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Unit 13: GHRM Trends and Future Challenges

which individuals firms could write their own codes and measure the behaviour of their Notes
executives. The Caux Principles are grounded in two basic ethical ideals: kyosei and
human dignity. The Caux Principles aim to operationalising the twin values of living and
working together and human dignity by promoting free trade, environmental and cultural
integrity and the prevention of bribery and corruption.
13.2.2 Role of HR in Operationalising Corporate Ethics Programmes

HR has a special role to play in the formulation, communication, monitoring and enforcement
of an enterprise’s ethics programme. The HR function along with finance and law is the
appropriate locus of responsibility for an enterprise’s ethics programme. HR is well positioned
to make an important contribution to creating, implementing and sustaining ethical
organisational behaviour within a strategic HR paradigm. HR professionals have specialised
expertise in the areas of organisational culture, communication, training, performance
management, leadership, motivation, group dynamics, organisational structured and change
management–all of which are key factors for integrating responsibility for ethics into all aspects
of organisational life.

Challenges for the HR Function of the Multinational Firm

People involved in international business activities face many of the same ethical issues as those
in domestic business but the issues are made more complex because of the different social,
economic, political and legal environments in which multinationals operate. So, multinationals
will need to develop self-regulatory practices via codes of ethics and behavioural guidelines for
expatriate, TCN and local HCN staff. Firms which opt consciously or by default to leave ethical
considerations up to the individual not only contribute to the pressures of operating in a foreign
environment but also allow internal inconsistencies that affect total global performance.
1. When selecting expatriates, their ability to manage with integrity could be a job-relevant
criterion.

2. The pre-departure training of expatriates and their orientation programme should include
an ethics component.
3. This might include formal studies in ethical theory and decision-making as well as
interactive discussion and role playing around dilemmas that expatriates are likely to
encounter.
4. In an effort to sensitise managers to cultural diversity and to accept the point that home
practices are not necessarily the best or only practices, there has been an emphasis in
international business training on adapting to the way in which other cultures do business.
5. In designing training programmes to meet the challenges of multinational business, HR
professional must raise not only the issue of cultural relatives but also the extent to which
moral imperatives transcend national and cultural boundaries.
6. It is also important for the HR department to monitor the social (ethical) performance of
its expatriate managers to ensure that as managers become familiar with the customs and
practices of competition in the host country, they do not backslide into the rationalisation
that “everybody else does it”.
7. To avoid temptation to cut ‘ethical corners’, expatriates must not be placed under
unreasonable pressure to deliver good financial results and they must be given feedback
and reinforcement.

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