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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.

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