University Business Ethics Report: Gender Pay Gap Case Study Analysis

This report delves into the complex issue of the gender pay gap within the context of business ethics, using the case study of 118 Limited as a primary example. It begins with an introduction to business ethics, emphasizing its importance in addressing controversial issues like pay disparity and discrimination. The report examines the nature of the ethical issues at hand, particularly the violation of equality laws and the resulting gender discrimination within the organization. It identifies key stakeholders, including the CEO, government, owners, and unions, and analyzes the impact of the gender pay gap on them, highlighting both ethical choices and their consequences. The report then offers recommendations for addressing the gender pay gap, such as involving a new recruitment panel and providing proper training to managers. Furthermore, the report explores two relevant ethical theories: utilitarianism and deontology, illustrating how these theories can be applied to evaluate the ethical dimensions of the case study. Utilitarianism is used to assess the impact of the pay gap on overall utility, while deontology evaluates the actions based on moral duties. The report concludes with a summary of the main points and the importance of maintaining business ethics to prevent gender pay gaps. The report is a contribution to Desklib, a platform for students.

Running head: BUSINESS ETHICS
Business Ethics
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Part 1..........................................................................................................................................2
1.1 Brief Report for Senior Managers for the Case Study.....................................................2
1.2 Two Ethical Theories for the Case Study........................................................................6
Part 2..........................................................................................................................................9
2.1 Reflection on Ethical Leader............................................................................................9
References................................................................................................................................12

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Part 1
1.1 Brief Report for Senior Managers for the Case Study
1.1.1 Introduction
Business ethics can be referred to as the study of suitable business practices and
policies about potentially controversial issues like insider trading, discrimination, corporate
governance, fiduciary responsibilities, corporate social responsibility, and many more. It is
required to ensure there exists no gender pay gap in an organization (Mandel and Semyonov
2014). It is an average difference within remuneration for women and men who are working.
Women are usually considered to be paid lesser than men employees, and as a result, there
could significant issues related to workplace conflict. The following report outlines a brief
discussion on the case study of the gender pay gap in 118 Limited with understanding the
nature of the ethical issue and identifying key stakeholders or impact on them with examples
of moral choices.
1.1.2 Nature of the Ethical Issues and the Role of Business in Society
The UK regulations published data on the gender pay gap for over 250 employees,
and the UK Prime Minister, Theresa May, had called this gender pay gap as a burning
injustice during the year of 2017. It is referred to as an unlawful employment practice for
employers for paying less in wages, compensation, or benefits. 118 Limited is an information
and communication business that is doing business for several years, with more than 1000
employees in the United Kingdom. In this particular organization, women earn 87p for 1
pound that men are gaining as compared to the median hourly wages (Gender Pay Gap
Report. 2018). As a result, the total percentage of low payment of women is 12.7% than men
employees. The top quarter of jobs is acquired by women, only by 44%; however, in the

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lower quarter, the percentage is higher. There are some of the most significant ethical issues
present in the case study of 118 Limited that ensure that the entire case study is unethical.
The first and the most significant ethical issue, found in the case study is that there
exists gender discrimination in their business. No employee should be discriminated against
according to his or her gender, and equal payment should be given to them; on the contrary,
equal chances should be provided to them (Auspurg, Hinz and Sauer 2017). The second
ethical issue identified in this case study is that the organization is violating equality law
2010. These issues play a significant role in the overall business and society.
There are eight distinct ways for understanding organizational gender pay gap, which
include people getting stuck at certain levels in the company, identifying gender imbalance in
the promotion, women getting recruited into low paid roles, leaving rate of men and women,
specific aspects of pay differing by grade, men and women receiving various performance
scores on average, supporting part-time employees for progressing and supporting both men
and women to take on the responsibilities (O’Reilly et al. 2015). After analyzing the case
study of 118 Limited, it is being checked that they have not followed any of the above
mentioned ways in their business, and hence, issues are being faced majorly. Furthermore,
the bonus payment in this specific company falls under this particular criterion of the gender
pay gap. Women get 52% of the bonus pay, and men get 67% of the payment.
1.1.3 Identification of Key Stakeholders and the Impact on Them with Examples of
Ethical Choices having Advantages or Disadvantages to other Businesses
The key stakeholder responsible for this particular issue of the gender pay gap in the
organization of 118 Limited is the CEO, Mr. Michael Graham. He has included different
rules regarding employment and payment of the employees. As a result, the women
employees are getting less fee, as compared to the male employees (Blau 2016). Apart from

