QAB020X601S Business Ethics: Gender Pay Gap Report and Analysis

This report, prepared for a Business Ethics and Responsible Management course, examines the gender pay gap through a detailed case study of Lloyd's Banking Group. It is divided into two parts, with the first part comprising a report analyzing ethical issues, the role of business in society, stakeholder impacts, examples of good and bad ethics, and recommendations for improvement. The second part delves into ethical leadership and management within an ethical organizational culture. The report further explores theoretical frameworks such as utilitarianism and egoism to understand the ethical dimensions of the gender pay gap, including advantages, disadvantages, and practical recommendations for creating a more equitable work environment. The report also covers the importance of integrity and compliance in an ethical business environment.

The Gender Pay Gap

Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1- A...........................................................................................................................................3
Ethical issues..........................................................................................................................3
Role of Business in Society....................................................................................................4
Five stakeholders....................................................................................................................4
Example of Good and Bad Ethics..........................................................................................5
Recommendation....................................................................................................................5
Part 1-B............................................................................................................................................6
Utilitarianism..........................................................................................................................6
Egoism....................................................................................................................................7
CONCLUSION................................................................................................................................8
Part 2................................................................................................................................................8
Ethical Leadership management in an ethical Organisational culture...................................8
Integrity and Compliance in an Ethical Business Environment.............................................9
Conclusion............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
This project outlines a task which is divided into two parts. Part 1 is further divided into
two categories report and theories. The report is based on Lloyd's Banking Group which includes
five sections such as Ethical issues, Role of Business in Society, Five stakeholders, Examples of
Good and bad ethics and recommendation are explained. The theories are based on the case
study which included description of theories, its application, advantages and disadvantages and
recommendation. Part 2 is all an bout reflective essay on ethical leadership management. In
Reflective essay a discussion on how ethical manager can manage business to High ethical
standard. This part includes Ethical leadership management in an ethical organisational culture
and analysis on maintaining integrity and Compliance in an ethical business environment. Lloyd
Banking Group is a financial institution which is founded in 2009 after the acquisition of HBOS.
The Headquarter of Lloyd's Banking group is in London, England, United Kingdom. The
products in which Lloyd's Banking Group deals are Retail banking, Private banking, Commercial
Banking, Life assurance, Pensions, General insurance and Investment banking.
Part 1- A
Ethical issues
Lloyd's Banking Group is a Industry of Banking and Financial Services, they provide
services by focusing on personal and Commercial customers. The Organisation believes in
investing communities and putting customers their priority. There main aim is to build the future
of people which they want to see, by helping them with strengths and perspectives. The
Company has faced the ethical issues of discrimination between their employees related to race,
gender, disability or age (Blau, 2020). Lloyd's doesn't give equal employment opportunity to
employers. The Organisation says that Black Employees are paid fifth less than their Colleagues.
It is been researches them Median pay gap for Black staff was around 19.7% in 2021 whereas the
gap for all Asian, Black and Minority Ethnic workers are 14.8 %. In Lloyd's Black employees
were paid less according to other staff members according to the ethnicity pay gap report which
was published by bank itself. The Gender pay gap reflected that there is a lack of BAME
employees at senior level and not the workers who are in different ethnicities received different
pay for same designation (Healy and Ahamed, 2019). The Company have decided to target the
black staff in senior roles, they have also launched Black business advisory committee which

reduces the barriers which occurs in growth for Black-led Businesses. Lloyd's Banking group is
working to prevent people from meeting their potential, they want to set that the company is anti-
racist where all employees can speak, challenge and act against any racism in Organisation. In
2018 the gender pay gap of Company get declined to 19.9%, it reflects the difference between in
pay scale of men and women within Firm (Gonzalez, 2019). The gender pay gap gets reduced as
compare to last year report, bonus pay gap also decline to 30.1%. In senior role the company
prefer men as compare to women in highest paying quartile. Lloyd's Banking Group is focusing
on bringing much more diverse and gender balance group in Company. They are introducing
family care policies and flexible working for their workers. The Organisation is also organising a
program for female development (Staff, 2018).
Role of Business in Society
The Role of Lloyd's Banking services is to provide better financial and banking services
to their customers. They provide varieties of product or services to society such as Current
account, Mortgages, investing, credit cards, saving, retirement and loan facility. The Bank also
invest in education and employability to help people for brightening their future (Dunn, 2019).
Lloyd's banking group supports entrepreneurs who are willing to develop and grow their
business. The Company is also taking an initiative to reduce gender pay gap by allowing more
female candidate for Superior level position.
Five stakeholders
Customers
Gender pay gap create an impact on customers mainly on women’s customer. If Female
customers know about the pay system of Lloyd’s Banking Group that there is discrimination in
pay scale of men and women they can stop taking financial services from Company, a
consequences have to be face by organisation which leads to reduce in customer base.
Investors
Investors are the person who have directly or indirectly interest in Company and invest
their time, money and resources for the betterment of business (Tan, 2019). Gender pay gap also
influences investors, as they invest in a company that discloses gender pay gap equity rather than
disclosing no gender pay information.
Employees

