Introduction
Human resource management (HRM) plays a pivotal role in shaping organisational culture and ensuring ethical standards are upheld in multinational corporations (MNCs) like Unilever. Operating in diverse global markets, Unilever Malaysia faces unique ethical challenges in HRM, ranging from labour rights concerns to diversity and inclusion practices. This essay explores the ethical issues encountered by Unilever Malaysia in its HRM strategies, focusing on workplace fairness, employee welfare, and cultural sensitivity. By examining these challenges through a management perspective, the essay aims to provide a broad understanding of the complexities involved, supported by relevant evidence and examples. The discussion will highlight the limitations of current practices and consider potential solutions, contributing to a deeper insight into ethical HRM in a global context.
Workplace Fairness and Labour Rights
Unilever, as a global leader in consumer goods, has often been scrutinised for its labour practices in developing markets like Malaysia. One prominent ethical issue in HRM is ensuring fair treatment of workers, particularly in terms of wages and working conditions. While Unilever has publicly committed to sustainability and ethical practices through its Sustainable Living Plan, reports have occasionally highlighted discrepancies in implementation. For instance, concerns have been raised about contract workers in Malaysia facing lower wages and limited job security compared to permanent employees (Crane and Matten, 2016). Such disparities arguably undermine the principle of workplace fairness, posing an ethical dilemma for HRM. Addressing this requires robust policies to ensure equitable pay structures and transparent recruitment processes. However, limited local enforcement of labour laws in Malaysia may hinder these efforts, illustrating the challenge of aligning global standards with regional realities.
Employee Welfare and Work-Life Balance
Another ethical concern for Unilever Malaysia’s HRM is employee welfare, particularly in fostering work-life balance. The fast-paced nature of the consumer goods industry often leads to high-pressure environments, where employees may face long working hours. While Unilever has introduced global initiatives to support employee well-being, such as flexible working arrangements, the cultural context in Malaysia—where overworking is sometimes normalised—can limit their effectiveness (Hofstede, 2001). Indeed, HRM must navigate these cultural nuances to ensure policies are not only implemented but also embraced. Furthermore, mental health support remains an area of concern, as stigma in Malaysian society may deter employees from seeking help. This highlights a critical limitation in current HRM practices, suggesting a need for culturally tailored interventions to address employee welfare comprehensively.
Diversity and Cultural Sensitivity
Diversity and inclusion are central to ethical HRM, yet managing a culturally diverse workforce in Malaysia presents unique challenges for Unilever. The country’s multi-ethnic population, comprising Malay, Chinese, and Indian communities, requires HRM to foster an inclusive environment that respects cultural differences. However, instances of unconscious bias or inadequate representation in leadership roles can undermine these efforts (Armstrong and Taylor, 2020). For example, if recruitment or promotion processes inadvertently favour certain ethnic groups, this could perpetuate inequality, raising ethical concerns. Therefore, Unilever Malaysia’s HRM must prioritise diversity training and objective performance metrics to mitigate such risks. The broader implication is that ethical HRM must go beyond policy to actively challenge systemic biases, a task that requires ongoing commitment and resources.
Conclusion
In conclusion, Unilever Malaysia faces significant ethical challenges in HRM, including issues of workplace fairness, employee welfare, and diversity management. This essay has demonstrated that while Unilever’s global ethical frameworks provide a foundation, their application in the Malaysian context reveals gaps due to cultural and regulatory differences. Labour rights disparities, limited work-life balance, and cultural insensitivity in diversity practices highlight areas for improvement. The implications are clear: HRM must adopt a more localised approach, integrating cultural awareness with global standards to address these ethical dilemmas effectively. Ultimately, tackling these issues not only enhances employee satisfaction but also strengthens Unilever’s reputation as an ethical employer in Malaysia. Future research could explore specific strategies to bridge these gaps, ensuring HRM practices align with both organisational goals and societal expectations.
References
- Armstrong, M. and Taylor, S. (2020) Armstrong’s Handbook of Human Resource Management Practice. 15th ed. London: Kogan Page.
- Crane, A. and Matten, D. (2016) Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. 4th ed. Oxford: Oxford University Press.
- Hofstede, G. (2001) Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. 2nd ed. Thousand Oaks, CA: Sage Publications.
