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The purpose of this report is to showcase the ethical issues of the gender pay gap and recommend possible solutions to overcome the problems using various ethical theories. It is analyzed that unlawful employment practices for employers are taking place as employers pay lesser in wages and compensation to the female gender as compared to the male gender. This report assists the organization to value gender inequality and acknowledge its impact upon society. Lastly, this report will also outline critical stakeholders and the way they are affected.
When companies of the UK with over 250 employees were forced to publish figures and data on their gender pay gaps in 2018, It was analyzed from the Barclays gender pay gap report that vast differences were prevailing in between the earning of men and women. It was acknowledged that out of 120,000 people working globally in Barclays company, 48700 people were employed in the UK (Barclays, 2017). Those men who were working for Barclays’ international department of UK attain bonuses which were double as compared to female. Average pay gaps were also different invariant entities of Barclay plc bank wherein moderate pay gaps of 47.4% were seen at Barclays bank plc (BBC, 2018). Moreover, 26.1% of average pay gaps were found in Barclay bank UK plc, 22.8% in Barclays execution services Limited, and 21.1% at Barclay plc. The gaps prevailing between the genders were even higher for the bonuses in Barclays company was 73%. It even demonstrates that if £100,000 rewards are given to men, only £27,000 were handed over to females. In addition to that, Barclays group services that possess technology and operation departments had a salary gap of 30% and bonus pay gaps of 24% (Barclays bank Plc, 2019).Taking the situation of pay gaps into consideration, Barclays company stated that they are paying an equal sum of money to both genders for doing the same job. However, they say that gender pay gaps are outcomes of a higher proportion of men who have occupied a larger number of senior roles. On the contrary, many women are working in low-paid jobs and junior positions in bank branches. There are a larger number of women who are in part-time and shared jobs (Clarke,2018).
The gender pays gap of Barclays has raised ethical issues, which include discrimination, increase rate of turnover ratio, the diversity that has had negative impacts upon organizational operation (Clarke, 2018). Discrimination in the Workplace: Gender pay gaps is a global issue that declines the morale of the employees. Those employees with lower pay decrease the workability of the employees and also affects the reputation in the market and society. This is the reason that Barclays has managed to decline the gender pay gap and has targeted to eliminate the gaps within a decade (Barclays. 2016). Biasness in distributing positions for employees: Since an organization requires skilled employees, either male or female, to execute the work. However, the broader gender pays gaps in Barclays, i.e., only 44% of women in highest-paid and 72% of women in lowers produced works. This lacks the confidence and enthusiasm of women to join the organization, resulting in negative feedback and a decline in organizational reputations (BBC, 2018).
Business roles in the society and influence of these issues in the society
Businesses have always played a significant role in society. It is the business that produces and provides goods and services to satisfy the needs and demands of the public. Society could not sustain itself without the economic benefits that are provided by the business organization. It even creates opportunities and innovation, which affects society. The business even increases the rate of employment and brings dramatic impacts on the economy of the world. Gender pay gap issues can have a drastic influence on the economic and social aspects. This issue would bring the financial struggle for the women and even decline their enthusiasm to work with Barclays. These gaps and gender discrimination reveals that the company is still working with older stereotypes of the female-dominating society (Barclays. 2016). These stereotype concepts of Barclays have not made the company bring more significant progress upon the decline of the gender pay gaps. This states that the company has not implemented acceptable CSR practices and ended up with a lower level of profit. Moreover, the unfair distribution of employees, mostly female, in the topmost paid positions has also led to discrimination. This states that the company has not implemented CSR policies effectively, which has also led to harm to the brand image of the company.
