Fundamentals

For small to medium-sized businesses (SMBs), the concept of Fair Wage Implementation might initially seem complex or even daunting. However, at its core, it’s a straightforward principle rooted in ethical business Meaning ● Ethical Business for SMBs: Integrating moral principles into operations and strategy for sustainable growth and positive impact. practices and sound economic sense. In the simplest terms, SMB Fair Wage Meaning ● Fair Wage in SMBs is strategic compensation that fosters employee engagement, ethical growth, and long-term sustainability. Implementation means ensuring that your employees are paid a wage that is not only legally compliant but also equitable, sustainable, and reflective of their contribution to your business’s success. This isn’t just about ticking boxes; it’s about building a strong foundation for long-term growth and stability.

Understanding the Basics of Fair Wage

To grasp the fundamentals, let’s break down what constitutes a ‘fair wage’ in the SMB context. It goes beyond just the minimum wage set by law. A fair wage considers several factors, including:

• Cost of Living ● The wage should be sufficient for an employee to meet their basic needs in the location where they live and work. This varies significantly by region and even within cities.
• Industry Standards ● What are other businesses in your industry and geographic area paying for similar roles? Staying competitive in compensation is crucial for attracting and retaining talent.
• Job Responsibilities and Skills ● The complexity of the role, the skills required, and the level of responsibility should all be factored into wage determination. A highly skilled role naturally commands a higher wage.
• Company Performance and Affordability ● While fairness is paramount, the wage structure must also be sustainable for the SMB. It needs to align with the company’s financial health and growth trajectory.

Implementing fair wages Meaning ● Fair Wages for SMBs means just compensation that drives growth, equity, and sustainability, considering business realities. isn’t a one-time event; it’s an ongoing process. It requires regular review and adjustments to keep pace with economic changes, industry trends, and the evolving needs of your employees and business.

Why Fair Wages Matter for SMBs

Some SMB owners might view fair wages as an added expense, especially when margins are tight. However, a strategic perspective reveals that fair wages are an investment, not just a cost. The benefits are multifaceted and contribute directly to the long-term health and prosperity of the SMB.

Firstly, fair wages are a cornerstone of Employee Satisfaction and Retention. Employees who feel fairly compensated are more likely to be motivated, engaged, and loyal. This reduces costly employee turnover, which is particularly impactful for SMBs that often rely on a small, dedicated team. High turnover disrupts operations, increases recruitment and training expenses, and can negatively impact team morale.

Secondly, fair wages enhance Employee Productivity and Quality of Work. When employees are not preoccupied with financial worries, they can focus more effectively on their jobs. Fair compensation Meaning ● Fair compensation within the small and medium-sized business (SMB) environment represents the total value an employee receives in exchange for their work, considering factors beyond just monetary wages. fosters a sense of value and respect, encouraging employees to take pride in their work and contribute their best efforts. This translates to higher quality products or services and improved customer satisfaction.

Thirdly, fair wages contribute to a Positive Company Reputation and Brand Image. In today’s socially conscious marketplace, consumers and potential employees are increasingly drawn to businesses that demonstrate ethical practices. Paying fair wages is a tangible way to show your commitment to your employees and the community, enhancing your brand’s appeal and attracting customers and talent who value these principles.

Finally, fair wages can lead to Reduced Legal Risks and Improved Compliance. While minimum wage laws are the baseline, fair wage considerations can help SMBs stay ahead of potential future regulations and avoid legal challenges related to wage disputes or discrimination. Proactive fair wage practices Meaning ● Fair Wage Practices for SMBs: Compensating employees justly, fostering loyalty, and driving sustainable business growth. demonstrate a commitment to legal and ethical standards, minimizing risks and fostering a culture of compliance.

Initial Steps for SMB Fair Wage Implementation

For SMBs just starting to consider fair wage implementation, the process can be broken down into manageable initial steps:

1. Assess Current Wages ● Begin by thoroughly reviewing your current wage structure. Compare your pay rates to industry benchmarks and the local cost of living. Identify any roles that might be underpaid relative to these factors.
2. Research Industry and Local Benchmarks ● Utilize online resources, industry associations, and local business networks to gather data on prevailing wages for similar roles in your industry and geographic area. Websites like the Bureau of Labor Statistics (BLS) and industry-specific salary surveys can be valuable resources.
3. Define a Fair Wage Philosophy ● As an SMB owner or manager, articulate your company’s philosophy on fair wages. What values will guide your wage decisions? Will you aim to meet industry averages, exceed them, or strive for a specific living wage standard? Having a clear philosophy provides a framework for consistent decision-making.
4. Communicate with Employees ● Open and transparent communication is crucial. Discuss your commitment to fair wages with your employees. Explain the factors you consider when setting wages and be open to feedback. This builds trust and demonstrates your commitment to fairness.

