Business Ethics Report: Gender Pay Gap, Theories, and Leadership

This report delves into the critical realm of business ethics, specifically examining the pervasive issue of the gender pay gap within organizations. It begins by defining ethical issues and the role of businesses in society, emphasizing the importance of treating employees fairly and avoiding discrimination. The report identifies key stakeholders affected by the gender pay gap, including employees, investors, customers, suppliers, and the government, detailing the consequences for each. It presents examples of both good and bad ethical practices, using Tesco Plc as a case study of a company struggling with gender pay disparities and Morrisons as an example of a company with good ethical practices. The report then recommends regular audits, ethical committees, and transparency in compensation to address pay gaps. Furthermore, the report applies ethical theories, such as virtue ethics and utilitarian theory, to the case study, analyzing their relevance. The report concludes with a discussion on ethical leadership management, maintaining integrity, and ethical knowledge, reinforcing the importance of ethical practices for long-term business success and brand value.

BUSINESS ETHICS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
PART 1(A).......................................................................................................................................1
1. Ethical issue.............................................................................................................................1
2. Role of business in the society.................................................................................................1
3. Stakeholders.............................................................................................................................1
4. Examples of good and bad ethics............................................................................................2
5. Recommendations....................................................................................................................3
PART 1(B).......................................................................................................................................4
Theories.......................................................................................................................................4
Application of theories on case study..........................................................................................4
Critique........................................................................................................................................5
Recommendations........................................................................................................................5
PART 2............................................................................................................................................6
Ethical leadership management...................................................................................................6
Maintaining integrity and compliance in ethical business environment.....................................6
Ethical knowledge and experience..............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

PART 1(A)
1. Ethical issue
An ethical issue are the scenarios which creates conflict, which affects the moral
principles of the society. Gender pay gap is the representation of discrimination which occur due
to the barrier and stereotypical thinking of the society and organizations (Jordan, 2020). This
issue is a serious one which can risk the reputation of a company. This issue is effects the ethics
of the business as it creates dis-balance in the culture of the business. Whenever there is disparity
in the pay between men and women in an organization it is very much possible that the same
could happen in the organization towards the disabled employees, different religion or even from
different ethical background. Tesco Plc a well reputed company has been seen underpaying its
female employees for many years (Ahmed, 2018). This issue is are the outcomes of factors like
economy, culture and also the education of the people. In many sectors it has been seen that
women are paid less than men.
2. Role of business in the society
The role of the business towards the society is towards its employees, the environment,
health issues in the area of the business and also some other ethical responsibilities. A company
should not always think about its shareholders, some time it is also important for the business to
have ethical responsibility towards it employees. Treating the employees equally should be
important to every business and the company should not do any discrimination in behaviours or
pay of the individual. The employees of the company all are different based of their society,
religion gender and their capabilities (Soderstrom and Heinze, 2019) Some times the company
might notice that a certain group of employees are more productive because of their natural
traits. These may be a reason for the company to pay them more however, the company should
not do so as it will decrease the morale of other employees which are doing the same work. This
is the role which a company play in the society in which there are gender gap pay.
3. Stakeholders
The stakeholders of the company are affected by the ethically issue that is gender pay
gap. The stakeholder of the company are,
Employees :
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The employees of the company are the most affected from the gender pay gap that arise
in the company. Whenever some employees witness that their colleagues working at the same
position as them are paid more than them they feel discriminated. Half of such employees are
found to leave their jobs (Yanadori, Gould and Kulik,2018).
Investors :
Gender pay equality in an organization contributes heavily towards the success of the
company. When the employees of the organization feel that they are treated fairly and equally
like the other they are motivated this improves their performance and productivity. The
performance of the employees automatically affects the performance of the company. Which
automatically influences the investors which are looking to earn profit from investing in the
company.
Customers :
Due to the company underpaying to its female employees the customers specially the
female customers also feel bad for the employees and this turns into a soft protest and the
customers avoid purchasing from the company.
Suppliers :
The stakeholders are interconnected with each other as when the company is seen to be
struggling because of unhappy employees and investors the suppliers of the company also stop
trusting the company.
Government :
Although the government is not affected by the performance of the company that much
but it can get effected from the protest against the company regarding the gender pay gap. This
may force to government to come up with some action against the company.
