Should The Minimum Wage Be Scrubbed?
A minimum wage is the lowest amount of remuneration which employees ought to legally pay their employees. Even though there are minimum wage laws in many governments, there exists opinion differences about the benefits and setbacks of a minimum wage. Those who support the minimum wage argue that it lowers inequality in society, reduces poverty levels, increases the living standards of employees, increases motivation and increases efficiency among businesses. On the contrary, its opponents argue that it increases unemployment, increases poverty and has a damaging effect to businesses because high minimum wages require businesses to increase product prices to accommodate the extra expense of paying a higher wage. This paper analyzes the concept of minimum wage and seeks to answer the question whether it should be scrubbed or not.
Corporations are also business entities like many other organizations. Therefore, the benefits like the economies of scale enjoyed by large business organizations are also enjoyed by large corporations. As a result, the end product is affordable because of the low cost of production resulting from big quantity of raw materials hence economies of scale and, diversification of their businesses (Farver, 2013 p.g 17). More so, big corporations employ many people reducing the number and evils of unemployment and also they contribute immensely to the overall economy of a given country. Finally, large corporations are known to contribute to charitable, non-profitable organizations whose responsibilities are for the wellbeing of people.
The secret to success in any corporation is sustainability management systems, whereby environment stewardship, social well-being, and economic aspects are balanced. Companies that have been able to come up with functional policies that balance the three aspects have been able to thrive and grow. Examples of such companies are the Coca-Cola limited and Wal-Mart among others. More so, such corporations ensure that all legal requirements are met, such as certification. However, failure to incorporate sustainable systems results to serious drawbacks which lead to failure of corporations. While those that embrace sustainability management systems thrive, those that do not embrace the same fail. The level of sustainability management systems differ, and that is why some corporations are more sustainable than others, and others growing faster while others failing. The fall and rise of corporation is therefore a question of sustainability.
One of the market structures in the world of business is the monopolistic market structures. Monopolistic corporations exist. A monopolistic corporation refers to a business entity in a region that offers services or a service without competition in that specific region. Such corporations fix the prices for their services and therefore benefit immensely from large profits. However, due to the past malpractices by monopolistic corporations offering unfair competition, government came up with policies to guide such businesses to ensure that the consumers are not exploited and also restore fairness in the market. Therefore, business entities that are single in the market are guided by the constitution on how to carry out their operations.
As said earlier, one aspect of sustainability in business is environmental stewardship. Some corporations fail in this aspect of sustainability and end up polluting the environment through their operations. However, it is the responsibility of a given corporation to ensure that standards of production are met without impacting negatively to the environment. United Nations Environment Programme (UNEP) has reported worsening environmental conditions as a result of business activities. Environmental problem is one of the main challenges that are facing most companies, and such impacts negatively to the image of the concerned companies. However, it is the responsibility of these companies to ensure sustainability in the environment. Consumers value corporations that mind the environment, and for that reason, most corporations have taken into considerations environmental issues more seriously.
Social responsibility is yet another aspect of sustainability that should be taken into consideration by corporations that mind their reputation. Social responsibility entails well-being and fair treatment of the individuals working for the corporations, as well as the consumers of their goods and services. Such entails fair wages and good working conditions for the staff members, and reasonable prices for their products and services. More so, the impact of a corporation in community projects matters a lot. Though not a requirement by the law, some organizations engage in community activities such as scholarship programmes for needy students and other project that focuses on the well-being of individuals. Therefore, the social responsibility of corporations touches the wellbeing of the stakeholders and the community in which it operates.
The last aspect of sustainability management systems necessary for growth of corporations is the economic aspect. Economic responsibilities of a corporation involve paying its dues to the parties involved such as shareholders, employees and the government. Economic responsibilities should be in such a way that all the parties involved are satisfied. For example, the corporations should not evade tax or support illegal activities that cost the government, and should be reasonable in pushing for the laws that protect and promote them. However, some corporations have reportedly engaged in scandals, ending up distorting their image leading to huge loses. Therefore, it is the responsibility of corporations to ensure that they corporate with all parties that are involved and respect the guiding laws set by the government. More so, they should honor promises they make with other parties.
In conclusion, corporations are of great importance in human life. Corporations are in business and their size matters just like it does in other business organizations. Large corporates benefits from economies of scale which leads to delivery of goods and services at affordable price among other advantages that accrues as a result of their large size. There are three main aspects that contribute to sustainable corporations, and these include economic responsibilities, social responsibilities and environmental responsibilities. Therefore, the performance of any corporations depends on the ability to strike a balance of the three aspects of sustainability.
Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate sustainability. Routledge.
Farver, S. (2013). Maintaining Corporate Sustainability: Using proven tools to promote business success.
- Quote paper
- James Mageto (Author), 2017, Should The Minimum Wage Be Scrubbed?, Munich, GRIN Verlag, https://www.grin.com/document/358349
Publish now - it's free