Stakeholder theory and the Ethics in HRM

The term of “Stakeholder”,

According to Slinger (2000), stakeholders as the only group to whom management needs to be responsive. And more recently defined as a freeman (1999), the stakeholder is “an obvious literary device meant to call into an emphasis on stakeholder”. Anyway according to the definition about freeman, the stakeholders support the organization as shareowners, employees, customers, lenders, and society (Freeman, 1984).

With the concept of stakeholder theory, The “stakeholder the term is used widely and frequently in the employment context and it is taken for granted that employees are legitimate stakeholder in the organization (Legge, 1998).

stakeholder theory characterizes trade models as to how an organization makes clients, providers, employees, communities, and agents superior off, and how making one way better off makes the others way better off. At last, Stakeholder theory recommends that reason, standards and the relationship of the organization to society, must be a shared handle where employees are at the center and engaged.

Employees are identified as primary stakeholders in the firm from both normative and instrumental perspectives (Phillips, 1999), (Mitchell et al. 1997).and according to malty and Wilkinson (1998), employees are directly affected by the success or failure of the organization.

Ethics in HRM,

Ethical standards that administer a person's behavior or the conducting of an activity. Ethics are imbibed within an individual on reinforced externally that helps him to distinguish between right and wrong and act accordingly. there can be several values, those are like Religion, organizational culture, legal obligations, etc.

Ethics in HRM demonstrates the treatment of employees with standard goodness and distributive equity. the ethical business contributes to the business objectives as the representatives will feel persuaded and they will work with proficiency and effectiveness. Ethics in HRM essentially deals with the agreed ethical commitments of the employer towards employees to preserve equality and value equity.

Areas of HRM Ethics,

·         Basic Human Rights, Civil, and employment (Job security and feedback)

·         Safety in the workplace

·         Privacy

·         Justifiable treatment to employees (equity and equal opportunity)

·         Respect, fairness and honestly based process in the workplace

Promoting Ethics,

·         Improve recruitment and selection tests

·         Conduct ethics training

·         Ensure that there are no pitfalls in performance appraisals

·         Rewards and disciplinary system

·         Improve and facilitate two-way communication

·    Avoid any kind of discrimination among the employees based on certain factors like caste, color, culture, religion and appearances

·  Equal opportunities must be given to every employee for his advancement and development

·         Measures should be taken for employee safety while working in the organization. 

References,

Resource management institute. (n.d.).Ethics.Retrieved Novmber 21, 2013.

S, K. (n.d).Ethics in Hr. iosrjournals web site. Retrieved Novmber 21,2013, from http://www.iosjournals.org/iosr-jbm/papers/ncibppte-volume-1/1003

Slinger, Giles. 2000. Essays on Stakeholders and Takeovers. PhD dissertation, Department of Applied Economics, Cambridge University, Cambridge.

Freeman, R. E. 1984. Strategic Management: A Stakeholder Approach. Boston: Pitman.

Freeman, R. Edward, Jeffrey S. Harrison, Andrew C. Wicks, Bidhan L. Parmar, and Simone de Colle. 2010. Stakeholder Theory. New York: Cambridge University Press.

Legge, Karen. 1995. Human Resource Management: Rhetorics and Reality. London: Macmillan.

———. 1996. “Morality Bound.” People Management 25(2): 34–36.

———. 1998. “The Morality of HRM.” In Experiencing Human Resource Management, edited by Christopher Mabey, Denise Skinner, and Timothy Clark. London: Sage.

Phillips, Robert. 1997. “Stakeholder Theory and a Principle of Fairness.” Business Ethics Quarterly 7(1): 51–66.

———. 1999. “On Stakeholder Delimitation.” Business and Society 38(1): 32–34.

———. 2003. Stakeholder Theory and Organizational Ethics. San Francisco, CA: