Theories on the Gender Pay Gap

Theories on the Gender Pay Gap Australian women earn about 83 ¢ cents for every $1 a man earns, according to a new report analysing the gender pay gap. Linda McDowell suggests that gendered assumptions have a range of influences on contemporary workplaces. Analyse the gender pay gap, engaging with the theorists you have studied this semester. INTRODUCTION As Linda McDowell suggests, gendered assumptions coming from heteronormative ideals and rules significantly influence contemporary workplaces. This subsequently results in the gender pay gap (1995). This paper seeks to critically analyse the influences emanating from gendered assumptions on contemporary workplaces.   Additionally, the link between these assumptions and the gender pay gap will be examined. This will be executed through examining the impacts of heteronormativity, which result in a never-ending binarised cycle that perpetuates the gender pay gap. Further, the possible challenges to gendered assumptions introduced by Judith Butler will be examined. However, to ensure a well-rounded analysis, the shortcomings of these challenges, and the subversive power of hegemonic masculinity will also be discussed. WHAT IS THE GENDER PAY GAP? The gender pay gap in society is something that is deemed ‘distressingly evident’, and continues to steadily control women in society (McDowell 2014 p.829). In Australia, the Gender pay gap refers to the discrepancy in pay between men and women in employment. Current statistics highlight that full-time working women earn 84% of a mans pay, making the gender pay gap sit at 16%. (WGEA, 2017, p.8). From this, it is obvious that progress is necessary. However, progress is not only slow, but proving to be difficult, as the gender pay gap twenty years ago was sitting at 17%, meaning that it has taken up to two decades to improve women’s pay by a mere 1% (WGEA, 2017, p.8). This is highly indicative of the stronghold that institutionalised gendered assumptions have over the workforce, even in the twenty-first century. A key theorist on the gender pay gap, Linda McDowell, states that women in the workplace have fought to ‘establish the right to be there at all’ (1995,p.80). This idea that women need to gain rights to earn money is embedded in historical ideologies that are not only out-dated but still guide the lives of many women today. Early feminist interventions to improve access to work and pay rates are still ongoing, such as the Liberal Feminist movement. The Liberal Feminist movement began in the early 1800s, with the aim of providing women with rights equal to those of men in education, the workforce and in society   (Tong, 1989). Although some of the endeavours of the movement have been achieved, such as women acquiring corporate and authoritative jobs that were once male-dominated, there are new barriers (Bishom-Rapp, S & Sargeant, M, 2016). The gender pay gap is one of the most significant new barriers implemented by institutions to prevent further development of gender equality in the workforce. The gender pay gap can be seen as originating from the three ‘glass ceilings’ embedded in contemporary society, and subsequently, contemporary workplaces (Bishom-Rapp, S & Sargeant, M, 2016,p. 102). The term glass ceilings refers to the invisible barriers that women confront as they approach the top of the corporate hierarchy. This term was established by the Glass Ceilings Commission, which sought to identify the glass ceiling barriers, and remove the blockages to advancement of women and minorities in employment (USDOL, 1995). The commission found there were three levels of barriers. The first barrier is relates to prejudice and bias, coming from educational opportunities, or lack thereof. The second barrier is concerned with the internal structures of a business. These structures are controllable by the business. They relate to the corporate climate and what is referred to as ‘pipeline barriers’ that come from lack of training and career development, which leads to the stunting of possible career advancement (Bishom-Rapp, S & Sargeant, M, 2016,p. 103). The final barrier is concerned with the government, and the lack of law enforcement, combined with dissemination of information about glass ceiling issues (Bishom-Rapp, S & Sargeant, M, 2016, p. 103). Although these three barriers cannot solely justify the widespread hold that the gender pay gap has on contemporary workplaces, they seek to pinpoint where the gender pay gap stems from, allowing work to be done in addressing these areas. HETERONORMATIVITY IN CONTEMPORARY WORKFORCES With the fundamental aspects of the gender pay gap now having been examined, the forces that perpetuate the existence of this significant issue within society require analysis. The most pressing force is the concept of heteronormativity, which is a harmful gender assumption that has a substantial influence on contemporary workforces. Heteronormativity can be defined as ‘a body of lifestyle norms, in which people tend to reproduce distinct and complementary genders (man and woman)’ (Herz & Johannson, 2015, p.1011). In contemporary society, heteronormativity is deemed to keep women in (within its confines) and also keeps women down, that is, subordinated (Jackson, 1999). Feminist discourse surrounding heteronormativity rose in second-wave feminism, the movement that broadened the feminist debate to address issues of inequality and sexuality, as well as workplace difficulties for women (Evans 1995). However, the origins of the ‘normalised’ heterosexual label within society can go back to the historical and cultural depictions of men and women from the eighteenth century (Boe & Coykendall, 2014). Though heteronormativity has a substantial presence within history and society, its impact as a gendered assumption within contemporary workforces is substantial. As heteronormativity conditions men and women to act a certain way according to their sex (which is also historically and socially defined), it leaves women boxed in.   