Scenario #1 AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.
This year, both companies have a raise pool of $5,000,000 – that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.
AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.
BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.
Answer the three questions below with your opinion backed by at least one relevant idea from the course per question For example, you might support your answers with ideas related to utilitarianism or deontological ethics from module 16 in the textbook, ideas on whether corporations are moral agents from module 18, ideas on encouraging employees’ ethical behavior from module 19. or anything else you find relevant.
Remember to answer all three questions in the same provided text box, and write 500-1000 words for the total assignment (about 175-325 words per question).
Questions – Scenario #1
1. Which company’s raise pool allocation is more fair? Why?
2. Which company will have employees who are, overall, more satisfied? Why?
3. Which company is likely to outperform the other over the next year? Why?
