LEADERSHIP, ETHICS & ACTIVE CITIZENSHIP: Role of HR

LEADERSHIP, ETHICS & ACTIVE CITIZENSHIP:

Role of HR

17 May 2016

Marius Meyer

@SABPP1

SABPP Professional Values

RESPONSIBILITY

I

RESPECT

INTEGRITY

COMPETENCE

Launch of HR Ethics Book

“Congratulations to SABPP with the launch of the HR Ethics book, and for the good work you are doing to promote ethics and the HR profession.”

Advocate Thuli Madonsela

Importance of ethics for HR

Definition of Ethics Competence

Behaving ethically as HR Professionals and

living our professional code in driving ethics

and values within our organisations, being

champions of ethics, integrity and honesty in

the workplace.

SABPP HR Competency Model (2013)

Ethics Competence Outputs

SABPP HR Competency Model (2013)

Your organisation

Your profession

You

HR Voice II: 2016-2018

Setting HR Standards – SABPP: the Voice of the HR Profession

Human Resource Governance

Research

Value & visibility

Optimisingalliances

Innovation/ Technology

CPD

Excel-lence

HR Academy

QualityAssurance

Knowledge

Governance Duty to society

Ethics

Res-ponsi-bility

Res-pect

Inte-grity

Com-peten-

ce

HR Professionalism: 4 pillars, 4 principles, 4 top products, 7 priorities

Active Citizenship: Stakeholder engagement & impact

Current Current reality

• Fraud

• Corruption

• Theft

• Espionage

• Sabotage

• Money laundering

• Lies

• Crime

• Conflict of interest

• Cyber crime

• Nepotism

• Favouratism

• Price fixing

• Exploitation

• Mismanagement

• Poor governance

• Plagiarism

• Bribery

Getting the balance right

Professional knowledge and

standards(competence)

Professional ethics(conscience)

Doing good work

(excellence)

Ethical behaviour

and conduct(ethics)

Accountability Responsibility Fairness Transparency

POSITIONING GRC IN COMPANIES:

ROLE OF MANAGERS

• E T H I C S

GOVER-NANCE

RISKCOM-

PLIANCE

LEADERSHIP

MANAGEMENT

CU

LTUR

E

CO

NTR

OLS

King III Chapter 1 - Ethics

RESPONSIBLE

LEADERSHIP

BOARD

RESPONSIBILITIES

ETHICAL

FOUNDATION

Ethical

Foun-

dation

Sustai-

nability

Effec-

tive

Leader-

ship

Gover-

nance

values

Corpo-

rate

citizen

Manage

ethics

Strate-

gic di-

rection

ControlValues

Code

Draft King IV™ – 3 principles

The governing body should:

1. Set the tone and lead ethically and

effectively.

2. Ensure that the organisation’s ethics is

managed effectively.

3. Ensure that the organisation is a

responsible citizen.

IODSA (2016)

King IV™ Ethical characteristics

Indepen-dence

Inclusivity

Diligence Informed Courage

Compe-tence

IODSA (2016)

King IV™ - Role of governing body: Ethics

• Set the example and tone for an ethical culture.

• Provide clear strategic direction on the management of the organisation’s

ethics.

• Ensure that ethics, values, norms are clearly articulated in codes of conduct,

and in its policies.

• Ensure that ethics policy encompasses the relationship with internal & external

stakeholders, including the conduct of organisations within the supply chain +

address ethical risk profile of organisation.

• Ensure that structures are in place to give effect to the organisation’s ethics,

values, norms, including safe reporting mechanisms & appropriate oversight &

resources for ethics management.

• Oversee that there are processes to ensure that employees, business

associates, contractors and suppliers are familiar with the organisation’s ethics

norms as set out in codes of ethics & conduct, e.g. incorporating these in

employment & supply contracts.

• Oversee that recruitment processes, promotion criteria and performance

evaluations of employees recognise adherence to ethics norms (codes,

sanctions).

• Disclosure of structures, processes for ethics management + monitoring.