Fair Wage Implementation for SMBs, at its most fundamental level, is about paying employees equitably and sustainably, recognizing their value and contribution to the business.

These initial steps are designed to be accessible and actionable for SMBs of all sizes and stages. They lay the groundwork for a more comprehensive and strategic approach to fair wage implementation, which we will explore in more detail in the subsequent sections.

Intermediate

Building upon the foundational understanding of SMB Fair Wage Implementation, we now delve into the intermediate aspects, focusing on practical strategies and considerations for SMBs ready to move beyond basic compliance and towards a more robust and strategic approach. At this stage, SMBs should be prepared to engage in more detailed analysis, planning, and implementation to ensure their wage practices are truly fair, competitive, and sustainable.

Developing a Structured Wage Framework

Moving beyond ad-hoc wage decisions requires developing a structured wage framework. This framework provides consistency, transparency, and fairness in how wages are determined and adjusted within the SMB. Key components of such a framework include:

Job Evaluation and Classification

Before setting wages, it’s essential to have a clear understanding of the different roles within your SMB and their relative value. Job Evaluation is a systematic process of assessing the worth of each job based on factors like skills, effort, responsibility, and working conditions. This process helps to create a hierarchy of jobs and ensures internal equity in pay. Common methods include:

• Job Ranking ● A simple method where jobs are ranked from highest to lowest based on their overall value to the organization. This is suitable for very small SMBs with a limited number of roles.
• Job Classification ● Jobs are grouped into categories or grades based on similar levels of responsibility, skill, and complexity. Each grade has a defined pay range. This provides more structure than job ranking.
• Point Factor Method ● A more sophisticated method that assigns points to different compensable factors (e.g., knowledge, experience, problem-solving). The total points for a job determine its relative worth and pay grade. This is more objective and defensible but requires more effort to implement.

Choosing the right method depends on the size and complexity of your SMB. For smaller SMBs, job ranking or classification might suffice, while larger SMBs might benefit from the point factor method for greater accuracy and defensibility.

Salary Ranges and Pay Grades

Once jobs are evaluated and classified, the next step is to establish Salary Ranges and Pay Grades. Pay grades are groupings of jobs with similar value, and each grade has a defined salary range ● a minimum, midpoint, and maximum pay rate. The midpoint often represents the market rate for the job, while the range allows for progression based on experience, performance, and tenure.

Setting appropriate salary ranges requires careful consideration of:

• Market Data ● Continuously monitor market salary surveys and industry benchmarks to ensure your pay ranges are competitive. Tools like Salary.com, Payscale, and Glassdoor can provide valuable data.
• Internal Equity ● Ensure that pay ranges are internally consistent and reflect the relative value of different job grades as determined by job evaluation.
• Affordability and Budget ● Salary ranges must be financially sustainable for the SMB. Consider your budget constraints and projected revenue growth when setting ranges.
• Geographic Location ● Cost of living varies significantly by location. Adjust salary ranges to reflect local market conditions.

Regularly reviewing and updating salary ranges is crucial to maintain competitiveness and fairness. At least annual reviews are recommended, and more frequent reviews might be necessary in rapidly changing markets.

Performance-Based Pay and Incentives

Fair wage implementation can also incorporate Performance-Based Pay and Incentives to reward high-performing employees and align individual contributions with business goals. This can include:

• Merit Pay ● Annual salary increases based on individual performance appraisals. This rewards employees for exceeding expectations and contributing to company success.
• Bonuses ● One-time payments awarded for achieving specific goals or exceeding performance targets. Bonuses can be individual, team-based, or company-wide.
• Profit Sharing ● A portion of company profits is distributed to employees, typically annually. This aligns employee interests with company profitability and fosters a sense of shared ownership.
• Commissions ● Common in sales roles, commissions are a percentage of sales revenue generated by an employee. This directly links pay to sales performance.

