Authored by: Co-authored by Arpinder Singh and Saguna Sodhi
Over the past decade, HR’s role has transformed from managing workforce decisions to shaping the very frameworks that govern how organisations operate. In an era defined by relentless scrutiny on corporate behaviour, employee well-being, compliance, ESG mandates, DEI, data privacy, and remote work, governance is no longer just a function; it is the non-negotiable epicentre of HR’s evolving mission.
A recent McLean & Company study of 779 business professionals reveals that, for the first time since 2019, recruiting is no longer HR’s top priority. Since the pandemic, HR has emerged as a strategic partner to the business, propelled by the rise of remote work, shifting stakeholder expectations, and the urgent need for agile workforce policies. But this accelerated growth curve is now beginning to plateau, as organisational priorities evolve once again.
In this changing landscape, HR leaders find themselves at a crossroads. With their unique vantage point across people, culture, risk, and compliance, they are increasingly well-positioned, not by default, but by design, to play a more active role in shaping governance across the enterprise. Whether they step fully into that space remains to be seen, but the groundwork is already being laid.
Here is our quick take on how HR leaders are being called to step into the governance spotlight:
Culture as Governance: At the heart of any organisation’s governance lies its culture, and no function is more central to cultivating and sustaining that culture than HR. From setting behavioural expectations to reinforcing values through leadership development and internal communications, HR plays an integral role in shaping the informal norms that guide decision-making. When workplace cultures turn toxic or permissive of misconduct, it's not just an HR issue; it becomes a governance failure. In this sense, culture is not just a ‘soft’ concept; it is a key pillar of operational and reputational integrity.
Policy Enforcement: Beyond culture, HR serves as the first line of defence when it comes to enforcing organisational policies. Ethical codes of conduct, anti-harassment protocols, whistleblower protection policies and grievance mechanisms often sit under the HR umbrella. How these policies are implemented, monitored and upheld is a direct reflection of governance maturity. HR’s proximity to people and processes allows it to detect patterns early, address risks swiftly and ensure that governance is not just documented but lived.
Data Privacy & Compliance: Given that vast amounts of employee data – from health to performance evaluations – are vested with the organisation, HR has had to rapidly mature into a compliance-aware function to ensure compliance with privacy laws and other protocols. Navigating consent, data storage, access controls, and cross-border data flows requires HR to liaise with other departments, making it an active stakeholder in the organisation’s risk and compliance framework.
Board-Level Influence: The strategic elevation of the Chief Human Resources Officer (CHRO) is perhaps the clearest sign of HR’s expanding governance footprint. CHROs are comparatively more present in boardrooms, especially on matters of organisational risk, culture, succession planning, and workforce ethics. Their insights are proving critical not just in managing talent but in safeguarding the organisation’s long-term viability and public trust.
At a time when ethical lapses can be expensive and unforgiving, organisations that thrive will be those where the HR doesn’t just manage people but governs them with foresight, fairness, and accountability. The convergence of people, technology, and risk provides a unique opportunity for HR to participate in the shaping of a new approach to governance. By embracing this expanding mandate, HR professionals can move from being policy enforcers to guardians of organisational integrity.
Authored by: Co-authored by Arpinder Singh, India & Emerging Markets Leader, EY Forensic & Integrity Services and Saguna Sodhi, Partner, EY Forensic & Integrity Services