Mapex Training Institute – Higher Learning
Institution
Diploma in Human Resources Management
Introduction to Business Ethics (PNG)
Overview
Topics: Cultural Context, Legal Framework, HR’s Role
Learning Outcomes: Understand PNG business ethics
context, HR’s Role
Key Concepts: Wontok, Communal Values, and
Employment Act
Examples: Wantok in recruitment, Communal impact
Topics: Cultural Context, Legal Framework, HR’s Role
Business ethics in Papua New Guinea (PNG) is a complex
interplay between formal Western-style legal structures and deeply
rooted cultural values such as wantokism (kinship obligation).
Human Resources (HR) professionals in PNG must navigate this
environment by balancing compliance with employment law with
community-focused ethical standards.
1. Cultural Context (PNG)
Wantokism (Kinship System): This is the foundational cultural value,
focusing on mutual obligation to relatives and community. While promoting
social cohesion, it can create ethical dilemmas for business, such as
pressure to hire unqualified relatives, nepotism, or preferential treatment.
Collectivism vs. Individualism: Unlike Western cultures that emphasize
individual achievement, PNG society is often more collectivist. Loyalty to
the group can conflict with corporate demands for objective, impersonal
decision-making.
Relationship-Driven: Business in PNG is highly relationship-driven. Ethical
behavior is often measured by loyalty and stewardship of resources within
a community context rather than just strictly adhering to written contracts.
2. Legal Framework in PNG
The legal framework governing business ethics and HR in PNG is largely statutory,
aimed at creating formal, equitable, and safe workplaces.
Key Legislation: The Employment Act 1978, Industrial Relations Act, and
the Employment of Non-Citizens Act are crucial.
Regulatory Focus: PNG labor laws focus on workers' rights, safe working
conditions, fair wages, and protection against discrimination.
Enforcement: HR Professionals are expected to align practices
(recruitment, termination, compensation) with PNG laws, according to
resources like the Handbook on Laws of HRM in Papua New Guinea.
Anti-Corruption: Laws regarding fraud and corruption are in place to
address breaches of trust and bribery, which are often discussed in the
context of broader corporate governance.
3. HR's Role in PNG
HR plays a crucial role in navigating the intersection of formal law and local
culture.
Policy Formulation: HR must create clear Codes of Conduct that align with
PNG legislation while understanding the cultural context of employees.
Balancing Act: HR must manage wantok pressures by formalizing
recruitment, appraisal, and selection processes to ensure fairness, while
acknowledging the need for community support.
Training & Education: HR is responsible for providing training on ethical
decision-making, emphasizing the distinction between private obligations
and corporate responsibilities.
Building a Compliance Culture: HR sets the "tone at the top," fostering a
culture of integrity and accountability to prevent ethical issues like
nepotism and corruption.
Safety and Welfare: Ensuring compliance with occupational health and
safety standards to care for employee well-being.
Learning outcomes - Wontok, Communal Values, and Employment Act
Business ethics in Papua New Guinea (PNG) requires navigating complex cultural,
legal, and operational landscapes, blending international standards with localized
practices. HR plays a crucial role by aligning company policy with the PNG
Constitution—ensuring non-discrimination and safety—while cultivating
transparency and ethical leadership to build trust and mitigate risk.
Key Aspects of PNG Business Ethics & HR's Role
Constitutional Compliance: HR must base policies on the PNG Constitution,
which guarantees employee protections, fair treatment, and due process,
serving as the supreme guide for ethical conduct.
Cultural Contextualization: Ethics in PNG involves navigating communal
responsibilities (Tok Pisin: wantok system) against Western business
standards. HR must balance these, promoting fairness over nepotism to
maintain integrity.
Preventing Corruption: Ethical HR practices in PNG involve implementing
anti-bribery policies, ensuring transparency in recruitment and payroll, and
maintaining strict confidentiality.
HR’s Role in Ethical Leadership: HR practitioners must lead by example,
provide regular ethics training, and create safe, anonymous reporting
mechanisms for misconduct.
Building Trust: Given the high risk of reputation damage, HR is vital in
creating a workplace culture that prioritizes long-term ethical behavior over
short-term profit.
Conflict Resolution: HR manages complex employee relations, requiring fair
disciplinary procedures and counseling on company ethics policies.
Key Focus Areas for PNG HR Professionals
Recruitment: Fair, merit-based selection.