When implementing performance-based pay, it’s crucial to have clear performance metrics, transparent evaluation processes, and fair and consistent application across all employees. The incentive structure should be designed to motivate desired behaviors and contribute to overall business objectives.

Legal and Compliance Considerations

Intermediate SMB Fair Wage Implementation requires a deeper understanding of legal and compliance requirements beyond just minimum wage laws. This includes:

Equal Pay Act and Non-Discrimination

The Equal Pay Act (in the US) and similar legislation in other countries prohibit pay discrimination based on gender for jobs that require substantially equal skill, effort, and responsibility under similar working conditions. SMBs must ensure that their wage practices are non-discriminatory and that employees performing similar work are paid equally, regardless of gender or other protected characteristics. Regular pay audits can help identify and rectify any potential pay disparities.

Overtime and Wage and Hour Laws

Wage and Hour Laws, such as the Fair Labor Standards Act (FLSA) in the US, regulate minimum wage, overtime pay, record-keeping, and child labor standards. SMBs must correctly classify employees as exempt or non-exempt under these laws and comply with overtime pay requirements for non-exempt employees. Misclassification and overtime violations can lead to significant legal penalties.

State and Local Wage Laws

In addition to federal laws, many states and localities have their own wage laws, which may be more stringent than federal regulations. These can include higher minimum wages, paid sick leave requirements, and other employee protections. SMBs operating in multiple locations must be aware of and comply with the wage laws in each jurisdiction.

Navigating these legal complexities often requires expert guidance. Consulting with an HR professional or employment law attorney is advisable to ensure full compliance and minimize legal risks.

Moving to an intermediate level of Fair Wage Implementation Meaning ● Fair Wage Implementation for SMBs is a strategic investment in employees, fostering growth, innovation, and long-term business success. involves structuring wages systematically, considering performance incentives, and ensuring legal compliance beyond basic minimum wage.

Automation and Technology in Wage Management

Technology plays an increasingly important role in streamlining and enhancing SMB Fair Wage Implementation. Automation can significantly reduce administrative burden, improve accuracy, and provide valuable data insights. Relevant technologies include:

• Payroll Software ● Automated payroll systems simplify wage calculations, tax withholdings, and direct deposit. Many payroll software solutions also offer features for time tracking, benefits administration, and reporting.
• HR Management Systems (HRMS) ● HRMS platforms integrate various HR functions, including payroll, benefits, performance management, and employee data management. This provides a centralized system for managing employee compensation and related data.
• Compensation Management Software ● Specialized software tools can assist with job evaluation, salary range development, and market data analysis. These tools can help SMBs create and maintain competitive and equitable wage structures.
• Data Analytics Tools ● Analyzing payroll and HR data can provide insights into pay equity, compensation trends, and the effectiveness of incentive programs. Data-driven insights can inform strategic wage decisions and identify areas for improvement.

Investing in appropriate technology can significantly enhance the efficiency and effectiveness of SMB Fair Wage Implementation, freeing up time for SMB owners and HR staff to focus on more strategic initiatives.

By implementing a structured wage framework, addressing legal and compliance considerations, and leveraging automation and technology, SMBs can move to an intermediate level of Fair Wage Implementation, creating a more equitable, competitive, and sustainable compensation system.

Advanced

At an advanced level, SMB Fair Wage Implementation transcends simple definitions of equitable pay and enters a complex domain of socio-economic theory, organizational behavior, and strategic business management. It is no longer merely a matter of compliance or even competitive advantage, but a fundamental aspect of sustainable business practice and ethical capitalism within the SMB ecosystem. From an advanced perspective, SMB Fair Wage Implementation can be rigorously defined as:

“A strategic organizational framework encompassing ethical, economic, and social dimensions, designed to ensure that Small to Medium-sized Businesses (SMBs) provide compensation to their employees that not only meets legal minimums and industry standards but also reflects the true value of labor, promotes employee well-being Meaning ● Employee Well-being in SMBs is a strategic asset, driving growth and resilience through healthy, happy, and engaged employees. and economic security, fosters organizational justice Meaning ● Organizational Justice in SMBs is about ensuring fairness in all aspects of the employee experience, fostering trust and driving sustainable growth. and commitment, and contributes to broader societal equity and sustainable economic development, while remaining financially viable and strategically advantageous for the SMB in the long term. This framework necessitates a holistic approach, integrating job evaluation methodologies, market analysis, performance management Meaning ● Performance Management, in the realm of SMBs, constitutes a strategic, ongoing process centered on aligning individual employee efforts with overarching business goals, thereby boosting productivity and profitability. systems, legal compliance, technological integration, and continuous monitoring and adaptation, informed by robust empirical research and ethical business principles.”

