MINIMUM WAGE AND SUSTAINABILITY

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Sustainability has several definitions which are based on shared views and tenets. It is the development which meets needs of present generations without compromising those of the future generations (... Santos & Filho 2005, p. 79). Triple bottom line framework refers to the method of measuring the environmental, economic, and impact of organisations instead of focusing on just the bottom line. The economic line in the framework refers to the impact which business practises have on economic systems. The economy is one of the subsystems which exist and which can affect the ability of the future generations to survive (Pourdehnad & Peter 2012, p. 85). Growth of a company can be closely tied to the growth of economies and the methods in which it contributes to the growth. A company needs to provide economic value to the subsystems around it to ensure long term growth (Frame & Newton 2007, p. 571). Employers providing minimum wage means the impact on the people surrounding the company is minimal and economic growth is negatively affected. Increasing the minimum wage leads to a reduction in the bottom line which is the reason most employers will only give what is mandated by law. However, increasing the minimum wage will affect the society but it will benefit future generations. The host society needs to benefit from an employer’s profits and this can be done through increasing wages of their employees who will spent it on activities which help improve their life therefore sustainability. [Show More]

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