Stakeholders are the individual, groups, or organizations who get influenced by the outcomes wherein they are essential for the success and survival of the corporation. They are assets of the company to attain long-term goals and profitability. Providing values to stakeholders result in positive outcomes, which is beneficial for both organization and the stakeholders themselves. Although there are various stakeholders in an organization, the leading 5 stakeholders of Barclays who are influenced by gender pay gaps issues are as follows: Employees: when women are paid with a lesser amount of money, then they have to deal with issues like difficulties in managing expenses, poverty, and ineffective care of children. Moreover, victims of gender pay gap women would decline their morale to perform well due to unfair treatment in the job (Barclays Bank, 2016). Government: They are the most influential stakeholders who have the responsibility to control the business's ill-practices. The government expects Barclays to keep on publishing their report annually to make an investigation and take action against illegal activities (Barclays, 2017). Investors: They are essential for Barclays as they invest their money in the company. However, if the company is involved with unethical practices like Gender pay gaps, they might withdraw their money back. Thus, Barclays should also decline the cracks to attract investors (Barclays Bank. 2016). Suppliers: They are the ones who supply the raw materials to the company and helps in the operation of the production department. If suppliers are unhappy, then they might have an impact on the organization's sales and values of customers. Barclays needs to take care of the suppliers to operate by earning reputation (Wallace, 2016) effectively. Customers: The gender pay gaps in Barclays can negatively impact the customers due to the unfair distribution of earnings for women. Customers might take these unfair upon their purchasing power and would generate hate and decline interest upon the company. Barclays should always keep their customers happy by giving significant concentration on ethical practices and CSR. Barclays reduced the number of customers in 2017-18 after the report had been displayed (Barclays, 2017).
Good and bad examples
As per Reuters (2019), the average UK’s financial sectors use to pay only 81.6p for each pound earned by men in 2017. However, progress is seeming in 2018, which have paid 81.9p for every pound, which is of more significant improvement. This change showcases a positive shift wherein HSBC bank and virgin money have declined their gender pay gaps. On the one hand, where pure money has decreased its means gender pay gaps from 36% to 29.7% within 2016-2018, Greggs have also declined its gender pay gaps from 11.7% to 7.6% within 2017-2019 (Kollewe, 2016). This showcases an excellent example of progress in gender pay gaps. On the other hand, companies like Ryanair and HSBC bank showcase bad examples of gender pay gaps, witnessing an increase in gender pay gaps. HSBC has the highest gender pay ratio in the UK, which has increased to 47.8% in 2019. Ryanair has also faced the highest gaps wherein only 3%of women are employed in higher-paid jobs (Reuters, 2018).
As per the issues stated on the research topic, there is a specific recommendation that needs to be made by Barclays company.
Barclays should create new opportunities for careers for both genders to attract and retain talents
The company should give opportunities to the female to become leaders using talent management and development of leadership
Barclays should drive cultural change
They should support different social using various strategic partnerships.
Barclays bank Plc, 2019. Gender pay gap services. [Online] Available at: https://gender-pay-gap.service.gov.uk/Employer/MxCVjH2H [Accessed on 6 January, 2021].
Barclays Bank. 2016. About Us. [online] Available at:
This section will review ethical theories that will be applied in gender pay gaps of Barclays to resolve them.
It is a theory which states that those actions are termed as morally right if they lead goodness to a larger number of people (Educators, 2015). This theory gives concentration on collective happiness and pleasure and does not emphasizes individual distinction. Utilitarianism even results in the generation of benefits, joy, happiness, right, and advantage and prevents significant pain, evil, unhappiness, and mischiefs (Bradburn, 2011). From the concept and perspective of utilitarianism, Barclays is facing negative impacts upon its employees due to gender pay gaps. As per this theory, gender pay gaps is morally wrong as it affects the pleasure, happiness, and actions of a larger group of individuals, i.e., female. Moreover, it is also affecting the majority number of an employee of Barclays, who is women (Mill, 2005). It is seen that utilitarian theory possess a strength that it is concerned regarding long-term results and give preferences to particular business circumstances. However, to attain longer-term benefits and outcomes, the company needs better business practices (Bykvist, 2009). Since the practical principle supports the decision-making for most people and can be easily implemented, it is beneficial for those companies who applied secular systems mainly centered upon humanity. However, this theory has a specific limitation whereby it does not support the happiness of a person. This theory even provides injustice to the minority number of people who might have a significant role in society (Crane & Matten, 2010). Barclays company can reduce its gender pay gaps with useful principles that will address the issues that affect stakeholders and businesses. It can be solved by resolving the problems of pay gaps by recruiting an equal number of male and female genders and providing an equal number of positions to every gender (Thiroux & Krasemann, 2014). The company can even distribute financial resources equally to both individuals so that majority of the employees, i.e., females, can attain significant benefits. It is recommended that Barclays company should plan for training and development programs that motivate employers to stop gender discrimination. A company should even organize rewards functions and provide bonuses and promotions to women to work at Barclays (Hendry, 2013). The company should even employ a larger number of women in the top posts to attain equal respect and pays.
