Page 1 of 4
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 01
January 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 128
A Study of Ethical Practices in Human
Resource Management of a Private Sector
Undertaking
Pradeep Kumar
Guest Faculty, Department of Commerce, Marwari College, Ranchi, India, Email:
pradeepkrj0516@gmail.com
Abstract
Ethics help one to understand the right and the wrong
actions, while human resource management is helpful in
managing the human resource of an organization. This
paper is concerned with the ethical practices that are used
while managing the human resource in a private sector
undertaking. For that purpose, the ethical practices and the
human resource management of Tata Steel Limited have
been studied. In this study, it is found that ethics are
significantly used in human resource management of Tata
Steel Limited.
Keywords: Ethics, Human Resource Management, Code of
Conduct
1 Introduction
Ethics is the moral principles or standards, which guide an
individual or organization to differentiate between right and
wrong things or behavior. Human Resource Management
means management of human resource in an organization,
which covers planning, acquiring, developing, and
maintaining human resource. Now, the question arises that
what ethics have role in the process of human resource
management. A Private Sector Undertaking is owned and
governed by individuals, and it involves the management of
human force to operate its business successfully. So, what
ethics are practiced while managing human resource in a
private sector undertaking ?
Gill Palmer (2007) stated in his paper that human resource
management is a relatively new ‘discipline’ in
management, but debates about appropriate ethical
approaches to the management of people at work have a
much longer history. He also stated that many theorists,
from different backgrounds, have pondered the ethical basis
of employment relations. The academic disciplines of
industrial and organizational sociology, political theory,
and Industrial Relations shared a concern to analyze
employment relationships in ethical perspective, in order to
manage human resource [1]. Ekuma and Akobo (2015)
stated that the global nature of competition, new and ever
changing employee expectations, changing societal values
and constant revisions of employment law have propelled
human resource management (HRM) as one of the critical
business function for continued organisational
competitiveness in contemporary times. The ethical
implications of these demands and expectations are
significant and needs to be critically analyzed. They found
that human resource professionals must make and execute
decisions with several ethical implications, which may
result to serious dilemmas for the practitioners [2]
. In an
another research, Paul L.Schumann (2001) has found that
human resource management ethics consists of five
complementary moral principles that have been developed
and studied by philosophers: utilitarian ethics, rights ethics
(using Kant's categorical imperative), distributive justice
ethics, care ethics, and virtue ethics. It illustrates the
application of the moral framework by analyzing the ethics
of deceiving employees about the hazardous nature of
chemicals in the workplace, the ethics of discrimination in
employment, and the ethics of sexual harassment [3]
. The
purpose of this paper is to examine the ethical practices in
human resource management with special reference to Tata
Steel Limited. Tata Steel Limited is an Indian multinational
steel-making company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group. It
was the 10th largest steel producing company in the world
Page 2 of 4
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 01
January 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 129
in 2015, with an annual crude steel capacity of 25.3 million
tonnes, and the second largest steel company in India
(measured by domestic production) with an annual capacity
of 9.7 million tonnes after SAIL. It has more than 70,000
employees according to Tata Steel Annual Report 2016-17.
The contribution of the paper is that, it will help the
professionals, scholars, students and general readers to
understand the ethics and its role in the Human Resource
Management.
2 Materials and Methods
This paper is based on the qualitative analysis of secondary
source of information, such as Tata Code of Conduct 2013,
Tata Steel Human Resource Policy, Anti-Sexual
Harassment Initiative (ASHI) – Policy, Alcohol and Drug
Policy, and other published materials on the subject matter.
2.1 Tata Code of Conduct 2013
The Tata Code of Conduct is a set of principles that guide
and govern the conduct of Tata companies and their
employees in all matters relating to business. This code has
a number of clauses which help the company to practice
ethics in the management of human resource. These clauses
related to human resource management are explained as
follows [4]:
Clause 4: Equal opportunities employer
A Tata company shall provide equal opportunities to
all its employees and all qualified applicants for
employment without regard to their race, caste,
religion, colour, ancestry, marital status, gender, sexual
orientation, age, nationality, ethnic origin or disability.
Employees of a Tata company shall be treated with
dignity and in accordance with the Tata policy of
maintaining a work environment free of all forms of
harassment, whether physical, verbal or psychological.
Employee policies and practices shall be administered
in a manner consistent with applicable laws and other
provisions of this Code, respect for the right to privacy
and the right to be heard, and that in all matters equal
opportunity is provided to those eligible and decisions
are based on merit
Clause 5: Gifts and donations
A Tata company and its employees shall neither
receive nor offer or make, directly or indirectly, any
illegal payments, remuneration, gifts, donations or
comparable benefits that are intended, or perceived, to
obtain uncompetitive favours for the conduct of its
business.
