Ethics and Sustainability for Allowances -myassignmenthelp.com

Question: Discuss about theEthics and Sustainability for Bonuses and Allowances. Answer: Introduction: Equal pay for Equal work is considered as concept which highlights the rights of labor, as workers working in the same workplace must get equal pay. Generally, it is an issue related to sexual discrimination in context of Gender pay gap. Equal pay is considered as complete range of payments and benefits which include basic pay of employee, non-salary payments, and bonuses and allowances. There are number of countries which address this problem in effective manner (Joseph, n.d.). Act related to the equal pay requires that both men and women working at the same workplace must get equal pay for equal work. Jobs done by them must be equal but there is no such requirement which state that job must be identical. If there is any such inequality in wages between the men and women, then employer has no right to reduce the wages of either sex for the purpose of equalize their pay (SMH, 2010). This paper states the regulations, law and business ethics related to the business organization, and it also demonstrates the understanding related to the values adopted by the organization for the purpose of supporting ethical decision making. Lastly, paper is concluded with brief conclusion. Equal pay regulations law: In Australia, laws related to the equal opportunity are operated at the federal and state/territory levels. These laws restrict the treatment which is unfair and unfavorable, with any person in the organization who belongs to any specific group of people or because such person have a specific characteristic or element. Unlawful discrimination at the workplace on the basis of sex of the person is restricted by the federal Sex Discrimination Act 1984 (Cth). Laws related to equal opportunities also provide protection to other type of workers (Huamn rights, n.d.; WGEA, n.d.). Direct discrimination: Organization cannot treat any of its employees of one sex in less favorable manner as compared to other employee of different sex, either in similar situations or in those situations which are not materially different. Therefore, it is important for the organization to identify any existing gender pay gaps and take actions to close these gaps, otherwise organization bear the risk of a claim related to the sex discrimination. This can be understood through example, in direct sex discrimination organization offer higher starting salary to the male graduate but lower starting salary to the female graduate for the similar work. Indirect discrimination: Organizations are under obligation to make sure that they are not imposing any condition, requirement, or practice which is unreasonable in nature. If any gender pay gaps are exists in the organization, then it is necessary to access whether there are any practices exists at the workplace which have uneven on one sex, and whether these practices are reasonable in nature. This can be understood through example, indirect sex discrimination exists when organization impose any such condition in which only full-time employees can take part in the discretionary bonus scheme of the company, and this condition is applicable in those situations when organization has more number of women employees on part-time basis as compared to male employees (FWO, n.d.). General protections: There are numbers of general protections which are introduced by the Fair Work Act 2009 for the purpose of provide protection to the employees, and this includes: Employees get protection from being treated in adverse manner because they exercise or want to exercise any workplace right, such as they want to take benefit of the parental leave. Employees also get protection from the practices of unlawful discrimination. It must be noted that, general protection laws apply in same manner as equal opportunity laws applied to the wide range of workers including other workers also. Organizations must fulfill their duties carefully under the Fair Work Act 2009 while making their decisions. Equal remunerations provisions under the Fair Work act 2009 states, power is imposing under the Fair Work Commission to make any order they consider right against an employer, if they believe that equal remuneration for equal work is not paid in the organization. This can be understood through example; the Fair Work Commission has power to make order for changing the pay rates stated in the awards and enterprise agreements (FWO, n.d.). It must be noted that in case organization fail to comply with the provisions and regulations related to the equal remuneration then Fair Work commission has power to make order which impose penalties on the organization. Requirements related to reporting stated under the Workplace Gender Equality Act 2012 (Cth), organization engaged in non-public sector with more than 100 employees must report to the agency in context of six gender equality indicators. Equal remuneration to both men and women requires that organization must report on whether it frames any formal policy or strategy related to the remuneration. Organization must ensure that they include objectives related to gender pay equity in remuneration policy and strategy. Organization is also under obligation to ensure whether they conduct gender remuneration gap analysis on timely basis and if any issues are identified in this analysis then take appropriate action on the same (Mondaq, 2012). Business ethics related to equal pay: Ethics in business are referred as rules and patterns related to the behavior, and these rules and patters are useful when any job in the organization is conducted by management. Ethics related to business also highlight honesty, trust, respect, and fair treatment in all business relations (Workplace ethics advice, 2011). Business life throws different challenges related to the moral dilemmas such as accepting a holiday gift from the company from which person purchased goods or sell those products to the customers that they actually need instead of those products which include higher commission. Ethics related to work has been increasingly important now a day in the literature of the management and business life. Interest of ethics in business culture can be understood through socioeconomic changes and also changes occurred in the dominant values, principles, norms, etc. related to business management approaches. Ethics related to business and management fields has related to the: Requirements related to the economic, technological, and legal requirements. Responsibility related to environment and society. If there is no obligation related to above areas then optional implementation of moral principles in the organization (Bloom, 2004). Pay is considered as most important cost item for the business organization, and basic source of income for the employees working in the organization. In other words, pay is also known as relationship of exchange between the employer and employee. In this exchange employees sell their skills and time to the employer and in return employer provides compensation to the employees. Generally, this exchange is shaped as per the four alternative norms such as maximization of profit, equity, fairness, and need of employees. Applicable rules for the purpose of determining the pay from the perspective of business ethics changed as peer the characteristics of society. Generally, values and sources related to religious