ETHICAL AND UNETHICAL ISSUES IN HR, FINANCE AND MARKETING

ETHICAL AND UNETHICAL BEHAVIOUR OF HUMAN RESOURCES

HUMAN RESOURCES – Human resources are the people who make up the workforce of an organization sector by dealing with people and issues related to people such as compensation and benefit of the organization development and culture.   

ETHICAL ISSUES FACED BY HUMAN RESOURCES

     1.Employment issues:

           HR professionals are likely to face maximum ethical dilemmas in the areas of hiring of employees.

 A. Pressure to hire a friend or relative of a highly placed executive.

B. faked credentials submitted by a job applicant

2. cash and incentive plans:

Cash and incentive plans include issues like salaries ,annual increments or incentives, executives prerequisites and long

-trem incentive plan:basic salaries HR managers have to justify a higher level of basis salaries or higher level of percentage increase than the competitor to retain some employees. HR manager is forced to give higher incentives to them than what the individual actually deserve.

3. Employees Discrimination:

A frame work of laws and regulations has been evolved to avoid the practices of treatment of employees on the basis of their caste, sex,religion,disability,age etc.A demanding ethical challenge arises when there is pressure on the HR manager to protect the firm or an individual at the expenses of someone belonging to the group which is being discriminated against.

4.Performance Appraisal:

Ethics should be basis of performance evaluation .highly ethical performance appraisal demands that there should be an honest assessment of the performance and steps should be taken to improve the effectiveness of employees .

.privacy5:

The private life of an employee which is not affecting his professional life should be free from instrusive and unwarranted actions.

6.Safety and health:

Industrial work is often hazardous to safety and health of the employees.legislation have been created making it mandatory

on the organisations  and managers to compensate the viticms of occupational hazards.

HR MANAGERS FACE THREE DILEMMA IN THIS ASPECT:

(i)The first dilemma relates to information technology. A firm's need for information particularly about employees while on job may be at odds with the employees privacy.

(ii) The second ethical dilemma relates to whistle blowing.whistle blowing refers to a public disclosure by former or current employees of any illegal,immoral or illegitimate practices involving their employers.

(ii)The third ethical dilemma relates to the aids testing.AIDS has become a public health problem.HR manager face two issues:Whether all the new employees should be subject to AIDS test and what treatment should be melted out to an employee who is affected with the disease,employees with this illness should not be discriminated against and they allowed to perform job for which they are qualified

ETHICAL AND UNETHICAL ISSUES IN MARKETING

MARKETING:The action or business of promoting and selling

products or services, including market research and advertising.

                            Ethical issues in marketing

Ethical issues in marketing arise from the conflict and lack of agreement on particular issues. parties involved in marketing transaction have a set of expectation about how the business relationship will take shape and how various transaction need to be conducted.

Emerging problem in market research:

Market research has experienced a resurgence with the widespread use of the internet and the popularity of social networking .The way of company conducts its market research these days can have serious ethical repercussions,affecting the lives of consumers in ways that have yet to be fully understood.Further, companies can be faced with a public backlash if their market research practices are perceived as unethical.

Ethics in Advertising and Promotion:

In the early days of existence of corporations,especially during 1940s and 1950s, tobacco was advertised as a substance that promotes the health. an advertiser who does not meet the ethical standards is considered an offender against morality by the law.

Some select types of advertising may strongly offend some group of people even when they are strong interest to others.female hygiene product as well as constipation medication are good examples. The advertisement of Condoms are important in the interests of AIDS prevention,but are some time seen by some as a method of promoting promiscuity that is undesirable and strongly condemned in various societies.

A negative advertising policy lets the advertiser highlight the various disadvantage of the competitor's products rather than showing the inherent advantage of their own products or services.

Deceptive marketing policies and ethics:

  Deceptive marketing policies are not contained in a specific limit or to one target market,and it can sometimes go unseen by the public. There are numerous method of deceptive marketing.it can be presented to consumers in various form;one of the method is one that is accomplished via the use of humor.Humor offers an escape or relief from various types of constraints and some advertiser may take the advantage of this by applying deceptive advertising methods for a product that can potentially harm or alleviate the constraints using humor.

Pricing Ethics:

There are various forms of unethical business practices related to pricing the products and services.

Bid Rigging is a type of fraud in which a commercial contract is promised to one party.however,for the sake of appearance several other parties also present a bid.

Predatory Pricing is the practices of sale of a product or services at a negligible price,intending to throw competitors out of the market,or to create barriers to entry.

           ETHICAL AND UNETHICAL ISSUES OF FINANCE

  FINANCE:Finance is a field that is concerned with the allocation of assets and liabilities over space and time,often under condition of risk or uncertainty. It is also the management of large amount of money ,especially by governments or large companies.

                            

ETHICAL ISSUES IN FINANCE ABSTRACT PURPOSE:

The purpose of a presumed incompatibility of ethics and finance has been strengthened by the recent crisis that erupted in summer 2007.To attempt to escape from this dilemma, the restoration of relevant ethical principles would be one of the main conditions required in order to avoid the recurrence of past errors.

METHODOLOGY/APPROACH:

The chapter develop a methodology including three steps: First stating a major principle, then defining a rule and finally proposing possible implementation,taking of concrete steps.

Findings;

Assessment of the financial crisis most often consider that the source of the problem stem from economic and financial imbalances and failures.indeed this kind of explanation is relevant and may be agreed as a proximate  cause.

Practical/Social implication:

The implication of ethical behavior based on the principles of seeking the"common good"lead to a professional approach aimed at financial institution as well as at their executive leaders and their employees.This chapter discusses avenues for thought.