Sponsored by Supported by Mary Connaughton Director CIPD

Sponsored by Supported by Mary Connaughton Director, CIPD Ireland The challenge for HR in maintaining an ethical workplace

The challenge for HR in maintaining an ethical workplace Mary Connaughton Director, CIPD Ireland

Economy Increasingly More volatile and less predictable Value Increasingly Continued shift toward Intangibles Work Increasingly Networked, collaborative, flexible Workplace Increasingly Formal organisation and informal social structures. Digitalisation Workforce Increasingly More diverse, more demanding Individualisation

CIPD Can HR create a culture of ‘doing the right thing’?

Why are business ethics so important? • 74% of the public (24 countries surveyed) believed organisational social responsibility is an important factor when deciding which product or service to purchase. 84% believe that companies should do more to contribute to society Ipsos MORI, April 2013 • societal expectations giving businesses 'a license to operate‘ • stakeholders aspirational association with responsible organisations • fair, honest and consistent treatment of customers, suppliers, investors and employees builds trust • avoidance of costly crises and scandals damaging reputation • clearly articulated values and an ethics policy = good governance • operating with integrity is a key part of sustainable success for business

HR as ‘guardian’ of ethical practice in business • develop codes of corporate ethics and disseminate to all employees • ensure appeal processes are in place to highlight unethical practice • train/educate employees at all levels on ethical behaviour / conduct • appoint internal compliance officers to monitor ethical behaviour • incorporate ethical behaviour in performance systems and as a parameter for rewards

HR as ‘guardian’ of ethical practice in business • leadership - design systems that: • hold leaders accountable for the ethical dimension of their leadership and own behaviour • identify ethical leaders and rely on them for role modelling and mentoring others • incorporate the ethical dimension of leadership into all leadership training and development programmes • regular assessment of organisational culture – and how it supports ethical conduct How much time do we assign to this?

The need for ethical HR itself • ethical behaviour and role modelling - essential for development and maintenance of positive relationships with workforce • workforce needs to trust the HR function - only possible if the function acts fairly and decently at all times and practice what it preaches • ethical standards - key determinant of employer brand reputation • prospective and existing employees are increasingly considering ethical factors when deciding which companies they are willing to work for

Ethical HR practices ? ? ? • lack of transparency in internal reward and performance management systems • inequity in favouring graduates for fast track promotion • failure to promote equality, diversity, dignity, well-being, etc • failure to maintain employee confidentiality • employing low-pay (sweatshop) workers • breaching data protection (unlawful as well as unethical) • incorrect application of internal disciplinary and capability procedures How do we support those who challenge the system?

HR’s struggle? “HR struggles to debate and challenge organisation issues with sound reasoning” CIPD Labour Market Outlook, Autumn 2013 10

Which three behaviours are you trying to encourage most within your HR function? Base: HR Professionals who have responsibility for running an HR function

The CIPD Profession Map

Leading with integrity, consideration and challenge Insight Challenges Integrity, compassion and challenge stops business savvy becoming boardroom servility. Compassion does not mean avoiding difficult decisions Serving stakeholders not power structures Values, integrity, conviction are key Challenging our own impact first and foremost Face and manage the emotional consequences of business decisions

Business perceptions Line managers: HR Directors: • 76% feel HR keeps data close to its chest • 88% want to empower line managers • 42% feel HR are slow to respond • 71% think line managers expect an immediate response • 39% believe Google is a better source • 58% believe policies are inefficient • 34% feel unempowered re HR • • 30% believe HR actively obstructs 43% believe they spend too much time dealing with line manager queries So, what’s going on……. ? Hay Group 2013 – UK, US & China

Importance of issues facing HR in Ireland Least important (3) Employee engagement Leadership Talent acquisition and retention 24% Medium importance (2) 40% 37% 39% Most important (1) 36% 30% 33% 31% CIPD members survey, 2015 Ireland

