Would you do as hobby lobby did

Assignment Help Business Law and Ethics

Reference no: EM131916303

Question: Case Three: Pay More Than the Law Requires?

In 2010, during very difficult economic times, the Hobby Lobby retail chain with 455 stores in 36 states raised its company minimum wage for full-time employees to $11 per hour, nearly $4 more than the $7.25 required under federal law. Why did the company raise its wages well beyond the law's requirements? David Green, the CEO of the privately owned corporation, said, "We have always tried to be a company that serves their employees."131 Hobby Lobby had raised its minimum wage to $10 per hour in 2009, and the results were so positive that the company decided to provide another raise in 2010. Green explained the company's reasoning: We're 100 percent excited about what we've done. We have had single mothers who were able to quit their second jobs. We have had employees come up and cry. The math of it said it would have cost us millions of dollars. But the results from the employees showed us differently; it really didn't cost anything because retention is important.132

Case Three Questions

1. How can it make good business sense to pay employees more than the law and the market require?

2. Would you do as Hobby Lobby did? Explain.

Reference no: EM131916303

Questions Cloud

How much money rock has to pay monthly on his house loan : Calculate how much money Rock has to pay monthly on his house loan.

Calculate the revenues per year and variable cost per year : Calculate the Revenues per year, Variable Cost per year, Fixed Cost per year.

Should you decline to hold investments in gun companies : As you develop your own financial portfolio, should you decline to hold investments in gun companies? Explain.

Is the free market the best measure of a fair wage for all : Is the free market the best measure of a "fair" wage for all? Explain. Do you find anything morally amiss in an American economy that pays so poorly.

Would you do as hobby lobby did : In 2010, during very difficult economic times, the Hobby Lobby retail chain with 455 stores in 36 states raised its company minimum wage for full-time employees

How to make a profit-reduce wages : Three hundred workers at the Mott's apple juice plant (a Dr Pepper Snapple subsidiary) in Williamson, New York, waged a 16-week strike when the company.

Find latest campaign finance data for your congressperson : Many critics, activists, international scholars, and others are concerned that corporate/ governmental interests threaten global human rights and the global.

Which should they be more concerned about : In general, do you think employers are more concerned with profits or with delivering quality goods and services? Explain.

Expected return of market portfolio according to CAPM : If the risk-free rate is 4.55 percent, what is the expected return of the market portfolio according to CAPM?

User Account

All Pages