Gender pay gap create a huge impact of employees, they feel unmotivated due to
discrimination in salary, position, duties and responsibility. Female staff members get
disappointed with organisation as they pay more to men workers of same position. For any
organisation is it is necessary to make their employee feel valuable and an important asset.
Owner
Owner is a person who operates the functioning of business activities and have a power
to take decision related to betterment of Organisation. The Owner will also get influenced by
gender pay gap, if employees, customer and investors knows that Lloyd's Banking Group is
making difference in pay scale of men's and women's, owner will get a negative response which
results loss in profit margin and reputation.
Government
The gender pay gap also affects government as they also face a problem related to
unequal pay scale of men's and women's. To reduce gender pay gap, government must make
policies so that Female staff also get right to be valuable in Organisation (Girardone, Kokas and
Wood, 2021).
Example of Good and Bad Ethics
The Example of good ethics are Honesty, Loyalty, Integrity, Responsibility, Selflessness
and Respect. The Example of Bad ethics are neglecting appearance, abusing privileges in Bank,
Not giving their best in achieving target and having negative attitude towards Organisation.
Recommendation
The Company must focus on the laws related to equal pay so that women’s can also earn
same amount which men’s are earning and they can fight against discrimination. It is a
responsibility of Lloyd’s Banking Group to conduct a meeting and teach men and women related
to the issues of gender wage. The Organisation must provide better paying jobs to female staff
members and also offer a superior position. The Women’s must get a facility of child care, fair
working schedule, leave in emergency and paid sick days. An Extra policy must be made by
Company for female staffs so that they feel valuable asset. They should also get a facility of
health care at the time of their pregnancy. As Female play various role in their life they have to
manage their home and office work at same time. The Organisation must coordinate with them
and provide an opportunity of Work from Home so that it becomes easy for them to handle both
the work.

Part 1-B
Utilitarianism
Utilitarianism is an ethical theory which reflects the actions which is taken to maximise
happiness and well being of people who are affected with any situation or decision. There are
different types of Utilitarianism each have their own characteristics, the main purpose is to
maximise utility. The Utilitarianism theory was founded by Jerry Bentham and John Stuart Mill,
it is a version of Consequentialist which means that every action has consequences which may be
right or wrong. Utilitarianism is a theory which takes interest of all people equally and
determines whether the action is right or wrong (Duignan, 2021). The theory states that Pleasure
is the only thing which gives value to person, actions are always right if they are creating
happiness and wrong if they are creating unhappiness and happiness of each people are counted
equally. The founder Jerry Bentham had published his “Greatest Happiness Principle” in
Introduction to the principles of Morals and Legislation in 1789. John Stuart Mill had published
‘Utilitarianism’ in 1863. In gender pay gap Utilitarianism theory plays important role as it is an
approach to Business ethics. This theory describes that there are two types of Utilitarianism
ethics which is rule and act. Rule Utilitarianism helps business to use fair method and reduce the
gender pay gap system whereas act utilitarianism provides a benefit to people by taking ethical
actions.
Advantages of Utilitarianism
Utilitarianism theory is popular because it shows that happiness is necessary for individual
person to exist in Society. In this busy schedule, people are not experiencing happiness; they feel
unhappy due to stress, tension and other factors (Heslop-Martin, 2019). There are limited
reasons to be happy. People feel happy if they have more financial less and less worries in Life.
Utilitarianism also teaches individual that harming other is wrong. The theory explains that
ethics and morality comes from community based viewpoint rather than focusing on individual
outlook. Utilitarianism theory is easy to implement by working together and finding out what are
the positive and negative effect of each decisions. The main focus on Utilitarianism is on
creating Humanity and provides equal opportunity and happiness to people.
Disadvantages of Utilitarianism
The Utilitarianism theory have some disadvantages which must be assessed, it doesn’t
consider any other elements it focuses mainly on happiness. There are various other items of

