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6-32 Ethics & Social Responsibility [CH 6

Figure 6.3 Comparable job pay differences for genders.

Comparable
Predominantly Predominantly
Male Jobs Female Jobs
Accountant $5,963 Nurse $5,606
Conservation Officer 4,212 Behavioral analyst 7,455
Highway worker 2,681 Clerk typist 2,972
Delivery driver 3,600 Pharmacy assistant 2,703
Mechanic 3,872 Medical records analyst 2,301
Security officer 2,329 Receptionist 3,121

of education, training, and skills. In some instances, they have forced their point in
court. Although a federal appeals court ruling struck down a judge's order that
Washington state pay hundreds of millions of dollars to women who had accused the
state of wage bias. Similarly written lawsuits on a smaller scale have been won by
female workers in California, Hawaii, and Nassau County, New York.

Opponents of the comparable-worth philosophy point to several potential
problems, such as the difficulty of objectively defining job worth. Others contend that
wage disparity exists because women have accepted jobs on which the free market has
placed a lesser value. There is the valid argument that women take lengthy times off
for pregnancy and child rearing as they are the primary child care provider. To
increase the salaries of such female dominated occupations as clerks or administrative
comparable worth assistants, opponents argue, would simply encourage women to remain in these
Equal pay for jobs positions rather than seeking other, higher-paying occupations.
requiring similar levels
of education, training, Responsibility to the Investors
and skills. When it comes to money and financial transactions the public requires the highest
level of honesty, and business firms have a responsibility to their investors, to manage
investments wisely and profitably, motivate the business to grow and yield an
acceptable return on the investment. Executives are expected to exhibit the highest
standards of ethical behavior concerning financial practices in order to justify the

public trust placed in them.
Public attention goes beyond any illegitimate activities identified by statute, the
government regulatory agencies, and many business leaders are concerned with
problems such as mishandling investor funds, insider trading on stocks, and excess
compensation of executives. When these events hit the front page of newspapers, or
are lead stories in the evening news, the public enjoys a heightened concern.

Asset Management
Firms have a responsibility to manage investment funds properly and investors
expect a fair and reasonable return on their investment. During any economic boom,
fraud abounds; in the 1800’s during the California Gold Rush, there were scores of
hapless pilgrims who invested in worthless mines. Even today investors have been
swindled out of their investments in gold mines and oil wells that did not exist, in
resort and hotel developments that were not built, in cattle that were non-existent, and
business start-ups that were never intentioned to start. Author Anderson, the
accountancy firm, lost value, trust and the firm because of the unscrupulous
accounting practices that its associates engaged in with Enron and WorldCom. Drug
chain Phar-Mor filed for bankruptcy after a massive fraud scheme, including the
falsification of its books by $350 million.
The Securities and Exchange Commission (SEC) handles investors’ complaints on
publicly traded stock companies. Annually the SEC receives hundreds of complaints
on penny stock scams. In many of these scams the sellers are offering stock in a
company for only a few dollars a share or less, but they are usually just shell

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