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Ethical Policy Making And Pay Dispersion In America

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Ethical Policy Making and Pay Dispersion in America
If something is to be discussed as being ethical or no, then it must be considered not only if something is right or wrong, but why it is determined so. (Bishop 2013) Simplistically speaking, legal policies that instate a wage minimum for workers are a contributor to unemployment, and if the wage is set too high, then there are more workers in the market than there is ability to pay them for their labor. (Mankiw 2015) But then how do we determine how much a firm can afford to pay the workers it needs for ideal productivity?
“The twenty-first century may well be known by future generations as the age of ethical failures.” (Bishop 2013) With no simple ubiquitous ethic code for firms or organizations to easily adhere to, business ethics becomes a sheerly …show more content…

(Connelly, Haynes, Tihanyi, Gamache, Devers 2013) This ‘gap’ has increased fixedly in the last twenty years, about 304% between ‘92 and ‘13. (Connelly, Haynes, Tihanyi, Gamache, Devers 2013) Studies exist that supports the idea that a large gap in ‘pay dispersion’ creates ‘healthy competition for higher positions and pay’, that employees will work harder to gain more skills in order to be worth more pay to their company. (Connelly, Haynes, Tihanyi, Gamache, Devers 2013) However this does not ask the question of what percentage of lowest wage employees actually promote to higher pay and how many of them do not earn a living in their jobs. Can these firms afford to pay all of their employees a living wage and still hit their ideal productivity, even if it means paying their highest wage employees less? There is little study done into effects of a large pay gap within firms, and even less into why those gaps are occurring with such

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