This study evaluates the ethical issues faced by Ryanair, specifically the gender pay gap, and provides recommendations and theories of ethics to address the problem. Explore the impact on stakeholders, the role of business in society, and the importance of ethical leadership.
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Business Ethics and Responsible Management
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Executive Summary This study gives an evaluation about the ethical issues(Gender Pay Gap) faced by Ryanair. Providing a report as a senior manager reviewing how it affected the stakeholders of Ryanair, cooperate social responsibility, unethical behaviour among workers,recommendations followed by the theories of ethics. This study also includes ethical leadership and providing a feedback about the problems faced by the Ryanair at the ways to resolver it.
Table of Contents Executive Summary.........................................................................................................................2 INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 Part-1................................................................................................................................................1 1A) Ethical Issues at Ryanair......................................................................................................1 Role of Biz in society..................................................................................................................2 Five identified stakeholders.........................................................................................................3 Good and bad ethics:...................................................................................................................3 Recommendation:........................................................................................................................4 References 1:...................................................................................................................................4 1B) Theories of ethics(gender pay gap):.....................................................................................5 Advantages and dis-advantages of theories.................................................................................6 REFERENCES 2:............................................................................................................................7 Part-2................................................................................................................................................7 Reflective Essay...............................................................................................................................7 Ethical Leader and leadership......................................................................................................7 Personal ethics and organizational values:..................................................................................8 Ethical issues at workplace..........................................................................................................8 Conclusion...................................................................................................................................9 Recommendation.........................................................................................................................9 REFERENCS 3:...............................................................................................................................9 CONCLUSION................................................................................................................................9
INTRODUCTION Business ethics refers to the ethical and legal issues provided within the workplace which can lead to the salient working conditions of the workers. This refers to the ethical issues which workers face at workplace and the ways of minimising the problems at workplace. Business ethics refers to the ethical terms and the norms which are made for the safer working of workers. This includes the case study of Ryanair which have a gender pay gap issue which are studied to minimise the various issues at Ryanair. This elaborates issues faced by Ryanair, roles of biz in society, effects of stakeholder at Ryanair and duties of ethical leader at Ryanair are explained. MAIN BODY Part-1 1A) Ethical Issues at Ryanair Ryanair is facing the gender pay gap difference which has affected the women workers in many aspects. The change in the working structure has affected the gender equality in the organization. Various research carried out has evaluated the result of the working conditions of women workers which clearly reflects the gender equality among the female workers(Agrawal, 2019). The workers within Ryanair is facing many issues regarding the pay which is provided it clearlyreflects that the wages provided to female workers are comparatively less as of male workers. This ethical has demoralised many female workers which has created a unwilling work due to difference in pay, this ultimately resulted in a bad impression of the organization which has affected the organization's image which reflects organization of ethical ground(Arora, Kourula and Phillips, 2019). There are more than 250+ women workers which are suffering the ethical issues which can affect the organization's salient working procedures. the working conditions are moved this ethical issues which clearly reflects on the market value of Ryanair. Across UK there are 78% of women which are facing this issues which needs to be concerned and narrow the gender gap between the male and female workers. Many of the organizations are in favour of men which creates a gender discrimination in the organization(Boyd and et.al, 2017). Ryanair is facing a major issue of gender pay gaps in which women workers are facing a major issues regarding the pay gaps the wages provided to the women workers are very less as 1