Heteronormativity and the strict, reinforced gender binaries within society reflect the systems of oppression, and the construction of gender hierarchies (Herz & Johannson, 2015, p.1011). In order to maintain a hold on society, ideas of conforming to hyper-heteronormative behaviours are reinforced by institutions within society. Subsequently, these societal influences reverberate into education, family-life and in particular, the workforce. Although women have gained the right to coexist with men in contemporary workplaces, strict gender binaries prevent women from career development, strengthened abilities, and subsequently reinforce the gender-pay gap. The work of Angela McRobbie, a key theorist in the area of gender inequality in the workforce is highly pertinent to this discussion. McRobbie’s concept of the post-feminist masquerade highlights the harmful impact of gender assumptions in contemporary workforces (2007). McRobbie critiques the hyper-gendered performances women have been encouraged to engage in, as they place emphasis on the sexed body, and in turn gender differences. The ‘post-feminist masquerade’ is a means for patriarchal law and hegemonic masculinity to gain dominance against feminism (McRobbie, 2007, p. 723). Hegemonic masculinity refers to the configuration of â€Å"gender practice, which embodies the currently accepted answer to the problem of legitimacy of patriarchy which guarantees the dominant position of men, and the subordination of women† (Bartholomaeus, 2013, p.280). This is done through encouraging women to engage in feminine consumer culture, so as to reinscribe their femini nity in the workplace (McRobbie, 2007). These hyper-gendered performances include subscribing to common feminine practices, such as wearing tight skirts, high heels and a face full of make up to assert their femininity (McRobbie, 2007, p.722).   As women are encouraged to perform hyper-femininity, institutions are able to reinforce fear of retribution from abandoning heteronormativity in the workplace. This forces women back within the rigid gender binary, creating an even greater divide between men and women in the workspace, ultimately perpetuating the gender pay gap. THE LINK TO THE GENDER PAY GAP AND THE REPERCUSSIONS Based on the analysis to date, the harmful nature of gender assumptions in the workplace has been examined. However, the way that these gendered assumptions impact the gender pay gap requires concentrated analysis. Gender assumptions have a direct link to the gender pay gap, as they dictate the field of work that many women are in. Women are significantly overrepresented in the lowest paying occupations, as female-dominated jobs pay far less than male-dominated jobs (Ting, 2017). Feminised jobs include those relating to care-taking or domestic tasks, such as nursing, cleaning and childcare. These sex-segregated jobs are clearly indicative of the roles ascribed to women within heterosexual discourse. These feminised jobs stems from what is known as the caregiver model. This model is a historical regime that took the inherent caregiver role of women, and limited their employment to areas relating to this heteronormative ideal (McRobbie, 2007).   As more women are found in jobs that abide by the caregiver model, the influence of this troublesome ancient structure today is evident (McRobbie, 2007, p.730) However, this caregiver model cannot explain the fact that the gender pay gap in Australia has been found to exist in more than 1,000 occupations (Ting, 2017). This is due to the fact that men in workplaces are promoted into higher positions rather than their female counterparts (Jaffee, 1989, p.377). This is problematic, as there is somewhat a double-disadvantage coming from these jobs. Women in feminised occupations are â€Å"twice disadvantaged- first by being in a â€Å"female† field, and second by being a woman in that field, since men make more than women, even in â€Å"female† fields†Ã¢â‚¬ (Bishom-Rapp & Sargeant, 2016, p. 137). Additionally, women in corporate jobs face vertical segregation. Vertical segregation refers to the exclusion of women from organisational positions of autonomy and authority, due to the sex differences within workplaces (Jaffee, 1989, p.387).   Thus, the gender pay gap not only stems from the one area of feminised jobs, but also from a lack of career advancement that is within the power of organisations in society. According to Wolf and Fligstein, the sexual differences in power in the work setting ‘are an important factor generating inequality in earnings between men and women’ (1979, 235). This highlights how ideas about the femininity of women drive contemporary workforce standards, as women are expected to perform work according to their performance of heterosexuality. Further, the long-term disadvantages that come from gendered assumptions and the subsequent gender pay gap will be critically analysed. Not only does the gender pay gap lead to disadvantage for women in social, financial and personal situations, but also leads to lifetime disadvantage. Lifetime disadvantage refers to the factors that lead to ‘the retirement ills of many women’ (Bishom-Rapp & Sargeant, 2016, p. 190). That is, the risks that women face from being unequally paid. As women go into retirement, they are at risk of experiencing the critical impact of the gender pay gap. Women subsequently earn less over their lifetime, which results in lower superannuation, and a risk of poverty in old age. In 2012, 21.7% of women aged over 65 were at risk of poverty, whereas only 16.3% of men were likely to experience poverty (Bishom-Rapp & Sargeant, 2016, p. 116). Gender inequality in the workforce not only reflects current social position and power inequalities, but it also leads to detrimental outcomes of lifetime disadvantage for women. TACKLING THE GENDER BINARY Although gendered assumptions continue to drive workplaces, there are ways to tackle this blatant discrimination that women face in employment. According to leading gender theorist, Judith Butler, there is a means to challenge heteronormativity, which forms the foundation for the gender pay gap. Butler believes that gender is reiterated through regulatory practices, and is culturally constructed through the heterosexual matrix (Butler, 1990, p.9). The heterosexual matrix refers to the re-stabilisation of gender through women repeatedly engaging in feminised behaviours and appearances (Butler, 1990). Therefore, the sexed body only gains significance from its constant reification and institutionalised endorsement within society. As the gender binary requires engagement by society, an inherent instability within this social construct can be made out (Butler, 1990, p11). Because of this, women are able to exploit gendered assumptions through their constant reinforcement, as it becomes obvious to those looking to challenge it. Women in the workforce have already taken charge in this area, as the overall gender pay gap in full-time employment decreased in 2015 to 2016 (WGEA, 2017,p.15). By viewing sex and gender as something culturally, historically and socially constructed, society will be able to define themselves with their own limitations and freedoms by challenging these constructed ideals. In particular, the feminist movement will make significant headway in this area through challenging normative heterosexuality. This effect will reverberate in the workforce, as the structures seeking to restrain women from challenging hegemonic masculinity will destabilise. The gender pay gap, in particular, has improved among men and women in trades including machinery operating and building, decreasing by 4% in terms of total remuneration between 2015 and 2016 (WGEA, 2017, p. 16). This is indicative of the progress being made by women in challenging the preconceived capabilities of their bodies. By going beyond the behaviours of gender that limit their capabilities, they are able to challenge both gender constructs and inequality in the workforce. As McDowell suggests, women’s sexed bodies are threatening in the workplace for the very reason that they are not meant to be there -‘They challenge the order of things’ (1995,p.80). Not only have women challenged order through entering the workforce; they have also challenged the very structured foundation of the order.   