Does a company have an ethical duty to find a balance between remaining profitable and paying all workers a decent living wage? Who decides what constitutes a fair wage? How would you explain to a board of directors your decision to pay entry-level workers a higher wage than required by law?
In today’s society, there is an ongoing debate about the ethical responsibility of companies to pay their workers a decent living wage. While some argue that a company’s primary responsibility is to remain profitable, others believe that it is equally important to provide fair wages to employees. This raises several questions that I will try to answer in this discussion post.
1. Does a company have an ethical duty to find a balance between remaining profitable and paying all workers a decent living wage? Why or why not?
Yes, a company has an ethical duty to find a balance between remaining profitable and paying all workers a decent living wage. Companies have a social responsibility to provide fair wages to their employees, as they are the backbone of any organization. The employees work hard to ensure that the company is successful, and therefore, it is the company’s responsibility to ensure that their employees’ basic needs are met.
Furthermore, paying employees a decent living wage is not only ethical but also beneficial for the company. When employees are paid well, they are more motivated, more productive, and less likely to leave the company. This leads to higher employee retention rates, which in turn reduces the costs associated with hiring and training new employees. Additionally, when employees are paid well, they are more likely to be loyal to the company, which can lead to increased customer satisfaction and brand loyalty (Burrow et al., 2022).
2. Who decides what constitutes a fair wage?
Determining what constitutes a fair wage is a complex issue that involves various stakeholders, including employers, employees, government, and society. Employers must consider the cost of living in the area where the business operates, the skills and experience required for the job, and the value that the employee brings to the organization. Employees must consider their education, experience, and skills when negotiating their wages. The government must consider the minimum wage laws and regulations that apply to the industry (Barnard-Bahn,2020).
The society also plays a role in determining what constitutes a fair wage. Society expects companies to provide fair wages to their employees, which allows them to live with dignity and support their families. Therefore, companies must consider not only their financial bottom line but also their social responsibility to provide fair wages.
3. How would you explain to a board of directors your decision to pay entry-level workers a higher wage than required by law?
I would explain to the board of directors that paying entry-level workers a higher wage than required by law is not only ethical but also beneficial for the company. By paying entry-level workers a higher wage, we are investing in our employees, which leads to increased employee morale, productivity, and loyalty. This, in turn, leads to lower turnover rates and reduced costs associated with hiring and training new employees.
Furthermore, paying entry-level workers a higher wage is consistent with our company’s values and social responsibility. Our company has a duty to provide fair wages to our employees, which allows them to live with dignity and support their families. By paying entry-level workers a higher wage, we are demonstrating our commitment to our employees and our community.
In conclusion, paying entry-level workers a higher wage than required by law is not only ethical but also beneficial for the company. It is consistent with our values and social responsibility and demonstrates our commitment to our employees and our community.
References
Barnard-Bahn, A. (2020, November 3). How to Identify — and Fix — Pay Inequality at Your Company. Retrieved from https://hbr.org/2020/11/how-to-identify-and-fix-pay-inequality-at-your-company
Burrow Sh., Lee S., Nanavaty R., Schaller B., Koh A., Thomas A. (2022, June 23). 7 experts explain why it’s important to pay fairer wages and how to do it. Retrieved from https://www.weforum.org/agenda/2022/06/seven-experts-explain-how-to-create-fairer-wages/