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compared to men. This is a major issues which needs to be addressed within the working culture as it reflects the market image of the organization. This gender issues create a chaos within the organization which can affect the working of the Ryanair(Burchell, Kennedy and Murray, 2015). Median hourly pay for men at Ryanair was 71.8% lower than men. According to the government of UK Equal Pay Act, was brought into practice with the aim to provide an equal pay to the women. According to statics the equal pay to women with highest pay roll is very few. There is a male dominated hierarchy within Ryanair which has affected the working culture of the organization. Women's are clustered at lower level of pay. Men are paid on an average of 120 times more as compared to the nationalmedian wage which is a major issue at Ryanair. Pay ratio has drastically affected the sentiments of the women workers which has affected the working conditions of women their working has affected the organization's structure.Equal pay will improve the working of the organization and improve the quality of services offered to the clients which will improve the image of Ryanair in the market(Gilbert and et.al., 2019). Government has issued this as a national cause and are working towards the national justice of the gender pay gaps. Role of Biz in society Ryanair is an aviation service provider of UK which have many of the female workers from ground staff to air-hostess which are suffering for a gender pay gap there are many hierarchical discrimination within the organization which treats women workers unequal as of men. For the development of Ryanair gender equality has to be minimised as in the aviation industry many of the female workers are the backbone to the industry(Issa and Pick, 2018). Even the government is involved in this issues, if there exist a gender discrimination there will be a crisis within the organization which will lead to the downfall of the repo rate as well as profit generation of the Ryanair. There will be a significant decline of the investors in the industry as it is one of the national concern regarding the issues faced with a gender pay gap. This issue has hindered a right to equality which are against a section of the society. An equal status is not provided to thewomen within the organization. With this bridge of gap in pay wages there are differences in society. An impact of gender pay gap has widespread in the society which has affected Ryanair with the decline of sales.A severe action must be taken and the pay gap differences needs to be minimised with the aim to improve the services which will increase the position of the organization in the market(Kumar and Steinmann, 2015). 2
Five identified stakeholders Stakeholders have narrowed their idea of investment towards the organization which have a wider gap of gender pay because of the shift in the minds of the people they move towards the support of gender pay gap. There is sudden downfall of the sales rate of Ryanair as there is wider gap between male and female workers. Stakeholders are withdrawing hands with Ryanair due to this issue as they are suffering with losses. Stakeholders are unwilling due to unpleasant atmosphere created within the organization, contribution of female workers are comparative less as they are paid less, an inactive participation is seen which affect stakeholders. Segregationandworkpatternareaspectsofthegenderpaywage(Quarshie,Salmiand Leuschner, 2016).Harris Associates LP,Michael O’Leary, Artisan Partners LP, FIL Investment Advisors (UK) Ltd., Allianz Global Investors GmbH are thestakeholder of Ryanair has drastically moved by the crisis of gender pay gap.They have suffered with the losses due to unequal participation of female workers which faces problems of equal pay gaps. There are many reasons which a women workers faces the problem of gender pay wage. The growth rate of women is comparatively less as that of men. Which has affected the shares of the stakeholders at Ryanair. There was a decline in equity shares of the company which has moved the interest of shareholders. Good and bad ethics: Work ethics plays a major role in the working culture of the organization. Ryanair has seen the change in the working life cycle of the women workers as they are more indulged with their personal problems which creates a bad work ethics(Reinecke, Arnold and Palazzo, 2016). Women are busy with their own personal concerns and issues which decreases the work ethics and affects the performance of the Ryanair. Women are not consistent as the ratio of women leaving the job is high as they do not actively participate. Women health and maternity leaves are concerns which affects the performances is a sign of bad work ethics. Good work ethics includes the effectiveness in the work leaving all the problems behind, a better working strategy will provide. A strictness in the work reflects good working culture. A proper responsibilities altered will improve the performance of the firm as well as growth of female workers at Ryanair. 3
