Gender Pay Gap in Pinnacle Housing: Impact and Recommendations

This case study discusses the issue of gender pay gap in Pinnacle Housing, its impact on the company's public image and stakeholders, and provides recommendations to address the issue.

Case study
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Table of Contents
PART 1............................................................................................................................................3
a) Why this issue needs to be look?.............................................................................................3
b) Two ethical theories................................................................................................................5
PART 2............................................................................................................................................7
REFERENCES..............................................................................................................................10
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PART 1
a) Why this issue needs to be look?
It is necessary for Pinnacle Housing to look after this issue because there is clearly gender
pay gap observed which is unethical practice. The men and women are not treated equally and
discrimination is been done. Moreover, a company must be always work in ethical way so that
they are able to sustain for long term. However, it enables them to build reputation in society.
If there is any unethical practice followed by company then it highly impact on their
image. This is because they are doing that thing which is illegal for society. So, this impact on
society in negative way. (Adewole, 2015 ) Furthermore, in society both men and women are
considered as equal. Hence, both are having equal right to contribute towards society. In similar
way, Pinnacle Housing public image will also be impacted in society. This is because they are
paying more to men as compared to women. So, if in society it gets to known that there exists
gender pay gap it will create a negative image in minds of people. They will not allow women to
work in that company. In addition, protest can be done against them. This may lead to taking
legal action against Pinnacle Housing. Therefore, their public image will be highly influenced in
negative way.
A business plays significant role in society. This is because they provide products and
services to fulfil people needs. Also, they contribute towards society through various things such
as CSR, etc. However, business has a set purpose that allows them to exists in society. Business
role in society is wide as they not only fulfil needs of people but also help in improving social
life and providing other benefits as well.
However, there are several ways a business can think for society. In that they can
contribute by implementing effective CSR policies. Beside this, by conducting business activities
in ethical way they can set a positive image. Alongside, another alternative way is by
maintaining equality within business (Ghani, and Shaari, 2016). They can provide equal growth
opportunities to both men and women and equal pay. Apart from it, by eliminating
discrimination business role is to state that they value both men and women.
Business consists of both internal and external stakeholders. The internal are managers,
employees, etc. and external are government, customers, etc. The stakeholders are closely
engaged with business. Thus, any affect on business operation highly impact on stakeholder as
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well. Due to this public image is also been impacted. When any unethical practices are followed
by business the stakeholders are responsible for it. Likewise, in current scenario the stakeholder
that are impacted is senior management and employees. The managers are impacted in negative
way as they will get to know about gender pay gap. Therefore, it will create a bad image of
manager on external stakeholders. In addition, BOD may take legal action against them. Another
stakeholder that is impacted is employees. There will be negative image created in mind of
women when they get to know that they are been paid less. Along with it, in men staff mind as
well negative image is developed. This will affect on their efficiency and overall business
productivity. However, relationship between staff and management will not be strong. It may
lead to rise in conflict.
It has been analysed that business has to be responsible towards society. This enables in
benefiting them and creating a positive image. When a business takes good initiative it results in
their growth and development (Ikuabe, 2015). It can be in either to improve work culture or to
contribute towards society. Moreover, when things are done in favour of public there is rapid
growth and development. Furthermore, social development also occurs as way of living of
people is enhanced. Society becomes familiar with business actions and initiatives and support
them as well. The stakeholders are also involved in it and they start taking initiative.
Additionally, if I society business develop a reputed image then they are able to sustain for long
term. For example- IKEA has taken initiative to provide clean electricity to India and South
Africa. Through this, they have created a positive image in society. The company provided
electricity to over 1 million people in both countries. Thus, it shows that making a good choice
benefit companies. Another example can be taken of Ben and Jerry an ice cream company where
they contributed $1.8 million in community fund. The foundation was formed to support
community and social change. Also, the company have taken certain sustainability initiatives in
US. This benefited in favour of company as they set a positive image. However, many people get
to know that in what way business in contributing. With this there was rise in sales and revenue
of Ben and Jerry. The market value was increased and it resulted in building brand image in
mind of people. From previous research it is identified that Coca Cola also took an initiative in
1984 by forming Coca cola foundation. Since, then they have donated $820 million in women
empowerment. Furthermore, they provided clean drinking water and youth development.
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Likewise, every year the organisation donates one percent of their profit to communities in all
over the world. hence, it has benefited in rise in their goodwill and brand reputation.
But on contrary there are some examples as well of organisation where their brand image
has impacted. It is because of unethical practices been followed. The society thinks that business
is not contributing towards social development. The reputed imaged developed by organisation
gets spoiled if any one unethical practice is followed. This also impact in negative way on
stakeholders (Ko and et.al., 2019). In this an example of Uber can be taken where company staff
were sexual harassed. Due to this they have to pay compensation of $1.9 million. It highly
affected on their brand image. It also highly impacted on stakeholders in negative way as many
senior management resigned from their post. So, it is clearly analysed that bad initiative impact
in bad way. so, it can be analysed that a good practice will always benefit business in its growth.