This definition, derived from synthesizing scholarly research across labor economics, organizational psychology, and SMB management literature (e.g., works by Pfeffer, Lawler, Milkovich, and scholars at institutions like the Economic Policy Institute and the MIT Sloan School of Management), emphasizes the multi-faceted nature of SMB Fair Wage Implementation. It moves beyond a transactional view of wages as mere costs and positions them as strategic investments in human capital and organizational sustainability.

Deconstructing the Advanced Definition

Let’s dissect the advanced definition to fully appreciate its depth and implications for SMBs:

Ethical, Economic, and Social Dimensions

SMB Fair Wage Implementation is not solely an economic issue. It is deeply intertwined with ethical and social considerations. Ethically, it aligns with principles of Distributive Justice, ensuring that the fruits of labor are shared equitably between employers and employees. Economically, fair wages can stimulate local economies by increasing consumer spending and reducing reliance on social safety nets.

Socially, fair wages contribute to reduced income inequality and improved social mobility, fostering a more just and equitable society. Ignoring these dimensions reduces SMB Fair Wage Implementation to a purely transactional and potentially exploitative practice.

True Value of Labor and Employee Well-Being

Determining the “true value of labor” is a complex philosophical and economic question. Neoclassical economics often views wages as determined by supply and demand in the labor market. However, this perspective often overlooks factors like Labor Market Imperfections, power imbalances between employers and employees, and the social value of different types of work. A fair wage, from an advanced standpoint, should reflect not just market rates but also the Intrinsic Value of the work performed, the skills and effort required, and its contribution to organizational and societal well-being.

Furthermore, it acknowledges that wages are not just income but also a determinant of employee well-being, impacting their physical and mental health, financial security, and overall quality of life. Research in Behavioral Economics and Organizational Psychology consistently demonstrates the strong link between fair compensation and employee motivation, engagement, and organizational commitment (e.g., Adams’ Equity Theory, Expectancy Theory).

Organizational Justice and Commitment

Organizational Justice theory highlights the importance of fairness perceptions in the workplace. Employees are concerned not only with the absolute level of their pay (distributive justice) but also with the fairness of the processes used to determine pay (procedural justice) and the interpersonal treatment they receive in relation to pay decisions (interactional justice). SMB Fair Wage Implementation, therefore, must be transparent, consistently applied, and communicated respectfully to foster perceptions of fairness.

When employees perceive their wages as fair, they are more likely to exhibit higher levels of organizational commitment, trust in management, and willingness to go the extra mile. Conversely, perceived pay inequity can lead to resentment, decreased motivation, and increased turnover, negatively impacting SMB performance.

Societal Equity and Sustainable Economic Development

From a macro-economic perspective, SMB Fair Wage Implementation contributes to broader societal equity and sustainable economic development. When SMBs, as a significant engine of economic growth and employment, adopt fair wage practices, it can have a ripple effect throughout the economy. It can reduce income inequality, stimulate consumer demand, and create a more stable and inclusive economy. Furthermore, fair wages can reduce reliance on public assistance programs, as employees are better able to meet their basic needs through their earnings.

This aligns with principles of Stakeholder Capitalism, which emphasizes the responsibility of businesses to consider the interests of all stakeholders, including employees, customers, communities, and the environment, not just shareholders. Research by organizations like the OECD and the ILO underscores the link between fair wages, reduced inequality, and sustainable economic growth.

Financial Viability and Strategic Advantage for SMBs

A critical aspect of the advanced definition is the emphasis on financial viability and strategic advantage for SMBs. SMB Fair Wage Implementation is not about imposing unrealistic or unsustainable wage burdens on SMBs. Rather, it is about finding a balance between fair compensation and business sustainability. From a strategic management perspective, fair wages can be a source of Competitive Advantage for SMBs.

