Module 6 — Ethics, Governance, and Responsible AI in HR

Lesson 6.2 — Global Frameworks and Legal Standards for Ethical AI in HR

Learning Objectives

By the end of this lesson, learners will be able to:

• Identify global frameworks guiding ethical and responsible AI use in HR.
• Explain key legal standards and regulations for AI and data governance.
• Understand how these frameworks ensure fairness, transparency, and accountability.
• Evaluate how organizations comply with international and local AI ethics laws.
• Apply global best practices to HR technology governance and compliance.

1️⃣ Introduction: The Global Movement Toward Ethical AI

As AI adoption accelerates in workplaces worldwide, so does the need for governance, regulation, and ethical alignment.

From the European Union’s AI Act to the OECD AI Principles and UNESCO’s ethics frameworks, global efforts now seek to ensure that AI enhances — rather than harms — human well-being.

In HR, these frameworks play a crucial role in protecting employee rights, data privacy, and fairness in AI-driven decision-making.

💡 Responsible AI is not only good ethics — it’s good compliance.

2️⃣ Why Legal and Ethical Standards Matter in HR

AI in HR affects people’s careers, livelihoods, and identities — making it one of the most sensitive areas for governance.

Without regulation, risks include:

• Unintentional bias in hiring and promotion.
• Misuse of personal or biometric data.
• Lack of transparency in automated decisions.
• Loss of employee trust in AI-based systems.

Thus, organizations must align their HR technology with international ethical frameworks and local data protection laws to maintain credibility and legal safety.

3️⃣ Key Global Frameworks for Ethical AI

Below are the most influential global frameworks shaping responsible AI practices:

Framework Issuing Body Core Principles HR Relevance

🌍 UNESCO Recommendation on the Ethics of AI (2021) United Nations Human rights, inclusion, fairness, transparency, accountability Guides organizations to ensure AI promotes diversity and equality in HR decisions.

🇪🇺 European Union AI Act (2024) European Commission Risk-based classification, transparency, human oversight Classifies HR AI systems (e.g., hiring tools) as “high-risk,” requiring audits and documentation.

💼 OECD AI Principles (2019) Organisation for Economic Co-operation and Development Transparency, robustness, safety, accountability Encourages organizations to build explainable, human-centered AI systems.

🧠 IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems IEEE Human well-being, accountability, privacy Provides ethical design standards for AI developers and HR tech vendors.

⚖️ World Economic Forum (WEF) Framework for Responsible AI WEF Ethical leadership, trust, bias mitigation Promotes ethical AI use in corporate leadership and workforce management.

💬 These frameworks form the foundation for national AI strategies and workplace compliance policies worldwide.

4️⃣ Major Legal Standards and Regulations Affecting HR AI

AI governance in HR intersects with data protection, labor laws, and technology regulations.

Here are the key legal instruments organizations must consider:

Regulation Scope Key Requirements for HR

🛡️ GDPR (General Data Protection Regulation) – EU Data protection and privacy law Requires consent for personal data use, data minimization, and right to explanation for automated decisions.

🇺🇸 U.S. AI Bill of Rights (2022) Federal guidance on AI ethics Ensures algorithmic discrimination protection and human alternatives to automated systems.

🇬🇧 UK Data Protection Act & Equality Act Privacy and anti-discrimination Prohibits bias and mandates transparency in algorithmic hiring.

🇸🇬 Singapore Model AI Governance Framework National guideline for responsible AI Encourages explainability, human involvement, and data accountability.

🇦🇺 Australia AI Ethics Principles (2021) Federal government principles Focuses on fairness, privacy, and human-centric AI decision-making.

🇨🇳 China’s AI Ethics Code (2022) Ministry of Science and Technology Promotes transparency, accuracy, and public accountability in AI use.

💡 No matter the country — the message is the same: AI must serve humans, not control them.

5️⃣ HR Use Cases Requiring Compliance

The following HR functions are often regulated under AI and data protection laws:

HR Function Compliance Requirement

🧩 Recruitment & Screening AI hiring tools must avoid bias and disclose automated decision-making.

📊 Performance Evaluation Employees must be informed when AI is used for scoring or ranking.

🧠 Learning & Development AI recommendations should respect data consent and transparency.

💬 Employee Monitoring Data collection must follow privacy regulations and be minimally intrusive.

💼 Succession Planning Predictive analytics should be audited for fairness and explainability.

6️⃣ Case Example: EU AI Act and HR Systems

Scenario:

An HR department in Europe uses an AI platform to screen resumes and assess candidates through video interviews.

Compliance Measures Required by the EU AI Act:

• Label system as “high-risk AI.”
• Maintain documentation explaining the algorithm and data used.
• Conduct regular bias and transparency audits.
• Provide human oversight for final hiring decisions.
• Inform candidates when AI is used.

Result:

This ensures compliance, reduces discrimination risks, and builds candidate trust in the process.

💡 Transparency is not just legal compliance — it’s a mark of ethical leadership.

7️⃣ Global Best Practices for Ethical HR AI Compliance

To align with international standards, HR professionals should adopt these best practices:

✅ Perform AI Ethics Audits: Assess fairness, transparency, and data protection regularly.

✅ Establish AI Governance Committees: Oversee policy enforcement and vendor compliance.

✅ Maintain “Human in the Loop”: Keep humans accountable for critical HR decisions.

✅ Use Explainable AI (XAI): Ensure that AI outputs can be understood and challenged.

✅ Document AI Workflows: Record data sources, decision logic, and outcomes for auditability.

✅ Stay Updated: Monitor evolving global and local AI legislation.

💬 Ethical AI governance is a continuous process — not a one-time compliance task.

8️⃣ Reflection Activity

Task:

Choose one global AI framework (e.g., UNESCO, OECD, or EU AI Act).

Reflect on:

• What are its main principles?
• How could it apply to your HR department or organization?
• What changes would be needed to ensure compliance?

9️⃣ Supplementary Resources

• 🎥 “The EU AI Act Explained for HR Professionals” — European Commission
• 🎥 “Global AI Governance: What HR Needs to Know” — World Economic Forum
• 🎥 “The OECD Principles on Artificial Intelligence” — OECD Insights
• 🎥 “Data Ethics and Workforce Analytics” — SHRM Learning Series

Lesson Quiz 6.2

Please complete this quiz to check your understanding of the lesson. You must score at least 70% to pass this lesson quiz. This quiz counts toward your final certification progress.

Answer the quiz using the Google Form below.

Click here for Quiz 6.2

Conclusion

AI in HR must operate within ethical and legal boundaries that respect human rights, privacy, and fairness.

By aligning with international frameworks like the EU AI Act, OECD Principles, and UNESCO Ethics Code, organizations can ensure their AI systems are responsible, trustworthy, and people-centered.

💡 “Compliance builds trust — and trust sustains innovation.”

📘 Next Lesson: Lesson 6.3 — Data Privacy and Security in AI-Driven HR Systems

📘 Previous Lesson: Lesson 6.1 — Ethics and Accountability in AI-Driven HR

📘 Course Outline: Module 6 — Ethics, Governance, and Responsible AI in HR