Human Resource Capital: Ethics Impacting Stakeholders Analysis

This essay examines the crucial role of human resource capital in organizations, emphasizing the significance of ethical practices and their impact on various stakeholders. It highlights that human capital, comprising employees' skills, knowledge, and experience, is a valuable asset that fosters economic growth when managed effectively. The essay discusses how ethical conduct, guided by government regulations and internal codes of conduct, ensures employee safety, legal compliance, and positive stakeholder relations. Examples like Nike's transformation through CSR initiatives and Tata Steel's recognition for ethical business practices illustrate the benefits of prioritizing ethics. The essay underscores the importance of ethical training for employees, promoting transparency, fairness, and loyalty to organizational goals. Ultimately, it advocates for establishing a strong ethical framework to cultivate a responsible and value-driven human resource capital that benefits both the organization and its stakeholders. Desklib provides resources like this to aid students in their studies.

human resource capital
Ethics affecting stakeholders

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Humans are the real assets of the country who creates value and worth to the given resources.
The humans can be the asset if they are contributing to value addition of the work and they
can be the liability to the country if they are not supporting value creation in any form.
Corporate cannot operate all alone. The company has to consider different stakeholders like
suppliers, government, customers, trade unions and society (Armstrong, 2009). Many
companies do great ethical practices which positively helps the government to name an idol
business. Just by performing the deed unethically destroys and hampers the image of the
organisation (Chidi and Ogunyomi, 2012).
In this era, the word “human capital” is not just limited to maximum labour it is the value and
asset of an organisation having the competency in fields of knowledge, experience and skills.
As human resource the attributes of skills, knowledge gained through training are outlined.
Focusing on human capital maximisation leads to career development and learning of an
employee. The greater stock of efficient human resources results to foster the economic
growth. Failure of competent human resources cannot reduce the gap of living standards in a
country (Marchington, Wilkinson, and Donnelly, 2016). The human capital can be increased
by giving training in which the practical processes are used to impart skill knowledge to
employees to attain job satisfaction. Government ethics is defined as code of conduct that
professional working under the government has to follow. Bribery is one of the major issue
and practise happens in an organisation affecting the government acts (Carmeli et al., 2017).
Organisation should prepare its employees to perform the deeds which are ethically right. The
ethical working ensures the employee to remain safe and secure on their part. Business laws
differs from region to region. The managers should take steps to train their employees to
follow the laws perfectly without any deviation. Standards from government give operating
model which will produce better company results and also protects the employees. For
example- Nike was facing ignorance since 1990s. In 1998 it managed to make new policies,

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then in 2013 it tried every possible way to protect the interest of workers and enforced
policies which empowered labour. The reports against Nike workings were decreased,
appreciating new CSR model. Nike is trying to reduce water usage in the supply chain by
2020s, Nike came up to new CSR policies benefiting society. This way Nike emerged as a
hero, by making its CSR stringent (Newell, 2015). Acting in a particular way that the society
think are good Morales. Following ethics is the need of the hour in today’s world.
Organisation should train its employees strictly especially from ethical point of view. The
importance of ethical training cannot be eliminated for employees it enables the employees to
understand ethical rules and regulations and also affects the immediate job. Concern
regarding the related areas of ethics should be more focused. Employers should give the
clarity of every policy of organisation. The ethical rules are not just for the organisation, one
has to identify and follow self-morale, fairness, truthfulness, good character, freedom from
greed and loyalty towards organisational goals. The realistic view of handling the ethical
error should be elaborated. The employees should be given a situation and chance to
practically apply these ethical practises.
In tata steel case, the company was awarded for advancing the practices related to ethical
business for the 6th time by Ethisphere Institute (livemint, 2018). The government made it
mandatory to perform CSR (corporate social responsibility) and activities to satisfy the
stakeholders in the society. Following the government policies like paying tax at proper time
and full amount encourages government to support ethical organisation even when it requires
fund. Regardless of when a employee has terminated resigned or terminated (Voegtlin and
Greenwood, 2016). Company getting awards for its ethical creates a favourable image in
front of stakeholders. Stakeholders start taking more interest and this also increases the
financial value of the share. Through stakeholders higher priority is given to support and
encourage corporate soci1al responsibility. Ethical code of conduct gives a benchmark

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through which the performance of individual is analysed and assessed. Much courage is
required to follow every act according to the code of conduct and values (Russo and Perrini,
2010). Having a defined set of rules and regulations, the employees become habitual of
performing the acts ethically which is an intangible asset in an organisation`s name. The
leader represents the right ways of performing ethics. The wrongdoers are measured and are
punished by the leader. The importance of code of conduct cannot be neglected in the long
run as it identifies core values and fundamental rules through which the work performed is
aligned. The organisation value literate employees in form of human capital. Human capital
develops wealth and improves the lives of the people around them. By literacy, the employee
can better understand the laws given by the government (Su, 2014).
Every organisation should work as per its code of conduct. The human capital of the
organisation holds the responsibility to handle and perform the acts ethically. Various
government policies are given to the organisation to implement them and work accordingly.
Stakeholders are directly affected by the work of the organisation. Suppliers may get
damaged goods, trade unions supporting the organisation may get disappointed. A new code
of conduct should be established by the board to create organisation`s enabled human
resources. The issues which are marked wrong or unethical should be considered as soon as
possible or either it can spoil the organisation`s image (Wang and Snell, 2013). One way of
promoting ethics in an organisation is checking and measuring leader performance by ethics.
Inform of justice, the worker who performs wrong deeds are punished.

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References
Armstrong, M. (2009) Armstrong's handbook of human resource management practice. 11th
ed. London: Kogan Page.
Carmeli, A., Brammer, S., Gomes, E., and Tarba, S.Y. (2017) An organizational ethic of care
and employee involvement in sustainability‐related behaviors: A social identity perspective.
Journal of Organizational Behavior, 38(9), pp. 1380-1395.
Chidi, O. C., and Ogunyomi, O. P. (2012) Promoting Ethical Human Resource Management
Practices in Work Organisations in Nigeria: Roles of HR Professionals. International Journal
of Human Resource Studies. 2(1).
Livemint. (2018) Tata Steel bags ‘most ethical company’ award. [online] Available from:
https://www.livemint.com/Companies/gDXqa8o3dzV8pSNnVZwtFJ/Tata-Steel-bags-most-
ethical-company-award.html [Accessed 15/06/18].
Marchington, M., Wilkinson, A., and Donnelly, R. (2016) Human resource management at
work. London: Kogan Page Publishers.
Newell, A. (2015) How Nike Embraced CSR and Went From Villain to Hero. [online]
Available from: https://www.triplepundit.com/special/roi-of-sustainability/how-nike-
embraced-csr-and-went-from-villain-to-hero/ [Accessed 15/6/18].
Russo, A., and Perrini, F. (2010) Investigating stakeholder theory and social capital: CSR in
large firms and SMEs. Journal of Business ethics, 91(2), pp. 207-221.
Su, H. Y. (2014) Business ethics and the development of intellectual capital. Journal of
Business Ethics, 119(1), pp. 87-98.

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Voegtlin, C., and Greenwood, M. (2016) Corporate social responsibility and human resource
management: a systematic review and conceptual analysis. Human Resource Management
Review, 26(1).
Wang, L. and Snell, R. S. (2013) A case study of ethical issue at Gucci in Shenzhen, China.
Asian Journal business Ethics. 2(1), pp. 73-183.