Biblio Credit Union: Social Inequality and the Living Wage

In 2016, the community engagement manager at Biblio Credit Union, a financial institution in Ontario, Canada, was concerned about rising social inequality. The company was respected in the community for its high business ethics and careful attention to corporate social responsibility. Although most of the company’s employees were paid well, some employees received little more than the minimum wage. The community engagement manager wondered how to reduce that inequality. If the company were to give a raise to the lowest paid employees, all other employees would likely also expect a pay increase. Therefore, to bring all employees to what was considered to be a living wage, the company would need to adjust its pay scale. But would the credit union’s board of directors support a sudden change in expenses? Would the increased expenses be offset by a corresponding increase in revenues? Would new customers pay more for the services of a living wage employer? The company needed to weigh the implementation of a living wage against the possibility of declining revenues, which could place the company in serious jeopardy.

This case is suitable for undergraduate and graduate courses in business ethics, corporate social responsibility, sustainability, and social inequality. It is particularly suited for a discussion on possible and controversial means to address social inequality. After completion of the case, students will be able to<br><ul><li>describe the growing trend in social inequality and its consequences;</li><li>understand the living wage as a means to address social inequality;</li><li>understand how a living wage is calculated;</li><li>analyze, synthesize, and evaluate the advantages and disadvantages of implementing the living wage at the individual organization level; and</li><li>develop a recommendation regarding implementing the living wage.</li></ul>

• Social inequality, Living wage, Business ethics, Corporate social responsibility