Hiring and firing with ethics

Purpose – This paper aims to highlight the benefits to the organization and its workforce of having human resource (HR) specialists who act ethically. Design/methodology/approach – The paper considers the ways in which the changing role of HR – particularly in an era of outsourcing and globalization – puts a premium on ethical behavior. Findings – The paper shows that strategically, the way a company manages its human capital significantly affects its financial performance. Practical implications – The paper draws attention to the increasingly strategic role HR can play in helping the organization to reach the right decisions on outsourcing. Originality/value – The paper advances the view that, when HR specialists treat employees with dignity and compassion, they help to create a trusting and inclusive work environment free of harassment, intimidation and unlawful discrimination.