Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization Essay

One of the common ethical issues at an organisational degree are the issues refering the direction of human resources. I have witnessed a human resource practician faced with an ethical quandary refering affairs of enlisting. choice. just on the job conditions. and wage ( Seglin. 2011 ) . The director in charge of engaging and pull offing the human resources of any given organisation face tough determination while executing their responsibilities. Under the state of affairs. I experienced. thehuman resource director was put under force per unit area by the finance section to cut down the cost of labour for the company to recognize sustainable net incomes. To accomplish the set net income mark of the company. the human resource director had the option of engaging single with low makings. or fire some of the employees to cut down the pay measure. or significantly cut down the wages and benefits the employees are acquiring from the house.

From the above state of affairs. the forces director is under an ethical quandary state of affairs. This is because both determinations and actions that he would take will hold both positive and negative results. First of all. it is ethical for the human resource director to esteem the directives from the senior direction and function the involvement of the company to increase net incomes ( Crane & A ; Matten. 2012 ) . However. by following with these instructions will do some employees to lose their occupations without sufficient or convincing grounds. This infringes the rights of the employees by ending them without good grounds. If he employees with fewer skilled workers. the company will hold a low pay measure. but the quality of work will be compromised and therefore put the company at interest. Second. it is ethical for the human resource director to protect the employees from expiration without valid accounts ( Seglin. 2011 ) . Therefore. the director is faced with two picks that both seem morally right. but the results have ethical considerations excessively. However. the director was left with no pick and decided to end some employees. cut down wages and employee benefits for the staying workers.

The stakeholders affected by the determination of the human resource director include the direction. the employees. both the discharged and those still working. and the clients of the organisation. The direction is affected because the company is short-handed and the available resources underutilized. This means most of the resources go to waste and therefore increasing losingss made by the house in the long tally. By engaging low skilled forces translates to low rewards as directed by the direction ( Hoffman. Frederick. & A ; Shwartz. 2013 ) . However. the employees will give hapless work quality due to miss of needed expertness and hence the direction may lose concern to their close market challengers.

The employees who are fired are adversely affected due to the loss of their beginning of lively goon. It is besides against their right. to end their employment with no valid ground. Such individuals’ lives are changed and it affects their households excessively. if they were the chief suppliers ( Crane & A ; Matten. 2012 ) . The workers who remain on the occupation are besides affected adversely due to the decrease in their figure. They have to execute excess work and take excess clip to complete what the complete forces used to make. With clip such employees lose occupation morale due to low wage and long hours of work.

Clients of the house will besides be affected by this determination because of the hapless quality of work. Termination of some employees will do the organisation to be short-handed and therefore unable to run into the turning demand for their merchandises. This affects the concluding consumers due to the forces of demand and supply. Hiring low skilled employees has a direct impact on the quality of work end product ( Seglin. 2011 ) . The consumers will. therefore. have substandard merchandises. This reduces the public-service corporation clients derive from devouring the services and merchandises of the house.

What would be considered the right result of the human resource manager’s determination. is the decrease of labour cost. Some of the things that constitute to high labour cost are high cost of rewards and wages. high figure of employees. good on the job conditions. and employee benefits. By ending the employment of some employees. the pay measure of the company reduces ( Hoffman. Frederick. & A ; Shwartz. 2013 ) . The direction will besides offer lower wages to less skilled employs and the decrease in the wage of the bing employees besides cut down the labour cost. Therefore. the direction would see this result to be ‘right’ harmonizing to their outlooks.

However. it would besides be considered incorrect for the human resource foreman to end employment understandings. cut down wages and benefits. and engage less skilled. It is unethical for any employer to end the employment understandings of his/her workers without valid grounds. The procedure of choosing who is to be fired is besides faced with ethical considerations and prejudice may predominate the procedure ( Hoffman. Frederick. & A ; Shwartz. 2013 ) . Employees are supposed to be remunerated in conformity with their part to the company. Underpaying the employee for the benefit of the company is considered unethical and incorrect. By cut downing the figure of employees in an organisation makes the staying workers work overtime. This is unethical as it denies them the important clip to equilibrate work and household. It is traveling against the rights of the workers by adding them more undertakings without altering their footings of payment.

The human resource director made his determination based on the ethical rules of the house. His determination to implement the directive of the direction refering cutting on labour cost. was influenced by the ethical principal that requires all the employees to esteem the direction and function the involvement of the company and non their ain involvement ( Crane & A ; Matten. 2012 ) . If he would non implement the program. so the human resource director will be considered to hold behaved in disdain of his seniors. The direction of the house spearhead the involvement of the company and communicate it down to the least of ranks among the employees. In this instance the firm’s involvement is to cut down the cost incurred on work force and hence addition the net income borders. Equally much as this determination when put to action affects support of employees and the success of the house. the human resource director has to follow the codification of moralss that requires him to esteem determinations from individuals at a higher rank than him.

Biass besides played a major function in act uponing the determination and action taken by the forces director. He took the determination in favour of the direction since he has a lower rank to them. By prefering them. he reduces the hazard of him being questioned or even fired. If he does non be biased in his determination so he would non hold served any of the parties due to the natter at manus being an ethical quandary ( Hoffman. Frederick. & A ; Shwartz. 2013 ) . This means that both the options he had seemed morally right. It is ethical for him to protect employees from expiration and wage decrease. because the company may incur high losingss in the long tally if that action is taken. However. it is besides his moral duty to put to death the programs and instructions of his co-workers in senior places than him. Therefore. his action is justifiable as ethical. It is because of this quandary that the director had to use prejudice for him to happen a manner out. This prejudice is chiefly as a consequence of senior status of direction over the forces director.

To turn to the ethical quandary at manus. it would be wise for the human resource director and the direction to discourse the issue at manus. Then they organize a forum with both the direction and the employees over the cost of labour. During the negotiations. the forces director will hold a opportunity to explicate to the direction why the human resources are the most of import resources for the success of the house ( Seglin. 2011 ) . He would rede the top directors on other methods of costs decrease other than expiration and pay cut. Measures such as making monolithic advertisement and promotion would increase the gross revenues border of the company. This is straight relative to net incomes and it can be adopted alternatively of firing employees. The company may besides put more in the employees to increase their efficiency and accomplishments. By making productiveness will travel high and they will bring forth quality merchandises and services that would more possible clients and increase gross revenues turnouts.


Human existences and organisations are faced with state of affairss that require determination devising on a day-to-day footing. Ethical motives is those values that are used to separate between right and incorrect in an organisation or a society. The determination made ever hold effects and the effects are judged based on the set moral values. Human resource practicians are faced with ethical quandaries in their day-to-day duties. that is ; enlisting. choice. preparation. and expiration. During this determinations and actions several stakeholders are affected. The direction. the employees. and the clients are all affected by the determinations of the human resource director. At times it is hard to see what is right and what is incorrect due to both results looking morally right. This state of affairs is called an ethical quandary. To get the better of such state of affairss all stakeholders of a given organisation should often hold meetings and negotiations to update the codification of moralss and discuss solutions to hard ethical state of affairss.


Crane. A. . & A ; Matten. D. ( 2012 ) . Business Ethical motives: Pull offing Corporate Citizenship and Sustainability in the Age of Globalization. New York C: Oxford University Press.

Hoffman. M. . Frederick. R. . & A ; Shwartz. M. ( 2013 ) . Business Ethical motives: Readings and Cases in Corporate Morality. New York: Wiley-Blackwell.

Seglin. J. ( 2011 ) . The Good. the Bad. and Your Business: Choosing Right When Ethical Dilemmas Pull You Apart. Boston: Wiley Publishers.

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