Business Ethics: Gender Pay Gap in Kwit Fit

Running Head: BUSINESS AND CORPORATION LAW
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Business Ethics
2/24/2020
Student’s Name

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Contents
Part 1........................................................................................................................... 2
Overview 2
Ethical issues 2
Role of business 2
Affected stakeholders 3
Good and bad ethics 4
Recommendation 5
Part 2.................................................................................................................................5
Ethical theories and application 5
Pros and Cons of theories 6
Question 3..........................................................................................................................7
Ethical leadership 7
compliance and integrity 8
Conclusion 9
References.......................................................................................................................11

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Part 1
Overview
It is well known that each business work to earn profit but it does not mean that the
same should only think of shareholders. In addition to shareholders, other stakeholders
are also there that includes employees of the business, creditors, debtors, suppliers,
customers, society, and the environment. This report is based on the topic of the gender
pay gap, which is an emerging issue, and exists in many of the organizations. To
discuss this topic in more detail, the car servicing and repair company of the United
Kingdom, Kwit fit is selected. The purpose will highlight the issue of the gender pay gap
and will inform why the same is important to discuss from an ethical perspective. In
conjunction with this report will also highlight the negative impact of this practice and
recommendations to improve the situation in the future.
Ethical issues
To start the discussion on the subject, firstly it is to inform that the situation of the
company was way better in 2017 where it had a negative gender pay gap and female
employees have received more remuneration in comparison to the male employees.
Nevertheless, in 2018, the situation became worse where a 14% median gender pay
gap can be seen in favor of male employees. Here it is to say that the median pay gap
reflects the difference between middle-ranking man and middle-ranking woman (Lawrie
and Guibourg, 2019)
Here senior managers of the business are required to understand that this is an ethical
issue where the company failed to act in a fair, justified, and moral manner with its
female employees. The issue clearly shows that the company is treating its male and
female employees in an unequal manner where they are getting different pay for the
same work. It shows that the position of women is not as strong as males in society.
Role of business
Every business has some responsibility towards its employees where the same needs
to act responsibly and to pursue those actions, which are in the best interest of them. It
is a matter of morality and ethics where the business treating two workgroups differently

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based on their gender. It is not about equal pay given under the Equality Act 2010 but it
is something different that is also about the individual group of female employees of the
organization. Some people may think that the role of business in a society is to only
earn profit but whereas on the different side, some may think about its extended version
considering responsibility towards people and the planet.
Affected stakeholders
The issue is likely to affect the public image of the Kwit fit in a very influencing manner.
Every person wants to be an employee of a responsible enterprise. In addition to the
same, investors of today are smart, they want to be associated only with those entities
that care for its employees. Not only the investors but also consumer wants to purchase
the product of the company that works ethically. The issue of gender pay difference is
significant as it shows that the company did not pay any attention to the problem and
did the unequal treatment. It also shows that the diversification in the company only a
term to mention in annual reports and disclosures but the actual company does not care
about each group of employees. In this manner, the incidents are very much likely to
spoil the image of the company. In addition to being, an ethical issue the gender pay
gap is also a social issue and in this way, society does not consider such businesses as
responsible, which defeats their values (Priola, 2017). The issue of the gender pay gap
reflects an inefficient employment structure as it motivates the proportion of males in the
highest paying jobs and makes the situation of female employees worst. Neither
government nor non-government organization appreciates such business and therefore
this issue might influence the public image of the company. The gender pay gap
pursued by Kwit fit affected society very badly were not only female employees received
less remuneration but their situation has been presented weaker in comparison to male
employees. If to discuss the stakeholders affected out of this incident, this is to state
that the lead stakeholder group is female employees. The company has made fewer
payments to female employees and in this way discriminated between them and male
employees (McCulloch, 2019). Another stakeholder that affected is the government that
is certainly involved in this issue. Government is responsible to regulate equal pay
situation and the activities committed by Kwit fit clearly sees breaching those
regulations. There are multiple factors behind the issue of the gender pay gap and