IODSA (2016)

Conflict of interest

DirectorManagerEmployeeInterest

Organisa-tion

Interest

CONFLICT OF INTERESTPersonalInterest

Others’Interest

Responsible corporate citizenship

Governing body should ensure that the organisation

is a responsible corporate citizen:

1. Provide strategic direction for organisation to be

a responsible corporate citizen and to respond to

economic, social, environmental outcomes of its

activities;

2. Oversee that the performance as a corporate

citizen is monitored against targets;

3. Disclosure of structures, processes, monitoring.

IODSA (2016)

Corporate citizenship include:• Sustainable development

• Human rights

• Impact on communities

• Protection of the natural environment

• Fair labour practices

• Fair & responsible remuneration

• Employee wellbeing & development

• Employee & public health & safety

• Compliance with legislation related to E, S, E

• Prevention, detection & response to fraud/corruption

• Economic transformation, including EE & BEE

• Fair treatment of customers

• Fair competition with industry peers

• Fair treatment of associates, suppliers, contractors

• Responsible tax policies

Source: King IV™

HR Standards Files

13 standards (2013) 19 standards (2014)

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

StrategicHRM

TalentManagement

HR RiskManagement

HR ARCHITECTURE

I

HR VALUE & DELIVERY PLATFORM

Work-force

planning

Learning&

Deve-lopment

Perfor-manceMana-

gement

Reward &

Recogni-tion

Em-ployee

wellness

Employ-mentRela-tions

Organi-sationDeve-

lopment

HR Service Delivery

HR Technology(HRIS)

Prepare

Imple-ment

Review ImproveHR MEASUREMENTHR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E S© SABPP HR MANAGEMENT SYSTEM STANDARD MODEL

Ethics in the HR Standards

3.3.1 Position HR as a strategic partner in the risk governance structures

and processes of the organisation.

6.2.4 Ensure fair, ethical and organisational cultural practices focusing on

the achievement of performance targets in a sustainable way.

7.2.2 Deliver a fair & equitable reward system and process that is ethical,

cost effective and sustainable.

7.2.4 Ensure compliance with organisational governance principles and

practices aligned to national and relevant international governance codes

of practice and relevant legislation.

10.3.2 Ethics of interventions is observed.

11.3.7 Provide independent professional oversight, guidance and

consulting with regard to HR policy, strategy and organisational people

practices and ethical values.

National HR Management Standards (2013) SABPP.

Quick test: Ethical decision-making

What are my options and who would be affected by each of these options?

Are these options legal?

Do these options meet my organisation’sand my profession’s ethical standards?

Can a decision to take one of these options be disclosed to my family, to the public?

(Can I tell others what I have done?)

Yes

Yes

Yes

Probably an ethical decision

No STOP

No

No

STOP

STOP

Prof. Leon van Vuuren (Ethics Institute)

Let’s stand together

Let’s do something…

What are YOU prepared to do?

Biggest lesson in ethics

You can get away doing something unethical

over the short term.

But how long will it last? A day, a week, a

month, a year, a few years…

Eventually the truth comes out.

It takes years to build a good reputation and

only a moment to destroy it.

Build and maintain your ethical reputation.

Ethics Management Process …

Develop or revise code of ethics & processes

Build an ethical culture

Integrate ethical

standards

Assess ethics risk and

opportunities

Report & Disclose

Reference: Ethics SA www.ethicssa.org

Do the right thing

Guidelines for HR• Ethical organisation culture

• Explicit values – make alive

• Leaders actively working against fraud,

behaving in an ethical way

• Ethics and anti-fraud orientation and training

• Recognise and reward good ethics

• Communication - publicity

• Put procedures and controls in place

• Take strong action if things go wrong

• Evaluate strengths/gaps of your system

Ethical HR Risk?

Conclusion

Ethics in business is an important aspect for

board members, managers, HR, industrial

psychologists and employees. Leadership

plays a key role.

We need to infuse ethics into our mindset and

behaviours as individuals, teams and

organisations. I invite HR & IP to become

ethics champions & active citizens. I am proud

to be part of this journey with SIOPSA &

SABPP.

We set HR standards!

[email protected] (Professional Registration)

[email protected] (Ethical issues/complaints)

[email protected] (HR Standards & Audits)

[email protected] (Operations)

[email protected] (Projects/Marketing)

[email protected] (Research)

[email protected] (Learning & Quality)

[email protected] (Strategy inputs)

[email protected] (Social media)

Website: www.sabpp.co.za Blog: hrtoday.me

Office: 8 Sherborne Str, Parktown, South Africa

Tel: +27 11 045 5400 Fax: +27 482-4830

Cel: 082 859 3593 (Marius Meyer)