Is Pay Inversion Ethical? A Three-Part Exercise

R. Bruce McAfee, Myron Glassman, Marian W. Boscia

Abstract


Cultivating moral development and social responsibility have long been goals of ABSEL members. This paper presents a three-part exercise that engages students in an active examination of a social issue that pertains to multiple ethical frameworks. Students are asked to consider the effects from the perspective of someone who benefits from inversion, someone who is a victim of inversion, and someone who is a manager who must decide whether or not to engage in inversion. In order to make a socially moral decision, students are guided to consider at least five approaches to ethical decision-making: a legalistic perspective, ethical egoism, utilitarianism, distributive justice, and Kant’s deontological approach. As a result of this exercise, students may have a greater understanding of how their perspective as victim, beneficiary, or decision-maker can influence the way in which they form ethical opinions.

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