Compensation V. Ethical Models

Compensation Versus Ethical Models

      When analyzing the executive compensation the way it should be justified, many aspects must be established.   First, as Plato suggested for an ideal society these individuals were not receiving four times the number of their lowliest employee.   With their high amounts of compensation that was received, it can now be understood as to why many of these companies drove our economy into what it has become today.   Although I do not agree with the moral decision that agreed upon by the government with the bailout plan for these companies, it will be discussed different thought processes that could have taken place to recompense the leaders of these businesses.

Milton Friedman Ethnical Analysis
      The hypothesis that is discussed to us from Milton Friedman is that a corporate executive is supposed to run their business with the mind set being an employee of the company.   They are not to take any advantages of the people that they may be doing business.   “Freidman argues it is wrong for managers to use corporate resources to deal with problems in a society at large” (Halbert & Ingulli, 2012).   This shows that these executive must have an understanding that they must be law abiding, and completely responsible to all corporate policies and procedures.   When dealing with the compensation part under this ethical thought process, it would be best to apply it in a way in which all executives would be compensated through job performance.   This would enable the executive for the company to increase the revenue, which would show complete satisfaction to the stakeholders of the business.   Therefore, the person would be completing their function within the company at maximum capacity of their ability.
Utilitarianism Ethics
      Using utilitarianism as an ethical basis for making decisions on compensation, the decision maker are compelled to specify the costs and benefits for various alternatives; and, such...