Engaging managers… • • • are effective performance coaches empower their people to grow are tuned-in to people. are assignment-assignee match-makers promote open two-way communication "walk the talk” build team spirit are hands-on with their teams are self-confident Aon Hewitt Manager Survey 2012

Line managers deliver HR processes • Bringing policies and procedures to life • Giving development planning and team briefings the time and care they deserve. • Making a connection with employees • talking to employees, listening to their concerns, coaching and counselling them. • Leading by example • taking a lead on important issues like work-life balance and equality and diversity. • Managing performance • praise for work well done • guiding and coaching to improve performance that is not up to standard, including holding that difficult conversation when needed

Checklist: Are your managers: • recruited and selected to ensure they have the right people qualities to motivate staff and deal with difficult problems • trained so that they can carry out their duties effectively and develop their own careers • given a balanced workload that recognises the need to allocate time for performance management duties • coached by senior managers so that they openly discuss problems and actively participate in decision making

What practical steps do you take to support managers? • Do you have skilled HR people assigned to support managers? • Is there visible support coming from your senior leadership team? • Do you have efficient tools and technology to support your managers? • What sort of support networks do managers have? • Where does accountability lie?

What employees want… Organisation culture Preferred Current An organisation with a family feel, held together by loyalty and tradition 55 26 A formalised and structured place to work, where procedures govern what people do 20 46 A dynamic, entrepreneurial, and creative place to work 15 6 A result-oriented organisation whose major concern is with getting the job done 10 22 CIPD Employee Outlook, 2015

Using workforce analytics to help us • provide reliable, evidence-based insights • have the ‘right’ conversations • develop insights into how changes in the business affect the workforce, and vice versa • monitor, and explain changes in the performance of the workforce • demonstrate the effectiveness of policies and processes (Cap Gemini, ‘Making Sure People Count’, 2012) 58% business and technology executives agree that moving from data to insight is a major challenge… (Pw. C, 2014)

Protected Disclosures Act 2014 • The Act aims to protect workers in both the public and private sector in circumstances where they disclose information about alleged wrongdoing in the workplace based on a reasonable belief. • • Policy in place Organisation response Support for whistle-blower, discipline, bully Ethics Officer

Championing better work and working lives but Requires good HR and people development Good HR is context specific and we can’t predict the future HR becomes a trusted and credible profession which can CBW&WL regardless of context so so We need to move from prescriptive best practice to broader principles We need to build and maintain professionalism in HR so so but It takes true professionalism to apply those principles in practice

What does it mean to be a professional? Social and ethical responsibility Body of knowledge and skills Situational judgement Commitment CPD Identity Championing better work and working lives (for the benefit of individuals, businesses, economies and society) 24

What’s important and what’s not? Philosophical ethics! • Is HR there to serve the people or the business? • Do hard-working, talented people deserve more money than those who need it the most? • Does the wellbeing of one person matter just as much as that of the entire organisation? • Should people have a say in what happens to them at work, or would it make more sense to leave the decision to those who are competent in making it? Bucket list of options 25

What are the possible ‘lenses’ for looking at workplace dilemmas? Merit Wellbeing Fairness Market Rights Handing down Democracy Character 26

Practitioner survey findings 8 out of 10 say it’s the “right” thing to do, but only 23% apply it in current practice ‘Right’ thing to do Handing down Character Rights Wellbeing Greater good Merit Prevalent in current practice Less prevalent in current practice A quarter apply this principle, but another quarter say it’s inapplicable or a “nice to have” More than half always apply this, although this drops if talking about the categories of staff who aren’t “part of the family” Democracy Justice Market Not a priority 27

Finally…. “Whether we will succeed or fail in the work ahead will be determined by the response we bring to the irrefutable evidence of science, the degree of our moral courage, our ethical values, and the inspiration we can call upon. ” “The first ethical test is in accepting that there can be no compromise with truth. ” PRESIDENT MICHAEL D HIGGINS. The Power of Ideas for Climate – Making a New Beginning. Address given to the Summit of Consciences for the Climate, Paris, France, 21 July 2015

Thank you