SOURCES OF BUSINESS ETHICS
Business ethics draw from three main sources:
Religion - Ethics seen as divine will revealing right and wrong
conduct. Major religions agree on this.
Law - Laws codify expected ethical conduct, changing over time.
Businesses must obey laws to be considered ethical.
Culture - Shared values and norms shaping acceptable conduct and
transmitted across generations. Culture evolves with civilization.
Benefits of Ethics
Ethical conduct provides multiple benefits:
Develops trust through manager predictability and reliability
Limits regulations as fewer unethical actions mean fewer controlling
laws
Signals poor management as unethical practices warn of underlying
issues
Enables clearer vision as ethical managers formulate sound
objectives
Identifies worthy pursuits that merit priority
Stakeholder Rights
Key stakeholders have rights that businesses must respect:
Customers: Fair pricing, product information, safety, complaint
redressal
Employees: Fair pay, safe working conditions, training, reasonable
job expectations
Investors: Competent management, information, dividends, asset
sale rights
Creditors: Timely payment, risk avoidance, information disclosure
Suppliers: Loyalty, bidding opportunities, preference, advice on
changes
Communities: Environmental protection, efficient resource use,
limited disruption
Competitors: Right to compete, fair practices, honest statements
and pricing
Social Responsibility
Beyond profit, businesses have a social responsibility to address issues
like:
Employee welfare and equitable reward
Consumer protection through quality, fair prices, and complaint
handling
Supplier relations through prompt payment and fostering goodwill
Community support through projects and minority employment
Government compliance by adhering to laws, paying taxes, avoiding
trade malpractices
Managers must balance obligations to shareholders and society for long-
term success.
THE HRM CONCEPTS
Treating Employees as Valuable Assets
Effective HRM recognizes people as the most important resource in any
organization. While staff were once viewed merely as operational costs,
today's progressive companies understand the true value of human
capital. By developing each employee's unique talents and offering growth
opportunities, businesses can fully unlock workers' potential contributions.
When employees feel invested in and motivated, they're more likely to go
above and beyond to help their organization succeed. Rather than
focusing solely on short-term gains, strategic HRM adopts a long-term
mindset to maximize the returns on its human assets.
Workforce Planning for Success
Conducting thorough workforce planning is crucial for any company
hoping to thrive in today's rapidly changing markets. The first step
involves carefully analyzing how internal and external factors may impact
future business needs and objectives. Skills that are in high demand today
may become obsolete tomorrow, so ongoing assessment is needed. Once
a company understands what capabilities it will require over the next 1-5
years, it can develop targeted recruitment strategies to start filling the
pipeline early. Proactively securing talented candidates prevents the last-
minute scrambles and frenzied hiring that disrupts productivity. Planning
also helps ensure roles will be readily available for high-performing
existing staff looking to advance their careers internally over time.
Recruiting Top Talent
To source only the best potential hires, companies must aggressively
promote their brand and opportunities through multiple forums. Beyond
the standard job boards, recruiters actively build networks within target
universities, professional communities and referral programs. Creative
outreach generates a vast applicant pool. Evaluating candidates then
becomes a meticulous, multilayered process. Screening resumes and
conducting initial phone interviews promptly eliminates unqualified
profiles. Those that pass go through rigorous assessments, interviews and
reference/background checks. While finding the perfect cultural fit
remains important, emphasis is also placed on assembling a diverse
workforce that reflects your entire customer base.
Onboarding for Retention
A quality onboarding experience sets the tone for an employee's entire
tenure. Instead of hurriedly passing out policies and IT access, forward-
thinking companies take time to fully orient new starters. They provide
personalized introductions to colleagues, deliberate training on key job
responsibilities and socialize them to the organization's core values from
day one. Addressing concerns, ensuring proper support systems are in
place and making someone feel welcomed goes a long way in boosting
early engagement and motivation. It mitigates common issues that cause
up to 20% of hires to voluntarily separate within the first 45 days.
Dedicated onboarding efforts lay the foundation for high retention,
productivity and long-term success.
