Business

The Concepts of Fair Wages and Employment Standard Codes

Researchers have often assumed that employers are always ethically appreciative to pay fair wages to the employees whenever possible, in order to keep them motivated and satisfied. However, in the practical scenario, the working environment situations have repeatedly been witnessed to depict the authoritarian power led malpractices conducted by employers in terms of employee exploitation. A best example to this context has been the anti-sweatshop movement which resulted in the establishment of certain rules in terms of international “fair wages’ and employment standards with the intention to protect the human rights and welfare of employees along with rendering due significance towards employers’ interests (Miller, “Why Economists Are Wrong about Sweatshops and the Anti-Sweatshop Movement”). The anti-sweatshop rules illustrate that the global payment system is based on three fundamental principles which include paying for the job, paying in accordance with the skills and competencies of the employees or workers and paying in context of the market value. Based on these principles, the concept of international “fair wage” was derived which renders due significance towards the ethical business conduct and also towards the transparency in the employer-employee relationship. Fair wages can be illustrated as the wage rate which is above the minimum wages offered in a particular region for a particular job responsibility, but are below the standard wage required for bearing the living cost in that region. The lower limit of the fair wages is the minimum wages that the company pays and the upper limit of it is the maximum that the company can pay (Deb 303). Hence, it can be stated that the witnessed scenario of slavery could be minimized with the implementation of international “fair wages” by enforcing international guidelines owing to which employers were restricted to exploit labors conducting unethical behavior. It is worth mentioning in this context that the implementation of anti-sweatshop rules concentrating on international “fair wages” and employee standard codes to the employees not only minimized the associated risks of work but also enhanced the loyalty of the workers towards the company which in turn raised significant opportunities for the company to attain sustainable growth. Moreover, the concepts also proved vital for companies in terms of developing a productive work culture.

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