Business Ethics | Case Study Report | Gender Pay Gap

Running head: BUSINESS ETHICS
Business Ethics
Name of the Student
Name of the University
Author’s Note:

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BUSINESS ETHICS
Table of Contents
Part 1..........................................................................................................................................2
1.1 Brief Report for Senior Managers for the Case Study.....................................................2
1.2 Two Ethical Theories for the Case Study........................................................................6
Part 2..........................................................................................................................................9
2.1 Reflection on Ethical Leader............................................................................................9
References................................................................................................................................12

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BUSINESS ETHICS
Part 1
1.1 Brief Report for Senior Managers for the Case Study
1.1.1 Introduction
Business ethics can be referred to as the study of suitable business practices and
policies about potentially controversial issues like insider trading, discrimination, corporate
governance, fiduciary responsibilities, corporate social responsibility, and many more. It is
required to ensure there exists no gender pay gap in an organization (Mandel and Semyonov
2014). It is an average difference within remuneration for women and men who are working.
Women are usually considered to be paid lesser than men employees, and as a result, there
could significant issues related to workplace conflict. The following report outlines a brief
discussion on the case study of the gender pay gap in 118 Limited with understanding the
nature of the ethical issue and identifying key stakeholders or impact on them with examples
of moral choices.
1.1.2 Nature of the Ethical Issues and the Role of Business in Society
The UK regulations published data on the gender pay gap for over 250 employees,
and the UK Prime Minister, Theresa May, had called this gender pay gap as a burning
injustice during the year of 2017. It is referred to as an unlawful employment practice for
employers for paying less in wages, compensation, or benefits. 118 Limited is an information
and communication business that is doing business for several years, with more than 1000
employees in the United Kingdom. In this particular organization, women earn 87p for 1
pound that men are gaining as compared to the median hourly wages (Gender Pay Gap
Report. 2018). As a result, the total percentage of low payment of women is 12.7% than men
employees. The top quarter of jobs is acquired by women, only by 44%; however, in the

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BUSINESS ETHICS
lower quarter, the percentage is higher. There are some of the most significant ethical issues
present in the case study of 118 Limited that ensure that the entire case study is unethical.
The first and the most significant ethical issue, found in the case study is that there
exists gender discrimination in their business. No employee should be discriminated against
according to his or her gender, and equal payment should be given to them; on the contrary,
equal chances should be provided to them (Auspurg, Hinz and Sauer 2017). The second
ethical issue identified in this case study is that the organization is violating equality law
2010. These issues play a significant role in the overall business and society.
There are eight distinct ways for understanding organizational gender pay gap, which
include people getting stuck at certain levels in the company, identifying gender imbalance in
the promotion, women getting recruited into low paid roles, leaving rate of men and women,
specific aspects of pay differing by grade, men and women receiving various performance
scores on average, supporting part-time employees for progressing and supporting both men
and women to take on the responsibilities (O’Reilly et al. 2015). After analyzing the case
study of 118 Limited, it is being checked that they have not followed any of the above
mentioned ways in their business, and hence, issues are being faced majorly. Furthermore,
the bonus payment in this specific company falls under this particular criterion of the gender
pay gap. Women get 52% of the bonus pay, and men get 67% of the payment.
1.1.3 Identification of Key Stakeholders and the Impact on Them with Examples of
Ethical Choices having Advantages or Disadvantages to other Businesses
The key stakeholder responsible for this particular issue of the gender pay gap in the
organization of 118 Limited is the CEO, Mr. Michael Graham. He has included different
rules regarding employment and payment of the employees. As a result, the women
employees are getting less fee, as compared to the male employees (Blau 2016). Apart from