Countering Corporate Misconduct: The Role of Human Resource Management
Serbrenia J. Sims and Ronald R. Sims
In their efforts to address the national and global challenges of corporate fraud or unethical behavior many organizations are relying more and more on their human resources management (HRM) department and personnel. As a result HRM personnel are finding that they are increasingly becoming involved in and must be especially sensitive to ethical issues because of their key roles in the development of human resources or "people" policies and programs. Policies and programs that often make a major difference in the extent to which employees exhibit ethical or unethical behavior and the ethical climate developed and maintained in their organizations have become an important emphasis for HRM departments.
Because HRM activities play such an important role in the development of an employee's perceptions of the company culture HRM personnel are an important force in determining whether a company develops an ethical or unethical climate. Because of this there is a need for increased understanding and emphasis on the role HRM can play in countering corporate fraud and unethical employee behavior. The purpose of this chapter is to discuss the specific ways in which HRM personnel can assist their organizations in developing cultures that