Many companies have business practices that are unfriendly to employees and
communities. Paying employees cheap compensation is one of the most insulting
of these unethical company practices. While there are a variety of reasons why a
corporation can choose to pay minimum wage, one of the most important is to
maximize profits. Such decisions may profit the corporation, but they do not
benefit the employee.
This could have some severe consequences for employees and the local
community. Employees may experience tension and rage as a result of their
inability to afford basic expenses. It also disadvantages the local society when
consumers cannot afford to purchase products that are not considered essential.
Consumers will be compelled to close local neighborhood companies if they are
unable to support them. This has the potential to be destructive to the entire town.
If employees are able to raise awareness of the problem, it may result in poor
headlines for the organization. Workers in low-wage jobs have recently taken a
stand and boycotted for higher salaries and improved working conditions, such as
the recent food service workers boycotts. Issues like this are difficult for most
businesses to deal with, and they frequently result in a compromise.
More companies paying greater wages to their employees will benefit not only the
local economy, but also the national economy. Our economy has also been driven
by being able to easily afford basic expenses while still having disposable income. If
we could all live comfortably, we would all be better consumers, and businesses
would earn more. Paying employees better compensation is in their best interests
not only financially, but also ethically.
References:
Soomo Learning. (2020). People, Planet, and Profit. https://www.webtexts.co
https://www.ibrc.indiana.edu/ibr/2011/spring/article2.html
