Addressing Ethical and Legal Concerns

Imagine that you are the new Director of Human

Resources and have been asked to review the current Annual Human Resources Operating Plan. Traditionally, in this company, the Human Resource Department/Division has had no input in developing the organizational strategic plan or Human Resources Department/Division operating plans. In the past, the Human Resources Department/Division has been seen as a cost center and not a strategic partner, in part because it either did not make an effort to understand the strategic perspectives of the C-suite or it was not allowed to do so.

Upon review, you discover elements of the Annual Human Resource Operating Plan that, while highly likely (95% likely) to make the firm a more effective competitor and generally consistent with industry trends, seems to contain a low but non-zero probability of being unethical (15% likely) and even potentially illegal (10% likely). You take these concerns to the CEO, but your concerns are politely and respectfully dismissed as an overreaction. Although you have worries about the Human Resources Department/Division again being labeled as “out of touch,” just a few days later, you again present your concerns to the CEO over breakfast. The reaction is similarly polite, but otherwise nonresponsive. The CEO advises taking a “wait and see” approach.

Consider the scenario in which you are the new Human Resources Director. How must you respond to the CEO who suggested the “wait and see” approach? Identify what data or information you should gather before discussing this with the CEO, and what next steps might you take?