Human Resource Management (HRM) has undergone significant transformation with the adoption of digital technologies, data analytics, artificial intelligence, and remote work practices. While these developments have improved organizational efficiency and decisionmaking, they have also intensified ethical concerns surrounding employee privacy and organizational transparency. Human resource departments routinely collect, process, and analyze sensitive employee information, including personal, health, performance, and behavioural data. At the same time, organizations are expected to maintain transparency in decision-making, performance evaluation, workplace policies, and regulatory compliance. Balancing these two objectives presents a complex ethical challenge. Excessive monitoring and data collection may infringe upon employee privacy, reduce trust, and negatively affect morale, whereas insufficient transparency may create perceptions of unfairness, discrimination, and lack of accountability. This paper examines the ethical challenges associated with maintaining employee privacy while promoting organizational transparency. It explores the legal, technological, and ethical dimensions of HR practices and discusses strategies such as ethical leadership, robust data governance, informed consent, transparent communication, and compliance with privacy regulations. The study concludes that organizations can achieve sustainable human resource management by adopting ethical frameworks that respect employee rights while fostering openness, trust, and accountability.