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University: University of Aberdeen
The word limit of this assessment is 3000 words. It does not include title pager and bibliography.
Assessment Case 2: The Gender Pay Gap
In the UK regulation to publish data on the gender pay gap comes into existence, companies with 250 employees were required form 2018 to publish figures on their gender pay gap. In 2017, the UK Prime Minister Theresa May named the gender pay gap a ‘burning injustice’.
The gender pay gap is not simply means equal pay under the Equal Pay Act 1970, amended in 2018 allows that it is unlawful employment practice for employers to pay less in wages, benefits, or compensation to members of a protected class for “substantially similar work.
The gender pay gap defines something else about a company. It is a practice of the median wage – ie the distinction between middle ranking men and middle ranking women. The exact explanation of a difference is that there are more men earning more and more women earning less. But if people get paid the same for the same job, why would this happen?
Your assessment comprises of two parts with part 1 being further divided into two. Read the requirements below and attempt all three parts:
a). 1200 words
You need to go to the site stated https://gender-pay-gap.service.gov.uk and select an organisation in which you want to build report. Find the reported pay gap. You are now required
b). 1000 words
Choose two ethical theories and apply to your case that leads to present on ethics of the case.
This sections requires to discuss what makes an ethical leader. This include how ethical manager manages the business and high ethical standards in the business.
You will need to rethink about the personal ethics, about the conditions that brings unethical practices in the organisation and this impacts value and methods of organisation. This part will be written in the reflective style, in which the first person can be used.
Gender pay gap generally indicates a specific difference between wages of men and women. Almost in all places, there are women not enables to take salary as men. Many companies or businesses not currently giving enough salary to women as compare to men. These companies think, men have higher work efficiency than women, So this mind-set of companies completely promotes discrimination in the workplace. According to Equal Pay Act 1970, women also has complete right to take salary or wages like men. Human's work efficiency is not fully depending on its physical efforts. Means, if a woman not able to put physical efforts like a man, but she has effective intellectuality. In this case, she enables to take higher pay, so businesses should understand this small thing. This report discusses a case study called “The gender pay gap”. Various ethical dimensions have been included in this report. A major role of business within society and key stakeholders also covered in this. These all topic related to gender pay gap has been discussing through Tesco. It is one of the leading retail companies in the United Kingdom.
Ethical dimensions generally provide different ways to businesses or organizations to run their operations in ethical manner. Ethical environment is very necessary within Tesco for achieving its objectives in decided time period. Top-level management specially focuses on gender pay gap issue. According to management, they believe in pay according to employee's workability. No matter is it men or women, means if a woman has additional skills and talent than man, then company always offers higher salary to woman as compare to man. In company, currently many women working on higher posts but in 2018, Tesco accepted 30.4% gender pay gap in their business environment.
In this case, company still need to implement some ethical dimensions to properly remove gender pay gap issue. Some major ethical dimensions have been discuses below;
Fair Wage: This is one of the major parts of ethical dimensions. Each business is responsible to follow fair wage ethical dimension in their business environment. Fair wage enables to company for providing fair salary or wages to their employees without considering genders. This dimension generally promotes skills and motivation within workforce, because when an employee once gets satisfied with their salary then it'll put extra efforts in the workplace.
Equality and Diversity: Equality and diversity are also coming under ethical dimensions. Both gives extra-ordinary contribution in removing gender pay gap issue from company (Raman, Garg and Thapliyal, 2019). Tesco currently managing equality and diversity in proper manner to give equal rights and opportunities to all employees (Men and Women). Through this step of management, employees now able to gain salary or wages according to their workability. Each business enables to take huge advantages by implementing this ethical dimension in their workplace.
Discrimination: When any company or business pay salary and wages on the basis of genders, then this action of company completely comes under discrimination. In the case of Tesco, its management always need to avoid discrimination in their workplace. There are all men and women within company has equal right to earn salary. In this case, if management provides some higher salary to men in comparison of women, then company indirectly discriminate women. This is a first priority of management to avoid this type of attempts within workplace, because women feel unvalued by these unethical attempts.
