The Role of the People Professional: Responsible Leadership, Ethics and

Professional Conduct

Tina Russell

Professional Conduct & Ethics Lead

Today’s session:

Professional Conduct Ethics Case study

The CIPD Code of Professional Conduct

• Launched 1 July 2012

• 19 points on 1 page

• Precedes the (latest) Profession Map

• https://www.cipd.co.uk/about/what-we-do/professional-standards/code

Why have a Code of Conduct?“Your Member has been

dishonest, made a statement which she has since admitted was not correct …. She is not

acting with honesty, integrity or professionalism in line with your

code”

“There are some awful HR practitioners around who

continue their bad practice with impunity, making people’s lives a

misery.”

“HR is a profession which pays a good salary. I was entitled to

expect better …. “

“The CIPD member should be held accountable for any

professional failings.”

“Your Member has acted in a way unbecoming of someone associated with the CIPD. His

behaviour was offensive, degrading, unprofessional and

deliberate…”

Getting it wrong

2019-20 Investigations %

Handling of investigation/grievance/dismissal 30

Mishandling of data 20

Harassment 20

Fraud 20

Social media 5

Conflict of interest 5

2012-2020 Hearings %Mishandling of data 58Unprofessional service delivery 12.5Plagiarism 12.5Handling of investigation/dismissal 8Bullying and harassment 4.5Fraud 4.5

Potential implications• If allegation(s) are upheld, the Panel may exercise one or more of the following:

• Advise the Member regarding their future conduct and/or direct them to apologise

• Reprimand the Member

• Permit membership to continue, subject to conditions (e.g. further training)

• Expel them from the Institute for a specified period of time / permanently.

Code of Conduct review

Restructuring the Code

Social Media Sustainability Whistle blowing /speak up

Dealing with complaints

EDI More focus on ethics and ethical

practice.

Code of Conduct review

What bothers people about the profession?

What are the risks around misconduct

and unethical practice within the profession?

What are the strengths of the current Code?

What could be improved?

What’s missing Ethical principles to

articulate in the Code

What are the positive and contra indicators of (un)ethical conduct

by the profession?

Ethical breaches, the state of play

cipd.co.uk/ethicalbehaviour cipd.co.uk/ethicsguide

Research and guidance

Rotten apples? Influence of mood and personality on ethical behaviour

Positive influences:+ Self-esteem & confidence+ Moral development + Active states

Negative influences:– Dark triad personality– Passive states– Impulsivity– External locus of control– Susceptibility to peer pressure

Mood & perceptions do affect ethical behaviour

Take care …

• Happy managers are more likely to agree to unethical requests

• Fear & frustration also linked to unethical behaviour

To encourage:

• Enthusiastic managers less likely to agree to unethical requests

• Perceived responsibility & control over ones actions are linked to more ethical behaviour

Lowe, J.D. and Reckers, P.M.J. (2012) An examination of the contribution of dispositional affect on

ethical lapses. Journal of Business Ethics. Vol 111, No 2. pp179–93.

Bad barrels?

Influence of climate, culture and leadership on ethical behaviour

Positive influences:+ Strong ethical climates+ Moral leadership

Negative influences:– Organisational politics– Lack of trust and perceived unfairness– Destructive leadership– Social norms of unethical behaviour

Office politics impact on ethical behaviour

• Organisational politics and fairness can influence counterproductive workplace behaviour

• Political environments are linked to absenteeism and withdrawal behaviour (such as lateness)

• Navigating a political environment takes energy and leaves employees feel like they don’t control their environment

Bedi, A. and Schat, A.C. (2013) Perceptions of organizational politics: a meta-analysis of its attitudinal, health, and behavioural consequences. Canadian

Psychology/Psychologie Canadienne. Vol 54, No 4. pp246–59

Valle, M., Kacmar, K.M. and Zivnuska, S. (2017) Understanding the effects of political environments on unethical behavior in organizations. Journal of

Business Ethics.

