Does HR Have a Role in Ensuring Ethics and Integrity in Corporations?
While there are many contributing factors to the current global financial crisis, there is one factor at the behavioral level, i.e., how the executives “bet away the farm” by taking undue risk in the aggressive pursuit of growth. Caught up with the exuberance of growth in the last few years, business leaders chased growth at the expense of prudence, risk management and long-term sustainability. Increasing attention is being put on corporate boards for their failure to provide fiduciary oversight in the affected financial institutions. A board is entrusted to oversee how executives grow the business, mitigate the downside risks and create shareholder value. Along with this responsibility, the board manages the executives’ performance, compensation, development and succession. Ethics and integrity are fundamental to good governance. There needs to be a set of universal principles in any organization, which would enable competent people to excel and not to go astray. These are invariably