Company want to present positive image of their business in society (Painter, Hibbert and Cooper, 2018). According to company, business plays very productive role in society, because it always tries to fulfil demands of people within market. It takes responsibilities to offer those products and services which people highly needed in their personal life. Company believes in run their business operations in ethical manner. Currently Tesco has high reputation in global market, so its management advice other businesses to implement all ethics in the workplace. On the basis of company, a business is responsible to fulfil its social responsibilities as well. This is great role of a business towards society. Providing employment to people, this is one of major roles of a business, because currently unemployment is very big issue. In this case, once business hire people as employees, then it needs to play excellent role in providing equal salary and wages to employees as well.
There are employees, customers and government etc. key stakeholders of Tesco. Gender gap pay aspect within company is affect almost it's all stakeholders;
Employees: Company is responsible to give equal rights to man employees and woman employees (Islam, 2019). In case, if company paying employees on the basis of gender, then all employees will not satisfy with company's this step. Reason is, currently almost all employeeâs literate, so they don't like companies which pay different salary or wages to men and women. Company need to create employee friendly workplace where they improve their skills and workability. This type of workplaces will help to company for improving its all over performance as well.
Customers: Gender pay gap within company negatively affect customers, because currently they don't like to purchase products and services to those companies which discriminate woman employees (Dierksmeier and Seele, 2019). Suppose company not giving high salary to woman employees as man employees, so this step of company will present its negative image in the market. At the end, company will lose its large customer base, if it not stops this type of unethical attempts.
Government: UK government has passed Equal Pay Act 1970 for all businesses. If, any business or company not follow this act in their workplace, then government will take some legal actions on that business or company, like; penalty, fine and court hearing etc. In this case, company is always responsible to follow all rules and regulations of government. Otherwise, it'll affect government to take specific legal actions towards company.
Unions: The issue of equal pay gap is also raised primarily by unions. The unions ensure that their members do not face any kind of pay gap issue on the basis of any discriminatory grounds. The work place unions may demand for raising the voice against flexible working facilities, pay gap discrimination as well as occupational segregation.
Competitors: One of the most significant stakeholders which are affected by pay gap issues are competitors. Such kind of issues are not only harmful for the brand image of organisation but also affect the productivity and motivation level of individual employees. Thus dissatisfaction among unions or employees due to pay gap can result in reduced productivity and it can also lead to negative publicity about organisation. Thus other competitors gain benefit of it and it can be harmful for the long term sustainability and competitive advantage gained by organisation.
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Ethical choices are really impact companies in both terms negatively and positively. Suppose Tesco company maintaining good ethics in their business environment, and on the other side, ASDA not maintaining ethics in their business environment (Becker, 2018). In this case, Tesco will gain higher benefits than ASDA in retail industry. Business ethics are too necessary for any company, because these provide a progressive path to all type of companies. For example: Tesco offers salary to employees on the basis of skills, talent, workability, and efficiency without considering employees' gender, religion, caste, colours etc. So, this good choice of ethics will provide an effective workforce to company.
On the other hand, another company called ASDA not following ethical concepts in their daily operations. For example: It not offers salary or wages to their employees on the basis of skills, talent and workability. It considers employee's gender, caste, religion during pay salary, so this step of company is completely bad choice of ethics. At the end, this choice of ethics negatively impacts to ASDA, because I can't achieve large profit as Tesco with unethical environment.
To achieve better results in the market, ASDA should maintain ethical environment in their business environment (Kolb, 2018). Tesco need to improve their current ethical environment as well. Both companies enable to take huge advantages from business ethics. Many companies achieved huge success in the world through good ethics choices. Ethics make enable to companies for creating their high brand value in retail industry. Both need to hire employees on the basis of skills, workability and talent. Not on the basis person's gender or religion background. If companies do this, then they will able to present a good brand of their respective business. Good ethics within companies' operations will help in gaining loyal customer base.