4. Examples of good and bad ethics
In every organisation there are employees working under different tasks and their try to
accomplish in the better possible manner. The gender equality is not maintained and different
organisations and particularly in few organisations that seem to be regulation that is being
allotted by the organisation in order to maintain equal pay as well as the equal responsibility that
is to be given to employees. The gender pay gap is also included as a part of ethical policies of
the organisation which is a mandatory aspect to be implemented and also will have to be
followed. There is an onset of good and bad ethical practices that is usually followed by
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organisations every now and then such that their decisions will portray organisational behaviour.
Here in the case study Tesco company is regarded to be one of the prominent aspect that is
considered and the gender pay criteria is being followed in the organisation (Iggers, , 2018). This
is regarded to be one of the bad ethical policy and the organisation comes under this as being
implemented the gender pay gap.
Although the company deals with a minimum pay gap criteria get following this prospects
regardless of the role and work of its employees it is considered to be violating the ethical
policies. The company every now and then is making good progress in removing the gender pay
gap but there is a negligible percentage that is still existing. With this prospects the company is
regarded to be one of the bad ethical constraint with regard to gender pay gap. On the other hand
there are few companies which does not allow the gender pay gap criteria and they follow the
means of ethical policies by treating employees equally and will not distinguish between their
gender. This comes under good ethical policies. Example of this particular good ethical policy
will revolve around the company Morrisons. Morrisons company aims towards a fair
compensation that is to be given to its employees without any negotiations based on their
background age or gender. Based on the work people are getting paid in this organisation. This is
one of the good ethical constraint that has been maintained by the organisation and which has
contributed for its growth.
5. Recommendations
It is recommended from the above discussion that ethical practices are vital for success for the
organisation. For long term success and brand value it is necessary that organisation must have a
proper framework for evaluation of its ethical practices. It is suggested that there must be regular
audits and checks so that inequalities or unethical practices can be identified. It is also required
that all stakeholders must be held accountable and responsible for making organisational
practices ethical (Waheed and Zhang, 2020). Ethical approaches may vary from one to other
perspectives and in most of the cases decisions making authorities may not be aware of unethical
conduct. Thus it is very important that regular audits must taken place to ensure the ethical
behaviour at workplace. The gender pay gaps may not be visible at only lower level of
management but they can also be shown at upper level.
In order to ensure that organisational ethical policies are not violated it is recommended
within firms there must be ethical committee which is unbiased and has control to take actions.
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Even individual staff members must also be allowed to approach the committee if they feel that
they have been facing unethical issues in terms of pay gaps. Further for improved productivity,
work culture and better implementation of ethical practices it is also recommended to
organisation that in appraisals, job descriptions and compensatory benefits there must be higher
degree of transparency and standards so that bias and unethical practices can be avoided.
PART 1(B)
Theories
Virtue ethics: virtue ethics will revolve around the relations that are to be dealt with in an
organisation. This system of ethics is prescribed by Aristotle and is said to be portraying the
virtue ethics. Virtue ethics are very important in every organisation or a management because
there will be certain circumstances in the organisation which are to be considered and the
situations will have to be decided upon. The employees of the organisation will have to be
known to the management on all their prospective such that the prevailing aspects of company
along with the public relations can therefore be decided.
Utilitarian theory: this theory revolves around those small factors which contribute for a great
impact in the organisation. It is important to facilitate the ideas every now and then such that
things will happen in a more formative manner (Cruz, 2020). Ideas are a prospect in every
organisation and they are to be dealt in a proper manner. This utilitarian theory brings for the
ideologies that are required and are to be utilised by the organisation such that the
implementation is that the company will have to deal with are put forth resulting towards
success.
Application of theories on case study
Virtue theory: Virtue ethics are important in order to decide upon situations at a point in the
organisation. The case study here reflects around gender pay gap that is usually maintained in the
every organisation. The gender pay gap refers to the ones that are being paid as a compensation
for employees based on their gender. Most of the organisations will follow a rule of certain
percentage variation between male and female employees in the organisation which is defined to
be the discrimination or the gap that is usually seen in the pay. This falls under virtue ethics
where organisations will have to decide upon the fact that employees performance is what that
comes while deciding upon the pay. Few organisations will revolve around the work policies
where men and women are equally allotted with the tasks and they do with equal potential
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(Chaar, 2017). In organisations of that kind the gender pay gap will obviously be a
discrimination and therefore the virtue ethics will not apply in that prospect. In the case study
Tesco company deals with the gender pay gap although it not of a big percentage at the company
discriminate between men and women compensation and therefore the virtue ethics are not being
properly enhanced in the organisation.
