Ethics and social responsibility in IHRM

 

Ethics refers to a system of moral principles, a sense of right or wrong, the goodness and badness of actions. As applied to business firms ethics is a study of good and evil, just and unjust actions of the business persons Ethical management : it means is acting ethically as a manager, by doing the right thing Management of ethics : means acting effectively in situation that have an ethical dimensions


These situations happen in both internal and external environment of the business firm

Source of Ethics


Managers in every society are influenced by three repositories of ethical values

  

Religion Culture Law

Religion

Business ethics
Legal system culture

Why do ethics matter in business



Managing ethics matters to employees, stakeholders and the public. For employer, managing ethically means savings billions of rupees each year on law suits, settlements, and thefts. If a organization would not fallow the ethical means of business then it has to pay for it in different ways like damage to reputation, declaiming employee productivity, creativity and loyalty. For managers, managing ethically means, managing with integrity Managing ethics means better decision making too

Myths about Business Ethics

 

 

Ethics is Personal & confined to self : Business and ethics do not go together: honesty is the best policy but not in business Ethics in business is relative : Good business means good ethics :

Ethical dilemmas


An MNC has operations in more than one country, it has the ability to shift its operation out of any country that becomes inhospitable or uneconomical Dilemma also arise from the practice of transfer pricing, it means price on goods and service sold by one member of a corporate family to another Yet another ethical dilemma relates to technology transfer`

Managing Ethics


Multinationals evolve strategies to manage ethics

    

Commitment from top management Having a code of ethics Constitution of ethics committees Conducting ethics training programmes Having a whistle blowing system in place

Code of conduct for a MNC

 

   

Respect basic human rights and freedoms Minimise any negative impact on local economics policies Maintain high standards of local political involvement Transfer technology Protect the environment Consumer protection Employment practice