Examples Of Ethical Misconduct In Human Resource Activities

We handpick every product we feature. We may earn commission from the links on this page.Small Business|Human Resources|Human Resource PlansExamples of Ethical Misconduct in Human Resource ActivitiesBy Lainie Petersen, Contributor

Human resource professionals often find themselves balancing the interests of employees and employers while also striving to comply with federal, state and local laws. In some cases, an ethical misconduct definition is clear cut. In others, a human resources manager or director will have to rely on his or her professional experience and ethics to determine a proper course of action. When training human resources employees about ethical misconduct, it is often best to explain with suitable examples of the unethical issues involved in HRM and IT.

Overlooking Legal and Compliance Lapses

HR workers may be asked to overlook violations of workplace rules or labor laws. Legal compliance, however, is essential to the long-term interests of a business, even if it means embarrassment or losing a valuable employee in the short term.

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Example:

Susan, an HR director, is approached by Dave, a sales manager. Dave is hiring for a position on his team, and he asks Susan to screen out any resumes with "foreign-sounding" names. Susan explains that it is illegal and unethical to do this.

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Dave becomes angry and leaves. Later that day, Dave's boss, Andy, approaches Susan and explains that Dave will quit his position if Susan refuses to comply. Andy asks Susan to go along with Dave's request, noting that Dave is a "good producer" for the company.

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Susan refuses and tells Andy that she plans to escalate this situation. Eventually, both the CEO and the board of directors get involved. Both Andy and Dave are let go by the company.

The Confidentiality Trap

Sometimes, HR professionals become aware of violations while talking with employees. This situation creates an ethical dilemma because the HR worker would like to keep an employee's confidence, but the HR rep also has an obligation to report hazards and wrongdoing.

Some experts advise HR professionals to be cautious about promising confidentiality. Employees should be told that if they report something to HR that violates the law or places other workers in danger, HR must report what the employee has said.

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Example:

Matt is an HR director for a large restaurant chain. During a site visit, a clearly upset kitchen worker named Cheryl approaches Matt and explains that she needs to tell him something, but is concerned about her job.

Matt tells her that he is ethically and legally obligated to report some issues to corporate management. However, anything said to him in good faith will be taken seriously. He also tells Cheryl that she has protection under whistle-blower laws.

Cheryl explains that health and safety procedures are not followed in the food storage area and her complaints are ignored by restaurant management. Matt thanks Cheryl for her honesty and files a report. He also arranges for Cheryl to be transferred to another restaurant so that she can avoid having to work in a hostile environment.

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Collecting and Protecting Employee Information

HR departments handle a lot of sensitive information, including:

• Identifying information: Names, addresses, phone numbers, birth dates and Social Security numbers;
• Financial information: Salary history, credit reports, benefits program participation;
• Health information: Information about disabilities and accommodations, time-off for health problems, insurance information; and
• Work-related information: Aptitude tests, interview records, resumes, disciplinary records, evaluations.

Sloppy handling of this information could expose an employee to identity theft, embarrassment and possible harassment. HR departments need to have strict policies for the storage and handling of employee information. These policies should include:

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• What kind of information can be stored by the company, and for how long;
• Who is allowed to access employee information and for what reason or reasons;
• How information is secured against access by unauthorized individuals; and
• How information is destroyed when it is determined that it is no longer relevant.

Example:

Greg was recently hired as HR manager for a small business. On his first day at work, he notices right away that HR files are stored in an unlocked file cabinet in an easily accessed area. Electronic records are protected only by a password that everyone in the department knows.

After Greg brings up his concerns, the company's CEO authorizes the purchase of more secure file cabinets and allows Greg to place them in a locked office. Electronic records are then secured through a proprietary service, and permissions for information access are allocated more carefully.

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References

• SHRM.org: Ethical vs. Legal Responsibilities for HR Professionals
• SHRM.org:General Security: How can I ensure my company protects personal employee information?

Lainie PetersenContributor

Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education. Petersen's work appears in Money Crashers, Selling to the Masses, and in Walmart News Now, a blog for Walmart suppliers. She holds a master's degree in library science from Dominican University.