Analysis of Corporate Social Responsibility at Domino's Pizza Australia | Desklib

This report analyzes the corporate social responsibility initiatives and governance structure of Domino's Pizza Australia. The report discusses the issues faced by the company and the gaps in stakeholder expectations. The report is based on detailed research and analysis of the company's CSR activities and governance structure.

Running head: ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY
ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY
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ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY
Executive Summary
The report is based on the detailed analysis of the corporate social responsibility based
activities of the company and the corporate governance structure as well. The organization
that is taken into consideration for this analysis is Domino’s Pizza Australia which is a part of
the ASX Top 100 companies. The initiatives that were taken by the company related to the
social responsibilities have been analysed in the report in detail. The issues that have been
faced by the company based on CSR is also discussed in report. The gaps that exist between
the expectations of stakeholders and the reality is also an important part of the analysis.

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Table of Contents
Introduction....................................................................................................................3
CSR activities of the company.......................................................................................3
Governance structure of the company............................................................................4
Using Carroll’s Pyramid to analyse CSR.......................................................................5
Issues faced by the company in CSR.............................................................................7
Gaps in the expectations of the stakeholders.................................................................8
Conclusion......................................................................................................................8
References....................................................................................................................10

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Introduction
Domino’s Pizza Enterprises Limited is considered to be the biggest pizza chain in
Australia and is a part of the ASX Top 100 companies. The operations of the company were
started in Australia in the year 1983. Domino’s also became one of the first publicly listed
fast food chain in the country. The number of stores that are operated by Domino’s in
Australia have given the company the topmost position in the entire market. The organization
has also become one of the largest franchisee operators in Australia for the brand of
Domino’s. The Domino’s Pizza Enterprise or DPE has a large network of stores in many
other countries like, New Zealand, France and Belgium. The organization has been able to
capture the pizza market of Australia in an effective manner with the help of its large network
within the country (Dominos.com.au. 2018).
The report is mainly based on the corporate social responsibility based activities that
have been performed by the company. The various CSR based issues that have been faced by
the company during the course of its operations will be analysed in the report with the help of
different frameworks.
CSR activities of the company
Domino’s Pizza has actively taken part in the social responsibilities that they have and
the ways by which the people in the community can be benefitted from the activities of the
company. The organization is thereby committed towards providing its support to the
communities of Australia with which they are working at present. The company has always
taken pride in providing its contribution for the purpose of being socially and ethically
responsible in nature (Bhattacharya et al. 2017). The program that has been introduced by
Domino’s to achieve its social objectives is named as, “Domino’s Give for Good Program” in

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the communities of the country. The philosophy of the company behind the fulfilment of the
social responsibilities are,
Disaster relief
Education and Young Adult Initiatives
Sustainability and Food
Entrepreneur and leadership
The organization mainly provides its support to many organizations which are
charitable in nature and have aimed to support the various communities in the country as
well. Domino’s has partnered its operations with the Foundation for Rural and Regional
Renewal for the purpose of supporting regional, rural and many remote communities with
various projects. The various issues that are being analysed by the company in this case are
mainly the preparedness for disasters, the creation of jobs and the employment of youth
(Carroll 2015).
Domino’s has also introduced a program which is known as “Round Up For Charity”.
The customers are requested to round up their payment to the next dollar. The amount that is
collected from the customers in this manner is further used for providing educational
opportunities to children. The initiatives that are taken by the company for disaster relief are
also supported with the amount that is collected. The “Give for Good” charity was
established in the year 2016 for supporting the communities in Australia. Another initiative
that was taken by Domino’s Pizza is named as, “ Doughraiser Fundraiser”. This was an
initiative that was taken by the company in the aim to provide support to the local
communities in different areas of Australia (Cherney and Blair 2015).

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Governance structure of the company
The corporate governance of Domino’s Pizza is at the heart of the successful
operations of the company in Australia. The governance of the company is mainly related to
the ways by which the provisions and the principles of Financial Reporting Council are
followed. The different policies and principles that are set by the management need to be
followed by the employees of the company. The principles and the policies are set for the
purpose of ensuring proper corporate governance within the company. The Board members
of Domino’s are mainly responsible for the creation of proper regulations which further need
to be followed by the employees. The corporate governance of the company plays an
important role in the achievement of the goals and the targets that are set by Domino’s (Clapp
and Rowlands 2014). The Board meetings take place eight times within a particular year. The
structure of the board is formed in such a manner which ensures that all the members have
similar responsibilities and rights. The individual members of the board are not capable of
dominating the decisions that are taken for the company. The roles and the responsibilities of
individual group members are provided to them so that they do not face any competition
based on this. Domino’s has given importance to the diversity based factor and the ways by
which it affects the successful operations of the company (Den Hond, de Bakker and
Neergaard 2016). The greater level of gender diversity is the most important factor of the
board of Domino’s. The higher levels of diversity have thereby been able to affect the ways
by which the decisions are taken by the board. The quality of corporate governance is based
on the levels of diversity that is present in the board of Domino’s. The organization has
thereby been successful in creating an effective corporate governance structure which has
helped in successful implementation of the policies and regulations (Dhaliwal et al. 2014).

