Why is Ethical Practice Important?
An organisation’s reputation rests not just on the quality of its products or services, but on the strength of its stakeholder relationships: with employees, customers, suppliers, and the wider community. Ethical behaviour isn't just about avoiding scandal; it’s a tangible source of competitive advantage. When people trust that an organisation will do the right thing, they are more likely to work for it and support it.

But serious risks emerge when there's a disconnect between what an organisation says it stands for and how it actually behaves. This “say/do gap” is where leaders publicly promote ethical values but fail to uphold them in practice which ultimately erodes credibility and trust. Over time, it breeds cynicism among employees, disengagement within teams, and reputational risk across the board.

One example of this is the Foxtons workplace scandal which was reported on earlier this year. London’s largest estate agency received numerous deeply concerning complaints from employees, particularly at a junior level, of sexual harassment, racism, bullying and heavy drinking. These complaints were repeatedly ignored and dismissed by managers and HR whilst others believed they faced retaliation such as being denied ‘hot leads’ after speaking out (The Times, 2025). This is a classic say/do gap—the organisation publicly promotes zero tolerance, yet internal experiences tell a very different story, exposing the business to legal claims, reputational damage, and disengagement. In response the CEO, Guy Gittins, has stated, “although significant progress has been made over the last two years, including the introduction of mandatory annual respect and inclusion training, strengthened equality, diversity and inclusion policies, and enhanced whistleblowing and speak up processes, there remains more to do.” (The Guardian, 2025).

Considering this case, leaders must do more than set ethical expectations on paper, they must embody those values consistently in their decisions, actions, and communication. This means creating safe channels for concerns, acting decisively when issues arise, and holding even senior leaders accountable. HR plays a vital role in ensuring ethical standards are embedded not just in policy, but in practice.

The Role of HR
To maintain ethical integrity, HR must be active in the following key areas:

Recruitment and Selection (CIPD, 2024): Ensure bias-free processes and promote inclusive hiring practices. Ethics starts from how people are brought into the organisation and how they’re treated in the process.

Fairness in Performance and Reward: Recognition and reward should reflect not just what is achieved, but how it’s achieved. If line managers are driving results in ways that compromise wellbeing or overlook unacceptable behaviour, that signals a deeper issue. HR has a responsibility to ensure that ethical conduct is valued as much as performance outcomes.

Grievance and Whistleblowing Mechanisms: Employees must trust that raising concerns, whether about misconduct, unfair treatment, or safety issues, will not lead to retaliation or negative consequences for them.  The Institute of Business Ethics 2024 ‘Ethics at Work’ report highlights that where employees chose not to speak up about misconduct concerns, 34% feared no corrective action would be taken and 34% felt it might jeopardise their job (IBE, 2024). Establishing confidential or anonymous reporting channels will assist in lowering barriers to speaking up. However, HR must ensure that every complaint is taken seriously, investigated thoroughly, and resolved in a timely and consistent manner. Transparency around the process and outcomes, while respecting confidentiality, helps build confidence for employees.

Ongoing Cultural Audits: Ethical practice isn't a one-off. HR must regularly assess the health of the organisation’s culture using tools like engagement surveys, focus groups, and exit interviews to capture honest feedback from employees at all levels. Importantly, these audits should support the company by identifying underlying trends and patterns of concern, such as recurring complaints or signs of employee disengagement. HR must then act promptly and decisively on these insights, to be proactive rather than simply reactive.

Why Ethics in HR Matters Even More in Northern Ireland
The unique employment landscape in Northern Ireland reinforces the need for ethical HR practice. With slower legislative reform, gaps persist in areas like discrimination, flexible working, and gender identity protections. All of which require HR to exercise discretion and leadership in how policies are interpreted and applied. That requires an ethical mindset that goes beyond basic compliance to build inclusive cultures. 

Moreover, in a small employment market like Northern Ireland, reputational damage spreads fast. Ethical lapses, especially those ignored or mishandled by HR similar to the Foxtons case, can have long-lasting consequences. Whether it's favouritism in recruitment, discriminatory conduct in a grievance, or inconsistencies in disciplinary action, even small breaches of trust can erode workforce confidence and cause lasting harm to organisational credibility.

Conclusion
Ethics is a daily practice, embedded in how we write policies, deliver training, handle conversations, and advise line managers. In essence, ethics in HR is not just about ensuring legal compliance, it's about creating a positive, fair, and sustainable work environment that benefits both employees and the organisation as a whole. Being the moral compass of an organisation isn’t easy, but it’s the most important role HR can play.

Sources:
https://www.thetimes.com/article/2c636f1d-ed35-4707-833e-7deb10a1ba42
https://www.theguardian.com/business/2025/mar/05/foxtons-boss-says-firm-has-more-to-do-on-workplace-culture
https://www.cipd.org/uk/knowledge/factsheets/ethics-role-hr-factsheet/
https://www.ibe.org.uk/ethicsatwork2024.html