Garbage collector (photo: Hans van Rijnberk -flickr.com)
In the course of the debate about high executive bonuses – particularly banks – the independent London think tank “new economics foundation” (nef) has determined that financial managers contribute less to social value than cleaners in hospitals or recycling plant workers. On the contrary: They are actually destroying value. Even more destructive than bankers are advertising executives and tax accountants.
High wage does not reflect societal value
Nef has been looking for a way to measure the value of various professions for the society. The self-appointed think tank thereby undermines the myth that high salaries are justified by the added value of benefit for the society.
To measure the value of a profession for society the researchers used the principles and valuation techniques of the “Social Return on Investment” method to quantify the social, economic and environmental value these roles produce.
Tax accountants destroy GBP 47 for every pound they generate
According to the study, top bankers with incomes of over 1 million GBP (approximately EUR 1.11 million) destroy 7 GBP in value per 1 GBP they produce. Tax accountants destroy even 47-fold. And for advertising executives, the society pays a price of 11 GBP salary for every 1 GBP produced benefit.
In contrast, hospital cleaners create a social value of 10 GBP per 1 GBP earned. Thanks to their contribution to the social environment, waste recycle workers generate 12 GBP profit for each 1 GBP, while childcare workers to develop an additional profit from 7 to 9.50 GBP per 1 GBP earned.
The complete report can be downloaded at “A Bit Rich“.
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