The Gender Pay Gap: Ethical Dimensions and Recommendations

This report discusses the ethical dimensions of the gender pay gap and provides recommendations for businesses. It focuses on the case study of Tesco, a leading retail company in the UK.

Case Study

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Ethical Dimensions......................................................................................................................1
Role of Business in Society.........................................................................................................2
Key Stakeholders.........................................................................................................................2
Impact of Ethical Choices............................................................................................................3
Recommendations........................................................................................................................4
Ethical Theories...........................................................................................................................4
PART 2............................................................................................................................................6
Ethical Leader..............................................................................................................................6
Ethical Manager...........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
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.
PART 1
(A)
Ethical Dimensions
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.
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Figure 1: Gender pay gap comparison between Tesco and ASDA
(Source: Employer comparison, 2019)
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
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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.
Role of Business in Society
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.
Key Stakeholders
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 employee’s
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
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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.
Impact of Ethical Choices
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
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negatively impacts to ASDA, because I can't achieve large profit as Tesco with unethical
environment.
Recommendations
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.
REFERENCES
Books and Journals
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>.
Islam, G., 2019. Psychology and business ethics: A multi-level research agenda. Journal of
Business Ethics, pp.1-13.
Kolb, R. W. ed., 2018. The SAGE Encyclopedia of Business Ethics and Society. SAGE
Publications.
Painter, M., Hibbert, S. and Cooper, T., 2018. The development of responsible and sustainable
business practice: Value, mind-sets, business-models.
Raman, G. V., Garg, S. and Thapliyal, S., 2019. Integrative live case: A contemporary business
ethics pedagogy. Journal of Business Ethics. 155(4). pp.1009-1032.
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(B)
Ethical Theories
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
“gender pay gap” case study, these two theories of ethics have been discussing below;
Deontological Theory
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 Theory
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.
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In the case of “gender pay gap”, 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 “gender pay gap”
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.
REFERENCES
Books and Journals
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. Journal of Business Ethics, pp.1-20.
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PART 2
Ethical Leader
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 (Lämsä 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.
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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 Manager
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
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will eventually help in promoting equality in the market. This may also help company in building
good employer value.
CONCLUSION
It can be concluded that “The gender gap pays” 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.
REFERENCES
Books and Journals
Lämsä, A. M., and et.al., 2018. Narrativity and its application in business ethics research. Baltic
Journal of Management.
Online
Ataya, L. 2016. How To Be An Ethical Leader. [Online]. Available Through:
<https://www.entrepreneur.com/article/272746>.
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Kuligowski, k. 2019. How to Be an Ethical Leader: 4 Tips for Success. [Online]. Available
Through: <https://www.businessnewsdaily.com/5537-how-to-be-ethical-leader.html>.
<https://employeebenefits.co.uk/issues/february-2018/tesco-gender-pay-gap/>.
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