Difference Between Equity and Equality
By the term equality we understand that everyone is the same, on the other hand from the point of view of business equity means the ownership of different companies shares. Equality indicates the similar allotment in case of different deals and values. However by the term equity we understand the clarity and uniformity of the system that has caused disadvantage to some groups.
Let us study a scenario where a lamb has been cooked for dinner. Equality indicates that all the family members will get equal size of the lamb meat. On the other hand equity means that the meat will be distributed according to requirement.
By the term equity fairness, neutrality and similar qualities are highlighted. When people speak about equality we understand unbiased sharing and fair division.
Let us have another example that will make the differences perfectly clear. In case of the feminist movement, the demand of women to receive same treatment as the men is not possible as they are different than men. Thus equality in this case is impossible. However if they demand to be treated the same way as men are treated as human beings then it is the quality of equity that is referred to and this is certainly possible and desirable.
From the point of view of business equity means value. A computer that Sam may have bought for $ 600, 2 years ago will fetch $ 300 when sold today. This is the equity value. Equality however means equal distribution.
According to history, in the Cold War period, equality was manifest in the actions of the communist group who used to pay everyone with the same pay scale irrespective of their stature. The capitalists practiced equity and they paid as per merit and capacity.
Thus we can figure out that these two terms are quite different.
- Equality means that similar treatment of people and equity in terms of business means the possession of company shares.
- . By the term equity fairness, neutrality and similar qualities are highlighted. When people speak about equality we understand unbiased sharing and fair division.
- Equality refers to quality and equity indicates quantity.