Gender Pay Gap and Business Ethics

The report highlights the significant issue of gender pay gap in Malaysia, where men are earning higher than women despite similar education and designation. It emphasizes the importance of business ethics, equality, and fairness in determining remuneration. The study identifies motherhood penalty, male domination, and limited legal avenues as major causes behind the gender pay gap. It concludes that there is a need for significant measures to eliminate the gap and encourages businesses to set policies that avoid discrimination at workplace.

Business Ethics & Law

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business ethics imply for the one that helps in examining both principles and problems
which occur in business environment. In the context of business unit, all the ethical aspects are
applied on all the conducts and entire unit. Hence, business ethics lay emphasis on the evaluation
of business policies and practices associated with controversial issues like corporate governance,
insider training, discrimination, CSR and fiduciary responsibilities. The present report is based
on the ethical aspects or issues associated with workplace. Besides this, report also shed light on
the extent to which gender pay gap exists in Malaysia. Moreover, now there are several
companies that offer higher wages to males over females which in turn considered as ethical
issues at workplace.
MAIN BODY
Ethical dilemmas are the utmost concern of almost all sort of organization and needs to
be resolved with some effective strategies. Pay related issues are found to be in the top most lists
with a major existence of gender discrimination. This is referred to be one of the most
unfavorable situations at the workplace that largely demotivates the workers where the male and
female workers go through unfair means on the basis of their gender. It is with a major concern
of female employees who are unfavorably judged with no facts of impotency. In the current
times; issue of gender pay gap becomes immense because companies operating in services sector
are offering higher wages or earnings to the males over females. Ethical code of conduct entails
that, companies should offer fair and equal wages to both males & females for similar kind of
work. In addition to this, as per ethical aspect company should offer equal employment
opportunities to men and women. Conclusively, it can be stated that firms operating in Malaysia
are not allowed to discriminate individuals on the basis of gender.
In the article, according to the Department of Statistics, Salaries & Wages survey report
2016, mean monthly salary of male workers is higher than female. On the basis of such report,

males are receiving RM 2500 per month as compared to female personnel. Along with this, such
survey report shows that median salaries of males and females working in Malaysia accounts for
RM 1721 & RM1685 significantly. This aspect shows that poor position of women take place in
Malaysia on the basis of salary aspect. Such report clearly exhibits that irrespective of having
similar education and designation, men are earning higher over women. Thus, referring the
statistics of such report, it can be depicted that ethical issues pertaining to payment to gender
inequality exist in Malaysia regarding payment. On the basis of ethical and legal aspects,
business unit cannot discriminate its personnel as per gender, disability, race, religion etc.
However, statistical results present that in Malaysia, business units are discriminating individuals
on the basis of gender while determining pay. Thus, companies operating in Malaysia needs to
make focus on undertaking Employment Act 1955.
McMenemy, Poulter and Burton (2014) depicted in their study that aspect in relation to
unequal payment is immoral. Moreover, women have also similar right in relation to getting
wages if they possess similar skills, education and capabilities. In Malaysia, for enhancing the
engagement of women in working sector and offering protection to them, several aspects or
section were included in Employment Act 1955. On the basis of such law, pertaining to women
employment, prohibition regarding their night and underground work take place. However,
irrespective of the existence of laws and legislation still business unit are promoting women as a
subordinate of men. This in turn places negative impact on the work culture and environment of
firm. Along with this, now women are more educated than men and possess good leadership
skills. Hence, ethical aspects related to workplace entails that women should be treated and
compensated equally. Utilitarianism lays emphasis on promoting the need in relation to
eliminating gender pay gap. The rationale behind this, inequality pertaining to payment places
negative impact on women motivation and productivity.
As per the ethical aspects equal pay policy needs to be considered for the similar kind of
work. In accordance with the business and professional ethics, company should offer or provide
remuneration to both men and women as per their skills and education level. Further, code of
professional conducts also entails that unfair, inequitable and partial treatment should not be
tolerated within the firm. By taking into account such aspect, it can be mentioned that
management decision and evaluation of work must be based on both actual assessment as well as

factual observation. Further, ethical aspects also exhibit that manager of the firm has
accountability to protect individuals from the policies that lead biasness and favoritism within
the business unit. In addition to this, companies which are operating in the service sector of
Malaysia discriminate individuals on the basis of pay. In other words, it can be depicted that in
Malaysia earnings of men are quite higher over women. This in turn considered as unethical and
unfair to the significant level.
Hassard and et.al., (2018) assessed in their study, sometimes, company believes that male
personnel are highly able to manage conditions at workplace over working women. The rationale
behind this, working women have to manage both personal and professional life. This in turn
sometimes create frustration among them and thereby impact performance. Along with this,
study claimed that motherhood penalty is one of the main reasons due to which gender pay gap
exists. Concerned article presents that companies giver more earning or employment
opportunities to men and childless women. Moreover, business units believe that women having
child are less competent over others. Besides this, article presents that company thinks working
women have less commitment towards their work in comparison to males and childless females.
Hence, research outcome presents that gap exists between the earnings of women with and
without child. Even such gap assessed is higher as compared to the one which takes place
between males and females. Hence, such criteria and perception has significant impact on the
earnings of women. Thus, it creates ethical issues at workplace and thereby impacts the
satisfaction level of concerned individuals.
In the study, Barak (2016) mentioned that ethical issue arises at workplace when HR is
setting remuneration for men and females working on same designation. There are several
companies which offer wages or remuneration considering the skills and capabilities of
personnel. Hence, sometimes women get paid less if they are less capable, educated and
experienced. In such situation, companies face ethical issue pertaining to determination of salary
or remuneration. Further, they identified that along with the business units, ethical issues are also
facing by the workers specifically females. If women discover that their earnings are less than
males regarding similar job then still they face difficulty in proving the same due to the limited
legal avenues. Hence, women faces issues regarding pay gap as it difficult to prove and costly to
litigate. By taking into account all the above depicted aspects, it can be said that there is a need

in relation to undertaking significant measures that eliminates gender pay gap significantly.
Hence, for avoiding such issue company should encourage women to take actions for their right
pertaining to equality at workplace. In addition to this, there is also need to introduce effective
laws that prohibits actions like gender pay gap to the significant level.
CONCLUSION
From the above report, it has been concluded that in Malaysia issue pertaining to gender
pay gap is highly significant. It can be inferred from code of professional ethics or conducts that
firm should treat men and women fairly. On the basis of such aspect, firm should provide men
and women equal payment if they are doing same work. Further, it has been articulated from
evaluation that motherhood, male domination etc. are the main causes exist behind gender pay
gap. Hence, government and legal authorities of Malaysia need to take significant actions as well
as introduce reforms that ensure gender equality in terms of wages at workplace. Along with this,
government authority should encourage business unit to set appropriate policies that avoids
gender discrimination at workplace.

REFERENCES
Books and Journals:
Barak, M. E. M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Hassard, J. and et.al., 2018. The cost of work-related stress to society: A systematic
review. Journal of occupational health psychology. 23(1). p.1.
McMenemy, D., Poulter, A. and Burton, P., 2014. A handbook of ethical practice: a practical
guide to dealing with ethical issues in information and library work. Elsevier.