This provides women with the means to break through the metaphorical glass ceilings that limit equality in the workplace. Additionally, if women persevered with obtaining both equality and equity, it would ‘liberate not only women but also human personality from the straitjacket of gender’ (Herz & Johannson, 2015, p.1010). Therefore, by furthering the feminist movement, those reinforcing hegemonic masculinity and the institutions that enforce gendered assumptions will be disembodied. This includes the governing of each individual of society through the heterosexual matrix. THE PARADOX THAT IS GENDER EQUALITY In current gender studies, there are now ways to challenge gender assumptions that feed the gender pay gap. However, the gender pay gap is not in steady decline, and is expected to hold its position, if not rise in areas of managerial roles (WGEA, 2017, p. 6). As individuals are provided with the previously mentioned means to challenge the reification of gender binaries, the institutional stronghold over sex and gender conceptions tightens, finding new ways to subvert these challenges. By virtue of the fact that women are entering the workforce and fighting for equal pay, hegemonic masculinity is weakened. Because of this, institutions use any perceived gender equality improvements to set the fight back, rather than enhance it. This can be seen through the concept of ‘attribution of capacity’ enunciated by Angela McRobbie (2007). This attribution of capacity refers to the freedom given to women in the workforce. In a post-feminist context, women are provided with roles of accountability and autonomy, with the expectation of embodying a strong, can-do attitude to work. However, McRobbie argues that these improvements are instead reinscription of hegemonic masculinity, leading to drawbacks in the fight for equal pay. Women are ‘invited to recognise themselves as privileged subjects’ and are expected to be grateful for achieving   (with a fight) the fundamental human right of equality (McRobbie, 2007, p, 722). As institutions have relinquished this control over who enters the workforce, they apply new barriers under the faà §ade of equality. Women are now expected to be accomplished subjects who can come forward, however this is only on the condition that feminism fades away despit e neither equality nor equity being achieved (McRobbie, 2007, p.720). Therein lies what Raewyn Connell refers to as the patriarchal dividend, which is the advantage given to men as a group from maintaining inequality within society (2009). Monetary income from the workforce is just one of the benefits, in addition to respect, safety, institutional power and autonomy. (Connell, 2009, p.142). From the reinforcement of hegemony, the patriarchal dividend and gender binaries within society as a response to feminist movements, women are once again placed back into the labels and categories that they first sought to escape from, subverting years of feminist work. Additionally, the critique of the ‘Virgin Atlantic: 25 years: Still red-hot’ highlights the drawback that women face in the postfeminist struggle for equality (Duffy et al., 2016). The article critiques the marketing strategies used to evoke idealised gender appearances in a postmodern context in order to facilitate the perpetuation of gender binaries. The advertisement ultimately utilises ‘good old-fashioned sexism while simultaneously distancing themselves from it’, which suggests that the institutions that seek to retain a hold over postmodern feminism have utilised the newfound freedom of women and bent it to their will, making women slaves in their own emancipation (Duffy et al., 2016, p. 266). CONCLUSION Ultimately, by examining the structures within the contemporary workforce, the gender pay gap has been critically analysed. By examining the institutionalised gender binaries entrenched within society, the root causes of the gender pay gap have been established and evaluated. The analysis reveals that through heteronormativity and the enforcement of gender binaries, the gender pay gap is perpetually reified, with lifelong effects. Although Butler provides an outlet for change through challenging these binaries, the institutional stronghold over the sexed body and its link to societal outcomes proves to be rigidly in place, as discussed by a key theorist studied within the unit, Angela McRobbie. REFERENCE LIST: 1. Bartholomaeus, C (2013) ‘Colluding With or Challenging Hegemonic Masculinity’.  Australian Feminist Studies, vol. 28, pp. 279-293. 2. Bishom-Rapp, S & Sargeant, M (2016) Lifetime disadvantage, discrimination and the gendered workforce. Cambridge University press. 3. Boe, A & Coykendall, A (2014) Heteronormativity in Eighteenth-century Literature and Culture. Ashgate publications. 4. Butler, J. (1990). Gender Trouble: Feminism and the Subversion of Identity, New York: Routledge, pp.1-19. 5. Connell, R (2009). Gender Politics.  Gender. Pp.136–51. Cambridge: Polity Press. 6. Duffy, K, Hancock, P, & Tyler, M (2016) ‘Still red-hot? Postfeminism and gender subjectivity in the airline industry’. Gender, work and organization, vol. 24, pp. 260-273. 7. Evans, J (1995) Feminist theory today: An introduction to second-wave feminism. Sage publications. 8. Herz, M & Johansson, T (2015). ‘The normativity of the concept of heteronormativity’. Journal of Homosexuality. Pp. 1009- 10209. 9. Jackson, S (1999) Heterosexuality in question. Sage publications. 10. Jaffee, D (1989) ‘Gender inequality in workplace autonomy and authority’. Social science quarterly, vol. 70, pp. 375-390 11. McDowell, L (1995) Body work: heterosexual gender performances in city workplaces. (Routledge) 12. McDowell, L (2014) ‘Gender, work employment and society: Feminist reflections on community and change’. Work, employment & society. pp.825-837. 13. McRobbie, A (2007) ‘Top Girls? Young women and the post-feminist sexual contract’. Cultural Studies. pp.718-737. 14. Ting, I 2017. ‘The gender income gap in more than 1000 occupations, in one chart’, The Age. Viewed: 22 April 2017.

