HR Pros Set Ethical Compass

June 26, 2001 (PLANSPONSOR.com) - The Society for Human Resource Management (SHRM) today unveiled its new Code of Ethics, offering HR pros a standard for professional conduct.

SHRM’s original Code of Ethics was developed in 1972 and was last modified in 1989 to reflect the Society’s name change from the American Society for Personnel Administration.

The Code

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The new code was written entirely by SHRM members and volunteer leaders with the assistance of the Ethics Resource Center (ERC) of Washington, D.C., and SHRM staff. That code emphasizes six core principles:

  • Professional responsibility  – to add value to their employer, and to accept professional responsibility for their individual decisions
  • Professional development  – strive to meet the highest standards of competence and commit to strengthen those competencies on a continuous basis
  • Ethical leadership  – to exhibit individual leadership as a role model for maintaining the highest standards of ethical conduct
  • Fairness and justice  – to promote and foster fairness and justice for all employees and their organizations
  • Conflicts of interest  – to avoid engaging in activities that create actual, apparent or potential conflicts of interest
  • Use of information  – to consider and protect the rights of individuals, particularly in the acquisition and dissemination of information while ensuring truthful communications and facilitating informed decision-making

Hundreds of members, representing a cross-section of HR practitioners, shared in the process through focus groups and individual interviews. Members were also encouraged to provide feedback on code drafts.

SHRM officials said the new behavior code is part of their group’s sweeping ethics initiative.

The Code will be available in various formats including a CD-ROM and Palm Pilot versions.

The full text of the SHRM ethical code

Techs Topple From Russell Reconstitution

June 25, 2001 (PLANSPONSOR.com) - Frank Russell Company has published the latest additions and deletions to its stock indexes, and technology stocks have taken a real drubbing in representation.

Of the 283 companies identified as preliminary candidates for deletion from the Russell 3000, nearly half (42%) are computer-related.

Overall, the total market capitalization of companies in the Russell 3000 will decrease about $1.5 trillion from where it stood at this time last year, to about $12.5 trillion, according to Russell.

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Russell adjusts the components of its stock indexes once a year to reflect current market capitalization and style attributes for the 3,000 largest US stocks at the end of May. The largest 1,000 companies in the ranking comprise the Russell 1000, while the remaining 2,000 companies become the small-cap Russell 2000 Index.

Final index membership will go into effect July 1 and remain in place for one year. The final rebalanced lists will be available July 9 on www.russell.com.

Tech Tumbles

Nationwide, 73 of the companies on the preliminary deletions list are in the Internet software/services industry, while just 13 such firms are on the additions list.

Russell notes that regional and savings banks as well as companies in oil and gas products, aerospace and defense, industrial machinery and apparel are stepping into the breach. At the same time, 16 real estate investment trusts are on tap to join the indexes as well as seven casino/gaming stocks.

Russell’s index rebalancing process also captures a tilt toward biotechnology firms with 54 of them set for addition to the Russell 3000.

Comings and Goings

Roughly a third (89) of the deletions slated are based in California. Other hard hit states are:

  • New York (31 companies)
  • Massachusetts (25)
  • Texas (18)
  • Virginia (16)

Ironically, the states making the largest gains look remarkably consistent, matching 4 of the top 5 deletion leaders. The states leading the gains on the additions list include:

  • California (97 companies)
  • New York (42)
  • Massachusetts (40)
  • Texas (39)
  • Pennsylvania (25)

Only about 150 initial public offerings will join the newly rebalanced Russell 3000 this year, down from 317 in 2000. However, that’s not much off of 1999’s 179 company representation, or the 183 IPOs added in 1998.

Only about 18 IPOs are likely to join the Russell 1000 Index, the largest companies in the index, down from 86 last year.

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