Which ethical theory would justify paying a CEO a high salary while workers are paid poorly by industry standards?

Moral relativism or situational ethics is an ethical theory that suggests that moral judgments are not absolute but instead can vary depending on the context or situation. This viewpoint allows for the possibility that paying a CEO a high salary while workers receive low wages may be justifiable if the circumstances surrounding that particular situation support such a disparity. For example, in some industries or companies, the rationale may be that the CEO bears significant responsibilities, takes on considerable risks, or creates greater value for the company, warranting a higher salary.

This approach does not impose a universal standard for what is morally right or wrong regarding salary structures; rather, it suggests that ethical decisions should be made based on an analysis of each specific situation, potentially allowing for justifications that would be rejected under more rigid ethical frameworks. Therefore, a high salary for a CEO, juxtaposed with low wages for employees, could be viewed as acceptable within the broader context of business practices and market expectations.