Ethics and HRM

As many aspects of the world develop, the role of human resources is undergoing a paradigm shift. It is no longer just an administrative function as it has evolved into a strategic, values-driven leader central to organisational survival and success (Poór et al., 2024). Nevertheless, there are some hurdles for its smooth execution, including technological disruption, evolving employee expectations, and societal scrutiny (Sharma et al., 2022). Another important aspect that has come into play is artificial intelligence, colloquially known as AI. Thus, the role of HR needs to ensure the ethical use of AI and data analytics to combat bias and protect privacy (Tambe et al., 2019). This results in the promotion of an empathetic culture through holistic well-being, genuine diversity and inclusion, and psychological safety, and adapting to new work models by guaranteeing fairness for gig and remote employees. Furthermore, HR must excel in a purpose-driven imperative by upholding ESG standards ...

  Dollops of ethical challenges can be seen in Human Resource Management. These are related to various areas, from recruitment to performance to satisfaction to technological advancement (Sposato et al., 2025). It is an important role in HR to balance business objectives with employee rights and legal compliance Valecha (2022). This is impacted by ethical challenges. Therefore, two foundational tensions arise: (i) a "dual loyalty" conflict between serving management's profit goals and advocating for employee fairness, and (ii) the struggle to maintain necessary confidentiality with sufficient transparency. To handle these tensions, having an idea about the key ethical challenges is important. Key Ethical Challenges by HR Practice Area 1. Recruitment & Selection One of the areas with the majority of ethical challenges is the recruitment and selection process. This is affected by various sub-parts, including discrimination from unconscious or conscious bias, as well...

  Day by day, year by year and century by century, people have evolved and have now reached the epitome of success. Simultaneously, organisational cultures evolved into a better position. As such, nowadays, within organisations, an ethical organisational culture is often promoted. Such a culture tends to have shared values, beliefs, and behaviours that align with principles of honesty, fairness, respect, and responsibility (Rocha, 2025). Moreover, in ethical organisational cultures, illegal acts are avoided; thus, creating an environment where doing the right thing is the default, even when no one is watching. Such a culture is backed by integrity, and it makes sure that the actions of its people match the organisation’s shared values. Moreover, such an organisation promotes trust and transparency where open communication about decisions, successes, and even failures is the norm. Going beyond that, ethical organisational culture provides psychological safety, empowering employees t...