This is because it creates a positive image in mind of people. when business contribute towards
society, the society also support in its growth.
In order to deal with unethical practices there are several recommendations that can be
followed. They are as follows :-
 The company can form a policy which will be followed by all employees within
organisation. It will help in providing equal pay to both men and women and maintaining
equality.
 The company should provide compensation to women in regard to that pay. With this
they will be ensure that there is no gender pay gap. The management must be involved in
it.
 Beside this, the organisation should follow laws and regulation in effective way. this will
enable them to ensure that no such unethical practices are followed.
 The management must take strict action against those who are involved in following
unethical practices. It will set an example to others and force them to work in ethical way.
 They can provide equal growth opportunities to both men and women and equal pay.
Apart from it, by eliminating discrimination business role is to state that they value both
men and women.
b) Two ethical theories
Business ethics refers to practicing of appropriate policies and practices including
corporate governance, discrimination, CSR, etc. it is necessary for business to work in ethical
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manner so that they are able to sustain for long term. Also, ethics provide a framework for
business to contribute towards society. However, it is essential for companies to ensure that staff
is treated in proper way, integrity is maintained, trust of staff is gained, etc. this enables in
gaining competitive advantage. There are various theories related to ethics which can be
followed. They are as follows :-
Utilitarian thinking theory – This theory state focus on finding out right from wrong by
analyzing outcomes. This is knowns as consequentialism. The theory is used by business for
moral reasoning (Kuenzi, Mayer, and Greenbaum, 2019). It accounts for value and justice and
prevent rights of people. Moreover, theory was developed by John Mill and Jeremey. In this if
right action is taken it incline to promote happiness and wrong action promote sadness.
Furthermore, it states that a person must pursue his or her own self interest even at expense of
others. Thus, right and wrong can be easily differentiated from it. The theory is divided into that
is act and rule utilitarian. In act utilitarian it means performing that task which benefit others
regardless of personal feeling. Rule utilitarian refer to following of laws and fair treatment.
Consequently, these two seek benefit by benefiting people in fair way and following law.
I think that this theory is applicable in case study. This is because it is clearly observed
that in Pinnacle Housing there is gender gap in salary. So, I considered that company is taking
wrong action. From that I need to find out right thing. However, the theory focuses on preventing
right of people and providing justice to them. Thus, in this case as well justice must be given to
women. There males are been paid more than females in spite of same working hours. So, from
an individual perspective it is observed that there is wrong in it. Here, women are paid less as
compared to men. It means that right of equal pay of women is violated here. Therefore, it is
summarized that applying utilitarian theory will help in eliminating gender pay gap. In this
company has to take right action to promote happiness. Beside this, Pinnacle Housing will
pursue self interest on expense on men (Li, Feng, and Jiang, 2018). Thus, wrong things will be
eliminated and it will promote interest of both men and women.
Apart from it, there is another ethical theory that can be followed.
Rawls theory of social justice – this theory state that in society the distribution is based on two
principles that are sense of justice and conception of good. The theory is oriented towards
liberalism and law, justice and liberal society (Rawls’ theory of justice, 2016). He identified
problem in society related to inequality and then proposed a contact that is veil of ignorance. The
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first principle sated that each person has equal right to basic liberty likeminded with similar
liberty to others. The person must engage in activities till their rights are not invade. In second
social and economic inequalities has to be arranged that benefit everyone and attached to
position for all. It means every one must share wealth of society and receive benefit from wealth
distribution. In sense of justice it means that each person is having equal right of liberty similar
to others. Here, liberty means freedom of speech, right of property, etc. moreover, people must
be given equal opportunity to attain higher position. In conception of good refers to what is
valuable in human life. The goals that are realized for own sake and are attached to other groups.
He also included concept of doctrine in which moral philosophies such as utilitarian and systems
like Kantianism, Platonism and Stoicism is contained.
This theory is applicable to case study because in this there is gender pay gap which
means people are not getting equal justice and liberty. Furthermore, women are not getting equal
right as compared to men (Mirshekary and Carr, 2015). The main thing consider here is people
must have equal right to basic liberty compatible with others. It means women should also have
equal and basic liberty like men in job, salary, opportunities, etc. The issue can be specified that
in company men are paid high as women. So, they have to share in society wealth and get benefit
of it. But there is unequal distribution of wealth in it. The theory stated that everyone is to be
paid equal and benefit from fair income. But in Pinnacle Housing men are paid more than
women in society even if women are engaged in activities. Therefore, from Rawl’s theory
perspective issue is related to justice and liberty.
Hence, both ethical theories are applicable to case study as in this there is gender pay gap.
there is injustice and unfair treatment of staff. Also, wrong thing is been done in company and
even though no ethical laws are followed (Murphy, Norwood, and Dubes, 2016).
PART 2
What do you mean by ethical leadership management
It is a practice of being honest in work and as manager. the ethical manager has to be
honest in his or her work. an example can be taken as behaving in good manner with everyone.
