HR ETHICS: Building Ethics with Multisource Appraisals and Coaching © 2017 South University
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Human Resource Management
©2017 South University
2 HR Ethics: Building Ethics with Multisource Appraisals and Coaching
Performance Appraisal Tools
There are many successful business leaders who have stumbled due to ethical lapses. Some of these cases have involved violations of company policies and/or business laws, while others have been linked to poor decision-making and improper behaviors. What’s particularly troubling about many of the more high-profile ethical scandals is that the leaders were considered by many to be at the top of their game. Mark Hurd, who had an improper relationship with a contractor while he was CEO of Hewlett-Packard, Scott Thomson, the previous CEO of Yahoo who faked having a computer science degree, and Kathryn Abbate, the previous CEO who stole $7 million from a heath center located in Miami, are all examples of individuals who ignored their ethical compasses. But why do these ethical failures occur? Evidence suggests that there are more opportunities for ethical transgressions as leaders get promoted up through the ranks of business. For instance, leaders often have more autonomy and more access to information, which can encourage them to do the wrong thing. Work–life imbalance can also be an issue for some executives, which can increase their stress levels. Greed, arrogance, and an entitlement mentality can be concerns. Finally, the culture of an organization, assuming it is unethical, can prompt leaders to behave in a risky manner. So what can companies do to prevent the ethical lapses of business leaders? It should come as no surprise that many of the steps involve solid performance management. Here are some key considerations: • • Develop and promote an organizational culture that is
ethical and stress this culture during onboarding so that leaders understand the importance of ethics at work.
• • Use 360-degree evaluations to provide leaders a multitude of feedback from different raters who can identify performance issues.
• • Apply coaching when necessary to help individuals
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Human Resource Management
©2017 South University
3 HR Ethics: Building Ethics with Multisource Appraisals and Coaching
Performance Appraisal Tools
negotiate job challenges and opportunities in a positive and productive way
• • Discuss the importance of ethical leadership when managing/affecting the careers of leaders (e.g., promoting individuals, changing their work roles).
Ethical problems occur frequently in business, and HR professionals need to help prepare leaders for these challenges. Consider the following questions: 1. What kinds of approaches might you use to help leaders be
more ethical? How could performance management processes be used to facilitate this aim? 2. Besides some of the ideas already discussed, what do you think companies can do to reduce the likelihood of leaders acting unethically?
Mathis, R.L., Jackson, J.H., Valentine, S.R. & Meglich, P. (2017). Human resource management. (15th ed.). Boston, MA: Cengage Learning