Theory of rights and justice
The theory of right is another theory by Locke, who gave preferences to the right to life, property, and freedom. This theory even states that everyone possesses the right to rest and take leisure time, including periodic holidays with pay and limitation in working hours. On the other hand, Rawls’ theory of justice even stated that there needs to be fair treatment with every individual (Crane & Matten, 2010). Taking this theory into consideration in the Barclays case, it can be stated that the company should respect those individuals who seek a job. The company should respect, protect, and even provide fair treatment with an un-biased procedure of recruitment and selection. This theory even states that the rights of individuals should not be violated, wherein Barclays should also adopt fair hiring practices by giving equal opportunities to both male and female genders (Sumner, 2006). As per the theory of rights and justice, the company should apply fair practices and fair outcomes. However, it is not seen to be possible in the case of Barclays to decline the gender pay gaps; the company has to adopt discrimination of giving preference to women. In that circumstance, the female will be preferred in promotions and recruitments and will be selected for high paid roles (Thiroux & Krasemann, 2014). This will also result in unfair practices against the male gender, which will also suppress the experience and talent of individuals who would have been more talented than women. This is one of the significant drawbacks of the theory of justice and rights. It is thus recommended that Barclay should treat each of the applicants of jobs in an equal manner and provide employment to those who possess skills, experience, knowledge, talent, etc. The company should not give preferences to genders but must offer preferences to talented applicants. Barclays should even train its recruiters to recruit right individuals and stop biasness which affects their decision power (Sumner, 2006). Company should give full justice and rights to every individual and pay equally to both men and women of same skills and talents.
Bradburn, R., 2011. Understanding Business Ethics. 1st ed. London and New York: Continuum.
Bykvist, K., 2009. Utilitarianism: A Guide For The Perplexed. Bloomsbury Publishing.
Crane, A. & Matten, D., 2010. Business Ethics. (3rd ed.) Oxford University Press: New York.
Educators, F., 2015. Five Ethical Theories: Bare Bones For Business Educators. [Online] Available at: http://www.academia.edu/1702607/Five_Ethical_Theories_Bare_Bones_for_Business_Educators [Accessed 6 January, 2021].
Hendry, J., 2013. Ethics And Finance: An Introduction. Cambridge: Cambridge University Press, pp.47-78. Mill, J., 2005. Utilitarianism. 1st ed. Jonathan Bennett. [Online] Available at: http://www.earlymoderntexts.com/pdfs/mill1863.pdf [Accessed 6 January 2021].
Sumner, L., 2006. Mill's Theory of Rights. In: H. West, ed., The Blackwell Guide to Mill's Utilitarianism, 1st ed. pp.187-201.
Thiroux, J. P. & Krasemann, K, W., 2014. Ethics, Theory and Practice. (11th ed.), Pearson: Harlow.
What is ethical leadership management is in a un/ethical organizational culture?
According to my, ethical leadership is highly essential for every stakeholder of the company as it brings positive ethical culture and brings discipline to an organization. They are the one who puts people in the leadership and management positions who promote and perform ethical conducts in its workplace (Fisher, Lovell & Valero-Silva, 2013). I even feel like ethical leadership management is critical in both ethical and unethical organizational culture as it boosts the morale of employees and assists them in making them feel excited regarding their work and management. Ethical leadership even makes the customers think loyal when leaders are ethical in an organization. Ethical leadership and an open business environment even positively impact partners and vendors as it enhances their trust and even motivates them to work effectively in an organization (Moore & et al., 2019). On a short-term basis, ethical leadership management boosted up the morale of the employees and also made them feel excited regarding their power and work. It even brings up collaboration and positivity in the organization and makes them work happily. On the other hand, ethical leadership even prevents the company from moral dilemmas, issues, and scandals. It will assist the organization in attaining a more significant number of customers and partners that can help in bringing increased profit (Crane and Matten, 2010). Hence, I feel like ethical leadership management is a way of organizing the behavioral culture of the workplace to bring integrity to the work culture.
How to maintain integrity and compliance in a un/ethical business environment.