Recommendation: There must be a equal proportions of the hierarchy ranking provided in the Ryanair which can affect the organization structure and easy working is provided as the higher posts are provided better the achieveability can be seen a concerns regarding issues to the women workers will be addressed with greater ease. Women will be able to understand women better which can reduce conflicts and provide a better working strategies for Ryanair. Working ethics will improve if provided equal position in hierarchical order.Working will improve the performance of the firm. Improving gender equality at workplace will improve the efficiency of the workplace and minimise the gender pay gap as more of female workers will be involved(Schuler and et.al., 2017). References 1: Agrawal,M.S.,2019.THEIMPACTOFBUSINESSETHICSANDCORPORATE RESPONSIBILITY ON INDIAN BUSINESS GROWTH.Paripex-Indian Journal Of Research.8(9). Arora, B., Kourula, A. and Phillips, R., 2019. Emerging Paradigms of Corporate Social Responsibility, Regulation, and Governance: Introduction to the Thematic Symposium. Boyd,Bandet.al,2017.Hybridorganizations:Newbusinessmodelsforenvironmental leadership. Routledge. Burchell, J., Kennedy, S. and Murray, A., 2015. Responsible management education in UK business schools: Critically examining the role of the United Nations Principles for ResponsibleManagementEducationasadriverforchange.Management Learning.46(4). pp.479-497. Gilbert, D.U and et.al., 2019. Call for Submissions Business Ethics Quarterly Special Issue on: The Challenges and Prospects of Deliberative Democracy for Corporate Sustainability and Responsibility. Issa,T.andPick,D.,2018.TeachingBusinessEthicsPostGFC:ACorporateSocial ResponsibilityofUniversities.InBusinessEducationandEthics:Concepts, Methodologies, Tools, and Applications(pp. 644-661). IGI Global. Kumar, B.N. and Steinmann, H. eds., 2015.Ethics in international management(Vol. 84). Walter de Gruyter GmbH & Co KG. Quarshie,A.M.,Salmi,A.andLeuschner,R.,2016.Sustainabilityandcorporatesocial responsibility in supply chains: The state of research in supply chain management and business ethics journals.Journal of Purchasing and Supply Management.22(2). pp.82- 97. Reinecke, J., Arnold, D.G. and Palazzo, G., 2016. Qualitative methods in business ethics, corporate responsibility, and sustainability research.Business Ethics Quarterly,26(4), pp.xiii-xxii. Schuler, D and et.al., 2017. Guest editors’ introduction: corporate sustainability management and environmental ethics.Business Ethics Quarterly.27(2). pp.213-237. 4
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1B) Theories of ethics(gender pay gap): Theories of ethics are the theories which describes the right and wrong by systematizing, recommending the concept of right and wrong. It defines the moral philosophy related to the field of psychology and value theory. Utilitarianismis a process of defining and promotion of extreme happiness or pleasure and eliminates the unhappiness or harm. This focuses on the making social, economic and political decisions which aims for the betterment of the society. More will be amount of good more will be the number of people. This ensures safety and security of the workers at the workplace, providing a healthy workplace. Hedonismrefers to the construction of human psychology in such a way that we exclusively desire or pleasure. This is based on the happiness and explains how to decrease pain and increase of pleasure and satisfaction within a cooperate culture. This aims in minimising the pain and pleasure within the working culture and helps in the betterment of the working activities. Gender pay gap is of the major concerns in UK. There emerges a bigger threat that the working culture of women are affected due to gender pay gap. Gender inequality has been seen within human capital mode, it is defined by the ability and skills which are performed by the people under the organization.The hourly pay gap of a women is comparatively less whose reason can be comparisons of skills and the efficiency of work delivered out to the organization. With the recent research it has been found that the gender pay gap has drastically changed ratio it has been reduced to 8.4% which was 9.7% in previous years. With the improved working e4fficiency of the women workers there is a decrease in the pay gap difference there is quick fix in the gap of pay as more of the female workers are minimising the gap by increasing the efficiency of the work. There is an hierarchical upgrade in women workers(Setó-Pamies and Papaoikonomou, 2016). EHRC has enforced Ryanair to minimise the bridge of gender pay gap as the number of workers as women are more in Ryanair. As less number of women participate as a full time workers taking the wage pay. Less number are indulged in a fair means of practice. Labour market discrimination has improved a number of workers which can broaden thepay scale as stated more women are indulges in part time work which reduced the equity of female workers as compared to women. This can be minimised by the up gradation of pay wages of part time workers which can be an initiative for by the government of UK. Women lack in economic 5
