Question

Is any case related to these question? Question: ABC Corporation decides to respond to what it sees as a moral obligation to correct for past discrimination by adjusting pay differences among its employee. Does this raise an ethical conflict between ABC’s employees? Between ABC and its employees? Between ABC and its shareholders?​

Answer 1

Is any case related to these question?

Case : A fashion e commerce portal Fynd intends to correct gender pay gap by paying 10 % more to women employees.

Refer : https://yourstory.com/herstory/2019/05/fynd-women-pay-gap

Question: ABC Corporation decides to respond to what it sees as a moral obligation to correct for past discrimination by adjusting pay differences among its employee. Does this raise an ethical conflict between ABC’s employees?

Yes. To close pay gap it may create difference between equity and equality. Merit may not be rewarded. An organization which closes gender pay differences may not think of increasing salaries regularly to cots down in future and this will discourage all. hence it is not enough to only close pay gap but to continue the policy of bringing equity also.

Between ABC and its shareholders?​

Yes, It is fact that woman may take a leave for delivery and many times retraining costs are high. Also a fact that frequent leaves may increase costs for the company. These increased costs will be offset by reducing dividend for shareholders and hence it may not be good for them.

However, as discussed above, this equal pay company pay policy and other welfare practices are same then it is in best interest of all- ABC, its employees and shareholders too.