When it comes to organizations, equity measures whether the services and resources within the organization are being distributed fairly among its participants, or whether a parent organization is equally giving benefit to its subsidiaries and dividing the shares equally among those who are a part of it.
For instance, Company X receives dividents from profits and they are partaken by its beneficiaries. Company Z might receive less dividents from the same profits and the beneficiaries will not be equally rewarded.
It is also an important factor with motivation and how an organization performs proportionally to how it is being rewarded.
See eNotes Ad-Free
Start your 48-hour free trial to get access to more than 30,000 additional guides and more than 350,000 Homework Help questions answered by our experts.
Already a member? Log in here.