Sticky situations: tasks and job design

Influence of day-to-day roles & context of decisions on ethical behaviour

+ Varied roles+ Accountability+ Checks and balances

Positive influences: Negative influences:– Highly competitive markets– Unrealistic goals & time pressure– Monotonous roles – Unlikely or seemingly justifiable outcomes

• Research suggests that:

• Unethical behaviour more likely in competitive

environments – especially if it helps an organisation to get

ahead of competitors (Chen et al 2016)

• Managers may also be less likely to reprimand poor

behaviour if it results in short term benefit for the company

(Desmet et al 2015)

• Competition to ‘be the best’ on a performance curve could

also have encourage sabotaging others work or

misrepresenting own work (Charness et al 2013)

Competitive environments

Goal setting and unethical behaviour

• Risks: • if goals hard to reach (unfair)

• & goals financially incentivised

• & opportunity to cheat.

• Risks reduced: • if possibility of a promotion

(offset unfairness)

Clor-Proell, S.M., Kaplan, S.E. and Proell, C.A. (2015) The impact of budget

goal difficulty and promotion availability on employee fraud. Journal of

Business Ethics. Vol 131, No 4. pp773–90

Real life examples

Wells Fargo cross-selling scandal, including mis selling of

products and fraud.

“Our team members do have goals. And sometimes they

can be blinded by a goal”https://www.latimes.com/business/la-xpm-2013-oct-03-la-fi-1004-wells-fargo-firings-20131004-

story.html

PPI scandal, resulting in huge volumes of mis-sold

insurance. Linked to highly commissions based, strong

incentive to sell plans for sales reps. https://www.ftadviser.com/regulation/2017/11/23/the-lessons-of-ppi-mis-selling/

Misaligned targets: Mid Staffordshire NHS trust scandal-

cost cutting targets at odds with patient carehttps://www.bbc.co.uk/news/health-21244190

This Photo by Unknown Author is licensed under CC BY

IBE Ethical Test

• Transparency: Do I mind others knowing what I have decided?

• Effect: Who does my decision affect or hurt?

• Fairness: Would my decision be considered fair by those affected?

Institute of Business Ethics https://www.ibe.org.uk/

© IBE

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Does it work?

• Those who are aware of all the four elements of an ethics programme, are also more likely to say that:

• Honesty is practiced at work (86% vs 74%)

• Their organization acts responsibly in all its business dealings with stakeholders (85% vs 44%)

• Although they are likely to be aware of misconduct (27% vs 31%), they are more likely to speak up about it (73% vs 42%)

• Those who raised their concerns about misconduct are more likely to be satisfied with the company’s response (72% vs 28%)

© IBE

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• Internal change: evolving organisational models, structures, and processes

• Digital and technological transformation

• Changing demographics and D&I strategy

• Diversifying employment relationships

• Sustainability, purpose and responsible business.

Five key trends influencing the profession

cipd.co.uk/people-profession-2030-trends

Reflections for people professionals

How the CIPD supports ethical practice

Workplace Dilemmas: in confidence

https://www.cipd.co.uk/Community/discussion-forum/workplace_dilemmas/

Case study

• You are an HR BP for a growing IT organisation.

• A high performing employee on an STC has emailed to advise that they need to work outside of the UK until the end of their contract due to family caring issues that have arisen. They wish the relocation to be established at the beginning of next month, until the end of their contract, which will equate to 6 months of working outside of the UK.

• You speak with their line manager who advises that the individual is mission critical and requests that you do whatever it takes to retain this employee for the duration of their contract.

• The line manager assures you that the project responsibilities can be fulfilled from a non UK location

• You then discover, through unofficial sources, that the employee moved out of the UK over 1 month ago, even though they have been working in that time.

• If the period of working outside of the UK goes over 6 months, it gives rise to a range of issues including tax, insurance, and other liabilities.

• The organisation does not currently have a policy on this situation but the CEO has been espousing throughout the recent pandemic, that staff can work from anywhere.

What would you do?

Option3

Execute the relocation based on the dates requested by the

employee, maintaining the planned end date

Option 2

Execute the relocation, backdated, bringing forward the end of

contract

Option 1

Dismiss the employee for breach of contract

Cast your vote

Go to:

Slido.com

Select poll:

#014166

Group discussion

How you can get involved:

1. Share dilemmas for our dilemma bank2. Register to volunteer3. Complete the Code of Conduct review survey4. Participate in a focus group5. Promote the survey & focus groups to contacts

Thank youcodeofconductreview@cipd.co.uk