values which must be considered to improve the overall experience of person. Utilitarianism
provides various benefits but ignores other key values of life. The theory can be unpredictable as
it doesn’t reflect the future accurately (Meli and Spindler, 2021). No one knows their future life
which means that it is incorrect to ethical choices related to what is going to happen in future.
Utilitarianism cannot predict whether the action taken by person is wrong or right as its result
will be shown in future. The theory also creates a trouble in values such as individual rights and
justice.
Recommendation
Utilitarianism can helps to reduce gender pay gap as, theory main purpose is to create
happiness and identify what is wrong and right in Society. Gender pay gap shows negative effect
on Organisation and also reduces its profit margin. By applying Utilitarianism theory, Company
can make their employees feel happy by paying them according to their designation and
workload without give more to men as compare to women. The women’s are also liable to get
the equal pay and position at senior role. Generally Organisations prefers men candidate on
senior post they think women cannot handle the responsibility of upper level position.
Egoism
Egoism is a theory which defines that person pursues their own self interest and plays a role
of self or ego as motivation of one’s own action. An individual opinion matters for themselves
no one has obligation to promote anything. The Egoism theory is perspective and normative in
its application as it becomes more concerned about behaviour of people. It is necessary to know
that the version of ethical in egoism is different from psychological (Powell and Mor, 2019).
The theory says that an individual take action according to their self interest in mind which
makes descriptive approach as it is the basic nature of Human. The Ethical egoism becomes
famous in “The Fable of the Bees” poem which was published by Bernard Mandeville and “The
Wealth of Nations” by Adam Smith. In the ethical issues of Gender pay Gap also people are
demanding more respect, power, non discrimination and higher position in Organisation due to
their self respect because it is the basic need of human if they are working in Company. The
women’s also need an equal position as men has in Business, this theory provides an action of
women which they take with their self interest in mind to get equal opportunity of position and
Compensation.
Advantages of Egoism

Egoism theory encourages self awareness which helps in increasing leadership
capabilities so that the capacity of achieving the task becomes high. By self awareness an
individual can make better decision which increases communication and relationship with other
people (Antonie, Gatto, and Plesca, 2020). This theory provides an opportunity for personal
improvement by putting one’s self respect on priority. It also increases the productivity as people
focus on their daily needs.
Disadvantages of Egoism
The Ethical egoism also has disadvantages they create a self centred society where no one
will look personal needs of other people. By ethical egoism there will be a loss of empathy in
Society, it is important to establish friendship, building strong relationship and reducing
aggression in Society.
Recommendation
Egoism theory has its own pros and cons which can boost the self awareness among people
and could also create self centred society. The theory can reduce the gender pay gap as women’s
are becoming more self aware about their rights and positions in an organisation. To improve
ethical issues in Organisation there should be proper communication between employer and
employees so that Company can identify the gender pay gap.
CONCLUSION
From the above information it is been concluded that gender pay gap influences the
business and its performance in Market. It also create a negative impact on employees, owners,
investors and government. The two theories are used to which helps in reducing gender pay gap
each have its advantages and disadvantages.
Part 2
Ethical Leadership management in an ethical Organisational culture
Ethical leadership management in an organisational culture means when a leader respect
for values and ethics by keep focusing on dignity and rights of other people. Ethical leadership
includes respect, honesty, integrity, fairness and trust (Cook, Ingersoll, and Glass, 2019). As an
Ethical manager my main aim is to provide value to Organisation by motivating employees so
that they can manage High Ethical standard in Business. The Ethical leader helps in providing
greater customer satisfaction and reduces the turnover rate of staff member in Organisation. High

