Ethical issues in human resources systems

Currently, the topic of ethics is enjoying a surge in popularity among the media and corporate America. It is unclear if the reason for all the attention is “just for show” or if companies truly believe in the substantive benefits, which can be gained by facilitating an ethical context. However, by examining the negative consequences of unethical corporate cultures, as well as the benefits of ethical ones, we demonstrate that perhaps, in this case, the action is what is important, not the motivation. Human resource systems may be a means to promulgating an ethical culture in that ethics pervade selection and staffing, performance appraisal, compensation, and retention decisions. Thus, human resource systems and ethical corporate cultures should be considered partners in the process of creating competitive advantage for organizations.