Perception of the African American Males Essay

African Americans males are considered dangerous based on a false identity, misconceptions, and misinformation that are available in the media; this includes but is not limited to rap music, news, and TV shows. This misconception can be traced as far back as slavery. The perception of blacks’ males as being dangerous began when the slave came to America on 1619. Due to the situation of being treated as property, to be freely bought and sold, and that the owner was free to split up a couple or family at any time simply by selling some of his/her slaves. African slaves started to behave in a hostile manner. Because of their behavior the Caucasians immediately started to classify the slaves as being dangerous, and they need to be tame as if they were wild animals. This lead the slave masters to start putting chain and walking around with their rifles when they would be in the fields with them. As it was stated in ‘The Brut Caricature†, it portrays black men as innately savage, animalistic, destructive, and criminal; deserving punishment, and maybe death. Due to the negative influence and portrayals of African Americans males, these individuals are often misguided. The nature vs. nurture theory comes into play. I. e. Low income black males are predisposed to innate qualities, while behavioral traits are learned i. e. through the media. â€Å"Get Rich or Die Trying† is the mentality of most African American males with the help of the media. Most males see themselves as rap stars, sports stars, and or comedians. There is limited exposure of African American as doctors or lawyers at an early age its learned that their chance of success in life is limited. The men in the low income communities have the tendencies of wanting to become like the â€Å"white man†. The main problem is that they portray the idea of â€Å"get rich quick†. These perceptions cause them to turn into drugs, and from there into violence and crimes. According to a 2006 National Urban League report a third of black males will spend time in prison before their 35th birthday. This fact could be because of the high school dropouts and the poor understanding they get from society. Yes, I said the poor understanding from society, because black men are one of the least understood groups in our country. People don’t look at the conditions that cause a lot of black men to be in the situations they’re in today, they just look at the results. † According to my findings, among men, blacks (28. 5%) are about six times more likely than whites (4. 4%) to be admitted to prison during their life. I also noted that there are more black males in prison in America than are in college. (The Black and White of Justice, Freedom Magazine). Volume 28. Another consequence for African Americans it’s that the â€Å"monster† image given by the Caucasian people are carry by the poor African American people. According to Stallworth (early 1990’s) young black males continue to follow patterns of slavery times. Many fulfill white America’s image of them legitimately by becoming successful gangster rappers, others fulfill these image illegitimately by becoming â€Å"bad niggers† Rappers, therefore reinforce the popular belief that as â€Å"bad ass niggers† young black can achieve fame, recognition, and sense of being (somebody). If they lose, however, they can face a long stay in our jails and prisons or even bodily injury and death. Which it’s happening now days. Media and the African American Males. According to the book ‘Black Demons’ there is a â€Å"black pathology† a fundamental weakness in African American families that can be traced to their experiences as slaves. The news media, for example, have taken the lead in equating young African American males with aggressiveness, lawlessness, and violence. Likewise, the entertainment media have eagerly taken their cue from the journalists, and these false images not only affect race relationship but also create a self felling prophecy for African American youngsters, whose limits of achievement can be determined for them by suggestions in the media. A common stereotype about African American men is that they are engage in drug abuse a disproportionate way which it’s not true because according to statistics from the US department of Health and Human services that although eight percent of African American males cocaine, eleven percent of whites have use the same drug. This is, however, not the impression that we get from watching the evening local news or even an episode of television program COPS. Blacks Stereotyped of Being Intellectually Inferior and Criminals. Another common negative stereotype, establishes the African American male as intellectually inferior. Studies directed by psychologist Claude Stale, indicate that African American teenagers are aware that they are stigmatized as being intellectually inferior and the go to school bearing what psychologist Claude has called a â€Å"burden of suspicion† Such burden can affect their attitudes and achievements. These shadows hang over stigmatized people no matter their status or accomplishments. These stigmas have the potential to roll them of their individually and debilitate their attempts to break out of the stereotypical roles. Blacks are the repository for the American fear of crime. Ask anyone, of any race, to picture a criminal and the image will have a black face. The linked between blackness and criminality it’s routinized by terms such a â€Å"black-on-black crimes† or â€Å"black crimes†. I also have to mention the ‘black brute stereotype arise in the early 1870’s. Such stereotype is one of the pictures white Americans have in their heads about black men: as savage, violent amazingly strong and not caring about right and wrong. Even today according to my findings , blacks are three times more likely to be physically threatened, harmed or killed because if their race than whites. So this idea of whites as peaceful and blacks ad threatening to white is not rooted in fact. It is rooted in something else. Yes, there are black men who are violent and savage, who do unspeakable things. But there are white men like that too. In either case they are hardly common enough to reasonably determine one’s ideas about the ordinary people of their race. Rap Music and its influence in African