ETHICS, POWER, AND EMPLOYEE WELL-BEING: EXAMINING HR PRACTICES IN AN OWNER-LED ORGANIZATIONAL CONTEXT

Abstract

Ethical human resource (HR) practices play a critical role in safeguarding employee well-being, particularly during periods of organizational uncertainty and internal inquiry. This research article presents a first-time qualitative account based on the author’s lived experience while working in administration and monitoring within a privately owned organization. The organization operated under an owner-led structure in which strategic decisions and HR authority were highly centralized.

The study examines how concentration of decision-making power, absence of procedural clarity, and informal handling of organizational concerns contributed to confusion, psychological distress, and erosion of employee trust. Using organizational justice, psychological safety, and ethical leadership as guiding theoretical lenses, the article analyzes the ethical and emotional implications of HR practices in such contexts. Rather than focusing on legal responsibility, the research emphasizes ethical process and employee well-being.

The findings highlight that even in the absence of formal disciplinary action, lack of transparent HR procedures and ethical safeguards can significantly affect employee mental health and professional identity. This study contributes to HR ethics literature by offering an original, experience-based perspective from an owner-led organizational setting.