Becker, C. U., 2018. Business Ethics: Methods and Application. Routledge.
Dierksmeier, C. and Seele, P., 2019. Blockchain and business ethics. Business Ethics: A European Review.
Employer comparison, 2019. [Online]. Accessed through < https://gender-pay-gap.service.gov.uk/compare-employers/2018>.
Deontological and rights are two major theories of ethics. Both provides different terms of ethics. Most businesses following both theories within their daily operations. On the basis of âgender pay gapâ case study, these two theories of ethics have been discussing below;
Deontological ethical theory defined as, people are responsible to adhere their moral values, dignity, duties and obligations when they take any decisions (Alzola, 2017). Generally, this ethical theory says, a person always need to take such type of decisions which not negatively impact other person. It is a symbol of ethics.
In this case study, deontological theory of ethics will play effective role, because it teaches moral values to company. With the support of this theory, management will able to take such decisions which positively impact employees in the workplace. Theory enables management to make a balanced payment sheet where it'll provide equal salary or wages to their all type of employees. No matter employee is men or women. This theory of ethics promotes a familiar environment within company where all people will talk innovation, skills, progress and development. If company want to present its good brand image in retail industry, then it necessarily needs to implement this theory in their business operations. Currently company operates many stores in different countries, so it has lots of employees too. Many men and women employees currently day or night working for the Tesco, in which it is first responsibility of its management to pay same salary to all employees. Dignity is big part under deontological theory, in which each employee wants some dignity in their workplace (DeTienne and et.al., 2019). In this case, management need to give rewards and appreciation to their employees, because this step of management will increase dignity of employees. This type of behaviours within a company is sign of good ethics. On the other side, if Tesco give salary to men and women according to performance, in this case company indirectly respect their employees.
Rights also a big part of ethical theories, the rights are invented or developed by society, government, group of people etc. Ethics and rights of people are completely interrelating with each other. According to Rights theory, there are all people have many rights to maintain a good system within the country. All are responsible to follow these rights in ethical manner.
In the case of âgender pay gapâ, this theory plays great role, because Rights theory says there are all employees within a company has equal rights (Beets, Lewis and Brower, 2016). In this case, Tesco should respect this ethical theory. If company pays employees on the basis of gender, then it is completely violation of this theory. Top-level management always responsible to respect employees' rights in the workplace. According to equal pay act 1970, each man or woman employee has right take equal salary, so company should adhere this act in their workplace. Employees have some other rights too with equal pay, like; health and safety right etc. so Tesco necessarily need to adhere these all rights within daily operations. If company can follow these rights, then it'll able to build an effective relationship between employer and employees. There is an effective relationship important to run all activities on progressive path. In this case, this theory of ethics makes able to company for making happy and healthy work culture for all type of employees. Equality and diversity is also major part within company which promotes ethical environment. Perfect balance of business ethics under Tesco will support it gains skilled employees. Employees feel comfortable and motivated in the workplace with the help of Rights ethical theory. Top-level management need to maintain high professionalism in their daily life, because poor mentality and professionalism always develops âgender pay gapâ type of issues within workplace. It should respect employees' rights in their business operations, because this type of steps of company will help in promote ethics in their business environment.
Alzola, M., 2017. Character-based business ethics. In The Oxford handbook of virtue.
Beets, S. D., Lewis, B. R. and Brower, H. H., 2016. The quality of business ethics journals: An assessment based on application. Business & Society. 55(2). pp.188-213.
DeTienne, and et.al., 2019. Moral Development in Business Ethics: An Examination and Critique.Â Journal of Business Ethics, pp.1-20.
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Ethical leader is generally a person who lead a team or group of people in ethical manner. An ethical leader always has some qualities which makes them an ethical leader (LÃ¤msÃ¤ and et.al., 2018). Some major qualities or factors which makes an ethical leader has been discusses below;
Honesty: Honestly is one of the biggest factor which makes an ethical leader, so a leader should honest in its personal life. Honesty enables leader to avoid such attempts which are completely unethical. A leader who always lie with their employees or team members can't become an ethical leader ever. Honesty is first requirement to become this type of leaders.