American males Rap music celebrates vulgarity. Indeed, it markets vulgarity; that is its product. It is the vulgar excesses of rap-the profanity, the over-sized jewelry, the naked acquisitiveness, the sexual aggressiveness-that are its hallmarks. New media attention on rap music seems obsessed on instances of violence at rap concerts, rap producers’ illegal use of musical samples, gangster raps’ lurid fanatics of cop killing, and female dismemberment, and Black Nationalist rappers suggestions that white peoples are devils disciples. It seems that rappers to notice the influence they have in people mostly African American people, and by say this type of things they send an incorrect message to their fanatics and other people in general. In most of the songs you can find a high level of aggravated language, images, and high crimes scenarios. . According to the authors of these songs, they just make it for the entertainment of their fans without thinking of the image they are given of their people and themselves. One question and many answers from our society I took the duty to find out the perception that common US citizens have towards African American males, by submitting a question on (answersyahoo. com) people from all around our country answered to my question. The following are the answers to my survey. †¢ People poisonous stereotypes the black males with the â€Å"5 Ds†Ã¢â‚¬â€Ã¢â‚¬Å"Dumb, deprived, dangerous, deviant, and disturbed†. †¢ Lazy & uneducated †¢ Drug dealers †¢ Poor †¢ Hate other races †¢ They are dirty †¢ Loud, obnoxious, rude My Opinion. For these reasons and many other African American males are consider dangerous for our society. But stop and think for a minute, are they all really dangerous or this is only a big misunderstanding? Can we judge them all as a whole, or there are some of them that can be excluded of being stereotyped as â€Å"dangerous†, â€Å"criminal†, etc? In my opinion we cannot judged them all as a whole and we should also try to understand the reasons behind their actions. We have to learn how to be open minded and see things from different perspectives. We also have to realize that not everything that we see and listen in the media is always the truth, there is always a second part of a story and most of the time we fail to look for that second part. African American behavior has been shaped by us (society) because of our mistreatment towards them and our racism†¦ I believe if we change the way we look at them and express about them, they will change their behavior and we no longer will have to use the statement of â€Å"dangerous† when referring to a African American male. Conclusion. To conclude to this issue in question I just have to say ‘Black or white, God gave us the opportunity to succeed, and regardless of the situation we are dealt, we can all live the life we imagined. After s days of research I can’t say there is a wrong or right theory about African American males because everyone has their own way of thinking and their own opinion. But just to add ‘the world would be shocked to know that the majority of black men make the right choices and build successful families and careers every day in America, yet are rarely discussed in the headlines’. Bibliogaphy.

Ethical Dilemmas Facing Non-Profit Hospital Ceo Compensation

Ethical Dilemmas Facing Non-Profit Hospital CEO Compensation Ethical Dilemmas Facing Non-Profit Hospital CEO Compensation Executive Summary This essay deals with the unethical prevalence of excessive compensation packages granted to nonprofit hospital executives. Nonprofits are highly complex organizations and are vital to the community’s in which they serves. Therefore, it is essential for these organizations to appoint highly motivated individuals knowledgeable of the healthcare industry and capable of managing and leading a hospital during a national recession while health reform is changing the culture of the US healthcare system.However, many nonprofit organization’s tax-exempt statuses should be rescinded for allocating leftover resources to hospital executives in the form of exorbitant salaries, benefits, and other incentives. It is these hefty salaries and benefits that are restricting hospitals from carrying out their priority mission as public charities. These CEO’s exorbitant compensation packages are further straining the hospital’s ability to provide a social benefit, suggestion that these tax-exempt organizations are acting unethically, in that financial gain is taking precedents over social responsibilities.Ethical Dilemmas Facing Non-Profit Hospital CEO Compensation Communities across the nation have seen the coarse effects of the delicate financial status of our country and the effects it has on healthcare organization within their community. In a time difficult for nonprofit healthcare organizations to operate at a profit, many organizations are left with no choice but to cut essential departments, programs, and employees, leaving many patients that have relied on these organizations, out in the cold.Recently, because of these financial issues, the ethical principles of nonprofits regarding CEO compensation have been under heavy scrutiny by both the public, and the Internal Revenue Service for excessive salaries and benefits. Nonprofit hospitals are organization that are exempt from paying income, sales, and property taxes, and receive charitable donations and massive government subsidies with the understanding that these subsidies are issued in order for these hospitals to fulfill their duty as a community service and benefit.Excessively high compensation for hospital executives is an unethical epidemic facing many organizations, particularly large and urban hospitals, that is restricting hospitals from carrying out its duties because of additional financial constraint. Salaries for nonprofit hospital executives should be capped as they limit and often restrict hospitals to better fulfill their charitable, social missions. Healthcare is beginning to mirror corporate businesses with many hospital CEO salaries competitively rivaling those of corporate executives.However, organizational goals and missions are nearly completely diametrical. Healthcare organizations are unlike other corporations i n that corporations are in existence with the ultimate goal of financial gain. Nonprofit hospitals carry missions such as to provide high-quality, cost-effective healthcare services to all patients regardless of ability to pay,  to offer training, to conduct clinical research, to serve the community as a public health advocate, and to provide support and services which respond to the area's health care needs through health education, health promotion, and access to care.Hospitals have the ethical responsibility to pursue a social mission, including providing uncompensated care and community outreach, but when their executives boast salaries with staggering seven figure salaries, the charitable work of the organization becomes obnubilated by an unmistakable pursuit of financial gain. The IRS reported that the average hospital CEO received $490,000 in total compensation in 2006, and top executives at twenty of the larger hospitals in the nation raked in an average of $1. 