Here, various leadership theories are followed such as situational, participative, etc. this enable
manager to work in ethical way.
How integrity and compliance applied to ethical leadership
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An ethical leader role is to make sure that there are no unethical practices been followed
within organisation. Also, he works on some set standards and help in building a positive culture.
An ethical leader is responsible for respecting all members and listening to them and solving
their problems. So, being an ethical leader I will first of all set some standards so that I follow
them. It will make things easy for me. Moreover, I will work with honesty which means I will
follow policies and consider both parties views. Besides this, I will follow law strictly and also
ensure that employees as well as manger follows it. I will work in ethical way and set an
example to people. I will treat everyone in fair way. In addition, I will remain honest in every
situation and keep my promises. So, I will develop strong relation with management and staff.
Also, as leader I determine how things work if there is anything wrong. That what procedure is
followed and how management deal with unethical issues. So, first I will develop relation with
manager and staff and gain their trust. Alongside, I will notice whether they are working
ethically or not. If not I will communicate with management.
How personal ethics contradict with organisational ethics
Apart from it, I will work with trustworthiness. It means that I will gain trust of staff and
never break it. Alongside, I will maintain integrity of employees. This means if there is
happening something wrong I will immediately communicate to management. But if they do not
listen and ignore that then I will take legal advice. I will contact to lawyer and take legal action.
In this way I will not allow any unethical practice to be followed. Furthermore, I will maintain
organisational values and make sure that each staff member respects one another. Beside this,
juniors respect senior members and there is proper coordination. In that I will communicate with
employees and take their views. Furthermore, I will work in my ethical principles set and also
force staff to work in that way as well. As I like to remain honest with and respect other, I will
ensure that the relation developed by me is not hampered. In addition, I will maintain law so that
in business that laws are followed.
If I got to know that unethical practices are followed like poor behaviour of manager with
worker. Here first of all I will analyse the root cause of problem. Through it, I will get to know
reason behind it. then I will call a meeting in which both party views and opinions are listened.
Through it I will try to solve that matter. Moreover, if I found that any staff is not respecting
other then I will take strict action against it. With this, an example is set that how misconduct in
behaviour can result in.
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Your own experience in unethical working environment
For example – if I identify that employees are been worked for more than 8 hours and
overtime given is less as mentioned in wages act, then I will inform to management about it.
moreover, I will report this unethical practice to labour union. In this way solution will be made
and that issue is resolved. In addition, if a situation occurred where manager behaviour against
staff is very poor or unethical I will try to negotiate with them. So, as a leader I will deal with it
and ask manager to behave properly. For this I will make promise to employee that in future
there will no such thing occur.
In this way high ethical standards will be maintained by me. As ethics manager I will
protect right of people and provide them justice. With help of management I will set ethical
standards and then monitor it. through it, I will be able to identify where ethics is not been,
followed. Moreover, I will provide training to people that how they should work with trust and
respect people. In that I will describe about ethical laws and regulations. By stating methods of
compliance, I will show its benefit. Hence, by maintaining positive culture within business so as
leader I can guide staff to behave in ethical way.
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REFERENCES
Books and journals
Adewole, A., 2015. Sustainable entrepreneurial development and the problems of business
ethical practices in Nigeria. International Journal of Business and Social Science, 6(1).
Ghani, A.H.A. and Shaari, H., 2016. Issues and problems in ethical practices amongst takaful
agents. International Review of Management and Marketing, 6(4S), pp.21-26.
Ikuabe, M.O., 2015. Unethical Practices and Construction Project Cost Performance in Nigeria.
In The Nigerian Institute of Quantity Surveyors: 2nd Research Conference–ReCon2 1st
to 3rd September 2015 (p. 623).
Ko, C. and et.al., 2019. The effect of ethical leadership on purchasers’ unethical behavior in
China: The moderating role of ethical ideology. Journal of Purchasing and Supply
Management.
Kuenzi, M., Mayer, D.M. and Greenbaum, R.L., 2019. Creating an ethical organizational
environment: The relationship between ethical leadership, ethical organizational climate,
and unethical behavior. Personnel Psychology.
Li, Y., Feng, T. and Jiang, W., 2018. How Competitive Orientation Influences Unethical
Decision-making in Clinical Practices?. Asian nursing research, 12(3), pp.182-189.
Mirshekary, S. and Carr, R., 2015. Effects of exposure to unethical practices on the personal
attitudes of accountants in small accounting firms. Journal of Management &
Organization, 21(1), pp.98-106.
Murphy, T.E., Norwood, J.S. and Dubes, R., 2016. Unethical fitting and showing practices in
junior livestock shows. Texas Journal of Agriculture and Natural Resources, 5, pp.99-
106.
Online
Rawls’ theory of justice, 2016. [online] Available through <
https://opentextbc.ca/ethicsinlawenforcement/chapter/2-10-rawls-theory-of-justice/ >
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