Role of Human Resources in Building Ethical Organisational Culture

Abstract

Business ethics has always been a primary determinant of organisational identity. With increasing instances of corporate wrongdoing and unethical behaviour, organisations do try to invest in corrective actions, but their emphasis tends to be on the ‘letter’, i.e. the legalities of operating a business within the law. However, there is a very strong influencer element that lies in the ‘spirit’, i.e. the values, thought and the practice embedded within the organisation culture that makes things right. This article deep dives into the enhanced role that the human resources (HR) function needs to play to nurture and develop an ethical organisation. This article is based on an interview with Dr Mukund Rajan, the Tata veteran who has held the office of the Chief Ethics Officer of the Tata Group. His views are supplemented with research findings on organisation practices supporting ethical culture.