The debate on CEO salaries compared to the average employee's pay is related to which ethical standard?

The debate on CEO salaries in relation to average employee pay touches on the ethical standard of fairness. This standard emphasizes the equitable treatment of individuals within an organization, ensuring that compensation structures reflect the contributions and value brought by all employees, not just the top executives. When examining fairness, one can consider whether salaries are justifiable based on the responsibilities, effects on morale, and overall corporate performance relative to the compensation of average workers.

A significant aspect of the fairness perspective is the recognition and respect for the efforts of all employees, not just those in leadership positions. When CEOs earn significantly more than their workforce, it raises ethical questions about justice and equal opportunity within the workplace. Discussions around fairness often lead to considerations about income distribution, equity in compensation, and the broader impacts on company culture and employee satisfaction.

In contrast, the common good standard centers on what benefits society as a whole, while the utilitarian approach focuses on the greatest overall happiness or benefit for the majority. The virtue ethics standard concentrates on the character and integrity of individuals rather than outcomes. Though these perspectives offer important insights, they do not specifically address the equitable treatment and distribution of resources and compensation, which are central to discussions related to the fairness of CEO pay compared to employee salaries.