Slides by Marius Meyer – Role of ethics in HR Standards, Competence & Governance

Marius Meyer

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Fraud and corruption

What is wrong with us in South Africa? Why is

fraud and corruption so high?

What are we doing as HR in improving the

status quo?

Why is governance

important?

Fraud starts with HR …

It is about honesty

“Honesty is the first chapter in the book of

wisdom.”

Thomas Jefferson

New SABPP Model: HR Voice for

Professionals

Human resource development

Research - info

Value & visibility

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CPD

Excel-lence

Qualityassurance

Learning growth & develop-

ment

Knowledge

Self-governance Duty to society

Ethics

SABPP VALUE PROPOSITION:

Products/Services to advance HR professionRECOGNITION =

PROFESSIONAL STATUSRESOURCES =

PRODUCTS/SERVICESRESEARCH =

INFORMATION

• Professional registration• NLRD Upload (SAQA)• RPL• Awards• Advocacy• HR Assessors/Moderators

registration• Accreditation of providers• University accreditation

• HR Competency Model• Social media discussions• Knowledge Centre• Booklets/DVDs• Guides/toolkits• Charts/posters• Fact sheets• One-stop info• Updates (laws, trends)• Ethics help-line• Newsletters• Website• HR Internships/jobs• HR policies• Mentoring• Workshops/seminars• Access to alliances• Event/product discounts• CPD• Students

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information

NEXT STEP – BECOME A REGISTERED HR PROFESSIONAL

Apply to

[email protected]

so that we can register you

as an HR professional in

accordance with NQF Act

(Act no 67 of 2008). You

sign the ethics code.

SABPP Professional Values

RESPONSIBILITY

I

RESPECT

INTEGRITY

COMPETENCE

SOUTH AFRICAN HR COMPETENCY MODEL

STRATEGY

TALENT MANAGEMENT

HR GOVERNANCE, RISK, COMPLIANCE

ANALYTICS & MEASUREMENT

HR SERVICE DELIVERY

5 HR

CAPABILITIES

LEADERSHIP & PERSONAL CREDIBILITY

ORGANISATIONAL CAPABILITY

SOLUTION CREATION & IMPLEMENTATION

INTERPERSONAL & COMMUNICATION

CITIZENSHIP FOR FUTURE: INNOVATION, TECHNOLOGY, SUSTAINABILITY

CO

RE

CO

MP

ET

EN

CIE

S

HR & BUSINESS KNOWLEDGE

DUTY TO SOCIETY

ET

HIC

S

PR

OF

ES

SIO

NA

LIS

M

4

PILLARS

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

ORGANISATION SYSTEM

• E T H I C S

GOVER-NANCE

RISKCOM-

PLIANCE

LEADERSHIP

MANAGEMENT

CU

LTUR

E

CO

NTR

OLS

“Good human resource management is imperative for good governance”

Mervin King

Outline of King III

Chapter 1:

ETHICAL LEADERSHIP & CORPORATE CITIZENSHIP

Chapter 3:

Audit Committees

Chapter 4:

Governance of risk

Chapter 5:

Governance of IT

Chapter 6:

Compliance with L, R, C & S

Chapter 7:

Internal audit

Chapter 8:Governing

StakeholderRelationships

Chapter 2:

Board & directors

Chapter 9:

Integrated Reporting & disclosure

Top management perspective

“The human resource professional in

an organisation needs to be an integral part of the leadership and

the ‘right hand’ of the chief executive. Establishing and sustaining an ethical ethos, the HR professional must work closely with the executive

leadership team to define and promote the culture of an

organisation based on the underlying values and then entrench the culture

through all the touch points in the human capital value chain.”

Edward Kieswetter, CEO: Alexander Forbes

HR Standards Files

13 standards (2013) 19 standards (2014)

BUSINESS STRATEGY – HR BUSINESS ALIGNMENT

❶ StrategicHRM

❷ TalentManagement

❸ HR RiskManagement

HR ARCHITECTURE

HR VALUE & DELIVERY PLATFORM

❹Work-force

planning

❺

Learning

❻Perfor-mance

❼

Reward

❽Well-ness

❾ERM

❿OD

⓫ HR Service Delivery

⓬HR Technology

(HRIS)

Prepare

Imple-ment

Review Improve⓭ HR MEASUREMENTHR Audit: Standards & Metrics

H R

C O

M P

E T E N C

I E SSABPP HRM SYSTEM STANDARDS 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.

Conflict of interest

DirectorManagerEmployeeInterest

Organisa-tion

Interest

CONFLICT OF INTERESTPersonalInterest

Others’Interest

“People and behaviour are often the biggest

risks”

• Critical to include people risks in a company’s risk management plan

• HR need to be the eyes & ears for people-related governance & compliance

HR Risk?

SABPP HR Risk Study

Source: SABPP (2010)

H R - R I S K S

• Safety - accidents

• Skills shortages/gaps

• Incompetence

• Employee disengagement

• Strikes & poor employment relationships

• Fraud/corruption

• Stress

• Staff turnover

• Low staff satisfaction –impact on customer satisfaction

• Cyber security

• Conflict/disputes

• Diversity problems

• Sexual harassment

• Expatriate issues

• Non-compliance

Hiring /

Retaining

Empowerment

Fraud &

Corruption

Hiring / Retaining

Leadership /

Performance Mgmt.

Development /

Empowerment

People Costs

OH&S

and Security

Corporate Social

Resp.

The risk that the company does not have the right people in the right

place to reach its targets due to a lack of adequate processes/systems

and management commitment ("culture").

The risk that people are not aligned with the company goals and

therefore cannot contribute to achieving company targets.

The risk that people do not have the knowledge, skills or motivation to

effectively carry out their responsibilities in current and future

positions.

The risk that labour costs (direct and indirect) are not optimised and

adequately controlled due to deficiencies in the organization, industrial

relations and compliance with laws and internal/external regulations.

The risk that the company does not adequately protect people from

injury, illness, fatality; and that adverse effects such as hijacking,

kidnapping and blackmailing etc. occur to the company.

The risk that the company compromises its "licence to operate" due to

neglecting stakeholder relations.

Social

Security

Health &

Safety

Personal

Security

The “new” HR Risks for the Generic Risk Model

Business Risk Management - Holcim

The risk that fraudulent activities occur.Fraud &

Corruption

Ethics Reporting

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

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

Conclusion

HR has a key role in infusing ethics in our

work and governance. Create a robust system

and culture to prevent fraud and corruption.

Best wishes with your ethics work. Let us

position ethics as a key component of sound

HR practice and standards.

We set HR standards!

[email protected] (Professional Registration)

[email protected] (HR Standards & Audits)

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[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)