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Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred. The aim of financial compensation is the preservation of relationships between those engaged in economic exchange.
Kinds of financial compensation include:
- Damages, legal term for the financial compensation recoverable by reason of another's breach of duty
- Nationalization compensation, compensation paid in the event of nationalization of property
- Payment
- Remuneration
- Deferred compensation
- Executive compensation
- Royalties
- Salary
- Wage
- Employee benefits
- Workers' compensation, to protect employees who have incurred work-related injuries
Financial compensation is often provided after service delivery failure in order to regain customer trust. An associated response is to offer an apology that communicates the transgressor feels remorse.
Financial compensation may be offered as an incentive. Some offers are too good to refuse. They may become an undue inducement in which they distort people's judgment, contravene their interests and thereby cause harm.
Financial compensation may be imposed by a judge, before a court, to a victim.
See also
- Income
- Faithless servant
References
- Haesevoets, Tessa; Reinders Folmer, Chris; De Cremer, David; Van Hiel, Alain (April 2013). "Money isn't all that matters: The use of financial compensation and apologies to preserve relationships in the aftermath of distributive harm". Journal of Economic Psychology. 35: 95–107. doi:10.1016/j.joep.2013.02.003. hdl:1854/LU-3119438. Retrieved 9 November 2023.
- Santos Gasparotto, Lisiane; Araujo Pacheco, Natália; Basso, Kenny; Francisco Dalla Corte, Vitor; Costa Rabello, Gisele; Gallon, Shalimar (February 2018). "The role of regulation and financial compensation on trust recovery". Australasian Marketing Journal. 26 (1): 10–16. doi:10.1016/j.ausmj.2018.01.002. Retrieved 9 November 2023.
- Gordon, E.J.; Patel, C.H.; Sohn, M.-W.; Hippen, B.; Sherman, L.A. (February 2015). "Does Financial Compensation for Living Kidney Donation Change Willingness to Donate?". American Journal of Transplantation. 15 (1): 265–273. doi:10.1111/ajt.13004. Retrieved 9 November 2023.
- T.M. Desmet, Pieter; De Cremer, David; van Dijk, Eric (August 2011). "Trust recovery following voluntary or forced financial compensations in the trust game: The role of trait forgiveness". Personality and Individual Differences. 51 (3): 267–273. doi:10.1016/j.paid.2010.05.027. Retrieved 10 November 2023.
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Financial compensation news newspapers books scholar JSTOR November 2023 Learn how and when to remove this message Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods labor or to provide for the costs of injuries that they have incurred The aim of financial compensation is the preservation of relationships between those engaged in economic exchange Kinds of financial compensation include Damages legal term for the financial compensation recoverable by reason of another s breach of duty Nationalization compensation compensation paid in the event of nationalization of property Payment Remuneration Deferred compensation Executive compensation Royalties Salary Wage Employee benefits Workers compensation to protect employees who have incurred work related injuries Financial compensation is often provided after service delivery failure in order to regain customer trust An associated response is to offer an apology that communicates the transgressor feels remorse Financial compensation may be offered as an incentive Some offers are too good to refuse They may become an undue inducement in which they distort people s judgment contravene their interests and thereby cause harm Financial compensation may be imposed by a judge before a court to a victim See alsoIncome Faithless servantReferencesHaesevoets Tessa Reinders Folmer Chris De Cremer David Van Hiel Alain April 2013 Money isn t all that matters The use of financial compensation and apologies to preserve relationships in the aftermath of distributive harm Journal of Economic Psychology 35 95 107 doi 10 1016 j joep 2013 02 003 hdl 1854 LU 3119438 Retrieved 9 November 2023 Santos Gasparotto Lisiane Araujo Pacheco Natalia Basso Kenny Francisco Dalla Corte Vitor Costa Rabello Gisele Gallon Shalimar February 2018 The role of regulation and financial compensation on trust recovery Australasian Marketing Journal 26 1 10 16 doi 10 1016 j ausmj 2018 01 002 Retrieved 9 November 2023 Gordon E J Patel C H Sohn M W Hippen B Sherman L A February 2015 Does Financial Compensation for Living Kidney Donation Change Willingness to Donate American Journal of Transplantation 15 1 265 273 doi 10 1111 ajt 13004 Retrieved 9 November 2023 T M Desmet Pieter De Cremer David van Dijk Eric August 2011 Trust recovery following voluntary or forced financial compensations in the trust game The role of trait forgiveness Personality and Individual Differences 51 3 267 273 doi 10 1016 j paid 2010 05 027 Retrieved 10 November 2023 This finance related article is a stub You can help Wikipedia by expanding it vte
