Abstract
This paper reviews and develops the ethical analysis of human resource management (HRM). Initially, the ethical perspective of HRM is differentiated from the "mainstrea" and critical perspectives of HRM. To date, the ethical analysis of HRM has taken one of two forms: the application Kantian and utilitarian ethical theories to the gestalt of HRM, and the application of theories of justice and fairness to specific HRM practices. This paper is concerned with the former, the ethical analysis of HRM in its entirety. It shows that numerous theoretical shortcomings exist, least of which is the disregard of stakeholder theory. These deficiencies are explored and, as such, the analysis is advanced. It is argued that such ethical analysis is outside the scope of the modern corporation. A third way in which ethics may be applied to HRM is suggested. Ethical concerns are used as a basis to develop minimum standards against which HRM, in its various guises and practice, may be evaluated. Yet, even when judged by these standards, HRM is seriously lacking. This begs the question, not of whether HRM is ethical, but of whether HRM can be ethical.
Similar content being viewed by others
References
Academy of Management (eds.): 2000, Academy of Management 2000 Proceedings (Academy of Management Toronto, Canada).
Alvesson, M. and H. C. Willmott: 1996, Making sense of Management: A Critical Introduction (Sage, London).
Anderson, N. and R. Schalk: 1998, ‘The Psychological Contract in Retrospect and Prospect’, Journal of Organizational Behaviour 19, 637-647.
Beauchamp, T. L.: 1993, ‘Manipulative Advertising’, in T. L. Beauchamp and N. E. Bowie (eds.), Ethical Theory and Business (Prentice Hall, Englewood Cliffs, NJ).
Beauchamp, T. L. and N. E. Bowie: 1993, Ethical Theory and Business Practice (Prentice Hall, Englewood Cliffs, NJ).
Becker, B. and B. Gerhart: 1996, ‘The Impact of Human Resource Management on Organizational Performance: Progress and Prospects’, Academy of Management Journal 39(4), 779-795.
Bowie, N. E.: 1998, ‘A Kantian Theory of Meaningful Work’, Journal of Business Ethics 17, 1083-1092.
Clark, T., C. Mabey and D. Skinner: 1998, ‘Experiencing HRM: The Importance of the Inside Story’, in C. Mabey, D. Skinner and T. Clark (eds.), Experiencing Human Resource Management (Sage, London).
Cornelius, N. and S. Gagnon: 1999, ‘From Ethics "by proxy" to Ethics in Action: New Approaches to Understanding HRM and Ethics’, Business Ethics: A European Review 8(4), 225-235.
Covey, S. R.: 1989, The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change (Simon and Shuster, New York).
Donaldson, T.: 1999, ‘Making Stakeholder Theory Whole’, Academy of Management Review 24(2), 237-241.
Dunford, R.: 1999, ‘If You Want Loyalty Get a Dog!: Loyalty, Trust and the Employment Contract’, in S. R. Clegg, E. Ibarra-Colado and L. Bueno-Rodriquez (eds.), Global Management: Universal Theories and Local Realities (Sage, London).
Evan, W. M. and R. E. Freeman: 1988, ‘A Stakeholder Theory of the Modern Corporation: Kantian Capitalism’, in T. L. Beauchamp and N. Bowie (eds.), Ethical Theory and Business (Prentice Hall, Englewood Cliffs, NJ).
Ferris, G. R., W. A. Hochwarter, M. R. Buckley, G. Harrell-Cook and D. D. Frink: 1999, ‘Human Resource Management: Some New Directions’, Journal of Management 25(3), 385-423.
Freeman, R. E.: 1984, Strategic Management: A Stakeholder Approach (Pitman, Boston).
Freeman, R. E.: 1999, ‘Divergent Stakeholder Theory’, Academy of Management Review 24(2), 233-236.
Friedman, M.: 1970, ‘The Social Responsibility of Business is to Increase Profit’, The New York Times Magazine.
