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Mergers: HR Legal and Ethical Issues

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HR ethics are important to organizations as they can have legal and moral implications. In this assignment, you will develop a plan to resolve some of the ethical and legal issues involved in a merger.

Consider the following scenario:

As part of the employment contracts, employees have certain rights. For example, employees have the right to not be coerced into situations against their will. They expect to be able to access the information, which affects their job, company, and career. Such work situations can increase stress, lower self-esteem and productivity, cause loss of trust, and decrease efficiency.

Good employees who are looking for a more secure work environment may resign and take valuable tacit knowledge and talent with them. It is the responsibility of HR management to create an ethical work environment before, during, and after the merger.


As a strategic HR Director, you have been asked to identify ethical and legal issues involved in a merger and develop a plan to resolve these issues. Your plan should address the following:
- Identify specific legal and ethical issues that should be considered before, during, and after the merger.
- Develop an implementation plan for managing the potential legal and ethical concerns for the merger.
- Explain how the proposed plan would help managers establish an ethical work environment.
- Develop a plan for how to resolve ethical and legal issues.

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Solution Preview

Step 1
The specific legal and ethical issues that should be considered before the merger are the leadership that will be required for the merged company. The composition of the team after the merger, pre-selection and selection of persons, and conducting full due diligence in all areas is important. Further cultural assessment must be done, plan for combination should be prepared, and system for learning & knowledge must be prepared.
The specific legal and ethical issues that should be considered during merger are selecting the right candidates for the right position, designing the new teams, and communicating the plan for combination. During merger process, the decision on who stays and who is fired is important. Also, the HR must establish a new culture, structure, and policies.
The specific legal and ethical issues after merger are proper leadership, staffing, and evaluation of the new structure. Ensuring that the new entity learns is important. Each employee concerns must be addressed. The unification of the two cultures needs to be assessed, and if required should be revised.

Step ...

Solution Summary

This solution explains ethical and legal issues relating to employees during mergers. The sources used are also included in the solution.

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Please see the attached two PDF documents for further details on the scenarios.

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