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the CEO, the other key stakeholders responsible for such a situation include government,
owners, unions, and creditors. The government should consist of a strict rule for every
organization that states that strict actions will be applied to the company if that particular
company is found to be violating employment law. The unions and other shareholders are
also responsible for this specific ethical issue, which occurred in 118 Limited (Miller and
Vagins 2018). They have supported the process, and hence they were equally responsible for
such unethical acts in the organization.
The most significant examples of ethical choices for this specific case study of the
gender pay gap include maintaining equal pay for both male and female employees and
giving equal importance to the employees. The ethical choices include stakeholders providing
the same advantages to the employees concerning leaves. Moreover, the top quarter positions
are also fulfilled with female employees (Costa Dias, Joyce, and Parodi 2018). Ethical
decision making is also required in the organization for the maintenance of ethical approach
effectively.
The organization of 118 Limited is gaining maximum disadvantages with this type of
gender pay gap. They are losing motivation and morale in work and as a result, employee
turnover in increasing the organization to a high level. Furthermore, they are not getting
enough payment and bonus payments in their working schedule, and hence, job
dissatisfaction has increased amongst them to a high level (Quintana-Garcia and Elvira
2017). The respective organizational chief executive officer should take strict actions against
such rules, and proper changes should be brought in the new employment rules and
regulations. The disadvantages hence could be improved in such a situation, and business
ethics would be maintained in the organization. It is the form of professional ethics or applied
ethics, which examines different ethical principles and ethical problems that could take place

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within the business environment. It generally applies to every aspect of business conduct in
the organization.
1.1.4 Conclusion
Therefore, a conclusion could be drawn that business ethics should be maintained and
there should not be any type of gender pay gap in an organization. Two numbers of pay gaps
are present, which are adjusted pay gap and the non-adjusted pay gap. It eventually takes into
account differences in the occupations selected, job experience, and hours worked. It is an
unethical act to discriminate two employees based on their genders. The above-provided
report has analyzed the case study of the gender pay gap with relevant details identification of
ethical issues and suitable recommendations to the companies for resolving these issues.
1.1.5 Recommendations
Appropriate suggestions to the company for addressing issues related to the gender
pay gap are as follows:
i) Involving New Panel for Recruitment: The first and foremost recommendation to
the company for discussing issues related to the gender pay gap is involving a new panel for
recruitment. The new board of recruitment would be responsible for ensuring that there exists
no chance of payment issues for the employees. Moreover, the board would even check
whether there exists any kind of discrimination or not, and if present, they would eradicate it
properly.
ii) Providing Proper Training to Every Manager: The second recommendation to the
organization for resolving issues related to the gender pay gap is providing proper training to
every manager. An internal management training program is required to be created, and the
female employees are needed to be provided a direct path to their next career level. The

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employees and managers are required to be mentored periodically, for checking if job
satisfaction prevails in the organization.