inequality as compared to man. There are many part time worker at Ryanair which works on daily operation wages. This figure must be converted to full timers which can benefit the firm as well as female workers narrowing the path of equal pay wage. This will improve the quality of the work and helpn the sustainabilityof femaleworkers. Thisstudy also reflectsthat improvement in female participation of the workers at Ryanair which will improve the pay wage for the women in the society. Rawl's explains that the working idea of the theory was based on the idea of equality providing every human about what he deserves according to the work done. There must be more benefits provided to the least members of the society which can defines the substantiality for him. This study evaluates that the female workers must be indulged in full time job dedicating the services to the Ryanair. As more of full timer workers are provided there will be a reduction in the gender pay wages of the society(Spence, 2016). More of women workers must indulge in the working practice which can help the women workers in society and provide an equal status to the women workers. With the increase in skills of the workers there will be the hierarchical changes in the workplace increasing the efficiency of workers. Advantages and dis-advantages of theories Advantage:With the emerging concept of the loot-boxes in games it has created a means of channelizing an extra means of income which creates a ample sum of money for the EA sports. This loot-boxes creates a way of ethical imbalance in which the users need to pay extra for the additional profiles they need to apply in gaming. This is an ethical concern which needs to be addressed which are creating a loopholes within the eye of the users there are many ways to earn from the gaming. For the users these features must not be used as they are concerns of ethical issues. This things must be banned with affects the social concerns in the human nature. Many illegal activities are carried out with the gaming industry which are concerns of social means. Disadvantage: Gaming is one of the widest market in generation of capital(Sroka and Szántó, 2018). Loot-box is the additional features which provides the gamers with the sense of better performance but is a concern for many users which cannot afford the loot-box. Loot-boxes are just the ways of additional income for the manufacturers which creates an illegal sense of gaming. Many of the countries has declared as a gambling, considering it as an illegal activity. This hurts sentiments of many uses which have used loot-box it is a fake way of earning money. There emerges a lack of honesty and transparency over the practices which affects the sentiments 6
of the users this is illegal practices which affects human rights and policies. The prices given out can be exchanged for the money and can be an illegal activity which creates an illegal work in the society many of the teenagers are involved in this activity. Which affects the social well being and social ethics of the teenagers. Loot-box can be a gambling activity as it is exchanged with money or with the virtual coins in which the box remains mysterious unless it is opened which can be seen similar to gambling. A loot-box can be a threat to the gamers and to the society the after effects created by the loot-boxes are dangerous to the society as it created a mentality of gambling which can be illegal means for the gamers. This affects the ethical issues of the society which can be a threat to human nature(Waddock and Bodwell, 2017). Many concerns which are seen as youngsters are more towards gaming and virtual activities they spend more than 8 hours a day on a virtual platform affecting the social and cultural needs of the workers. Government need to trace the activity and minimise the use of use digital platform which can help them to socialise and learn ethics and various life concerns which can bring about the change in the human nature and will help them to grow intellectually and socially. There must be more of physical learnings provided which can help them to improve in various aspects of life. REFERENCES 2: Setó-Pamies, D. and Papaoikonomou, E., 2016. A multi-level perspective for the integration of ethics,corporatesocialresponsibilityandsustainability(ECSRS)inmanagement education.Journal of Business Ethics.136(3). pp.523-538. Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory.Business & Society.55(1). pp.23-55. Part-2 Reflective Essay Ethical Leader and leadership Ethical leader refers to a person in charge who looks after the ethical issues related to the gender inequality. They work for the well being and dignity of the workers within the organization. They are aware of the misleading and misconduct within the organization within the organization.As an ethical leader I will engaged in following various laws and practices which will be favourable for leaders.They are aware of any ethical discrimination within the organization.Mymainaimistomaintaintheequalityamongtheworkerswithinthe 7