4 million a year, whereas uncompensated and free care expenditures as a percentage of hospital revenues averaged about 7 percent (Terry, K. 009). There is a large margin in executive compensation that is dependent on features such as geographical location and size. According to the â€Å"Charity Navigator,† in 2008, the median CEO salary in the Northeast was $351,000 for large hospitals, and $120,000 for small hospitals. In the Mountain West region of the US, the median salaries for a large hospital was $194,374, and only $80,790 for small hospitals (Charity Navigator 2010) Seven figure salaries are not a normal occurrence among hospital and health system executives.However, according to the Chronicle of Philanthropy, which does an annual national survey of nonprofit salaries, found that the five top-paid nonprofit chief executives in 2003 all worked for hospitals. On top of these exaggerated salaries are the attractive benefits such as bonuses, deferred income, retirement plans, countr y club memberships, and countless other perks that are attracting the wrong kind of leaders to these organizations. Hospitals must provide their social responsibility to the community before spending outrageous salaries for chief executives.It is an unethical practice to pay executive teams more than the total spending on the necessitous care of the community. For example, the survey identified 17 hospitals in California where the total compensation to CEO’s alone exceeded the total cost of charity care of their respective organizations. These excessive salaries could have easily paid hospital bills for uninsured individuals, or could have been used to fund educational programs for the community, provide free immunizations to the public, and or many other beneficial alternatives that could have had a big impact on the community’s health (Mahar, M. 011). It is unjustified for executives to be compensated in amounts greater than $1 million. By capping executive salary at this figure, funds can be reprioritized into community programs such as parenting support programs, screening programs, women, children and infant development clinics, which can be implemented to provide nutrition and educational information for new mothers, and social work programs that could assist individuals and families that face medical related problems, and those who need emotional support.Instead, greed has played a big factor in CEO initiatives. It has not been of rare occurrence for Chief executives to siphon off millions of tax dollars that should be going towards access and quality care. It is unethical for executives at nonprofit organizations to exploit their federally granted nontaxable status to enrich themselves (Swiatek, J. , 2005) Attorney General Michael A. Delaney of New Hampshire announced in May of 2010 that he would review the compensation of CEO’s at more than twenty nonprofit hospitals throughout the state.In a report that reviewed the proposed merg er of two health systems, Mr. Delaney expressed his concern about the pay for Alyson Pitman Giles, President ; CEO of Catholic Medical Center, who earned $1. 4 million in 2009. He stated, â€Å"Nonprofit leaders must be aware that they are the stewards of the charitable assets they oversee, and those assets are held in trust for charitable purposes, not individual gain,† (Gose, B. , 2010)Non-profit hospitals must provide a minimum of charity care in order to receive its tax-free title and its federal grants. However, many hospitals, although they meet the minimum, make no effort to go above and beyond this threshold, instead rewarding these left over funds to be dispersed to the organization’s high-end executives in the form of company cars and country club memberships (Mahar, M. , 2011). These lavish executive benefits in no way benefit the organization. They are unethical and borderline unlawful.Federal law states that non-profit, tax-exempt organizations cannot oper ate to the financial benefit of any individual. In the mid-1990s, Congress passed intermediate sanctions laws that have given the IRS authority to require individuals who make excessive compensation from a non-profit to pay the money back, plus a 25% fin. (Appleby, J. , 2004). It is a common suggestion to compensate executives to match their performance at the organization in which they lead. However there are different ways to measure hospital performance.There is a measure of how well a CEO does in leading his or her hospital in providing beneficial programs to the community; for example, uncompensated care for the poor. Another way to measure or his or her success is by how well CEO’s implement new programs and services that will in hopes attract private pay customers like specialized surgery centers, imaging centers, and cardiac centers. Many healthcare organizations across the nation are expanding and adding unique services that are attracting private pay customers, givi ng hospitals the opportunity to increase profits.This practice has its benefits in both providing a wider range of care for those who can pay, and offering the hospital more means of financial gain, however, in many organizations, this has established precedence over the social missions of nonprofit organizations. In a study conducted by Jeffrey Kramer, PHD, and Rexford E. Santerre, PhD, 30 hospitals in Connecticut were examined on how various measures of performance affect the compensation of CEO’s, which throughout