final paper

Final Paper Summary

Wage Gap

1. Case synopsis

1. The ethical issue is important because if not attended to will continue to create a big gap between leaders in organizations and the average employees.
   

1. Key facts

1. Most of the CEOs are highly paid.

2. Research from many researchers shows that there is a huge gap between leaders in organizations and regular employees as far as the issue of wage is concerned (Yamaguchi, 2016).

1. Moral analysis

1. Wage balance is at stake (Bacolod, 2017).

2. Key actors are leaders in organizations.

3. The motivation of the junior employees is likely to be affected. This is because they know they only receive a fraction of what their leaders receive (Abraham, 2017).

4. Integrity in organizations is at stake as many employees would try so hard to clinch into the leadership; even through irregularities and unethical means just to start earning more.

5. The issue is associated with equality at the place of work and reward on merits alone.

1. Stakeholder analysis

1. Stakeholders, in this case, are the leaderships of organizations and their employees.
   

2. Leadership is the once violating the rights of the junior employees.
   

3. People from one gender are also affected by the ethical issue (Weichselbaumer & Winter‐Ebmer, 2005).

1. Option analysis

1. The implementation of the minimum wage should be considered.

2. Harmonization of salaries in the private sector is a consideration.

1. Decision

1. All organizations should comply with the minimum wage law.

2. The gap between what is paid to the management and the junior employees should be narrowed (Blau & Kahn, 2016).

1. Summary argument

References

Abraham, M. (2017). Pay Formalization Revisited: Considering the Effects of Manager Gender and Discretion on Closing the Gender Wage Gap. Academy of Management Journal, 60(1), 29-54.

Bacolod, M. (2017). Skills, the gender wage gap, and cities. Journal of Regional Science, 57(2), 290-318.

Blau, F. D., & Kahn, L. M. (2016). The gender wage gap: Extent, trends, and sources. Journal of Economic Literature.

Weichselbaumer, D., & Winter‐Ebmer, R. (2005). A meta‐analysis of the international gender wage gap. Journal of Economic Surveys, 19(3), 479-511.

Yamaguchi, S. (2016). Changes in returns to task-specific skills and gender wage gap. Journal of Human Resources, 1214-6813R2.