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organization. They are aware to keep the working conditions well within the firm. Ethical leadership is the leadership that leads the ethical behaviour and values which is done in order to maintain a peaceful and well-functioning of the workers. Personal ethics and organizational values: As an ethical leader of Ryanair I would like to work for the betterment of the workers within the organizations as an ethical leader of Ryanair I would work for the betterment of the female workers within the organization who asks for the equal wage pay in the firm. As in Ryanair the female workers are suffering for the wage pay difference in which women workers are paid less at Ryanair who work at the firm. As a ethical manager I would like to generate a feedback from the workers who suffers from the pay wage issues and any illegal issues which are carried out in the firm(Weber and Wasieleski, 2018). Ethical issues at workplace As an ethical issue I will find out the best solution which are beneficial for both firm as well as for workers, there are many issues at Ryanair which are not addressed by the seniors within the firm which needs to be considered and develop a healthy lifestyle and increase the better performance of the firm. Ethical issues need to be addressed which are to be implemented within the organization. As a workers are suffering ethical issues, addressing the issues which can be done by the properly addressing the problems faced by the workers. Many female workers are suffering many legal issues related to ethics and many gender discrimination issues which I will address with the best solution output which can be done in order to maintain in order and safe working of the organization. Ethical training and ethical crisis are to be provided which are needed to be addressed by providing the awareness of the legal rights of the workers. Ethical program and ethical code of conduct needs to be addressed which can be used to generate awareness within the organization ethical code of conduct needs to be taught to create awareness within the people working within the organization. A separate ethical panel will be introduced in the firm which will work towards the development of the firm and providing a safe working for the workers within the organization. An ethics can be generated which can help in the learning procedures of the work ethics any problems related to the code of ethics can be sorted out by providing the safe working and feasible atmospheres at Ryanair. There are many experts which will be hired which will safeguard the working of the workers with the work ethics. If any 8
misconduct happened within Ryanair will be experts and the senior at the firm which will be resolved as per the legal norms which can beneficial for the workers providing a safe working of the workers at the Ryanair. Conclusion As an ethical leader work ethics and code of conduct will be addressed within the organization. This will provide a safe working within Ryan air. A protection rights and strategies must be developed within the organization. A ways or means can be developed to put up the discrimination of the workers. A safe channel must be provided to the workers which can address or alter their problems within the working culture and provide a safe channel with the workers for the development of channel which will work for the development of the workers. If misconduct is introduced within the organization a quick action will be taken to which will provide a solution to the workers of Ryanair. Ethical actions must be taken to safeguard the victim which can help with safe working. Recommendation Being active as an ethical leader and managing the problems and providing a decision to the workers, which can help their working functionality.I will encourage workers to raise any misconduct at Ryanair which can provide them with a safe working atmosphere and help them to come out with the problems at Ryanair(Zsolnai, 2015). I will be addressing the same issue and analysing the issue with the solution and providing a safe working channel. Providing a workers with right decisions which can provide a safe working channel in the organization which will help in removing the elements of misconduct. I will take necessary actions against the violators to increase the efficiency and workforce of the organization. REFERENCS 3: Sroka, W. and Szántó, R., 2018. Business Corporate Analysis Ethics Social of in Research ControversialResponsibilityResultsSectors.Innovation,Entrepreneurshipand Organizations’ Business Performance.14. p.111. Waddock, S. and Bodwell, C., 2017.Total responsibility management: The manual. Routledge. Weber, J. and Wasieleski, D.M. eds., 2018.Corporate social responsibility. Emerald Group Publishing. Zsolnai, L., 2015.The spiritual dimension of business ethics and sustainability management. Springer,. CONCLUSION Business ethics following in a business is very necessary in which the business must take 9
care of valuing the employees and also the employees should follow the ethics in order to maintain the decorum of the company. The company should take care of the interest of the employees and should design the job as per the interest of the employees. Business decision- making must include mutual consent of all the stakeholders including shareholders, clients, environment, community, etc. This will lead to increase in the confidence of the stakeholders, and they will contribute in any form due to this. Sustainable decision-making is possible due to Responsible management. 10
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