Ethics in HR System

There's some benefit from building and maintaining an ethical culture. The benefit can be greater accountability, Increase firm valuation and increase cultural diversity. Of course there are more benefits from ethical culture but in this paper I just write about these 3 benefits.

Ethics can be defined in terms of shared expectation, accountabilities and standards become more clearly defined when supported by an ethical culture. People have a better understanding of what is expected of them, and the mechanisms that transmit and support the culture are less encumbered by ambiguity, uncertainty and dysfunctional malleability.

Firm with a strong ethical culture can increase firm valuation. It can be a strong signal to the market that they have a healthy culture and harmony in their internal relationship.  Firm with a strong ethical culture will make the investors, employees and customers put high trust and safety.

Conclusion

We believe that an ethical culture will bring a healthy environment for the organization or firm. The HR System has many aspects to look after to make sure the ethical culture can be implemented well. Human Resource Management practice should be a key point to support the ethical culture in the organization and become a pioneer to highly put an ethical culture in the organization. We have to put ethical behavior in our daily professional life and personal life. With ethical behavior in our daily activities, we can avoid bad things to our organization. Trying to avoid unethical behavior becomes ethical by putting it in our daily life.

Author is MM Candidate from Trilogi University. Under mentoring of Dr. Kabul Wahyu Utomo, S.E., M.Si.