# data[].attributes.body
Ethical principles are central to building fairness and accountability in business. A key ethical issue is the gender pay gap—the persistent disparity where women earn about 77 cents for every dollar men earn (International Labour Organization, 2023).

# data[].attributes.body
Globally, women are paid 10–30% less for equal work, undermining fairness and trust while restricting human potential.

# data[].attributes.body
This Padlet explores the gender pay gap as a business ethics issue linked to SDG 5: Gender Equality. Drawing on Sinaci (2024), it applies Utilitarianism and Kantian Ethics to analyze the moral implications and proposes solutions. It highlights how achieving equal pay advances justice, dignity, and sustainable development, offering evidence-based strategies to foster equity globally and in Australia.

# data[].attributes.body
The report also highlights how closing the gap supports justice, equality, and sustainable development, and offers further readings and strategies for achieving pay equity globally, including in Australia.

# data[].attributes.headline
An Ethical Problem in the Current Global Economy: Gender Pay Gap

# data[].attributes.subject
An Ethical Problem in the Current Global Economy: Gender Pay Gap

# data[].attributes.body
The article “An Ethical Problem in the Current Global Economy: Gender Pay Gap” by Maria Sinaci (2024) identifies pay inequality as a moral and ethical failure. Despite reforms, women still earn less for equal work due to systemic bias and institutional discrimination, rather than personal choice. For example, Google faced lawsuits from over 10,000 women earning an average of $16,800 less per year than men in equivalent roles, resulting in major settlements. Sinaci reviews economic theories such as human capital models but concludes none ethically justify the gap. The article stresses that equal pay is essential for achieving SDG 5, calling for ethical leadership, policy transparency, and social accountability.

# data[].attributes.body
Recent research supports Sinaci’s conclusions. Bishu and Alkadry (2022) argue that the gender pay gap persists across both public and private sectors, driven by structural inequities and implicit bias that undermine fairness and organizational trust. Similarly, Rubery and Grimshaw (2023) highlight that pay transparency and institutional reforms alone are insufficient without ethical frameworks guiding decision-making, reinforcing the need for moral accountability and inclusive policy design.

# data[].attributes.body
Utilitarianism advocates for actions that maximize overall happiness or pleasure and minimize overall pain (Shaw et al., 2020). In the context of the gender pay gap, a utilitarian analysis would focus on the outcomes of wage inequality and its impact on collective well-being. Unequal pay contributes to reduced morale, lower productivity, and financial stress, particularly for women and their families, which diminishes overall social happiness.

From a utilitarian perspective, these negative consequences indicate that the gender pay gap fails to achieve the “greatest good for the greatest number.” Conversely, closing the pay gap would enhance individual satisfaction, foster workplace harmony, boost economic growth, and strengthen family welfare—leading to a net increase in happiness and social welfare. Therefore, pay equity is ethically justified under utilitarianism because it maximizes societal well-being and fairness without harming others, aligning with the broader goal of collective prosperity.

# data[].attributes.body
Kantian Ethics, grounded in duty and universal moral law, evaluates fairness by principles rather than outcomes. Paying women less for equal work violates the categorical imperative, failing the universality test and treating individuals as means rather than ends. Therefore, organizations have a moral duty to ensure equal pay, not for profit, but to respect human dignity and uphold justice.

# data[].attributes.body
The United Nations launched the Sustainable Development Goals (SDGs) in 2015 as a global framework to end poverty, protect the planet, and promote peace and prosperity for all. SDG 5 focuses on achieving gender equality and empowering women and girls by eliminating discrimination, ensuring equal opportunities, and promoting full participation in all sectors (United Nations, 2023).

# data[].attributes.body
A key target of SDG 5 is equal pay, yet women still earn about 20% less than men worldwide, limiting financial independence and leadership opportunities. This inequality also hinders SDG 1, as income disparity heightens women’s vulnerability to poverty; SDG 8, by weakening inclusive economic growth; and SDG 10, by entrenching social and economic inequalities. Implementing pay equity remains difficult due to systemic bias and conflicting economic interests.