Justice: A leader who believe in justice is also able to become an ethical leader. Justice factors shows leader engagement with laws and regulations. Many times a leader face situation where it needs to remove some conflicts within teamwork, in which justice aspect will help leader for removing such conflicts. In short, if any leader believes in justice, then it'll able to become a ethical leader.
Respect: There are different type of employees work under a leader's team. These employees come from different gender, religion and caste too. In this case, a leader who give equal respect to all employees has a quality to become an ethical leader (Ataya, 2016). Means, respect factor within a person enables them to become an ethical leader.
Listening: Listening factor is also helpful to a leader which enable them to become an ethical leader. Main reason behind last statement is, a leader always leads a team where many employees work under their command. In this case, it needs to listen their employees carefully. For example; employee's issues, problems, errors etc. Listening is necessary for a leader to deeply understand their employees, so a leader should improve listening skills to become an ethical leader. Good listening skills promotes high personality of a leader as well.
Remove Negative Elements: A leader who always try to remove negative elements from its teamwork also has quality to become an ethical leader. Ethical leader never wants such things in their workplace which negatively impact its team members. In this situation, if any leader has this quality, then it is an ethical leader.
Celebrate All Religion: A leader who celebrate festivals of all religion is also has ability to become an ethical leader. This is the finest quality which makes an ethical leader, because an ethical leader never discriminates employees on the basis of religion.
Care of People: An ethical leader always caring for their employees or team members. It protects their employees or team members from such things which harmful for them. This type of leaders always provides a logical and meaningful way to their employees for completing any task (Kuligowski, 2019). This leader respects their employee's emotions, so this quality within a leader make able them to become an ethical leader.
Motivate Employees: An ethical leader always wants an effective workforce within their teamwork, so it mostly takes various steps to motivate their employees in the work workplace. Sometimes team not achieve their target in decided time period, so this type of situations demotivate team members. But, a leader who believe in ethics support and motivate their employees to move on from this situation. It tries to provide some useful motivational seminars to their employees which make them energetic and motivated.
These all are some major qualities or factors which enables to a person to become an ethical leader.
Ethical leadership management is generally defined as, a leadership that is performed by considering different type of ethical value and beliefs. This concept is associated with the trust, honesty, consideration, charisma and fairness.
I have seen that there are many types of the quality which has to be recognized by the leader as an ethical leadership. First, thing which was observed by me was justice, as it is very important for leader to be justice for all the followers irrespective of position, gender and performance. Another quality which need to be highlighted by the ethical leader is humanity and respect for others. This means that the ethical leader in the organization should respect other and their opinions as well. Most important quality which need to be highlighted by the ethical leader is he should take initiative and also encourage other to make different decisions. Showing that sort of ethical quality helps the leader in developing good ethical practice. As bringing justice will eventually help in reducing the discrimination at workplace which will help in building good ethical workplace. Also, respecting other point of view in will help managers in building good trust among the other employees in building good working environment in the organization, this will eventually help in promoting equality in the market. This may also help company in building good employer value.
It can be concluded that âThe gender gap paysâ is completely comes under an unethical attempt which each business or company should avoid in their daily operations. Some major dimensions of ethics are included in this report which support to businesses for maintaining ethical environment within workplace. Employees, customers and government are major stakeholders of Tesco which highly impact by its business ethics. Currently this company following almost all ethics in their business activities. Good ethical choices positively affect a company, and on the other side, bad ethical choices negatively affect. In this case, a company always need to choice good ethics to put their operations on progressive path. Deontological and Rights are two major theories of ethics which company should consider in the workplace. With the support of these theories a company can improve performance of their employees. Major qualities and factors are also discussed above which makes an ethical team leader and an ethical manager.
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