Ethical standard can helps in creating a positive culture for employer and employees through
which business can leads to be successful in Market. By maintaining High ethical standard,
organisation adds value through strong workplace ethics and also employees feel safe and
motivated towards their work. Stakeholders, employees and Organisation gets benefit if there is
ethical workplace culture in Company (Morales-Lemieux, 2021). To manage high ethical
standard, it is important to be a role model of employees as they look and adopt things which
their superiors do in workplace. I have to set the ethics laws and rules in an Organisation so that
every worker may follow. If any employee doesn't follow the ethical standard they will get
punishment. For creating an ethical culture I promote people who can demonstrate ethical
behaviour in Company and make other employees to follow proper code of ethics. To make
ethical environment it is my responsibility to provide resources which helps to boost ethics in
Workplace (Brand, 2019). With the help of Training and workshops, staff, members can
recognise ethical dilemmas which they face in Business. For managing the ethical standards I
have provide Formal mechanism that allows people to discuss ethical dilemmas and report if
they see any unethical behaviour in Company. One of the example of ethical leadership in an
ethical organisation culture is as an ethical manager I am dedicated towards my work, I also face
many problems in home due to work pressure and managing family at same time even though I
coordinate both the work efficiently with proper ethics. I also motivate employees to follow
ethical standards so that positive ethical culture may create in Company.
Integrity and Compliance in an Ethical Business Environment
Integrity and compliance means creating a value of Organisation by working with ethical
manner and performing duties with proper code of conduct. Compliance generally means
following rules, laws and policies which is framed by company. Integrity means doing right
things and working with proper code of ethics in an Organisation. The issues related to Integrity
and Compliance is related to activities, transactions and situation that could violate the law, state
policies and rules of Business (O'Connor and Alexander, 2020). For maintaining Integrity and
Compliance in an ethical business environment, it is important to treat every employee equally.
As an Ethical manager, I have to be the same person in different situation with each and every
staff member in Organisation so that I can treat everyone same. In Business it is necessary to
create a culture of Integrity and Compliance by encouraging workers to be honest in every
situation even though they have done big mistake. If any employee accepts their mistake by

honesty a reward must be given to encourage honesty among other people (Paliszkiewicz,
2019). The Integrity and Compliance can be maintained by ensuring that each worker must
understand the drawbacks which could occur if they are not meeting regulations and standards.
Integrity and Compliance is important as an ethical manager as staff members feel happy if they
work for me because I am trustworthy person and doesn't compromise my own principles. It
helps in making employees satisfied with their work which leads to job satisfaction, life
satisfaction, engagement and employee health (Bussmann and Niemeczek, 2019). The Workers
will only trust me if I behave with Integrity, it also helps in creating reputation in Organisation. It
is necessary to ensure that there must be a good communication between employers and
employees so that everything goes through me which helps in ascertaining the mistakes that
could affect business performance and take an action without any damage is done.
Conclusion
It is been concluded that, it is important to follow code of ethics in organisation as it
reflects the culture of Workplace. With the help of ethical leader an organisation can motivate
and encourage their employees to work with proper ethics and value. Ethical leadership helps in
providing value to business as they maintain value of Company by creating ethical work culture.
The ethical work environment is governed by fair and clearly rules which is set by organisation
rather than focusing on individual personality and politic in Business. The ethical leadership
have various principles according to which they work in Organisation and maintain High ethical
standard they are Honesty, Integrity, Justice, Community and Respect. Integrity and Compliance
is an important factor which must be maintained in Company as they are the values and laws
according to which employees work. There are various problems which businesses may face to
maintain Integrity and Compliance. To Overcome the issues manager have to treat their
employees same without showing any partiality and ensure that all employees are following rules
and regulation without reducing business performance.

REFERENCES
Books and Journals
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Cook, A., Ingersoll, A. R. and Glass, C., 2019. Gender gaps at the top: Does board composition
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Online Sources:
Duignan, B., 2021. Utilitarianism. [Online]. Available
through:<https://www.britannica.com/topic/utilitarianism-philosophy>.
Gonzalez, G., 2020. Lloyd’s gender pay gap shrinks. [Online]. Available
through:<https://www.businessinsurance.com/article/00010101/NEWS06/912327373/
Lloyd%E2%80%99s-gender-pay-gap-shrinks>.
Staff, R., 2018. Lloyds Bank discloses gender pay gap of 33 percent. [Online]. Available
through:<https://www.reuters.com/article/us-lloyds-bank-uk-pay/lloyds-bank-discloses-
gender-pay-gap-of-33-percent-idUSKCN1G71IM>