Goodpaster, K. E.: 1991, ‘Business Ethics and Stakeholder Analysis’, Business Ethics Quarterly 1(1), 53-73.
Grace, D. and S. Cohen: 1998, Business Ethics: Australian Problems and Cases (Oxford University Press, Melbourne).
Greenwood, M. R.: 2001, ‘The Importance of Stakeholders According to Business Leaders’, Business and Society Review 106(1), 29-49.
Guest, D.: 1987, ‘Human Resource Management and Industrial Relations’, Journal of Management Studies 24(5), 503-521.
Guest, D.: 1997, ‘Human Resource Management and Performance: A Review and Research Agenda’, International Journal of Human Resource Management 8(3), 263-276.
Guest, D.: 1999, ‘Human Resource Management-the Workers’ Verdict’, Human Resource Management Journal 9(3), 5-25.
Handy, C.: 1989, The Age of Unreason (Century Hutcheson
Handy, C.: 1991, ‘What Is a Company For?’, RSA Journal
I. L. O.: 1998, ‘Declaration on Fundamental Principles and Rights at Work’, 86th Session (Geneva, Switzerland).
Jackson, S. E. and R. S. Schuler: 1995, ‘Understanding Human Resource Management in the Context of Organizations and Their Environments’, Annual Review of Psychology 46(1), 237-265.
Jones, T. M. and A. C. Wicks: 1999, ‘Convergent Stakeholder Theory’, Academy of Management Review 24(2), 206-221.
Kamoche, K.: 1994, ‘A Critique and a Proposed Reformulation of Strategic Human Resource Management’, Human Resource Management 4(4), 29-47.
Kamoche, K. and F. Mueller: 1998, ‘Human Resource Management and the Appropriation-Learning Perspective’, Human Relations 51(8), 1033-1060.
Kant, I.: 1964, Groundwork of the Metaphysic of Morals (Harper, New York).
Lagan, A.: 2000, Why Ethics Matter: Business Ethics for Business People (Information Australia, Melbourne).
Lawler, E. E.: 1992, The Ultimate Advantage: Creating the High-involvement Organization ( Jossey-Bass, San Francisco).
Legge, K.: 1995, Human Resource Management: Rhetorics and Reality (Macmillan, London).
Legge, K.: 1996, ‘Morality Bound’, People Management 25(2), 34-36.
Legge, K.: 1998, ‘The Morality of HRM’, in C. Mabey, D. Skinner and T. Clark (eds.), Experiencing Human Resource Management (Sage, London).
Metcalfe, C.: 1998, ‘The Stakeholder Corporation’, Business Ethics: A European Review 7(1), 30-36.
Miller, P.: 1996, ‘Strategy and Ethical Management of Human Resources’, Human Resource Management Journal 6(1), 5-18.
Mitchell, R. K., B. R. Agle and D. J. Wood: 1997, ‘Towards a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts’, Academy of Management Review 22(4), 853-886.
Moorhead, A., M. Steele, M. Alexander, K. Stephen and L. Duffin: 1997, Changes at Work: The 1995 Australian Workplace Industrial Relations Survey (Longman, Melbourne, Australia).
Orlando, J.: 1999, ‘The Fourth Wave: The Ethics of Downsizing’, Business Ethics Quarterly 9(2), 295-314.
Peters, T. and R. Waterman: 1982, In Search of Excellence (Harper and Row, New York).
Petit, P.: 1991, ‘Consequentialism’, in P. Singer (eds.), A Companion to Ethics (Blakwell, Oxford), pp. 230-240.
Pfeffer, J. and J. F. Veiga: 1999, ‘Putting People First for Organizational Success’, The Academy of Management Executive 13(2), 37-48.
Purcell, J.: 1999, ‘Best Practice and Best Fit: Chimera or cul-de-sac?’, Human Resource Management Journal 9(3), 26-41.
Rappaport, A.: 1986, Creating Shareholder Value: The New Standard for Business Performance (The Free Press, New York).
