50. The motivational elements of a cost management system are integral to the success of cost management goals. It is understood that the stronger the individual incentive to manage costs correctly, the greater is the likelihood that a given manager will act to manage costs effectively.

Currently, many employers provide fringe benefits to their employees that may provide a significant social benefit but that do not necessarily provide the strongest incentive to effectively manage costs. A significant employee benefit of this type is employer-provided health care. Discuss whether employers have an ethical responsibility to their employees, and to society, to provide health coverage to their employees, given that other forms of compensation that provide more powerful incentives could be offered to employees instead of health coverage.