# data[].attributes.body
According to Sinaci (2024), the gender pay gap is not just an economic issue but a moral failure that violates fairness, justice, and human dignity. Applying ethical frameworks—Utilitarianism, Kantian Ethics, and the Ethic of Care—can help organizations design fair pay systems, conduct audits, and ensure transparency, thereby advancing SDG 5 while supporting SDGs 1, 8, and 10 to achieve broader sustainable development.

# data[].attributes.body
This source outlines global gender equality targets and identifies pay equity as a fundamental pillar of women’s empowerment. It is directly relevant because it situates the gender pay gap within the broader framework of sustainable development, emphasizing how fair remuneration contributes to equality, poverty reduction, and inclusive growth under the 2030 Agenda.

# data[].attributes.body
This report highlights how pay transparency laws, reporting frameworks, and audits enhance fairness and accountability in compensation practices. It is valuable as it provides evidence-based, actionable strategies that organizations can adopt to close wage gaps, demonstrating the practical application of ethical principles—particularly justice and fairness—in achieving SDG 5.

# data[].attributes.attachment_link.title
Why is the gender pay gap such a stubborn problem? What can we do?

# data[].attributes.headline
ILO Equal Pay International Coalition (EPIC, 2023)

# data[].attributes.subject
ILO Equal Pay International Coalition (EPIC, 2023)

# data[].attributes.body
EPIC compiles global policy strategies and case studies, such as Iceland’s and France’s mandatory pay audits, which have successfully reduced wage disparities. This reading reinforces Sinaci’s (2024) argument that ethical commitments must be paired with strong legal and institutional measures to produce lasting equality.

# data[].attributes.body
The gender pay gap is a significant ethical and developmental issue that violates the principles of fairness, equality, and human dignity. As Sinaci (2024) contends, it cannot be economically justified but must be ethically condemned. From a utilitarian perspective, closing the gap promotes collective well-being by increasing overall happiness, productivity, and social stability, while Kantian ethics emphasizes equal pay as a moral duty grounded in justice and respect for human dignity. Eliminating wage disparities not only advances SDG 5—Gender Equality—but also contributes to poverty reduction (SDG 1) and inclusive economic growth (SDG 8). In Australia, women still earn only 78% of men’s pay (WGEA, 2024), and globally, narrowing the gap could lift millions out of poverty. Therefore, achieving equal pay is both a moral imperative and a sustainability necessity, essential for building fair, inclusive, and resilient societies envisioned by the 2030 Sustainable Development Goals.

# data[].attributes.body
Maria Sinaci. (2024). An Ethical Problem in the Current Global Economy: Gender Pay Gap. Ovidius University Annals: Economic Sciences Series, XXIV(1), 318–327. https://ideas.repec.org/a/ovi/oviste/vxxivy2024i1p318-327.html

Bishu, S. G., & Alkadry, M. G. (2022). A systematic review of the gender pay gap and factors that predict it. Public Administration Review, 82(4), 635–648. https://onlinelibrary.wiley.com/doi/10.1111/puar.13543

Rubery, J., & Grimshaw, D. (2023). Revisiting the gender pay gap: The role of transparency and institutional reform. Cambridge Journal of Economics, 47(2), 345–370. https://academic.oup.com/cje/article/47/1/45/6843623?login=false

OECD. (2023). Pay transparency tools to close gender pay gaps. OECD Publishing. https://www.oecd.org

United Nations. (2023). Sustainable Development Goals: Goal 5 – Achieve gender equality and empower all women and girls. https://sdgs.un.org/goals/goal5

Equal Pay International Coalition (EPIC). (2023, October 3). Leaders at the UN General Assembly pledge to reduce the gender pay gap. International Labour Organization. https://www.equalpayinternationalcoalition.org/

Shaw, W. H., Barry, V. E., Rodrigs, M., Issa, T., & Muntean, D. (2020). Moral issues in business (13th ed.). Cengage Learning.

# data[].attributes.body
Collectively, these sources bridge ethical theory with real-world practice. They show that achieving gender pay equity requires not only moral reasoning—such as fairness and respect for human dignity—but also institutional accountability, legal enforcement, and public engagement. These insights strengthen the argument that ethical leadership and transparent systems are essential to fulfilling SDG 5 and advancing sustainable, inclusive development.