Business ethics in human resources management practices and its impact on the organizational performance

Abstract

There is a growing interest in BEs at present, because it has become an important necessity in all business functions in organizations, particularly HRM. Human resources function deals with one of the most important resources in the company to improve performance and gain competitive advantage. Therefore, HRM practices should be applied based on ethical principles such as fairness, transparency and equal opportunities. This study aimed to determine the extent of commitment to BEs within the HRM activities in the industrial companies listed on Amman Stock Exchange and its impact on the performance of those companies. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices in terms of recruitment, selection, training, compensation, and appraisal employees’ performance. The results also showed that there is an impact of practicing BEs in all activities of HRM except compensation on the OP. At the end of the study, the researcher developed a set of recommendations that he considered they are necessary to achieve a higher level of commitment to BEs in order to improve OP.