However, a Tata company and its employees may, with
full disclosure, accept and offer nominal gifts, provided
such gifts are customarily given and / or are of a
commemorative nature.
Clause 8: Health, safety and environment
A Tata company shall strive to provide a safe, healthy,
clean and ergonomic working environment for its
people. It shall prevent the wasteful use of natural
resources and be committed to improving the
environment, particularly with regard to the emission
of greenhouse gases, and shall endeavour to offset the
effect of climate change in all spheres of its activities.
Clause 17: Ethical conduct
Every employee of a Tata company, including full-time
directors and the chief executive, shall exhibit
culturally appropriate deportment in the countries they
operate in, and deal on behalf of the company with
professionalism, honesty and integrity, while
conforming to high moral and ethical standards. Such
conduct shall be fair and transparent and be perceived
to be so by third parties.
Every employee of a Tata company shall preserve the
human rights of every individual and the community,
and shall strive to honor commitments. Failure to
adhere to the Code could attract severe consequences,
including termination of employment.
Clause 18: Regulatory compliance
Employees of a Tata company, in their business
conduct, shall comply with all applicable laws and
regulations, in letter and spirit, in all the territories in
which they operate. If the ethical and professional
standards of applicable laws and regulations are below
that of the Code, then the standards of the Code shall
prevail.
Clause 19:Concurrent employment
Consistent with applicable laws, an employee of a Tata
company shall not, without the requisite, officially
written approval of the company, accept employment
or a position of responsibility (such as a consultant or a
director) with any other company, nor provide
Page 3 of 4
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 01
January 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 130
freelance services to anyone, with or without
remuneration. In the case of a fulltime director or the
chief executive, such approval must be obtained from
the board of directors of the company.
Clause 20:Conflict of interest
An employee or director of a Tata company shall
always act in the interest of the company, and ensure
that any business or personal association which he / she
may have does not involve a conflict of interest with
the operations of the company and his / her role
therein.
An employee, including the executive director (other
than independent director) of a Tata company, shall not
accept a position of responsibility in any other non- Tata company or not-for-profit organization without
specific sanction.
Clause 21: Securities transactions and confidential
information
An employee of a Tata company and his / her
immediate family shall not derive any benefit or
counsel, or assist others to derive any benefit, from
access to and possession of information about the
company or Group or its clients or suppliers that is not
in the public domain and, thus, constitutes unpublished,
price-sensitive insider information.
Clause 24: Integrity of data furnished
Every employee of a Tata company shall ensure, at all
times, the integrity of data or information furnished by
him / her to the company. He / she shall be entirely
responsible in ensuring that the confidentiality of all
data is retained and in no circumstance transferred to
any outside person / party in the course of normal
operations without express guidelines from or, the
approval of the management.
Clause 25: Reporting concerns
Every employee of a Tata company shall promptly
report to the management, and / or third-party ethics
helpline, when she / he becomes aware of any actual or
possible violation of the Code or an event of
misconduct, act of misdemeanor or act not in the
company’s interest. Such reporting shall be made
available to suppliers and partners, too.
2.2 Tata Steel Human Resource Policy
This policy is related to the management of human resource
in the Tata Steel Limited. The ethics followed in this policy
are as follows [5]:
The company will provide the equal opportunities
to the available talents.
It will pursue management practice designed to
enrich the quality of life of its employees, develop
their potentials and maximize their productivity.
It will aim at ensuring transparency, fairness and
equality in all its dealings with its employees.
It shall strive continuously to foster a climate of
openness, mutual trusts and team work.
2.3 Anti-Sexual Harassment Initiative (ASHI) -
Policy
Tata Steel Limited has made a policy, called Anti-Sexual
Harassment Initiative (ASHI), in order to provide a place of
work that is free of Prejudice, gender bias, sexual
harassment and all forms of intimidation or exploitation.
Under this policy, a committee and detailed guidelines have
been formed to address these issues [6]
.
2.4 Alcohol and Drug Policy
Tata Steel Limited has a policy, called Alcohol and Drug
Policy, in order to create an alcohol and drug free
environment at workplace. This would be achieved through
the involvemenyt of all employees, and the Joint
Department Councils in spearheading appropriate
initiatives. These initiative would include [7]:
Raising awareness, through the dissemination of
information and training and by promoting healthy life
styles among the employees and their families.
Motivating those employees who have an
alcohol/drug problem to seek assistance, while
maintaining confidentiality about such cases.
3 Conclusion
Human resource management is the key to success for an
organization in the current competitive environment. So, it
is very significant to practice ethics in human resource
management to ensure the long term gain and success, as