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1.2 Two Ethical Theories for the Case Study
Ethical theories are responsible for providing parts of the decision making process as
they eventually represent the major viewpoints from which the employees can seek proper
guidance while making decisions (Lucas, Van Wee and Maat 2016). Every theory
substantially focuses on different points. Hence, a completely different style or rule of
decision making is being followed, like a prediction of the outcomes and duties for reaching
out to the consideration of an ethically appropriate decision. For the core purpose of
understanding ethical decision making, the individuals need to realize that every individual is
deciding on a similar method, with the help of the same information after employment of the
related rules (Filip et al. 2016). The ethical theories provide a proper description of
understanding correct and incorrect aspects regarding any specific situation or issue. The
priority for doing anything accurate makes a moral perspective as well as a possible solution
for the acceptable ethical dilemma. It is required to properly understand a standard set of
goals, which the decision-makers eventually seek in achieving to ensure that that success
prevails under every circumstance.
The case study of 118 Limited states about the gender pay gap. In this particular
organization, women employees do not get equal pay as the men employees, and as a result, a
significant difference is being prevailed for their payment (Gender Pay Gap Report. 2018).
Two suitable ethical theories are present that help in understanding the entire scenario
effectively, and these are described in the following paragraphs:
i) Utilitarianism Theory: It is the first and foremost ethical theory that is suitable for
judging the case study of 118 Limited. It is an ethical theory, which eventually determines
correct from incorrect after focusing on the results (Broad 2014). This particular theory is the
form of consequentialism, and it can hold the most ethical choice for providing the best result
in the best number. Utilitarianism is responsible for promoting actions, which can quickly

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maximize the utility of a particular situation. Different varieties of utilitarianism are present
for admitting different characterization, being the most basic idea behind all of them in
maximizing efficiency to a high level (Mill 2016). The social, political, and economic
decisions are being undertaken in a great manner, and the gaps related to such situations are
avoided.
The disagreement with the other situations is also identified in this particular theory,
and hence the respective ethical dilemmas are well resolved without much complexity. This
specific theory of utilitarianism even rejects the actions, which cause any type of harm or
unhappiness in the situation or to the individual (Mulgan 2014). As a result, only the best and
the most suitable option is selected, as compared to the rest of the options. According to this
theory, an action is referred to right or wrong, only when the action is positively affecting the
situation to a high level. The ethical theory regards some of the most significant acts as right
or wrong independently from their consequences. It even differs from the ethical methods,
which make the correctness or incorrectness of the action dependent on the agent's motive to
ensure that only positive decisions are being undertaken in the situation under every
circumstance (Constantin 2014).
For the case study of 118 Limited, it is being analyzed that they are not providing any
type of utility to the individual situation. The male employees are getting more payment than
the female employees, and as a result, there had been ethical issues related to the gender pay
gap. It is not at all ethical to discriminate against employees based on gender (Mandal,
Ponnambath and Parija 2016). Every employee show gets an equal chance to prove his or her
talent and knowledge in the workplace. However, in this particular organization of 118
Limited, there is a drop of 12.7% for the female employees according to the median hourly
wages. Women in this company earn 87p for every 1 pound than men are making in the
company. Moreover, the bonus payments are also extremely less for the business, which even

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drops to 10.9% than that of the men’s. It is even observed that 44% of the women employees
are working for the highest paid jobs, and the maximum percentage is in the lowest-paid
posts. Hence, the case study is not providing any utility, and it is an unfair situation.
ii) Deontology Theory: The second ethical theory, suitable for the case study of 118
Limited, is deontology theory. It is the normative ethical theory, which states that the
morality of action must be based on whether the work is right or wrong according to a few
rules and regulations (Vadastreanu, Maier and Maier 2015). Deontology theory is even
described as the duty, obligation as well as rule-based ethics. It can be easily contrasted to the
theory of consequentialism, pragmatic ethics, and virtue ethics. Action is kept on top priority
for the deontology ethical theory, and depending on the respective system under significant
consideration; a certain moralized obligation might take place from both internal and external
sources that are inherent to the set of cultural or personal values in the organization.
Deontology theory states that a specific act, which is not right morally, could easily lead to
anything good.
In this particular case study of 118 Limited, the organization is not following any
ethical approach regarding their gender pay gap. Deontology theory focuses on the action that
might be inappropriate; however, it could lead to correct decisions. Regarding the case study
of the gender pay gap, such an issue is absent as the activity of the gender pay gap is not
providing any advantage to the organization and employees (Constantin 2014). On the other
hand, it is profoundly affecting the employees' motivation and morale to a high level. An
employee should get his or her salary or wages based on the works done or efficiency shown
in practice. Generalization of the fact that female employees should not be getting high wages
than men is both ethically and legally wrong according to the employment law of the United
Kingdom.

