Business Ethics & Corporate Governance

SUMMARY: The attitude of a business towards its employee’s acts is a litmus test for its ethical character. The relationship between the business and its employees is based on the employment contract.

In this chapter we discussed various ethical issues in personnel management activities like: hiring, remuneration and retrenchment. An ethical organization follows the principle of ethical selection for hiring prospective employees.

According to this principle an organization should hire a person who is expected to contribute the maximum towards enhancing long-term owner value.

According to the principle of ethical selection factors like age, gender, religion and nationality are irrelevant for hiring a person.