Is It Ethical for Ceo’s and Upper Management to Accept Large Pay Increases When Their Company’s Profitability Is Declining and/or the Company Is Facing Bankruptcy?
Is it ethical for CEO’s and upper management to accept large pay increases when their company’s profitability is declining and/or the company is facing bankruptcy?
Amanda
12/6/11
Financial Management
Abstract This report entails the ethical and moral issues in regards to bonuses and increase in pay to employees. It states when in a time of financial needs as to whether or not these bonuses and pay increases should be given. It also states the consequences if there are no moral or ethical issues have been applied.
There are times at which companies show their appreciation to their employees by giving them bonuses and pay increases. These bonus/pay increase amounts are determined by: how long one has been with the company, what level that one works at the company, the overall performance of the individual, and this is also determined by how much the company is able to spend (that is within the company’s budget.) Usually upper management tends to receive the largest amount of these bonuses when they are awarded. These employees are at the top of the company and hold the highest positions. Bonuses are a wonderful thing to show appreciation to the employees and their families; there is no doubt in that matter what so ever. It becomes an issue when the bonuses/pay increases awarded are out of the company’s financial means. The company should take the amount they are able to set aside and compare to the amount of employees that are employed. This amount should change as the amount of profit that the company acquires changes. If the company is not having a good financial income then the bonus amount should drop or not be given. Bonuses are not a mandatory requirement for the company to provide unless a legal contract has been signed. This is a benefit/privilege that a company can offer in appreciation to one’s work and dedication to the company. When the company starts to fall financially, the company should start to change as to how much it can spend in
Amanda
12/6/11
Financial Management
Abstract This report entails the ethical and moral issues in regards to bonuses and increase in pay to employees. It states when in a time of financial needs as to whether or not these bonuses and pay increases should be given. It also states the consequences if there are no moral or ethical issues have been applied.
There are times at which companies show their appreciation to their employees by giving them bonuses and pay increases. These bonus/pay increase amounts are determined by: how long one has been with the company, what level that one works at the company, the overall performance of the individual, and this is also determined by how much the company is able to spend (that is within the company’s budget.) Usually upper management tends to receive the largest amount of these bonuses when they are awarded. These employees are at the top of the company and hold the highest positions. Bonuses are a wonderful thing to show appreciation to the employees and their families; there is no doubt in that matter what so ever. It becomes an issue when the bonuses/pay increases awarded are out of the company’s financial means. The company should take the amount they are able to set aside and compare to the amount of employees that are employed. This amount should change as the amount of profit that the company acquires changes. If the company is not having a good financial income then the bonus amount should drop or not be given. Bonuses are not a mandatory requirement for the company to provide unless a legal contract has been signed. This is a benefit/privilege that a company can offer in appreciation to one’s work and dedication to the company. When the company starts to fall financially, the company should start to change as to how much it can spend in
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