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In 2007 the average CEO pay in the US was 183 times greater than the pay of the average employee (ILO, 2008:17). Discuss this in relation to ethical theories of justice - Essay Example

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Many base their arguments the fact that it is the employees who do most of the productive work and help companies to earn billions of dollar in profit, then why is that CEOs get the rewards for…
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In 2007 the average CEO pay in the US was 183 times greater than the pay of the average employee (ILO, 2008:17). Discuss this in relation to ethical theories of justice
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In 2007 the average CEO pay in the US was 183 times greater than the pay of the average employee (ILO, 2008:17). Discuss this in relation to ethical theories of justice

Download file to see previous pages... CEOs and other higher level of management are fulfilling their duties to the firm when crafting a business policy. However, in doing so, they are also fulfilling duties to themselves because the success of the business will have a big impact on what they get in terms of salaries and enhanced reputation. Similarly, employees are rendering their services to the firm they are also fulfilling their duties to themselves and the firm. However, there is too much deviation in terms of what ordinary employees get and what the CEOs and higher level of management gets. This difference in the salaries means that employees do not get a lot from the firm’s success, whereas the top management gets a lot. As a result, we can see that the actions of top management are based on their own self interest. Hence, it won’t be wrong to apply theory Immanuel Kant here. He believed that actions are only morally right when there are not subject to selfishness and only selfless actions are ethically correct. Hence, we can see that employees’ actions are morally more correct because they know they won’t get much of the share of the firm’s huge profits, even if they work hard and yet many of them do work really hard. According to the theory of justice by Kant, the actions of CEOs are ethically wrong because there is more self-interest attached to it than their commitment to the firm. Similarly, if CEOs and top management salaries come down in line with the employees then we can see that they doing justice to their work. (Velasquez, 2005)
Deontological framework also provides a basis for an excellent acid-test so as to judge the actions of the various parties involved in the organizational settings. Deontology framework states that only those actions comply to justice where your intentions are just and are for the motive that you want pursue. Any coincidences where your wrong ...Download file to see next pagesRead More
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