Compensation Versus Ethical Models
When analyzing the executive compensation the way it should be justified, many aspects must be established. First, as Plato suggested for an ideal society these individuals were not receiving four times the number of their lowliest employee. With their high amounts of compensation that was received, it can now be understood as to why many of these companies drove our economy into what it has become today. Although I do not agree with the moral decision that agreed upon by the government with the bailout plan for these companies, it will be discussed different thought processes that could have taken place to recompense the leaders ...view middle of the document...
“According to the principle of utilitarianism, the right way to behave in a given situation is to choose the alternative that is likely to produce the greatest overall good” (Halbert & Ingulli, 2012). With such wording written, an individual can make a statement that to ascertain an executive’s compensation salary it would be best to see how profitable they are for the business. When this analysis were to be managed, the stakeholders would want to see both the short-term and the long-term benefits of the decision they would be making. If they were truly beneficial with the work that would be accomplished by the prospectus candidate, then they would receive a high salary than those that less proficient.
When looking to use the deontology model of ethics for compensation then we need to ask the question if everyone in the world behaved the same way? “In contrast to utilitarian concern with consequences, and with maximizing social welfare, deontological ethics is marked by steadfastness to universal principles – for example, respect for life, fairness, telling the truth, keeping promises, - no matter the consequences” (Halbert & Ingulli, 2012). Unfortunately, this is not the case in today’s business world. Not all employees get paid the same amount of money for the same amount of work done in the office. With the design being used in compensation aspect every individual should get paid the same amount of money. There seems to be no ethical justification for this process to be used for compensation of executives.
The use of the virtue ethics model gives us the basis of compensation of an individual’s character. This shifts focus from what a person should do to who the person is. “Virtue ethics, on the other hand, directs our attention to what human beings are capable of being on how the can cultivate the habits of good character that will naturally lead them to their fullest potential” (Halbert & Ingulli, 2012). If this were to be used with the compensation model for executive, then you have a potential problem for those that have character flaws. There can always be more that one right answer that can cause a moral dilemma when facing a business decision, and if the executive make the wrong choice should they be punished.
Ethic of Care
Using the model of ethic of care for making compensation decisions, we first have to look at the connections between the people making them. ...