Impact of Employment Law on The Organisation

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  • Unit No: N/A
  • Level: High school
  • Pages: 13 / Words 3141
  • Paper Type: Essay
  • Course Code: BUS020X601A
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Question :

This assessment will cover the following questions:

  • Sainsbury Plc is the second retail supermarket chain in the United Kingdom. Analyse the impact of employment law on the organisation.
  • Which legislation is important to guide diversity and equality at workplace and why?
  • Examine the importance of business ethic at the workplace.
Answer :
Organization Selected : Sainsbury Plc


The term Ethics is a branch of belief that includes systematizing, defending, and recommending the idea of right and wrong conduct. Whereas, ethics of business means the study of appropriate business practices and policies in respect of controversial subjects like corporate social responsibility, discrimination etc (Banks and, 2016). The term gender pay gap is the measure of median wage. It is the deviation between middle ranking women and middle ranking men. The Report is based on Sainsbury Plc. It was founded in year 1869 by John James Sainsbury. Headquarter of the firm is located in London, UK. It operates the business at global level due to which it currently employed nearly 186,900 employees in year 2018. The Report will outline the gender pay gap as an ethical issue. Further, the Report will outline two ethical theories, reflection of ethical leader etc.


a) Gender Pay Gap as an Issue Related With Ethics.

The gender pay gap is not a moral panic but, it is a real issue. Many female are unable to get ahead in respective careers due to demands of elder care and motherhood which is disproportionality lie on their shoulders. As per the research, there are nearly 78 % firms who have reported a median wage inequality in favour of men. Some sectors are worse go against as compared to others.

Example – Sectors like finance and construction etc. are unequal with median hourly wage gap is more than 20 %. As per National Statistics, in UK the average pay gap in previous year was 18.4 % (The Guardian view on the gender pay gap, 2018). A pay gap between women is also symptomatic of a broader problem with pay reward in unequal manner. The problem of unequal gender pay is also called burning justice. Moving away from categorizations of women as relational and caring, disabled are more dependent is and should be a social process. In the workplace of Sainsbury, the equality in pay to male and female should be supported by an open engagement with alternatives to middle class, masculine, white ways of being and work. Inequalities are continued because of various identities are ignored by the business and compared to the one that is predominated (Baron, 2017). An ethics of inclusion is regarding a relational engagement with individuals as disables, woman and so on. As per the given publication of the Government, women gets 96p for every £1 that male employees earn as compared with median hourly wages.

The median hourly wage for women is lower by 3.7 % as compared with male employees. It clearly reflects the inequality in the payment of the wages to men and women. In Sainsbury, female occupies 39 % of jobs that are highest paid whereas, they occupies 66.1 % of the jobs that are lowest paid in the firm. In relation with bonus pay gap, female take 70p for every £1 that male employees earn as compared with median bonus pay. Their median bonus pay is 29.6 % lower than compared with the average bonus pay of male employees.

Thus, gap in gender pay is one of the major issues which is identified and it will lead to demotivation among employees due to not getting equivalent wages. As men and women are equal and also carry the equal capabilities in respect of completing the task. Thus, companies are not adapting these aspects which results in getting fewer women empowerment (Breach and Li, 2017).

Impact on the Public Image of The Company -

Sainsbury is focusing on gender pay gap as an issue related with ethics because it majorly impacts the reputation of the company in the society in which business exists. Company is committed to offer equality of opportunity. Human Resource Manager of the company provides payment to workers according to their role not as per their gender.  

Example – Male and female workers that are doing similar job in the stores of organization are paid same hourly rate.

Stakeholders -

Attaining gender pay equality in the workplace is an important issue not just only for human resource but also for all the other stakeholders of Sainsbury. Finalising the gender wage gap matters for different stakeholders and makes a deviation not only to the lowermost line but also for the society as well. The issue of gender pay gap influences different stakeholders of the organization. Example - employees, investors, government etc.

Employees are one of the major stakeholder that are greatly influenced by gender pay gap. It does not only affect the female once in their life. It has a combines impact that results into reduction in earning capacity of the female over lifetime. Due to this, there will be less chances for women working in Sainsbury to progress as compared with male workers and it results into less accumulation of money for retirement. It also affects the attitude and behaviour of employees. As a result, it negatively affects the performance of firm (Chell and, 2016).

Another major stakeholder in gender pay gap is Government. The Government of country should tackle all the forms of gender inequality. It is important for the government, often in partnership with private sector firms to make efforts for reducing gender pay gap. Further, government should apply different types of interventions to minimize the gender gap. It includes

policies, laws, financial incentives, technology and infrastructure, capacity building etc. Example – Government has used the system of tax effectively to provide new opportunities for female.