Discipline: Adherence to, and enforcement of, legal labor standards.
Communication: Clear, transparent, and honest communication of
company values and policies.
Key Concepts - Wontok, Communal Values, and Employment Act
The Wantok system, deeply embedded in Papua New Guinea's (PNG) culture, is a
traditional social safety net that clashes with modern employment practices,
including the Employment Act of 1978. While the system reinforces cultural
values of sharing, reciprocal support, and community cohesion, it creates severe
conflicts with Western-style employment, often leading to nepotism, cronyism,
and inefficiency in the workplace.
The Wantok System (Communal Values)
Definition: Originating from Tok Pisin ("one talk"), a wantok is a person
who speaks the same language, usually denoting a relative or close clan
member.
Safety Net: The system functions as an informal welfare mechanism,
providing care for the unemployed, elderly, sick, or bereaved.
Cultural Values: It prioritizes communal welfare over individual
achievement, emphasizing loyalty to extended family over nuclear families.
Key Attributes: Key values include protection, accountability to kin, and
mutual aid.
Conflict with Employment Act and Workplace Values
Nepotism in Recruitment: The wantok system causes individuals in
positions of power to recruit relatives over more qualified candidates,
hindering meritocracy.
Workplace Pressure: Employees are expected to share their income with
their community, leading to immense pressure on employees and
sometimes causing businesses to go bankrupt due to siphoning of funds.
Conflict with Employment Law: The Employment Act of 1978, which
dictates formal labor standards, is often overlooked or challenged
by wantok obligations, which require prioritizing clan over policy.
Inefficiency: It can lead to poor performance and mismanagement because
managers cannot easily discipline or terminate a wantok, regardless of the
worker's performance.
Balancing Tradition and Employment
While it can be seen as an impediment to economic development, it also
provides social order and security in areas with limited government
support.
Reforms are needed to merge the positive social aspects
of wantok (solidarity) with the accountability required in modern
workplaces.
Examples - Wantok in recruitment, Communal impact
The Wantok system (derived from "one talk," referring to sharing a language,
tribe, or close connection) is a traditional Melanesian social structure emphasizing
reciprocal support, family loyalty, and communal solidarity. While serving as a
vital informal safety net for housing and livelihood, its application in modern
recruitment often creates nepotism, and its communal impact is mixed, causing
significant economic pressure on individuals and fostering inefficiencies in
organizational settings.
Examples of Wantok in Recruitment
Job Selection Favoritism: In both public and private sectors, individuals
may be hired, promoted, or selected based on personal connections
(tribesmen, relatives) rather than merit or qualification.
Politicized Appointments: Politicians and public officials may fill designated
roles with family members or supporters, leading to a "who you know"
recruitment culture.
"Rubber Stamping" Vacancies: Advertisements for jobs are sometimes just
a formality when the organization has already decided to select a
specific wantok.
Over-staffing/Inefficiency: The pressure to hire a wantok can lead to hiring
unqualified staff, resulting in low-quality work and inefficient operations,
particularly in schools or rural projects.
Tribal Dominance in Firms: A new manager might fire existing staff to bring
in their own tribe or village members, creating an environment where jobs
are seen as communal property rather than professional roles.
Communal and Social Impact
Financial Pressure (The Burden): Employed individuals are often under
immense pressure to support a large network of relatives, which can
impede personal savings and financial growth.
Social Safety Net: In areas with poor welfare services, the wantok system
functions as a crucial informal support system for the unemployed or sick,
ensuring "no one is left behind".
Erosion of Trust in Public Services: Widespread nepotism leads to a loss of
trust in government institutions, as citizens assume public servants serve
their own kind rather than the public.
Discouragement of Individual Initiative: High expectations of sharing can
make it difficult for entrepreneurs or workers to accumulate capital, as
success is immediately shared among the group.
Cultural Cohesion vs. Inefficiency: While strengthening cultural identity,
loyalty, and social cohesion, the system can hinder economic development
by creating a "dependency culture" and decreasing productivity.
In summary, ethical HR in PNG requires a hybrid approach: strict
adherence to the legal framework (Employment Act) while
culturally understanding and managing the implications of
wantokism.
Prepared and Presented by: Mr. Saka Jnr
GRS Australia Certified OHS/OHSSEQ Lead Master Trainer/HR
Lecturer - Mapex Training Institute – Pom Campus