Integrity represents the act of behaving ethically, morally, honestly, and honorably, and it is essential that companies exhibit such traits in order to be considered reliable and reputable in the eyes of subordinates. Demonstrations of integrity include respect for the opinions of others, addressing conflicts honestly and respectfully, being ready to do one’s work and fulfill responsibilities, staying away from unethical behaviors, and being a role model. Despite these expectations, there have been cases when companies violated integrity, especially when it comes to underpaying workers. The Center for Public Integrity named organizations that have been consistently “ripping off” their workers without consequences, paying less than the minimum wage, making employees work off the clock, or not paying overtime rates in the recent two years.
An example of an organization significantly underpaying its workers is The Body Shop, a British cosmetics and skincare brand. The Body Shop has been named in the list of up to two hundred businesses that have failed to pay minimum wage to their workers. The investigation was carried out by HM Revenue and Customs, finding that 191 companies did not pay £2.1 million to more than 30,000 employees (Wynn-Davies, 2021). When it comes to The Body Shop, 959 workers did not get their payment in the total amount of £34,670 (Wynn-Davies, 2021). This is in violation of UK’s minimum wage laws aimed at ensuring that a fair day of work is compensated with an appropriate payment for that day, which is why it is unacceptable for any company in the country to allow itself not to pay the required amounts (Shennan, 2021).
According to The Body Ship management, the organization was committed to paying all of their UK employees the UK Real Living Wage. The spokesperson of the company said that the company “fully cooperated with HMRC during a routine audit in 2018, which identified that we needed to reimburse a number of store-based employees for uniform costs” (Wynn-Davies, 2021, para. 3). The explanation for underpaying was that the company had to cover the expenses for the clothing to be worn by store-based colleagues. 47% of breaches included payment being incorrectly deducted from workers’ wages for things such as uniforms and other expenses, another 30% related to the organization failing to pay employees for all the time they had worked, for example, when they worked overtime (Wynn-Davies, 2021). Moreover, 19% paid the incorrect rate of apprenticeship that did not meet the requirements (Wynn-Davies, 2021). It was mentioned that not all underpayments of the minimum wage were done intentionally, but the discovery of the violation suggested that the employer had to abide by the law.
The failure by The Body Shop to pay minimum wages to their workers goes along with the issue of integrity because it is unacceptable not to provide fair compensation. Regardless of the reason of the need to cover the expenses of the organization for workers’ clothing, it is imperative to act with integrity. It is essential to vigilantly protect employees’ rights, with employers that short-change workers not being able to get off lightly. To ensure integrity, employers paying employers less than the minimum wage have to pay back arrears of wages to workers at the currently established wage rates. The financial penalties can reach up to 200% of arrears, capped at around £20,000 per employee that is paid to the government (Wynn-Davies, 2021). Therefore, the penalty for not showing integrity by not paying the required amount to workers must be punished financially.
The problem with The Body Shop not paying the minimum wage is relevant to the problem of integrity because the issue took place during the pandemic. With many stores closing due to the restrictions, employees were left without work, especially when it came to the retail business. Not paying employees who do important work, even during to the pandemic, shows the lack of support for the personal needs and expectations of workers. Fairness in the workplace could significantly strengthen the relationships between employers and employees, creating a favorable environment for work. It is crucial to provide minimum wage because it shows a vital level of support for the benefit of not only corporate reputation but also for society as a whole.
To conclude, the issue of integrity maintenance in the workplace is a concern for companies that need to maintain a good image and create a favorable climate in which workers will find it easy to do their job and feel valued and accepted. The failure of The Body Shop to pay minimum wage to their workers shows that the company does not value its employees and allows itself not to pay workers for some time. Regardless of the reason, there is an abundance of ways in which this could have been avoided for ensuring a positive reputation and establishment of a favorable work environment in which employees feel secure and supported. Since the problem got discussed in the media and the spokespeople of the company had to make a statement it is likely that The Body Shop will avoid similar problems in the future.
References
Wynn-Davies, S. (2021). The Body Shop ‘named and shamed’ for not paying minimum wage. Sussex World. Web.
Shennan, R. (2021). ‘Named and shamed’: The full list of 191 businesses that paid employees less than minimum wage. The Scotsman. Web.