highlight the concept of equity as more effective and efficient approach, and this approach mainly support the equality, contribution, effort, and fairness. Previously, different studies are conducted by the experts and these studies stated that variables of demographic nature (a ge, education, profession, and gender), organizational factors (size of the organization and systematic compensation management system), and organizations social and cultural values directly affects the rules related to pay determination. From ethical point of view, key factor related to the compensation management is the payment of equal remuneration for equal work, and difference in the remuneration related to the value of work (Cascio, 2010). In context of ethical management perspective the main issues related to equal pay are equality of pay at external level. Additionally, remuneration related to the business ethics is sometime not fall under the scope of legal requirements, because it might be possible that some applications may not be legal but they are ethical in nature. From the point of view of business ethics, first stage related to the establishment of compensation management system is development of objectives related to remuneration and specifies structure related to pay, pay system, and duties and responsibilities related to the remuneration. In 1989, Strasbourg Summit introduces special European social cause, and this clause is considered as important clause while developing remuneration objectives and policies. Additionally, in 1999, OECD proposes different policies and these policies are revised, recognized, and adopted worldwide in 2004. These policies specify policies and objectives related to the organization pay. Generally, two questions are asked by the employee in context of compensation, and these questions are related to fundamental rights of the employees. First question states whether payments made by employer to the employees are fair and the second question states in which manner employees can compare their pay to other employees in the enterprise, region, and industry? Above stated questions provide guidance to the organization for establishing objectives and policies in terms of remuneration. Additional aspects in this context are profitability, pay costs, competitiveness, and remuneration which are paid to employees so that employees are able improve their daily live and secure their future. In ethical manner, ideal remuneration related to the objectives and policies satisfy the needs of the employees and motivate them and this is done by complying with the approaches related to the utilitarianism, reliability, integrity, legal compliance, equity, balance, timeliness, objectivity, and clarity (Demir ACAR, 2014). Values adopted by organization for ethical decision making: There are number of approaches which can be adopted by the organization for ensuring ethical decision making in the organization and some of these approaches are stated below: Ethical programs: organizations can implement the program related to the compliance and ethics for the purpose of guiding the decision making and behavior of the employees. It must be noted that for managing the risk in the organization it is necessary to ensure compliance with the regulatory requirements and the organizations own policies. Monitoring and maintenance of compliance are not just to keep the regulators happy, but it is the path through which organizations can maintain its ethical health and promote its values. Programs related to compliance and ethics not only promote values, but it also provides support to the objectives of the business. These programs also set boundaries for organization in context of their legal and ethical behavior. It frame the system which alert the management of the organization whenever organization getting close to cross the legal and ethical boundary (Kidder, n.d.). Whistleblower protection: whistleblower is the person who blow whistle in the ears of the management of the organization. In other words, whistle blower tells the public or the organization authorities about the alleged misconduct occurring in the organization. This alleged misconduct is occurred in different forms such as violation of any law, rule, or regulation, etc. whistle blowers can make their allegation against internal or external management, etc. there are number of organizations which ensure protection of the whistleblowers by establishing accurate framework for this purpose. Role of mangers: another most important aspect in this is the role played by managers in the ethical decision making. Managers must ensure that they are conducted ethical and legal behavior in the organization because if they conduct such behavior it becomes trend of the organization and ensure ethical decision making (Lumen, n.d.). Conclusion: After considering the above facts, it can be said that organization must establish appropriate framework which ensure equal pay to the employees for equal pay. Equal pay is not only the legal compliance but it is also an ethical compliance. It reflects the moral and ethical values of the organization. References: Bloom, M. (2004). The ethics of compensation systems. Journal of Business Ethics, 52(2), 149-152. Cascio, W. F. (2010). Managing human resources (8th ed.). New York: McGraw Hill. Demir, R. ACAR, A. (2014). Compensation Management System from a Business Ethics Perspective, Turkish Journal of Business entry, Volume 7(1), Pp 133-148. Fair Work Act-2009. FWC. General protections dismissal. Retrieved on 17th March 2018 from: https://www.fwc.gov.au/termination-employment/general-protections-dismissal. FWO. Gender pay equity. Retrieved on 17th March 2018 from: https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/best-practice-guides/gender-pay-equity. FWO. Protections at work. Retrieved on 17th March 2018 from: https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/protections-at-work. Human Rights. Equal Pay Handbook. Retrieved on 17th March 2018 from: https://www.humanrights.gov.au/sites/default/files/content/pdf/sex_discrim/equal_pay.pdf. Joseph, S. What Are the Benefits of Equal Pay for Women Men?. Retrieved on 17th March 2018 from: https://smallbusiness.chron.com/benefits-equal-pay-women-men-11771.html. Kidder, E. Ethical Decision Making and Behavior. Retrieved on 17th March 2018 from: https://uk.sagepub.com/sites/default/files/upm-binaries/39590_Chapter7.pdf. Lumen. Maintaining Ethical Standards. Retrieved on 17th March 2018 from: https://courses.lumenlearning.com/boundless-management/chapter/maintaining-ethical-standards/. Mondaq, (2012). General Protections in the Fair Work Act - Best Practice Guide. Retrieved on 17th March 2018 from: https://www.mondaq.com/australia/x/200446/employee+rights+labour+relations/General+Protections+in+the+Fair+Work+Act+Best+Practice+Guide. SMH, (2010). Equal pay is the law, but it is not yet a reality. Retrieved on 17th March 2018 from: https://www.smh.com.au/politics/federal/equal-pay-is-the-law-but-it-is-not-yet-a-reality-20100302-pg9m.html. WGEA. Pay equity and legal risk management. Retrieved on 17th March 2018 from: https://www.wgea.gov.au/sites/default/files/Legal-framework-and-pay-equity.pdf. Workplace ethics advice, (2011). Pay Equality in the Workplace. Retrieved on 17th March 2018 from: https://www.workplaceethicsadvice.com/2011/08/this-piece-was-first-posted-on-my-ethics-sage-blog-on-july-28-since-it-has-particular-application-to-workplace-thics-i-wa.html.