the state, range from a modest $136,000 to an exorbitant $2 million plus salary.The study shows that CEO compensation is directly related to organizational size, stating, â€Å"A 10 percent increase in the number of beds results in an 8 percent increase in CEO pay. † Another 8% increase in pay is attributed to the CEO if the occupancy rate rises by 10%. â€Å"In contrast, providing more uncompensated care and admitting an additional public-pay patient low ers the compensation of hospital CEOs. The results of the study reveal that hospital CEO’s (certainly in the state of Connecticut) have financial incentive to increase the occupancy of privately insured patients rather than uncompensated care and public paid insurance patients, also suggesting that economic performance takes priority over charitable performance (Kramer, J. , ; Santerre, R. E). Notwithstanding, A non-distribution constraint on nonprofit organizations means that excessive profits cannot be distributed among those who make decisions within the organization; this includes employees, managers, and board members.Hence, the nonprofit distinction ought to mean hospital executives are paid based upon their attainment at fulfilling the charitable and social mission of the organization. Nonprofit hospitals have ethical responsibilities and obligations to serve the community, even in times of financial struggle. It is important for these organizations to recruit professi onals that demonstrate the same ideals and values of the organization. Healthcare leaders whose goal is to produce a healthier population through increased public programs and access to care is the type of leader that hospitals and health systems should strive to obtain.Accomplished leaders can be found and appointed as a nonprofit CEO for a more reasonable (6 figure) salary if he or she is in the healthcare industry not for riches, but for offering a greater good. The American Red Cross for example, took in $3. 3 billion in revenue in 2009, however Red Cross CEO Gail McGovern took in only $456,000, according to the organization's IRS filing (Hancock, J. , 2011). McGovern is an example of a leader who recognizes the ethical financial dilemmas of her organization, and will willingly take a more appropriate salary in order to accomplish the organization’s goals.There is no mention of executive compensation in the Patient Protection & Affordable Care Act besides the suggestion t hat compensation should be â€Å"reasonable†. Hospital executives should be paid based on their production within the organization and their contribution to their community. As a nonprofit organization, pursuing the charitable mission should take greatest importance in determining final executive compensation. This aspect of an organization’s mission should never be overshadowed by hospital expansion, financial well-being, or increased services and technology.Although these elements are incredibly important for the organization, the insured population, and the advancement of medicine, it is unethical for charitable organizations to use government subsidies for anything other than charity care and social benefit. Budget cuts, along with a feeble economy has resulted in hospitals engaging in mass layoffs to conserve resources. According to the US Bureau of Labor Statistics, the month of August (2011) consisted of thirteen mass layoffs in hospitals, totaling in over 1,000 jobs lost. The month before consisted of ten mass layoffs with over 600 lost jobs.This puts hospitals on pace for nearly 130 mass layoffs and over 8,000 jobs lost in 2011. To make matters seem worse, in an article posted by FierceHealthcare, a leading source of healthcare management news for healthcare industry executives, AMA data claims that a 2 percent cut in the Medicare program would lead to the loss of 195,000 jobs by 2021 (Caramenico, A. , 2011). These layoffs would be decreased immensely if hospital executives received more appropriate salaries. Excessive salaries are not only draining resources from the hospital, but are also threatening the jobs of nurses, administrators, and other hospital employees.These staff members, who are on an opposite spectrum in terms of salary, face the possibility of layoffs at any time of financial vulnerability. The decision to cut jobs in non-profit hospitals while executives are still receiving Wall Street salaries is unethical of the boar d of trustees. In financially difficult times, executives have the ethical responsibility to take pay cuts in order to maintain the organization’s social reputation. Hospitals are extremely complex organizations that more often than not are the single largest employers in communities across the country.Hospital executives are responsible for making important decisions that will ultimately affect thousands of people. Many CEO’s and members of boards of trustees argue that executive roles are far too important to not have competitive compensation packages. It is argued that million dollar salaries, added bonuses, hefty retirement plans, and other attractive perks are the only way to attract highly effective leaders capable of running a hospital in a time of economic struggle and health reform. Many hospitals have net revenues exceeding the billion-dollar mark, making it easier of Board members to justify seven-figure salaries for CEO’s.President and CEO of New Yor k-Presbyterian Hospital, Dr. Herbert Pardes inherited a $9. 8 million package in 2008 that included $6. 8 million of previously awarded retirement benefits, which he'll receive when he retires at the end of 2011. If Dr. Pardes worked at a public company of about the same size, his salary would be outrageously low. In 2009, Nasdaq CEO Robert Griefeld's total compensation exceeded $13 million while his company's revenues were only $3. 