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Part 2
2.1 Reflection on Ethical Leader
Ethical leadership is a specific form of leadership, where the employees demonstrate
subsequent conduct for obtaining common good, which is appropriate as well as acceptable in
every area of the work. This particular leadership is being directed utilizing few ethical
values and beliefs and even for the rights of others and the dignity of team members (Shapiro
and Stefkovich 2016). Ethical leadership is wholly associated with different concepts like
fairness, consideration, honesty, trust, and charisma. Ethics is being concerned with varying
types of morals and values that an individual finds appropriate. Moreover, it is even
concerned about the virtuousness of different individuals as well as their motives. The
choices of the leader are also highly influenced by the overall moral development.
I have always supported ethical leadership for ensuring that only ethical and correct
decisions are being undertaken in an organization (Demirtas and Akdogan 2015). I have
understood that there are three main elements to be a moral leader, which are being the
example of the leader, being champion of understanding the importance and significance of
ethics and finally communicating correctly with the team members so that the leader can
know about dos and don’ts of the organization under every circumstance.
Being an ethical leader, it is always required to remember that the individual actions
can better than words, said to the team members. The respective individuals are more likely
to judge a person based on their activity and not the words spoken by the person (Den Hartog
2015). After practicing as well as demonstrating the overall utilization of any kind of honest
or ethical behavior to the subordinates, these ethical leaders might start earning the respect of
their peers. The individuals might be more likely to follow a leader who can provide
compliance to others and also shows integrity. I always try to follow the examples and

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pathways of an ethical leader in my workplace so that I can ensure ethical and moral
decisions under all circumstances.
The second vital element of an ethical leader is the champion of the significance or
importance of ethics in the workplace. One of the significant roles and responsibilities of a
moral leader includes emphasizing the total significance of ethics like any specific ethical
issue or ethical standard. Moreover, the process of these typical factors influencing on the
society is also described adequately by the moral leader (Bedi, Alpaslan and Green 2016).
Being the ethical leader, it is even vital to teaching his or her peers regarding ethics, majorly
for the cases in which they are being faced with a moral issue within the workplace. I have
ensured that this particular facility is present within me while I am judging a situation. I even
help out the colleagues and friends for this specific aspect, so that even they can take up
ethical decisions in their workplace. As a result, they would also be termed as ethical leaders
and maintaining ethical leadership.
The third vital and significant element of an ethical leader is communication. It is
considered as one of the most essential and noteworthy elements that are required for being a
moral leader is communication. The leader should communicate about the organizational
growth, development strategies with the team members so that it becomes easier for the
organization to involve a joint program (Hassan, Wright and Yukl 2014). Individuals
communicate in various methods for articulating the topic of discussion. It is also mandatory
for the ethical leader to ensure that every team member has a regular update regarding issues
present in the business. I have understood that quality relations and such leadership tendon
building on fairness, respect, compassion, openness, trust, and integrity.
An ethical leader and ethical manager are different aspects. A moral leader is
responsible for leading the entire team ethically and by ensuring that every decision taken in

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the respective unit is moral. An ethical manager, on the other hand, manages to keep ethics in
an organization that he is leading currently, even though he is an ethical leader (Ho et al.
2015). I have tried to maintain the following qualities of moral leadership in my work:
i) Maintaining Justice: I have always tried to be fair and justified in my work. As a
result, I have always been appreciated by my work. Moreover, this particular ethical
leadership trait ensures that the decisions undertaken in the team are ethical.
ii) Honesty: The second trait that is required for ethical leadership is honesty. Every
ethical leader should focus on their reliability and make sure that fairness prevails effectively
in the organization.
iii) Encouragement of Initiatives: I have always encouraged new initiatives in my
team so that the team members get an equal chance of participating in the process of decision
making.
iv) Focusing on Team Building: Another vital trait is team building. A leader can
lead a team, only if a complete team is built. The leader must check if the team is being built
or not.

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References
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Blau, F.D., 2016. Gender, inequality, and wages. OUP Catalogue.
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