The press is definitely going through a difficult period. The tabloid News of the World, which belonged to press baron Rupert Murdoch, said goodbye to its readers after revelations that its staff had hacked phone messages of crime victims, politicians and celebrities. More than 100 years of journalistic history has come to an end with more than 160 employees on the street. It calls one’s attention to the fact that while this was happening, Human Resources, responsible for keeping an eye on the business ethics of the company, turned a deaf ear to what was happening in their offices.

According to Roger Steare, Professor of Organisational Ethics at Cass Business School and adviser to many top businesses, scandals like this one could have been avoided if HR professionals had dealt with behavioural standards in their companies. “HR are delinquents when it comes to ethics”, since they “have derogated responsibility for behaviour in organisations” when one of their mainly tasks must have been precisely to advice leaders how to face “certain situations”, according to ethical standard values he told People Management.

Companies, as social actors, can’t forget their values in terms of transparency and confidence, especially when they work on the base of credibility, as was the case of News of the World. But this sector is not the only one that needs a dose of values. Professor Steare stated that this lack of ethical behaviour is clearly seen when talking about risky trading, such as in the investment banking sector, where ethics are so essential in order to be in business. The financial crisis of a few years ago brought to the fore the notion that competence without integrity spells disaster. Having the ability to do one’s job is not enough; a heavy dose of integrity is also required. Investment advisers must make sure that brokers are credible and that such investment reflects faithfully the expressed request of the client.

Chief Executive Officer of FHRD Joe Gerada takes a different view to that of Professor Steare though he acknowledges that HR practices should be beyond reproach. “HR policies should reflect the values of the organisation and are effective enough to encourage the culture of ethical behaviour and deter wrongdoing,” he said. Mr Gerada refuses to accept that work ethics are the monopoly of the human resources; he argues that for ethics to flourish, they need to become a way of life in the organisation. A code of ethics has to be embedded in the corporate culture, and for this to take place it has to be led by the leader. In this respect, it is appropriate for Rupert Murdoch to apologise for the wrongdoings of his executives, but he needs to take a very good look at the values he has been pushing for a number of years and how these affected the behaviour of his employees.

When one considers that competition has become global and communication flows on real time basis, reputation is increasingly becoming important. Customers are better informed, opinions reach the masses in no time and potential buyers are much more intelligent and discerning. They are ready to penalize wrongdoing without thinking twice. So businesses of the future are those who are able to be trusted and, according to Mr Gerada, “Trust is not looking holy or kind but being credible where, in the final analysis, the company takes into consideration the interests of everyone and provides satisfactory service to all its stakeholders.” Mr Gerada said that unfortunately there is a lot of talk about visions and values in both the public and private sectors but often values are relegated to a picture frame in the reception area. He said that corporate values should be the oxygen that breathes life into every decision taken at the place of work, governs our relationships, promotes product credibility and therefore business success and profitability.

In a way, a company that has neglected its responsibilities in terms of ethics is morally bankrupt because it loses credibility and if you are not credible, you are nobody. Rupert Murdoch did not lose time closing his tabloid News of the World, amid shameful accusations from the journalistic profession, public outcry and a stern warning from the British Parliament. Murdoch has just lost the opportunity to buy BSkyB. Organizations with solid ethical structures have the ability to put in place preventive measures that deter wrong behaviour and are able to anticipate the problems before the damage is done.

Professor Steare blames bureaucracy and a strict hierarchy that has led HR professionals not to intervene when things are not working properly. The leading business ethicist stated that HR must provoke and challenge this totalitarian construct, in case self-regulation of employees is not enough. According to Joe Gerada, it is not an issue of structure but of values but both agree that the Murdoch case and others have given ethics a bashing. Once again, bad press for HR. However, in times where ethics are put in doubt it is precisely the time when it is more necessary for them to be put right.

Ms Garcia Reche is a Spanish journalist at the Foundation for Human Resources Development.