4 billion. New York-Presbyterian has 2,353 beds and pulled in $3 billion in revenue in 2008, up 3% from 2007. A The Greater New York Hospital Association spokesman defended Dr.Pardes’ salary, stating, â€Å"Dr. Pardes' pay reflects his extraordinary success leading this large and complex organization, and exceeding objectives to enhance patient care, strengthen financial stability and promote community health in a very challenging environment. † (Benson, B. , 2010) The Greater New York Hospital Association stated that â€Å"CEO salaries re flect not only a national demand for their services, but also the skills and leadership necessary to operate large, extremely complex medical centers that are open 24/7, generate millions and sometimes billions in revenue, and are often the largest employer in the community. (Benson 2010) Leading one of these charities requires an individual that possesses an understanding of the issues that are unique to the charity’s mission as well as a high level of fundraising and management expertise. Attracting and retaining that type of talent requires a competitive level of compensation as dictated by the marketplace. It is important for donors to understand that since the average charity CEO earns roughly $150,000, a six-figure salary is not necessarily a sign of excessive pay for a mid to large sized charity. Charity Navigator 2010) Today, executives are being paid to keep their organizations afloat amid closings of many hospitals nationwide due to persistently poor financial perfo rmances. CEO’s face constant pressure to hire more staff, increase nurses’ salaries, implement more community programs, and invest in expensive technologies, while at the same time they are aware that insurers want to pay as little as possible. The CEO undoubtedly faces many challenges, and the responsibilities are incredibly complex.Even with a nonprofit status, many oppose executive compensation cuts, arguing that these organizational leaders deserve salaries competitive to corporate pay. Trustees pay executives based on total revenues, as well as how effective they are in providing patient safety, clinical quality, attentive service, and cost effectiveness. Hospital executive compensation should be based on a number of elements, such as total revenue, the size of the organization, as well as the amount and effectiveness of community benefit.Instead of offering company cars and extravagant country club memberships, executives should be entitled to financial incentive s to implement more community benefit programs. Peter Baristone, President & CEO of Mission Hospital located in Laguna Beach, CA referred to his own compensation strategy stating: Collaborating with the community to identify, understand, and respond to community needs that have an impact on health and quality of life is a major goal for all CEO’s. We establish specific quantifiable targets for each goal.One-seventh of my bonus depends on reaching the targets for community health and benefit. (Bogue, R, 1999). I recommend that all nonprofit Boards assemble an independent compensation committee, responsible for reviewing the CEO’s performance and ensuring that the CEO’s pay is appropriate. At its highest, CEO compensation should be capped at $1 million, thus allowing these large, urban hospitals to recycle resources back into the hospital and community programs, while at the same time offering executives a market competitive salary, fit for a CEO.At a time where n early 20% of adults are uninsured and community residents are in need of help in the form of various programs, it is more important than ever for nonprofit hospitals to perform its duty of being a â€Å"non-profit† organization and be of greater service to the community in which it serves. Nonprofits not only have the legal responsibility to implement such benefits, but also have the moral and ethical duty to carry out their social missions to the best of their ability, and as far as their recourses let them.By capping executive compensation, these resources can be better allocated to provide more charity care, to implement more community programs and benefits to produce a healthier community, and ensure fairness among staff salaries. â€Å"Hospitals are unquestionably complex institutions that require skilled managers, but there's no place for Wall Street-level salaries if we want an affordable health care system. † –Mark Scherzer (Benson, B. , 2010) Works Cite d: Terry, K. (2009, February 13). IRS Report Puts Tax-Exempt Hospitals Under Microscope – CBS News.Breaking News Headlines: Business, Entertainment & World News – CBS News. Retrieved December 5, 2011, from http://www. cbsnews. com/8301-505123_162- 43840159/irs-report-puts-tax-exempt-hospitals-under-microscope/? tag=bnetdoma in Charity Navigator. (n. d. ). 2010 Compensation Study. Retrieved October 15, 2011, from www. charitynavigator. org/__asset__/st Mahar, M. (2011, March 24). Health Beat: High CEO Salaries at Nonprofit Hospitals Under Scrutiny†¦Once Again. Health Beat. Retrieved November 5, 2011, from http://www. healthbeatblog. om/2011/03/high-ceo-salaries-at- Swiatek, J. (2005, February 6). Pay is healthy for hospitals' executives Corporate-like salaries seen at nonprofits' top jobs. The Indianapolis Star. Retrieved September 29, 2011, from www2. indystar. com/articles/6/220029-4276-P. html Gose, B. (2010). Nonprofit CEO Pay Under Scrutiny. Chronicle Of Phila nthropy, 22(16), 8. Appleby, J. , & TODAY, U. (2004, September 30). USATODAY. com – IRS looking closely at what non-profits pay. News, Travel, Weather, Entertainment, Sports, Technology, U. S. & World – USATODAY. com.Retrieved November 5, 2011, from http://www. usatoday. com/money/companies/management/2004-09-30-salary- Kramer, J. , & Santerre, R. E. (2010). Not-for-Profit Hospital CEO Performance and Pay: Some Evidence from Connecticut. Inquiry, 47(3), 242-251 Hancock, J. (2011, August 28). For hospitals, ‘nonprofit' stops with CEO's paycheck – Baltimore Sun. Featured Articles From The Baltimore Sun. Retrieved November 4, 2011, from http://articles. baltimoresun. com/2010-08-29/health/bs-bz-hancock-hospital-pay-20100829_1_hospitals-executive-compensation-ceos Caramenico, A. 2011, October 4). More mass layoffs as hospitals face payment cuts – FierceHealthcare. Healthcare News, Hospital News, Healthcare Companies — Fierce Healthcare. Retrieved October 26, 2011, from http://www. fiercehealthcare. com/story/more-mass-layoffs- hospitals-face-payment-cuts/2011-10-04 Benson, B. (2010). Hospital execs enjoy healthy paydays. (cover story). Crain's New York Business, 26(12), 1-15. Bogue, R. (1999). An incentive for community health. Linking CEO compensation to community goals. Trustee: The Journal For Hospital Governing Boards, 52(5), 15-19.

How Technology Has Changed Today s General Public...

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