Human Resource Management
1. A company has responsibility towards ethical practices of its suppliers. This is because the company has to communicate it values and beliefs through dealing with suppliers that uphold the same values and practices (Noe et al, 2010). A company that treasures its human resources needs to work with suppliers who practice the same ideals. Many companies audit their suppliers and other businesses within the chain to ensure that they uphold similar ethics and standards. This helps a company to maintain it image as dealing with supplier who share the same ideals will communicate consistent message to the public. A company that audits its suppliers also avoids risks. By auditing its suppliers a company will be able to identify suppliers who do not have good ethical practices or who do not meet the standard of production and stop dealing with them. Being responsible towards ethical practices of supplier also enhances industry collaboration and promotes the image of the industry as whole.
2. Gap has had negative publicity regarding working conditions in its overseas factories. The company has been accused of workers abuse involving long working hours, refusing to pay workers for overtime and in some factories, child labor. This has had major implication on the company and the company’s human resources management. Due to these accusations the company risk losing its competitiveness due to a tarnished image. The human resource management at GAP has been forced to develop a code of ethics and labor policies to reverse this situation. The Human Resource department now inspects every factory to ensure that they are inline with the set standards and no abuse of worker’s rights will continue. The human resource department also vets the company’s vendors to ensure that they comply with the company internal standards. These standards include; not employing under age workers, offering clear wage payment which is regular, giving contract to workers and avoiding physical and non physical abuse of the workers.
3. Human Resource Management can support ethical conduct at Delloite and Touche Tohmatsu and Gap in a number of ways. One is by enforcing an appropriate organizational culture that encourages adherence to the set codes of ethics and standards (Noe et al, 2010). Organization culture is a big determinant of how employees and management behave within an organization and human resource management can transform an organization culture into one that reinforces ethics. Human resource management also introduces strong control measures into an organization. Control measure regarding conduct of employees, conduct of senior management and conduct of vendors can effectively be enforced through prudent human resources management.
Good human resource management can also support ethical conduct by motivating employees and creating a feeling of trust. When employees are effectively motivated and have trusts towards the organization they will have the best interests of the organization at heart and will own the organization goals. Therefore adhering to the code of ethics will not be a problem to them. Human resources management will also effectively promote work/ life balance among employees working in the two organizations. By reducing work hours and considering the workers other life responsibility, the companies will support ethical conduct. Good human resources management also support ethical conduct by reinforcing organizational structures. When there are strong organizational structures it easier for everyone to adhere to code of ethics of the organization. The role of Human Resource Management is similar both at Delloite and Touche Tohmatsu and Gap.
Noe, Hollenbeck, Gerhart, Wright (2010) "Fundamentals of Human Resource Management" 4th Edition, USA, McGraw-Hill Companies