Ethical Practice and Decision-Making
1
Golden Rule
Ethical response = correct SHRM response
3
Key Protections
SOX Dodd-Frank state whistleblower
2
Competing Loyalties
Employee welfare vs organizational interest
SHRM Code of Ethics
this is the lens SHRM uses to evaluate your answersOn SJI questions, the ethical response is almost ALWAYS the correct SHRM response
Professional Responsibility
Adhere to the highest standards of ethical and professional behavior
Professional Development
Commit to continuous learning and skill development
Ethical Leadership
Model ethical behavior and set the example in every interaction
Fairness and Justice
Treat all individuals with dignity, respect, and equity
Conflicts of Interest
Avoid activities that create actual or perceived conflicts
Use of Information
Protect confidential information and use it only for legitimate purposes
Ethical Decision Framework
When faced with an ethical dilemma, SHRM expects a structured approach. Identify the issue, determine who is affected, consider the options, evaluate consequences, choose the most ethical path, and act on it. Do not sit on ethical issues.
Whistleblower Protections
Sarbanes-Oxley (SOX)
Protects employees at publicly traded companies who report accounting fraud, securities violations, or shareholder deception. Retaliation includes discharge, demotion, suspension, harassment, or any discrimination.
Dodd-Frank Act
Expanded whistleblower protections beyond SOX. Added financial incentives (10% to 30% of sanctions over $1 million) for reporting securities violations to the SEC. Broadened anti-retaliation provisions.
State Whistleblower Laws
Most states have additional whistleblower protections that may be broader than federal law. Some cover private companies. Some protect reports of any legal violation, not just securities fraud.
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Practice NowExam Traps
Ethics = the SHRM-Preferred Answer on SJIs
On situational judgment items, when two answers both seem reasonable, the more ethical option is almost always the one SHRM wants. They reward integrity, transparency, and doing the right thing even when it is harder.
"Escalate to Legal" Is Not Always Best
A common trap is defaulting to "refer to legal counsel" when HR has the authority and competence to act. SHRM expects HR professionals to own their domain. Escalate only when the situation genuinely requires legal expertise.
SHRM Wants HR to Act, Not Just Defer
If a scenario presents a compliance or ethical issue that HR can address, the best answer involves HR taking action. Deferring to someone else when you have the authority to resolve it is not the preferred response.
When in Doubt, Pick Ethics
If two answers seem correct, the more ethical one wins. SHRM rewards integrity over convenience.
HR Owns the Decision
Do not defer when you can act. SHRM expects HR professionals to step up, not pass the problem along.
Ethics is your compass when the map is unclear. When policies conflict, when the law allows something questionable, when a manager pressures you to look the other way, the compass points toward the right thing.
SHRM has a Code of Ethics built around professional responsibility, professional development, ethical leadership, fairness, and conflict management. On the exam, this code is the north star for SJI questions.
Sometimes what is best for the organization conflicts with what is best for an employee. SHRM expects you to find the solution that honors both when possible. When forced to choose, transparency and fairness win.
SOX protects employees at public companies who report fraud. Dodd-Frank extends protections and adds financial incentives for whistleblowers. State laws add additional layers. Retaliation against a whistleblower is always wrong.
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