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Ethics Of Pay

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Most companies across the world, pay their Chief Executive Officers (CEOs) and senior management level employees significantly more than lower level employees. This huge wage gap has existed for a long time. The Lawrence Mishel study “The State of Working America 2005,2006”, reveals that the ratio between CEO pay and average company pay has increased from 24 to 1 to close to 300 to 1, over the past 40 years (Mackey, J. (2009, June 17)). A CEO is usually the highest ranked executive manager in an organization or corporation and their duties vary based on an organization’s mission, goals, products, size and number of employees. Responsibilities may include executing and communicating the vison, mission and strategy of the organization, overseeing the duties executed by other executive leaders, reporting to the Board of Directors, overseeing the success and profitability of the organization and dynamic and effective leadership. For decades there has been the discussion as to whether or not a CEO’s pay seems ethical, especially when there are many hardworking employees who are being paid the bare minimum. A CEO is usually appointed and not hired into the role and as such basically determines his own salary. Although this is something that should be supported by the Board of Directors of the company, it may never be a fair assessment, as Board …show more content…

It is evident by the huge wage gap that salaries are not fairly distributed amongst employees. Take for example a company that compensates performance based on an employee’s annual basic gross salary. Once the company meets its targets and realizes a profit, all employees should benefit. However, some will benefit more than others because the share is not a percentage of the profit that is distributed equally, but a percentage based on an individuals’ salary. Therefore, it means that the highest paid employee will take home the highest compensated

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Cowherd, Douglas M., and David Levine I. "Product Quality and Pay Equity between Lower-level Employees and Top Management: An Investigation of Distributive Justice Theory. " Administrative Science Quarterly 37.2 (1992): 302-20. Business Source Premier. Web.

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Reading Assignment #6 1. In order to keep top performers satisfied and productive, Steve Bates argues, there should be a substantial difference in the variable pay or merit- based salary increases that top performers and poor performers receive. Based on available research the increase needed to catch “anybody’s attention” should be a seven percent or eight percent increase in compensation. It also states that anything below that might be welcomed, but will not lead to substantially greater effort on the part of employees to increase business results.

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See Susan J. Stabile, One For A, Two For B, And Four Hundred For C: The Widening Gap In Pay Between Executives And Rank And File Employees, 36 U. MICH. J.L. REFORM 115, 118 (2002) (identifying shareholder primacy philosophy as the cause of the dramatic disparity between executive pay and that of other workers). See also Estlund, supra note 65, at 950 (noting that product market competition has increased with globalization and this has encouraged employers to pursue a low-wage strategy);

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This essay expresses the opinion of Tara Siegel Bernard on behalf of the existence of the gender pay gap and focuses on it being a primary issue in the workplaces of major companies. The essay goes on to discuss how our society expects women and men to both behave in particular ways and how that idea has contributed to the ever present pay gap, such as how “. . . the imbalance often traces back to women being hired at a lower salary than their male peers” and “. . . women are less inclined to ask for raises. . .” Pointing out the possible reasons for the gender pay gap helps to establish the need for companies and our country’s leaders to find solutions.

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In one of the healthcare summits, when asked what he’d do differently if he could go back in time prior rising price, he said that he would put the price, even more, higher to make more profits for shareholders. But is CEO responsibility truly to increase profits? What about social responsibility especially in a healthcare industry?

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Michael I. Norton wrote the article titled “Unequality: Who Gets What and Why it Matters.” Collaborating with several experiments to prove his ideas, Michael came to the understanding that inequality, from whichever ladder of wealth you fall from, almost everyone supports the idea of being unequal (Norton 152). They do not believe however that we should be as unequal as we are today (Norton 151). Correspondingly, he also understands that inequality in its severity; negatively damages clear decision making, ethical and unethical choices, and demote motivation (Norton 151). Michael asked 16 countries what they assume the level of inequality is versus what they believed the right level of inequality should be (Norton 152).

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James Schulman adds “fairness requires treating equally individuals in the same circumstances and avoiding undeserved favoritism”. No it is unreasonable for each individual to expect fair wage in return for their

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Companies Should Not Be Mandated By Law To Pay All Workers Equal Wages For Similar Job Descriptions By Cameron DeAnda-Covello Economics, Per. 3 Mr. Zuber January 4, 2017 Have you ever worked a job with other people or done the same job as someone else and that other person doesn’t do as much work as you or doesn’t do the job as good as you and then they get the same credit for their work as you do? People should get more credit or more money for doing a better job and for putting more effort into their work rather than just doing the minnimum amount of work. Companies should not be mandated by law to pay all workers equal wages for similar job descriptions because some people work harder, more efficiently than others at their job, could cause companies to lose good workers who feel they should get more outcome for their work, and people with education should get paid more because they put more time into getting educated to perform better on the job.

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But again it's not fair to say the wage gap is not a problem especially with these numbers but with how taxation is heading it should be put more equally instead of pinning it on the rich.” ... There is no sustainable way to make the poor richer by making the rich poorer…”-Richard A.

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The gender pay gap is a significant issue in the United States because it promotes institutional and internal sexism and the unfair treatment of human beings. An infamous statistic about the wage gap has been the 77 cent statistic, stating that for every dollar a man earns, a woman earns 77 cents. The statistic is calculated by, “...dividing the median earnings of full-time, year-round, working women by the median earnings of full-time, year-round, working men, all rounded to the nearest $100” (Glynn 2). This, however, represents males and females from all occupations, causing opponents to argue that, because it does not represent the gap between people who have the same job, a wage gap does not exist. Nonetheless, multiple studies have proven that a gender pay gap does exist within the United States.

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Discussion about this issue reveals several aspects of unequal payment and they all can be assigned into two groups. Ones believe that gender pay gap is mostly arising because of poor women choices in education and career. Another side states that no matter how equal women and men can be in a labour market, men will always have benefit. It is undeniable that women have occupied less paid professions and in general they do earn less than men. But having in mind the idea that at the same work with the same education and experience male can get higher wage than female it is clear that pay gap is much more important problem than personal choices which is concerning the whole

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1250 Words | 5 Pages

Today, in America many people do not get treated equally for various reasons. The gender pay gap is a large issue that directly concerns a little over fifty percent of the world. Women construct 50.6 percent of America’s population and still do not get paid as much as their male counterparts. Women receive just about 80 cents per one male dollar for doing the same work. There is a law that says women need to be paid equally and that law is not being enforced.

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The gender wage gap is something that is a very pressing and important issue in our society today. Should there be a wage gap or should women be equal with men in the pay rates are two different sides that can be taken on this. However, I believe that we should take the steps to deplete the gap between wages of men and women. The ideas of wage gap is unfair due to the importance of women managers in the workplace, there is an unobserved component worker productivity that can be seen, as well as with female managers, that the wages of women are raised. Men and women everywhere have mainly two options for jobs.

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Globally, Gender pay gap is worse than the U.S., which is 52% of men. Due to the slow progress in pay equity, it is predicted that it will take another 118 years to close global pay equity gap. Even

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Sperry and Mrs. Wagner are imaginary, wage gap inequality is very real. I would hope that as I begin my professional career, I am treated with the same high esteem as my male counterparts. Working hard all my life to be paid less is not a practice I would like to take part in. I feel the only plausible and effective way to solve the wage gap inequality is for the head of companies to intervene and take immediate action rather than taking a backseat approach and instructing companies to implement programs that won’t have an immediate effect. A hands-on approach by someone in charge will not only address the severity of the issue but will encourage all women to take it upon themselves to declare their equality and demand that they be treated as such.

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