They can attract and retain top talent, enhance employee productivity and innovation, improve customer service, and build a positive brand reputation. These benefits can outweigh the increased labor costs associated with fair wages, leading to improved long-term profitability and sustainability. However, the specific strategies and approaches to SMB Fair Wage Implementation must be tailored to the unique financial constraints and competitive pressures faced by SMBs in different industries and sectors. This requires careful analysis, planning, and phased implementation.

Scholarly, Fair Wage Implementation for SMBs is a strategic, multi-dimensional framework encompassing ethical, economic, and social aspects, aimed at long-term sustainability and societal benefit.

Controversial and Nuanced Perspectives within SMB Context

While the advanced arguments for SMB Fair Wage Implementation are compelling, it’s crucial to acknowledge the controversial and nuanced perspectives, particularly within the SMB context. One prominent area of debate revolves around the Economic Impact of Mandated Fair Wage Policies, such as minimum wage increases or living wage ordinances, on SMBs.

The Neoclassical Critique ● Job Losses and Reduced Competitiveness

Traditional neoclassical economic theory predicts that mandated wage increases will lead to Job Losses and reduced competitiveness for businesses, particularly SMBs that operate on thin margins. The argument is that increased labor costs will force SMBs to reduce employment, raise prices, or even go out of business. Empirical research on the minimum wage has yielded mixed results, with some studies finding minimal or no negative employment effects, while others find more significant negative impacts, particularly in sectors with low-wage workers and high labor intensity (e.g., restaurants, retail).

The Elasticity of Labor Demand, the degree to which employment responds to wage changes, is a key factor in determining the magnitude of these effects. For SMBs in highly competitive markets, the concern is that mandated wage increases could put them at a disadvantage compared to larger firms or businesses in areas with lower wage floors.

The Counter-Argument ● Demand-Side Economics and Efficiency Wages

Countering the neoclassical critique is the argument from Demand-Side Economics and the Efficiency Wage Theory. Proponents of fair wage policies Meaning ● Fair Wage Policies for SMBs: Strategic compensation for equitable pay, driving growth and sustainability. argue that increased wages can stimulate aggregate demand by putting more money in the hands of low-wage workers, who are more likely to spend it. This increased demand can boost sales and revenues for SMBs, offsetting some of the increased labor costs. Furthermore, the efficiency wage theory suggests that paying higher-than-market wages can lead to increased worker productivity, reduced turnover, and improved morale, as discussed earlier.

These efficiency gains can also help SMBs absorb some of the increased wage costs. Empirical studies supporting this view often point to positive or neutral employment effects of minimum wage increases and highlight the benefits of reduced turnover and improved productivity. The debate often hinges on the magnitude of these demand-side and efficiency effects and whether they are sufficient to offset the potential negative impacts on SMB profitability and competitiveness.

SMB-Specific Challenges and Heterogeneity

It’s crucial to recognize the Heterogeneity of SMBs when analyzing the impact of fair wage policies. SMBs vary widely in size, industry, profitability, business models, and geographic location. The impact of fair wage implementation will likely differ significantly across these different types of SMBs. For example, a high-margin tech startup might be less sensitive to wage increases than a low-margin restaurant.

Similarly, SMBs in high-cost-of-living areas might already be paying wages above the minimum wage, while those in low-cost areas might face a more significant adjustment. Therefore, a one-size-fits-all approach to fair wage policies may not be optimal. Policy solutions and SMB Fair Wage Implementation strategies need to be tailored to the specific context and challenges of different types of SMBs. This might involve phased implementation, industry-specific considerations, or targeted support programs for SMBs in particularly vulnerable sectors.

Automation as a Response to Increased Labor Costs

Another controversial aspect is the potential for Automation as a response to increased labor costs. As wages rise, SMBs may be incentivized to invest in automation technologies to reduce their reliance on labor. This could lead to job displacement, particularly in low-skill, routine tasks that are easily automatable. While automation can improve efficiency and productivity, it also raises concerns about the future of work and the potential for increased technological unemployment.

From an advanced perspective, the optimal path forward involves finding a balance between fair wages, technological innovation, and workforce development. This might require policies and programs to support SMBs in adopting automation technologies responsibly, while also investing in education and training to equip workers with the skills needed for the jobs of the future. The focus should be on Human-Centered Automation that complements human labor rather than simply replacing it.