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Using Carroll’s Pyramid to analyse CSR
The CSR based responsibilities that are a part of Carroll’s CSR Pyramid include,
economic, legal, ethical and philanthropic types. The key features that form a major part of
the CSR pyramid are that CSR is mainly built on the profits that are gained by the company.
The next major importance of CSR is related to the ways by which the organization is able to
comply with the regulations and the laws. The third feature is based on the ethical duties that
need to be maintained by the company. The economic responsibilities of the pyramid are the
most important part of the pyramid (Flammer 2015). The base of the entire pyramid is related
to the economic responsibilities that needs to be fulfilled by the modern organizations. The
legal responsibilities of the pyramid are mainly based on the levels up to which the company
is able to obey the regulations and laws. The laws that need to be followed by the company in
this case are mainly related to the health and safety related laws, the employment based laws
and the competition. The ethical responsibilities are based on the responsibility that the
company has to act in an ethical and moral way (Harjoto, Laksmana and Lee 2015). The
business organization thereby needs to go beyond the requirements of the law. The
philanthropic stage is based on the responsibilities of the organization that are based on the
ways by which it can give back something to the society. This responsibility is important to
enhance the reputation of the company in the industry.
The initiatives that have been taken by Domino’s to improve the communities is
based on the increase of the profitability of the company. The economic benefits that are
provided to Domino’s with the help of the social responsibilities are mainly based on the
enhancement of the reputation of the organization. This has helped Domino’s to survive in
the environment for a longer term. The legal responsibilities have also been fulfilled by the
company by fulfilling the social duties (Kang, Germann and Grewal 2016). The organization
has always aimed at complying with the regulations that are set by the authorities in order to

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operate in a profitable manner in the industry. The ethical duties have been fulfilled by the
organization with the help of the ways by which it is able to provide enough support to
various communities with the help of initiatives that have been taken by the company.
Domino’s has been trying to go beyond the laws in order to fulfil the duties that the company
feels is important for improving the conditions in which the communities stay. The
organization has also been successful in giving back the benefits to the customers who are a
part of the operations (Korschun, Bhattacharya and Swain 2014). The various initiatives that
have been taken by Domino’s are based on the ways by which the company is able to provide
some part of the profits for the improvement of the communities in Australia.
Issues faced by the company in CSR
Domino’s has become the largest pizza chain in Australia within the short period of
time. This has been possible with the help of its large network and huge number of
franchisees all across Australia. The company has however been blamed for following
another large franchisee based organization in Australia named 7-eleven. Domino’s has been
accused with the issues that are related to low wages that are provided to the employees. The
organization has also faced issues based on the ways by which the franchisees are squeezed
for profits (Moscato 2017). The store managers were accused of reducing the number of
working hours of the workers so that the pay can also be reduced accordingly. The company
had not been following the basic laws related to providing appropriate wages to the
employees. Many complaints that have been placed against some of the store managers for
the ill practices that were undertaken by them was not addressed by the head office of the
company accordingly. Domino’s has been compromising with the wages that are provided to
the workers in the hundreds of stores all over Australia (Ruggie 2017). The investigation that
has been conducted by Fairfax Media had revealed that the problem of underpayment of
wages had been a deliberate attempt from the side of management of Domino’s. The stress

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that had been faced by the employees who were a part of the franchisee stores of Domino’s
was immense. The company had been constantly reducing the wages of employees for the
purpose of increasing the profits. The employees were not happy with the ways by which
they were treated by the upper level managers (Saeidi et al. 2015). The net profit of Domino’s
has been increasing every year due to the savings that were made by the company by
providing half wages to the employees. Domino’s has been successful in its operations after
the company was listed in ASX in the year 2005 itself. The main reason behind the success of
the company are the success that was experienced by the franchises. The revenues that were
generated by the company was due to the wrong measures that were taken by Domino’s
based on the wages provided to employees (Salib et al. 2015).
Gaps in the expectations of the stakeholders
The stakeholders of Domino’s are the customers and the employees as well. The
company has been successful in making the customers happy with the discounted products
and high levels of service. However, the employees were not provided with adequate
amounts of wages and other benefits which made it difficult for them to survive. The gaps
that had occurred between the wages that were expected and actual wages provided had
caused huge stress for the employees. The various investigations that were undertaken by
institutions had proved that Domino’s has been exploiting the employees for their own
profits. The employees were stressed out due to this and the weak governance of the company
was a major reason behind the issues that were faced by Domino’s (Wu et al. 2015).
Conclusion
The report can be concluded by stating that the corporate social responsibility based
activities of an organization have an effect on the profitability. The modern organizations
therefore need to fulfil their social responsibilities so that the reputation can be maintained in

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the market effectively. The company that has been analysed in this report is Domino’s Pizza
Australia. The company is listed in the ASX Top 100 and has been able to maintain a good
position in the Australian market from the start of its operations. The organization had taken
many initiatives to fulfil the social responsibilities towards the communities in Australia.
However, many allegations were raised against the management for providing low wages to
the employees who worked in the franchisees. The stress levels of the employees were
increased and they were not able to work in a productive manner.

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References
Bhattacharya, C.B., Korschun, D., Sen, S. and Routledge, H., 2017. Corporate social
responsibility. Journal of International Law, 26(2).
Carroll, A.B., 2015. Corporate social responsibility. Organizational dynamics, 44(2), pp.87-
96.
Chernev, A. and Blair, S., 2015. Doing well by doing good: The benevolent halo of corporate
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Clapp, J. and Rowlands, I.H., 2014. Corporate social responsibility. The Essential Guide to
Global Environmental Governance. Routledge: London, pp.42-44.
Den Hond, F., de Bakker, F.G. and Neergaard, P., 2016. Introduction to managing corporate
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Harjoto, M., Laksmana, I. and Lee, R., 2015. Board diversity and corporate social
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Kang, C., Germann, F. and Grewal, R., 2016. Washing away your sins? Corporate social
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