{"id":869,"date":"2019-12-09T10:00:29","date_gmt":"2019-12-08T23:00:29","guid":{"rendered":"http:\/\/sage-people-scraping-ca.local\/?p=869"},"modified":"2026-04-29T02:18:04","modified_gmt":"2026-04-28T16:18:04","slug":"should-hr-be-moral-compass-organizations","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-au\/blog\/should-hr-be-moral-compass-organizations\/","title":{"rendered":"Should HR be a moral compass for organisations?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-au\/blog\/category\/people-leadership\/\" class=\"entry-header__link\">People &amp; Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tShould HR be a moral compass for organisations?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tWho should define the code of ethics that an organization holds itself accountable to? What role do HR and People teams play in business ethics?\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2019-12-09T10:00:29+11:00\">December 9, 2019<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Should HR be a moral compass for organisations?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-au\/blog\/should-hr-be-moral-compass-organizations\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-au\/blog\/author\/jessicafuhl\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2020\/10\/Jess-fuhl.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Jessica Leyshon<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Who do you trust more: your employer, media, or the government?<\/p>\n\n\n\n<p>People actually trust their own employer more. That\u2019s according to the latest <a href=\"https:\/\/www.edelman.com\/trustbarometer\" target=\"_blank\" rel=\"noopener noreferrer\">Edelman Trust Barometer<\/a>.<\/p>\n\n\n\n<p>In fact, the barometer revealed that two-thirds of employees want employers to take a stand on societal issues. A further 76% of us believe our CEOs should lead on this change, rather than waiting for the government to act.<\/p>\n\n\n\n<p>In a world where employees expect their employers to take responsibility for issues such as climate change, inequality and public health, what can companies do?<\/p>\n\n\n\n<p>More importantly for HR and People teams, what is their role in this changing landscape?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-business-ethics\">What are business ethics?<\/h2>\n\n\n\n<p>Business ethics are the application of ethical values to business behavior, according to the UK&#8217;s <a href=\"https:\/\/www.ibe.org.uk\/frequently-asked-questions\/3#faq273\" target=\"_blank\" rel=\"noopener noreferrer\">Institute of Business Ethics<\/a>. They apply to the actions of individuals and the organisation, across the whole scope of business practices.<\/p>\n\n\n\n<p>They are tricky to define in real terms, however. Some business ethics \u2013 such as carbon emissions, equal pay for men and women and protecting customers\u2019 data \u2013 are enshrined in law. Yet there are many choices a business is free to make on its own.<\/p>\n\n\n\n<p>For instance, how would you feel if your company had a tobacco or weapons manufacturer as a client? What if your CEO put a freeze on pay-rises, but paid huge bonuses to the senior management team? Or if your company vehemently refused to switch from fossil fuels to renewable energy?<\/p>\n\n\n\n<p>Some of these decisions are driven by profits. At the end of the day, a business\u2019 prime directive is to make money. However, by making less ethical choices, they run the risk of alienating their customers, clients and even their own employees.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Free guide: Why your workforce isn&#8217;t working<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Workforce experiences matter. That\u2019s what we found when we polled over 3,500 workers from across the globe to identify what really counts.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Download the research which reveals:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:list {\"className\":\"tick-list\"} --><\/p>\n<ul class=\"wp-block-list tick-list\"><!-- wp:list-item --><\/p>\n<li>The different kinds of workforce experiences that people say drive productivity \u2013 it\u2019s not what you think<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>The alarming gap between what employees and employers think is important in the workplace<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>The one thing employers need to fix immediately to improve workforce experiences<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>How, and why, HR and People leaders can lead a cultural transformation at work<\/li>\n<p><!-- \/wp:list-item --><\/ul>\n<p><!-- \/wp:list --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-32d984db-9451-4bab-bddf-1db671097566\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/GettyImages-1480030647.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/GettyImages-1480030647.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-should-oversee-business-ethics-in-organisations\">Who should oversee business ethics in organisations?<\/h2>\n\n\n\n<p>So, who should steer companies\u2019 moral standards?<\/p>\n\n\n\n<p>The responsibility could fall on the C-suite, who oversee major business practices in the organisation.<\/p>\n\n\n\n<p>Alternatively, you could ensure that employees themselves are responsible for overseeing their ethical obligations. The Ethics and Compliance Initiative Global Business Ethics Survey 2018 found that employees whose managers and supervisors talk to them about the importance of ethics are 12 times more likely to speak up when they need to.<\/p>\n\n\n\n<p>The third choice is for a corporate social responsibility (CSR) or sustainability lead or team to look after the ethical standards of the business. They will be exposed to much more content that will keep them informed about the ethical landscape beyond the company and can be invaluable in helping to steer the ethical standards.<\/p>\n\n\n\n<p>However, not all organisations are large enough to have dedicated CSR teams or leads.<\/p>\n\n\n\n<p>As experts in people and a team likely to have their pulse on opinions across the organisation, the fourth and final option could be the HR and People team.<\/p>\n\n\n\n<p>In the words of the UK\u2019s HR professional body <a href=\"https:\/\/www.cipd.co.uk\/knowledge\/culture\/ethics\/role-hr-factsheet\" target=\"_blank\" rel=\"noopener noreferrer\">the CIPD<\/a>: \u201cAs the experts on people and organisations, People professionals have unique access to staff throughout their careers, as well as opportunities to influence the organisation\u2019s strategy and the way it manages its workforce.