In my opinion, the organization’s goodwill and stakeholder trusts are two essential assets. Thus the protection of reputation and enhancement of employee’s engagement with ethical conducts would assist in reducing compliance and ethical risks. Ethical leadership needs to review the behavior of individual employees of the organization to maintain integrity and compliances in a un/ethical business environment. It is essential for the organization to talk regarding the importance of ethics and inform employees accurately regarding the issues which impact them (Fisher, Lovell & Valero-Silva, 2013). leaders should even uphold the promises made and also stay committed with the stakeholders and employees for a better relationship. In addition to that, it is even the leader's role to acknowledge the individual performance of employees and reward the ones who perform ethical conduct. The company should even assess honestly regarding the needs and resources of the employees. The keeping of focus upon values in every smaller and bigger moment and re-evaluating actions would even help in maintaining compliance and integrity (Moore & et al., 2019). On the contrary, it is equally essential for the employees to punish those who violate the standards and organizational roles. Leaders should organize specific programs that demonstrate ethics and compliances as it helps in the reduction of misconducts and enhances the employees reporting regarding the observations, and also decline the number of whistleblowers. Training is also a useful tool to strengthen standards and provide advice regarding ethics and other compliance issues (Carmichael, Collins, Emsell & Haydon, 2011). The providing of positive feedbacks is also useful tools for ethical conduct as it motivates the employees to work correctly and address the misconducts.
Reflective essay on your own experience and knowledge
This part is based on my experience as an intern in an unethical organization and the importance of ethical leadership management. When I was having a semester break, I joined a company for a one-month internship program. I observed that the majority of the employees use to behave in an unethical manner. I found that employees use to steal both materials and time of the company and even spent a maximum of the time responding to personal emails and phone calls (Crane and Matten, 2010). In addition to that, I even noticed that some of the workers had the habit of using the company’s gadgets for personal non-work linked activities. I even accessed unethical and illegal websites from office technologies. I even encountered that lying regarding the performance and non-maintenance of sexual boundaries was everyday actions performed by that company's employees. In the severity, I even acknowledged that leadership in an organization was also not concerned about ethics and had asked their employees to do things secretly and hide the injudiciousness. I felt like an organization requires an ethical leader who demonstrates and execute appropriate conduct using their actions and interpersonal linkage. If I were allowed to become an ethical leader, I would train all of the employees regarding ethical decision-making skills and even align recruitment and reward the systems for the core values. I would even create an environment that will support the integrity and ethical practices (Baron, 2006). I would even acknowledge and prevent those situations which would encourage unethical behaviors and initiate controls for unethical behaviors. I would even take severe actions upon those who break the ethical rules and regulations and adopt sustainable business development.
It can be stated that ethics is highly essential for an organization to execute effectively. Ethics guides the decision making and also assist in performing activities productively and enhance reputations. It is analyzed that ethics can be implemented in an organization with leadership, imposing the work, and ethics in an organization (Baron, 2006). It can be concluded that when there is an effective and ethical leader, then the organization can be managed in an ethical manner, which can uplift the organization's reputation. The moral leader can help in boosting the morale of the employees, enhance positivity and collaboration among the employees, prevent scandals in the company, and also reduces ethical dilemmas. To bring an ethical environment and culture to an organization, the leader should perform their work correctly (Fryer, 2014). They should timely reward the employees, along with providing feedback and motivating employees to work. Hence, it can be concluded that ethical leadership management is highly essential in an organization as it enhances the organization's reputation, attracts a more considerable number of stakeholders, and also motivate employees to work effectively.
Baron, D., 2006. Business And Its Environment. Upper Saddle River, N.J.: Pearson Education.
Carmichael, J., Collins, C., Emsell, P. & Haydon, J., 2011. Leadership and Management Development, pp, 295-324, Oxford University Press: New York.
Crane, A. and Matten, D., 2010. Business Ethics. Oxford: Oxford University Press.
Fisher, C., Lovell, A., Valero-Silva, N.,2013. Business ethics and values (4th ed.) Harlow: Pearson.
Fryer, M., 2014. Ethics Theory & Business Practice. Los Angeles: SAGE.
Moore, C. & et.al., 2019. Leaders matter morally: The role of ethical leadership in shaping employee moral cognition and misconduct. Journal of Applied Psychology, Vol. No. 104, No. 1, pp.123.
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