Further, gender pay gap also influences investors who invest funds in Sainsbury. In short, equity in gender pay contributes to the lower line. When workers feel that they are being rewarded by the employer they are more motivated and engaged that results into high rate of retention and better decision-making. As per the research, firms who prioritize equity in payment to employees are more likely to have returns of financial nature on the above the median of national industry.

It is recommended that Sainsbury should adopt different measures to close the gender gap. Firstly, management of Sainsbury should involve multiple female in shortlist for hiring and promotions. When putting collectively a list of qualifies personnels management should ensure that one woman is included. Further, rather than relying only on the method of interview, firm should ask individuals to perform activities they would be anticipated to perform in their role they are applying for. Management of Sainsbury should use their performance on the job to determine their suitability for the job (Crane and, 2019).

Moreover, company should promote transparency in payment, promotion and reward process. It means, workers are clear respect what is interested and managers should understand that their judgement should be based on evidence because this conclusion can be reviewed by other people. It has been recommended that Sainsbury should appoint activities forces monitor talent management processes and diversity managers within the business. This will help to reduce the bias in the process of promotion and recruitment because people who are taking decisions are aware that their judgement may be reviewed. This will help to improve representation of the female in Sainsbury. Managers of managing diversity should have executive role in the business, have visibility of internal data, they should be empowered to implement and develop diversity strategies and policies etc.

Further, management of Sainsbury should also consider some promising actions. Firm should focus on improving workplace flexibility for women and men. It should allow flexibility in work, encourage male employees to work flexibly so that, it is not considered as only benefit to female. Moreover, human resource department of Sainsbury should provide sponsorship and mentoring to their mentees. As per the research, mentoring programmes work well for some female but not for others (Crane and, 2019).

b) Ethical Theories.

In relation to the case study, the two choosen theories are utilitarian theory and Rawl's idea of social justice. Utilitarianism theory is a descriptive ethical theory that focuses of the wrong and right only on the impact of choosing specific policy over another policy. Act utilitarianism is the rule of utility that is applied to each option act in a situation of choice. Rule utilitarianism is the principle of utility is used to evaluate the credibility of the rules of behaviour. It is based on the outcomes where the greatest happiness principle is used to evaluate the morality of one's actions. The theory of Utilitarianism is categorized into Rule Utilitarianism and Act Utilitarianism.

In case of Act Utilitarianism, the decision of Sainsbury will be based on a specific activity and the case of Denise Batt vs Palmece Ltd, t/a Comfort Inn. will be utilised. Further, by discriminating on the basis of gender Sainsbury may lose skilled and competent employees. Further, as a result of inequality management may have to compensate the female employees. To evaluate the general happiness, Sainsbury is required to take into consideration the pain and happiness of other parties. Female workers may suffer pain as a consequence of inequality in payment for the work performance. Management is also required to take into consideration the skill turning obsolete, loss of self improvement opportunity and deterioration of health (Graf, Brown and Patten, 2018).

Rule Utilitarianism considers social and economic impact of inequality in payment to male and female. Gender pay gap against on the job female will not only impact the work attitude of working female but it will affect women in general. This will affect the workers at a future point of time. This will reduce the level of morale of the employees that will negatively affect their efficiency and loyalty. Moreover, it negatively influences the productivity of work performance of the employees working in Sainsbury. Further, the firm may also expose itself to unnecessary case of courts that will result in loss of reputation which will later on minimizes future profitability of Sainsbury. Therefore, when firm evaluates the workers on the basis of merits, it is one of the best way because they possess appropriate knowledge, skills and competencies that also helps to promote welfare (James, 2017). On the other hand, there is no confusion that qualifications,skills and competencies are the essential criteria for selecting the workers and making payment to them. In the case of developed community, the focus is on discrimination of working female, this has impact on all the female because it is a cycle and it considers the ratio of women in total workforce.

Another major theory is Rawls Principles of Justice. According to the theory, the community will conform to the rules that every individual would agree to in the current position. This gives the development of Rawl's principle of justice that is all individuals is having equal claims to as much freedom as is conformity with everyone having similar level of freedom. Second principle of the author is that employees working in organization in their original position will tolerate inequalities only in case if their job that pay more are not assigned in unfair manner. Therefore, inequalities among employees are allowed only if it raises through the job that equally talented people have equal opportunity to get (O’Reilly and, 2015).

According to the principle of equal liberty, when employer of Sainsbury discriminates on the basis of pay against working female to increase economic growth in that case, this principle is violated because they are restricting the liberty for the sake of economic advantage. Therefore, as per the principles of Rawl, liberty should not be traded for the social or economic benefits.