Utilitarian theory: The utilitarian theory will revolve around the aspect of the considerations
that are made by the organisation that well decide its reputation. Tesco company in the case
study is regarded to be one of the most reputed retailer in the United Kingdom. It is best known
for its groceries and also the strategies that are being applied in the organisation. Every aspect of
the organisation is said to be a prominent part that will determine the company's glory. The
gender pay gap that is maintained by the organisation will stand as one of the remarks for the
organisation and can affect or impact the entire glory that is being maintained upon its
operations. This theory would stress upon the fact that the organisation will have to improve
these considerations in order to move ahead with the prospect of growth. This is an essential
factor for every retailer in order to increase its sales and to operate for over a long run
(Phillipson, 2020). The customers are the outsiders perspective regarding the company will be
based on how far it is being portrayed. In this prospect that gender pay gap will stand as one of
the remark that might decide every other component.
Critique
Advantages: The advantages of this theory is that the company will follow policies that are
mandatory to be maintained in order to cope up with Public Relations. It is not until when the
organisation move ahead with proper minimising of gender pay gap then the organisation can
grow in terms of improving its choices.
Disadvantages: The disadvantages of the theory is that for companies that aim at profitable
aspects they cannot grow in terms of effecting public. There are not more disadvantages upon
inculcating these theories but for companies that go in a wrong way by encouraging gender pay
gap then they will get affected.
Recommendations
Closing gender pay gap: Recommendations in this criteria revolve around the closing of gender
pay gap mostly and organisation. An organisation like Tesco which is a better reputed
organisation in United Kingdom for a best trade will have to maintain its Glory by not choosing
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things that are out of the lane. Upon a certain percentage decrease for every now and then the
organisation will have to aim at decreasing the gender pay gap (Hagendorff, 2020).
Identifying employees potential: employees potential will have to be identified by the
management at regular intervals and then the compensation or the paper will have to be decided
based on it. It is not the gender that matters but the amount of work the employees commit
towards organisation. In many organisations women commit to do more amount of work than
men. In this criteria women are no way less when compared to men. The organisation will have
to identify their work where they can provide a fair compensation based on their work and not on
their gender.
PART 2
Ethical leadership management
As a manager of a company it is very important for me to be ethical for reason involving
customers, employees and also the company as a whole. The skills of a leader are very crucial
for creating an ethical culture. I have understood that a leader can help many factors for the
organization. With the help of ethics in my leadership I can influence the investors for feeling
that the organization is a worthy place to invest into. Ethics in my leadership has show boost in
the morale of the employees making them feel excited about their management and work. This
increases the positivity and happiness in the work place making the work environment
collaborative (Engelbrecht, Mahembe and Wolmarans, 2017). I have noticed that leadership
with ethics involved have major impacts on both short term and long term benefits of the
organization and also their individuals. For having ethics in the leadership of a company I have
developed few traits. Leading by example, according to this trait I have understood that I have to
set the standard of expectation which I have from my subordinates. Willing to evolve, in this trait
I have understood that all the good leaders have the ability to evolve and adapt to changes that
may or may not be coming to the business. I have noticed few examples of ethical leadership that
has influenced me, when ever I as a manager help some employees when they have a lot of work
this is appreciated by the other staffs developing trust between the leader and the employees.
Maintaining integrity and compliance in ethical business environment
I from my experiences as a manger of a company have realized that integrity and
compliance can be maintained in the ethical business environment by following few important
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culture. These culture in the business environment will develop culture of integrity and
compliance (Mo, Ling and Xie, 2019). Starting of with the importance of talking about the
ethics with the employees of the company. These talks are very important to be discussed
regularly in meeting, face to face conversation and also announcements. It is a responsibility of
the leader to maintain ethics for which communicating ethics is also very important. I have also
understood that employee does not pay many attentions to these talk as they do not understand
the impacts of neglecting the ethical behaviours. Thus, I have constantly also made sure that
everyone in the organization knows about the ethical impact which is caused if ethics is not
followed in an organization. For explaining these impacts I have taken example of those which
have been affected from the ethics of the company. It is also very important for me to hold my
promises which I have made to the employees and also other stakeholders. Trust is very
important ethical factor which should not be broken. In my organization I have provided many
employees awards for showing good ethical conduct (Wu, 2017). This has improved the ethics
in the organization and also made others follow the same committent towards ethics in the
organization. As important as it is to award those which have ethical behaviour, it is also
important to punish those which do not conduct ethics in the organization. It is important to set
an example so that such activities can be stopped in my organization.
