1. 1-1 Right of free consent Right of privacy Right of freedom of conscience Right of freedom of speech Right to due process Ethics are the fundamental principles of right and wrong. What is seen as right and wrong varies in time, by culture, by situation, and by the people involved. Ethical behavior is is consistent with those principles. Employee Rights Ethics in HR and Employee Rights

2. 1-2 Ethical companies act according to four principles: 1.In their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits. 2.Employees assume responsibility for the actions of the company. 3.The company has a sense of purpose or vision that employees value and use in their day-to-day work. 4.They emphasize fairness. Corporate Ethical Principles

3. 1-3 Standards for Identifying Ethical Practices 1.HRM practices must result in the greatest good for the largest number of people. 2.Employment practices must respect basic human rights of privacy, due process, consent, and free speech. 3.Managers must treat employees/customers equitably & fairly.

4. 1-4 Legal & Ethical Climate of Global HRM The Foreign Corrupt Practices Act of 1977 (FCPA) makes it illegal for employees of American corporations to offer money or other items to foreign officials in order to gain an unfair competitive advantage International business maze Trade agreements Parent country laws Host country regulations Ethical Challenges Weaker environmental regulations “Gift giving” or “greasing”

5. 1-5 Legal & Ethical Climate of Global HRM Ethical dilemmas between profits and the preservation of basic human rights may also exist The Civil Rights Act of 1991 applies to overseas operations of U.S. corporations The U.S. has some of the more stringent anti-discrimination laws Many countries have not created this kind of enforcement Regulations regarding employment discrimination vary from country to country

6. 1-6 Incentive pay for executives lays the groundwork for significant ethical issues. When an organization links pay to its stock performance, executives need the courage to be honest about their company’s performance even when dishonesty or clever shading of the truth offers the tempting potential for large earnings. Incentive Pay for Executives: Ethical Issues

7. 1-7 What Can HR Do? Create a culture of ethics in your organization: Get buy-in from upper management. Establish an ethics policy. Train employees in ethical decision-making. Provide a “safe place” for employees to report unethical behavior. Enforce sanctions against unethical behavior.