As per difference principle, burdens and responsibilities should be provided to the employees on the basis of needs. Equality of the opportunity is major concern that surrounds discrimination because it is related with unequal opportunities. According to the research in relation with gender inequality in the workplace, working female are being provided lower salaries as compared with male employees and are sensed to be less dedicated as compared to female without children even though they are equally qualified (Polachek, 2019). Therefore, it can be said that the situation of inequality in Sainsbury would lead to unequal opportunities. Therefore, Rawls is against discrimination like gender pay gap because it violates the principle of equal opportunities. There are still some individuals who are suffering from unjust influence of inequality and injustice.


Managing The Business by Ethical Leader.

With the help of above case study, I have analysed that there are various things that are essential to become an ethical leader. For being an ethical leader, it is important that leader should be a master of ethics (Stanberry, 2018). They must focus on overall value of ethics and how it contributes to management of human resource. Conflict resolution is a consistent challenge for the leader of Sainsbury. In my view, if leader ignore the issues of workers it can disrupt the momentum of team or whole organization. Therefore, it is important that the leader of Sainsbury should be concerned regarding the welfare of workers working in the firm. Moreover, leader of the firm should adopt a clear code of conduct. Having a clear code of conduct will help workers to understand each and every aspect of ethical continuum that the firm implements. Philosophical leader should not use the employees as a medium for achieving personal goals. Leader must respect the feelings, values and decisions of workers. In my opinion, leader of Sainsbury should place the interest of the employees ahead of own interest. Further, it is important that leader should treat the employees in equal manner. There should be no personal bias. I have analysed that, leader of Sainsbury should consider own purpose as well as the purpose of workers while making the efforts to attain the aim and objectives to both of them. Leader should not overlook the intentions of the employees. Another important thing for being an ethical leader is honesty. It is important that leader of Sainsbury should be honest for being an ethical leader.

As an ethical leader it is important that business follows an unethical path for its growth and profitability. Though I know that there is very fine line between making choices related to the financial gains and choices which will not be affecting the other people. But I will ensure that the financial gains are not driven to the company ion cost of people. Ethical culture in every organisation starts from very top in the organisation that is starting from a leader and top executives. For implementing ethics in business it is important that I demonstrate ethical practice in all the situations. True test of leader is seen when there is choice between the decision-making process and I being leader would be ensuring that choice that brings gain to the company ethically is made. When I will be choosing the path that is ethical rather than one which is financially driven my whole team will be driven towards that path that will help in creating a strong ethical culture for the organisation. When I as a leader would be strongly sticking over the right path my whole team will be following the same ethical path. Being a leader I will also that all the rules and regulation are being complied by the organisation on the given time. I will ensure that all the laws at federal, state and local levels are adhered to by the company.

This will be representing the positive image of the company that company is following all the rules and regulations ethically and is not making defaults in payments of its dues. I will also be ensuring that CSR and other policies related to the society and environment are followed by the organisation so that positive picture of the companies represented in the society that will help in increasing the business of company. Integrity and fairness if another characteristic of a good leader and I will deal fairly with my employees and team members by effective communication and interactions. This will help to know the actual issues that are faced by the team so that I van solve their issues. I will be honestly communicating with the employees without unreachable targets that will drive them to unethical paths. I will be maintaining effective relationship with customers and employees that will help in reaping the benefits to organisation.

Also read:- Motivational Techniques are Helpful For Company to Enhance Employee's Performance

I will ensure that no customer or employee of the organisation is treated unethically and their personal dignity is not harmed. If I treat employees unethically it may lead to the chances that they will be treating their sub ordinates unethically this will affect the whole ethical structure of the organisation. For having an culture of equality I will look that no discrimination is made between the employees on the basis of their cultural backgrounds, race, gender or religion. I will ensure that promotions are made on the basis of their work and efforts and not on other discriminatory factors. I will lay core values to be followed in the business s that unethical behaviours are not promoted in the organisation.


The above report has described that the issue of gender pay gap is also known as burning justice. In Sainsbury majority of high level job positions are occupied by male employees as compared with female workers. Company is also focussing on gap in gender pay and it is committed to provide an equal opportunity to the employee's. Gender pay equality in the organization is a major issue not just only for human resource but also for all the other stakeholders of Sainsbury. It also affects various stakeholders like employees. Management, investors, government and suppliers of the business. It has been concluded that, company should adopt different measures to reduce the level of gender pay gap. Management of Sainsbury should involve various females in shortlisting for the process of promotions and hiring. Company should also allow flexibility in work to the employee's. To get more details about online assignment help ask our experts.

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