Pay Equity Standards in the Non-Profit Sector

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Pay Equity Standards in the Non-Profit Sector 12/10/2013 Pay Equity Standards in the Non-Profit Sector In an ever changing and unstable economy, nonprofit organizations are experiencing an increase in unethical practices that are on par with those found in the for-profit sector, (Rhode & Packel, 2009). Many of these ethical issues that continue to plague the nonprofit industry are leading to fraud and financial abuse. As a result, this unaddressed misconduct is leading to an erosion of public confidence, and placing the funding capabilities of those groups in jeopardy. While extravagant salaries for CEO’s in the for-profit sector largely are accepted in society, when a nonprofit executive takes home an exorbitant salary, it raises very large ethical concerns. This is especially true when the efforts of the nonprofit are facing tight financial constraints. In addition to these large salaries, the perks and large travel budgets that are given to nonprofit employees and their unpaid board members are raising concerns about the ethics of such liberal compensation while the social needs of the charity is suffering as a result. For the scope of this research paper, the remaining focus will be addressed specifically to the ethical dilemma of pay equity in the non-profit market. And if there were questions that charitable work wasn’t lucrative, think again! In a study of 3,929 charities, the CEO of the Boys and Girls Club of America earned the highest pay in the group with a $1.85 million salary. The National Center for Missing and Exploited Children paid its CEO nearly $1.2 million. (Smith, 2013) The study indicated that CEOs of charities that are devoted to animals and the environment tend to get paid slightly lesser than those that work for human causes. While the lowest paid are religious charities. Among large charitable organizations, 47.7%
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