Abstract:
The concept of ethics is imbibed within an individual to identify what is right and what is wrong to act
accordingly. Such ethics is increasingly considered as a crucial element to embed in each function of
Human Resource Management (HRM) to deal with the affirmative moral obligations of the
organization towards its employees to maintain equity and equality. Ethics in HRM indicates the
treatment of employees with ordinary decency and distributive justice. Incorporating ethical
principles and values in HRM practices empowers an organization to maintain and increase trust.
However, the impact of ethical violations on HRM within an organization can be enormous. In
particular, it can create negative influences on individuals, businesses, stockholders, and society as a
whole. Moreover, it may adversely influence the HRM practices, the organization's financial stability,
and the competitive position. Thus, this paper attempted to systematically review the literature on
ethics and HRM to better understand how ethics and HRM are connected with the business context,
and to propose the implication of the review’s findings. The author formulated this paper by reviewing
existing literature on ethics and HRM and practicality in the business organization. The organization
of this study was designed based on theory and practical linkage. The objectives of this conceptual
paper were (1) to determine the importance of ethics in the functions of HRM; (2) to reveal the concept
of Ethics and HRM linkages in the business context; and (3) to propose some implications of the
findings in the way that will contribute theoretically and practically. Further, resource-based review
base view is used as the underpinning theory which further explains the importance of ethical
embedded HRM for the competitive edge. Generally, this article supports the statement that ethical
oriented HRM contributes to the profitability and competitiveness of an organization. It also further
supports organizational sustainability.
