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Compensation Ethics and Organizational Commitment

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  • Moriarty, Jeffrey

Abstract

If an employee is committed to his firm—if he is “attached” or “bound” to it—then his firm may be able to obtain a discount on his labor. This paper asks: Is it wrong for firms to do so? If we understand just or fair pay solely in terms of voluntary agreements between employers and employees, the answer seems to be ‘no.’ Against this, I argue that, in some cases, it is ‘yes.’ In particular, it is wrong for firms to try to obtain discounts on their committed employees’ labor when their employees reasonably expect that they will not try to obtain them. In the process, I probe the limits of exploitation and question the relevance of contribution to fairness in compensation.

Suggested Citation

  • Moriarty, Jeffrey, 2014. "Compensation Ethics and Organizational Commitment," Business Ethics Quarterly, Cambridge University Press, vol. 24(1), pages 31-53, January.
    • Handle: RePEc:cup:buetqu:v:24:y:2014:i:01:p:31-53_00
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    Cited by:

    1. Blanche Segrestin & Kevin Levillain & Armand Hatchuel, 2016. "Purpose-driven corporations: how corporate law reorders the field of corporate governance," Post-Print hal-01323118, HAL.
    2. Samara, Georges & Arenas, Daniel, 2017. "Practicing fairness in the family business workplace," Business Horizons, Elsevier, vol. 60(5), pages 647-655.

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