Rawls, J.: 1972, A Theory of Justice (Clarendon Press, Oxford).
Robinson, S. L., M. S. Kraatz and D. M. Rousseau: 1994, ‘Changing Obligations and the Psychological Contract: A Longitudinal Study’, Academy of Management Journal 37(1), 137-152.
Robinson, S. L. and D. M. Rousseau: 1994, ‘Violating the Psychological Contract: Not the Exception but the Norm’, Journal of Organizational Behavior 15, 245-259.
Rousseau, D. M.: 1995, Psychological Contracts in Organizations (Sage, Thousand Oaks, CA).
Rousseau, D. M. and J. M. Parks: 1992, ‘The Contracts of Individuals and Organisations’, Research in Organizational Behavior 15, 1-47.
Rowan, J. R.: 2000, ‘The Moral Foundation of Employee Rights’, Journal of Business Ethics 24(2), 355-361.
Sennett, R.: 1998, The Corrosion of Character (W.W. Norton, New York).
Sennett, R.: 1999, ‘How Work Destroys Social Inclusion’, New Statesman, 25-27.
Shuler, R. S. and R. E. Jackson: 1987, ‘Linking Competitive Strategy and Human Resource Management Practices’, Academy of Management Executive 1(3), 207-219.
Simon, J. G., C. W. Powers and J. P. Gunneman: 1993, ‘The Responsibilities of Corporations and Their Owners’, in T. L. Beauchamp and N. E. Bowie (eds.), Ethical Theory and Business (Prentice Hall, Englewood Cliffs, NJ).
Stone, R. J.: 1998, Human Resource Management ( John Wiley and Sons, Brisbane, Australia).
Townley, B.: 1993, ‘Foucault, Power/Knowledge, and Its Relevance for Human Resource Management’, Academy of Management Review 18(3), 518-546.
Trevino, L. K. and G. R. Weaver: 1999, ‘The Stakeholder Tradition: Convergent Theorist-Not Convergent Theories’, Academy of Management Review 24(2), 222-227.
Truss, C., L. Gratton, V. Hope-Hailey, P. McGovern and P. Stiles: 1997, ‘Soft and Hard Models of Human Resource Management: A Reappraisal’, Journal of Management Studies 34(1), 53-73.
Ulrich, D.: 1998, ‘A New Mandate for Human Resources’, Harvard Business Review 76(1), 125-134.
Vallance, E.: 1995, Business Ethics at Work (Cambridge University Press, Cambridge, U.K.).
Walton, R. E.: 1985, ‘From Control to Commitment in the Workplace’, Harvard Business Review 63, 77-84.
Warren, R. C.: 2000, ‘Putting the Person Back into Human Resource Management’, D. Winstanley and J. Woodall (eds.), Third Conference on Ethics and Human Resource Management (Imperial College Management School, London, U.K.).
Willmott, H.: 1997, ‘Rethinking Managerial Work: Capitalism, Control, and Subjectivity’, Human Relations 50(11), 1329-1359.
Winstanley, D. and J. Woodall: 2000, ‘The Ethical Dimensions of Human Resource Management’, Human Resource Management Journal 10(2), 5-20.
Winstanley, D., J. Woodall and E. Heery: 1996a, ‘Business Ethics and Human Resource Management Themes and Issues’, Personnel Review 25(6), 5-12.
Winstanley, D., J. Woodall and E. Heery: 1996b, ‘The Agenda for Ethics in Human Resource Management’, Business Ethics: A European Review 5(4), 187-194.
Wright, P. M. and G. C. McMahan: 1992, ‘Theoretical Perspectives for Strategic Human Resource Management’, Journal of Management 18(2), 295-321.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Greenwood, M.R. Ethics and HRM: A Review and Conceptual Analysis. Journal of Business Ethics 36, 261–278 (2002). https://doi.org/10.1023/A:1014090411946
Issue Date:
DOI: https://doi.org/10.1023/A:1014090411946