use of alternatives to a paper-based method
of communication and information storage to facilitate the electronic filing of documents with
the Government agencies. Further, this act amended the Indian Penal Code 1860, the Indian
Evidence Act 1872, the Bankers' Books Evidence Act 1891, and the Reserve Bank of India
Act 1934.
Objectives and Features of The Information Technology Act 2000:
● Granting legal recognition to all transactions done through electronic data exchange,
other means of electronic communication or e-commerce in place of the earlier
paper-based communication.
● Providing legal recognition to digital signatures for the authentication of any
information or matters requiring authentication.
● Facilitating the electronic filing of documents with different Government departments
and also agencies.
● Facilitating the electronic storage of data
● Providing legal sanction and also facilitating the electronic transfer of funds between
banks and financial institutions.
● Granting legal recognition to bankers for keeping the books of accounts in an
electronic form. Further, this is granted under the Evidence Act, 1891 and the
Reserve Bank of India Act, 1934.
● Approve lawful recognition through authorization codes to all the business deals that
are solemnised via computational interchange of Information. It also encompasses
communication via online applications. It safeguards the electronic method of
communication which evolved from its paper-based precursor.
● The IT act 2000 granted the authenticity of digital autographs as a trademark of
Identification. It also approved the idea of digital safes.
● Facilitated the digital record-keeping of files and attachments in association with the
Government law enforcement commissions and other private bodies that are
authorised to provide such services.
● Allowed the storage of user’s information in a central database or hub.
● Authorise banks and other financial institutions to execute transactions between
multiple parties.
● Grant warrant to bankers under the RBI act of 1934 for recording the folios of
account holders in the online ledger. Transparency has to be offered for all such data
to the concerned Government authorities.