How Can HR Balance Being Employee Champions and Upholding Business Ethics in Tough Times?

anil kaushik
Be the Employee Champion

Every dark cloud has a silver lining. Recent financial scams unearthed in corporate India have again brought the issue of business ethics into the limelight, and people have started talking about it. The perception being built among the masses that business wealth and growth can only be created on the foundation of unethical practices, frauds, and malpractices is very dangerous for the economy and society at large. The scale of erosion of ethical business practices in Indian businesses is, in many cases, depressing. Measures for correcting this perception must be initiated by top business leaders as captains of the industry as quickly as possible. It is good to strike while the iron is hot.

When the issue of business ethics, ethical work culture, or ethical behavior of employees is discussed, it is often reduced to the employee level only, thereby stressing the responsibility of HR to build an ethical work culture, define preferred ethical behaviors, and so on. However, the necessity of embedding the values and beliefs of ethics from the top is hardly put at the center stage. Building an ethical culture into business processes and strategy by HR is one aspect, and making the business grow on an ethical foundation by business leaders is another. Unless the business itself is built on strong pillars of ethical values and beliefs, working to develop an ethical culture at the employee level will be a misnomer.

There is one more disturbing aspect of this whole episode. Whenever any financial scam in business is uncovered and it falls in terms of reputation, brand value, and profits, the first and foremost sufferers are the employees, be it in the case of Kingfisher, Geetanjali, Neerav Modi, or any other. Employees are left on the streets with no one to ensure that their legal dues are paid, let alone the future prospects of service. The unanswered question is why managers sitting at the helm of affairs in different departments of an unethical organization don't speak up and stand against unethical practices. What stops them? Is it their loyalty to the organization or mere self-interest? Why don't they elevate themselves from being mere employees to whistleblowers in the organization? It is yet to be seen that any CEO, HR, top manager, or financial head has raised their voice against malpractices and stepped down at the appropriate time or done something to save the interests of poor low-level employees, barring one or two. On one side, HR is consistently preached to become a strategic business partner, and on the other side, in many cases, they are not empowered to have any say in business decisions securing the employees' interests in the organization. It is time to ponder upon this.

HR should not be a mute spectator and the first to flee in aggravating business situations, leaving employees in a lurch. It is to be seen whether, in an unethical organization, HR should act as a custodian of business to save the employer's interest or act as a champion of employees to secure their legitimate earnings.

Country's top management thinkers and HR practitioners have come together to answer a few such questions in this cover story on business ethics. If you like it, let us know. If not, well, let us know that too. Happy Reading!

Regards, Anil Kaushik

Business Manager - HR Magazine

B-138, Ambedkar Nagar, Alwar - 301001 (Raj.) India

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nathrao
Current scenario of scams

The current scenario of scams galore shows a lack of business ethics and personal integrity. A network of well-connected people manages to secure huge loans and even escape from the nation. Bankers fail to conduct due diligence, leading to loans being sanctioned, which then turn into NPAs, impacting the common man as subsequent write-offs occur.

A movement to bring basic levels of integrity and ethics is urgently needed for the nation to emerge from the current turmoil. This situation has been brought about entirely by treating business as a source of drawing huge amounts of loans, which get rescheduled to suit the loanee and even written off if necessary.
vikrantsng
Hello Professionals,

I recently discovered that some employees at a manufacturing unit are offering loans at very high-interest rates to other employees, most of whom are workers. The workers who have taken these loans have ended up paying more in interest than the principal amount, and the principal is still outstanding.

This situation is leading to several issues, such as unnecessary overtime, excessive overtime, and a poor work culture. Can anyone please advise on how we can stop this practice?

Thanks,
Vikrant
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