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Creating an ethical organisation
Businesses are increasingly making explicit their committment to dealing with ethical...
Businesses are increasingly making explicit their committment to dealing with ethical concerns. This unit explores the business case for an ethical approach to human resources management and examines whether a more 'human-centred' approach can bring dividends, and how an ethical approach fits within an organisation's strategy.
After studying this unit you should be able to:
- explain the relationship between strategy and the ethical dimension of organisational purposes.
- Current section: Introduction
- Learning outcomes
- 1 The role of strategic human resources management (SHRM) in providing an ethical framework for organisations
- 2 The ‘business sense’ of an ethical approach
- Next steps
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Creating an ethical organisation
Strategy is based on the unique relationship between an organisation's distinctive resources and capabilities and its environment. This relationship is defined as ‘strategic fit’ and is seen as a dynamic relationship where the organisation does not merely respond to its environment but seeks to shape it.
Organisations do not exist in a vacuum: they rely on and reflect the political, economic and social contexts within which they operate. These will include:
a regulatory environment which constrains their activities
an economic environment which determines how business is conducted
a political environment which underpins the regulatory and economic environments
a social environment which values certain types of behaviour and condemns other types.
This material is from our archive and is an adapted extract from Managing Human Resources (B824), which is no longer taught by The Open University. If you want to study formally with us, you may wish to explore other courses we offer in this.
This is an extract from an Open University course which is no longer available to new students. If you found this interesting you could explore more free Business Studies courses or view the range of currently available OU Business Studies courses.
Copyright & revisions
Originally published: Thursday, 4th July 2013
Last updated on: Thursday, 4th July 2013
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