Company's Fairness Rating
Publicly open Company's Fairness Rating could show, how fair are owners, executives and top managers in sharing financial success of the company with common workers and employees. This idea can be pushed worldwide by trade unions, organisations and politicians, who fight against extreme inequality in society and for fairness in business.
Absolute equality, when people get the same reward (e.g salary), no matter, how big their personal contribution is, reduces motivation to contribute.
Extreme inequality, when people are not paid enough for their personal contribution, also reduces motivation to contribute. Extreme inequality harms society and economy, because poor majority don't have enough money to buy products and services, except those, which can fulfil basic needs, in order to survive. You can't sell much to poor people and small rich minority don't need large amount of products and services. If people are poor and have no money to buy services and goods - economy stagnates. It is bad, when people don't have enough money for education and medicine, in order to live decent lives and to test and implement their ideas. It should be admitted, that top rich minority have resources, but they are not the only ones, who have potential and ideas, on how to invent and create (including jobs). Minimal salaries limit not only economical, but creative potential of all society too. Owners, executives and managers, who are in power of determining salaries for themselves and common employees... often abuse that power and can't control their own greed. This must be solved.
How to force owners, executives and managers to share success and earnings fairly with common workers, who are big part of that success? Information, how fair or unfair owners, executives and managers are in sharing success of their Company with workers, must be public.
When people will buy products, services, or choose jobs, they will know, how fair company treats its workers. Sometimes, people may choose to pay for goods and services little more, in order to support companies, where managers are decent people and not “slave-owners”. Only, when unfair treatment of employees will affect company's financial performance and reputation of owners, this will affect the market and will promote ethical behaviour among those, who have power to exploit others.
Local Revenue and Tax agencies must know three basic things, to make calculations:
1. How many workers company has in the country.
2. Average % of owners, directors and top managers in companies with 1000 employers. Lets say, it is 10%.
3. How much company paid to each company worker per year.
Calculations (usually, Revenue and Tax agencies already have necessary data):
1. Get that data from every company in their country with (for example) more than 1000 employees.
2. Calculate average monthly income (after taxes) per person for top 10% and for bottom 90%.
3. Turn these two averages into % and publish this data in table with ability to search for company and sort data by managers and employees. Example:
Incomes of Employees (90%) -- Year Averages |
21.4%
|
22.7%
|
24.1%
|
25.8%
|
27.6%
|
2018 |
2019 |
2020 |
2021 |
2021 |
No. |
Company Name |
Average Income of Managers (10%) |
Average Income of Employees (90%)▲ |
1 |
Company “A” |
99.7% |
0.3% |
2 |
Company “B” |
99.1% |
0.9% |
3 |
Company “C” |
98.4% |
1.6% |
... |
... |
... |
... |
410 |
Company “U” |
59.5% |
40.5% |
411 |
Company “V” |
58.8% |
41.2% |
412 |
Company “Z” |
57.2% |
42.8% |
Average income of common employees, could be called “Company's Fairness Rating”. In this example:
Company's “A” fairness rating would be only 0.3%
Company's “Z” rating would be 42.8%.
Percentages (instead of actual currency) would be easier to understand and to compare, how behave different or the same companies in different countries.
On top of the list there could be year averages, to monitor overall progress.
Video and Data
Richard Wilkinson: How economic inequality harms societies
Wealth Inequality in America
TED Talk - Nick Hanauer - Income Inequality
The Young Turks - May Day - Why the Bottom 90% Should be Outraged
TED Talk - Frans de Waal - Moral behavior in animals
CIA - The World Factbook - Distribution of family income - Gini index
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2172rank.html
Wikipedia - List of countries by income equality
http://en.wikipedia.org/wiki/List_of_countries_by_income_equality
( 2013-03-13 Jocys.com • short link: Jocys.com/Rating )