Strategic and Methodological Approaches for SMB Fair Wage Implementation

Despite the controversies and challenges, SMB Fair Wage Implementation remains a strategically important and ethically sound objective. To navigate the complexities and ensure successful implementation, SMBs should adopt a strategic and methodological approach, grounded in data, analysis, and continuous improvement.

Data-Driven Wage Analysis and Benchmarking

Data-Driven Wage Analysis is crucial for informed decision-making. SMBs should regularly collect and analyze data on their current wage structure, industry benchmarks, local cost of living, and employee performance. This data can be used to identify pay inequities, assess competitiveness, and track the impact of wage adjustments.

Utilizing robust Benchmarking Methodologies, comparing wage data against industry peers and geographic competitors, provides valuable context and helps SMBs set realistic and competitive wage targets. This analysis should extend beyond base pay to include benefits, bonuses, and other forms of compensation to provide a holistic view of total employee remuneration.

Phased Implementation and Incremental Adjustments

For SMBs concerned about the immediate financial impact of significant wage increases, Phased Implementation and Incremental Adjustments are recommended. Instead of implementing large, sudden wage hikes, SMBs can adopt a gradual approach, increasing wages incrementally over time. This allows SMBs to absorb the increased costs more gradually and to monitor the impact on their financial performance and competitiveness.

A phased approach also provides time to adjust business models, improve efficiency, and explore cost-saving measures to offset wage increases. Regularly reviewing and adjusting the implementation plan based on ongoing data analysis Meaning ● Data analysis, in the context of Small and Medium-sized Businesses (SMBs), represents a critical business process of inspecting, cleansing, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting strategic decision-making. and business performance is essential for successful phased implementation.

Transparency and Communication with Employees

Transparency and Open Communication are paramount for building trust and fostering positive employee relations during SMB Fair Wage Implementation. SMBs should clearly communicate their commitment to fair wages, explain the rationale behind their wage decisions, and be transparent about the factors considered in wage determination. This includes communicating the job evaluation process, salary ranges, and performance-based pay criteria. Openly addressing employee concerns and feedback regarding wages is also crucial.

Regular communication channels, such as employee meetings, surveys, and one-on-one conversations, should be utilized to ensure ongoing dialogue and address any misunderstandings or perceptions of inequity. Transparency not only enhances employee morale but also reduces the risk of legal challenges and improves overall organizational justice.

Integrating Technology for Efficient Wage Management

Leveraging Technology for Efficient Wage Management is essential for streamlining processes, reducing administrative burden, and improving accuracy. As discussed in the intermediate section, payroll software, HRMS platforms, and compensation management tools can significantly enhance SMB Fair Wage Implementation. Furthermore, data analytics tools can be used to monitor pay equity, track compensation trends, and assess the effectiveness of wage policies.

Investing in integrated technology solutions can free up HR staff and SMB owners to focus on more strategic aspects of compensation management, such as talent acquisition, performance management, and employee development. The selection of technology solutions should be based on the specific needs and budget constraints of the SMB, with a focus on scalability and integration with existing systems.

Continuous Monitoring and Adaptive Strategies

SMB Fair Wage Implementation is not a one-time project but an ongoing process that requires Continuous Monitoring and Adaptive Strategies. SMBs should regularly monitor their wage structure, track key performance indicators (KPIs) related to employee satisfaction, turnover, and productivity, and assess the impact of their wage policies on business performance. This ongoing monitoring allows SMBs to identify areas for improvement, adapt to changing market conditions, and ensure that their wage practices remain fair, competitive, and sustainable.

Regular reviews of the wage framework, salary ranges, and performance-based pay systems should be conducted, at least annually, to ensure alignment with business goals and evolving employee needs. An Agile and Adaptive Approach, characterized by continuous learning and improvement, is crucial for long-term success in SMB Fair Wage Implementation.

In conclusion, from an advanced perspective, SMB Fair Wage Implementation is a complex but essential undertaking. It requires a strategic, multi-dimensional approach that considers ethical, economic, and social dimensions, addresses controversial perspectives, and leverages data, technology, and continuous improvement. By adopting a rigorous and thoughtful approach, SMBs can not only ensure fair compensation for their employees but also enhance their long-term sustainability, competitiveness, and contribution to a more equitable and prosperous society.