\u201d<\/p>\n\n\n\n<p>The Ethical Corporation seems to agree. They quote a Conference Board survey which found 77% of respondents from 214 global companies said they would \u201clike to see a more collaborative approach\u201d between a company\u2019s ethics and HR and People functions.<\/p>\n\n\n\n<p>Yet, while <a href=\"https:\/\/change-effect.com\/2015\/10\/26\/is-hr-the-moral-compass\/\" target=\"_blank\" rel=\"noopener noreferrer\">Neil Morrison<\/a>, HR Director for Severn Trent Water, agrees the two functions should work hand-in-hand, he warns HR and People professionals should maintain a sense of humility.<\/p>\n\n\n\n<p>\u201cI believe everyone has their own moral compass. And I don\u2019t believe that as a profession we should be the first to occupy the moral high ground\u201d, he says.<\/p>\n\n\n\n<p>Morrison believes that \u201cHR professionals have a duty to challenge cultural under-performance before anyone else.\u201d However, while HR and People teams should can define unethical practices, it ultimately falls upon the entire organisation to deliver a truly ethical culture.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-establishing-the-moral-compass-of-your-organisation\">Establishing the moral compass of your organisation<\/h2>\n\n\n\n<p>Each organisation has the right to define their own ethical standards, with some setting a higher bar than others.<\/p>\n\n\n\n<p>No company can survive by being 100% fast-and-loose with their morals, just as no company can survive by being 100% puritanical. HR and People leaders must strike a balance and decide their approach to every issue individually.<\/p>\n\n\n\n<p>To do that, you could first conduct a listening exercise with your employees to judge how they feel about certain ethical issues, and where they would like to see the company make progress. You could also include questions in your intro and exit interviews, and appraisals.<\/p>\n\n\n\n<p>Next, you could compile the data, produce recommendations for next steps, and present them to your C-suite. You could decide together where your company sits on the scale for key issues such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are you committed to using only green and renewable energy?<\/li>\n\n\n\n<li>Do you donate your profits to charitable causes?<\/li>\n\n\n\n<li>Would your company turn down a supplier, client or customer who was not aligned with your business\u2019 ethics?<\/li>\n<\/ul>\n\n\n\n<p>The way your organisation answers these questions will help to determine its moral standards. You must then agree how you will highlight these values to employees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-do-you-think\">What do you think?<\/h2>\n\n\n\n<p>As HR and People leaders, is it our responsibility to make sure employees understand and adhere to our company\u2019s ethical policies? What do you think?<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Free guide: Why your workforce isn&#8217;t working<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Workforce experiences matter. That\u2019s what we found when we polled over 3,500 workers from across the globe to identify what really counts.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Download the research which reveals:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:list {\"className\":\"tick-list\"} --><\/p>\n<ul class=\"wp-block-list tick-list\"><!-- wp:list-item --><\/p>\n<li>The different kinds of workforce experiences that people say drive productivity \u2013 it\u2019s not what you think<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>The alarming gap between what employees and employers think is important in the workplace<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>The one thing employers need to fix immediately to improve workforce experiences<\/li>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- wp:list-item --><\/p>\n<li>How, and why, HR and People leaders can lead a cultural transformation at work<\/li>\n<p><!-- \/wp:list-item --><\/ul>\n<p><!-- \/wp:list --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-32d984db-9451-4bab-bddf-1db671097566\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/GettyImages-1480030647.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2023\/10\/GettyImages-1480030647.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-20ec4af6-53dd-41ab-81ed-95d438e3bb90\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2019\/01\/GettyImages-626184462-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2019\/01\/GettyImages-626184462-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Who should define the code of ethics that an organization holds itself accountable to? What role do HR and People teams play in business ethics?<\/p>\n","protected":false},"author":1118,"featured_media":2247,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[74],"tags":[222],"business_type":[9],"context":[],"industry":[],"persona":[107,103],"imagine_tag":[65,263,25,40,264],"coauthors":[283],"class_list":["post-869","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-people-leadership","tag-hr","business_type-medium-sized-business"],"sage_meta":{"region":"en-au","author_name":"Jessica Leyshon","featured_image":"https:\/\/www.sage.com\/en-au\/blog\/wp-content\/uploads\/sites\/5\/2020\/07\/PukkaPads_2019_Sage200cloud_5E3A1810.jpg","imagine_tags":{"65":"HR and Payroll","263":"HR processes","25":"HR software","40":"Mid-sized business","264":"Top HR resources"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Australia","distributor_original_site_url":"https:\/\/www.sage.com\/en-au\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts\/869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/users\/1118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/comments?post=869"}],"version-history":[{"count":1,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts\/869\/revisions"}],"predecessor-version":[{"id":4431,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/posts\/869\/revisions\/4431"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/media\/2247"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/media?parent=869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/categories?post=869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/tags?post=869"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/business_type?post=869"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/context?post=869"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/industry?post=869"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/persona?post=869"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/imagine_tag?post=869"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-au\/blog\/api\/wp\/v2\/coauthors?post=869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}