Ethical knowledge and experience
From my experience as a manager of an organization I can say that ethical practices are
very important for the success of the organization. I have learned this from my experiences while
working as a manager in this organization. Some example of unethical behaviour which affected
the organization are, I was at a meeting in a meeting with my staff where one of my staff name
Sam wanted to raise a point but because I was in a middle of something I had to stop him which
was not big deal but it had its impact that Sam now does not bring up any more issue which he
has recognize. For me the best way of sorting this issue is to apologize to him and ask him to
address everyone with the issues. Examples for ethical behaviours by me in my organization is a
employee named Kerry was going through some issue with her family which was the reason for
her stress in the work place (Presbitero and Teng-Calleja, 2019). I have personally discussed
with her about the issue, from my suggestions now she takes few moments before starting her
work and that helps her to stress out this is appreciated by the rest of the staff. Another such
example is about an employee which was having a lot of pressure with his work this made him
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very busy, so I chose to help him out. This was noticed by many of the other employees which
ender up appreciating my efforts. These small gestures develop into good ethical behaviour in
the organization.
CONCLUSION
With the help of the above project it is concluded that ethics is very important for any
organization irrespective of its size. This project shows examples of ethical behaviours and how
to treat unethical behaviours in an organization. This project also showed the analysis that was
required for maintaining the integrity and compliance for an ethical environment. In this project
the ethical leadership management is discussed in an ethical culture.
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REFERENCES
Books and Journals
Engelbrecht, A.S., Mahembe, B. and Wolmarans, J., 2017. Effect of ethical leadership and
climate on effectiveness. SA Journal of Human Resource Management. 15(1). pp.1-8.
Jordan, A., 2020. Masculinizing care? Gender, ethics of care, and fathers’ rights groups. Men
and Masculinities. 23(1). pp.20-41.
Mo, S., Ling, C.D. and Xie, X.Y., 2019. The curvilinear relationship between ethical leadership
and team creativity: The moderating role of team faultlines. Journal of Business
Ethics. 154(1). pp.229-242.
Presbitero, A. and Teng-Calleja, M., 2019. Ethical leadership, team leader’s cultural intelligence
and ethical behavior of team members. Personnel Review.
Soderstrom, S.B. and Heinze, K.L., 2019. From paradoxical thinking to practicing sustainable
business: the role of a business collective organization in supporting
entrepreneurs. Organization & Environment, p.1086026619885108.
Wu, Y.C., 2017. Mechanisms linking ethical leadership to ethical sales behavior. Psychological
Reports. 120(3). pp.537-560.
Yanadori, Y., Gould, J.A. and Kulik, C.T., 2018. A fair go? The gender pay gap among
corporate executives in Australian firms. The International Journal of Human Resource
Management. 29(9. pp.1636-1660.
Waheed, A. and Zhang, Q., 2020. Effect of CSR and Ethical Practices on Sustainable
Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective.
Journal of Business Ethics, pp.1-19.
Iggers, , 2018. Good news, bad news: Journalism ethics and the public interest. Routledge.
Cruz, 2020. An Ethics of Bullshit: The Good, the Bad, and the Ugly. Composition Studies. 48(3).
pp.120-162.
Chaar, 2017. Ethics: Compounding in pharmacy-the good, the bad and the ugly. Australian
Pharmacist. 36(3). p.22.
Phillipson, 2020. The Ethics of Indecision: Why Chidi Anagonye Belongs in The Bad Place. The
Good Place and Philosophy: Everything is Forking Fine!, pp.57-64.
Hagendorff, 2020. The ethics of AI ethics: An evaluation of guidelines. Minds and Machines.
30(1). pp.99-120.
Online
Ahmed, K., 2018. Tesco faces record £4bn equal pay claim .[Online] Available trough:
<https://www.bbc.com/news/business-42968342>
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