Ethical Issues Faced by Domino's Pizza: A Critical Evaluation
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This study critically evaluates the ethical issues faced by Domino's Pizza, identifies the stakeholders impacted by the issues, and evaluates the decision made by the company and involved parties. It also discusses the importance of business ethics.
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Table of Contents Introduction......................................................................................................................................3 Main Body.......................................................................................................................................3 Overview of company..................................................................................................................3 Ethical issues and dilemma..........................................................................................................3 Identification and evaluation of the stakeholders impacted by the ethical issues.......................4 Impact of the decision on business..............................................................................................4 Business ethics.............................................................................................................................5 Conclusion.......................................................................................................................................5 References........................................................................................................................................6
INTRODUCTION The present study is based on the critical evaluation of the ethical issues faced by the Domino’s, it covers the ethical issues which took place in the company, and identifications of the impacts held by stakeholders are also considered. Following to this, the study also evaluates that whether the decision made by the company and involved parties are ethical or not, with the consideration towards business ethics to justify the solution and arrive at a valid conclusion. MAIN BODY Overview of the company Domino’s Pizza is a pizza restaurant chain in America established in 1960. The headquarters of the company is located in theAnn Arbor, Michiganat the Domino's Farms Office Park. This restaurant chain is considered as the largest worldwide seller of pizza in context with sales and revenues. The corporation continually seeks to establish products that compliment the customer preferences and tastes and thereby satisfying them. Therefore, by the time and with proper innovation, they are capable of gaining ultimate customer satisfaction and success. They provide value for money and reasonable products to customers have been the significant element of their efforts(Domino’s, 2018). The company is considered as the 2nd largest pizza restaurant chain internationally, with over 15,100 locations in more 85 markets. The company has business operations in three core segments inclusive of local stores, international franchisee and supply chain. Their fundamental menus characterize pizza products in different sizes and types. Its products and food items are inclusive of sandwiches, chicken wings, desserts, soft drinks and various types of pizza with customizations available. Ethical issues and dilemma The ethical problem after the introduction of the slogan was the deaths because of accidents engaging the drivers of dominos. It was held that the drivers were struggling from higher stress to be committed towards the delivery within 30 minutes, and thus they drove fast which resulted in accidents. It can be said that business decisions can create unforeseen outcomes that can lead to the main ethical challenge for the company(Media Ethics, 2012).
One of the major ethical issues faced by the company was held back in the year 2009, prior to the timewhen corporation has a presence over social media, they held themselves set into a viral attack, wherein two of their employees uploaded a video on YouTube, which was reflecting wrong, disgusting, unhygienic and unsanitary things (Melissa,2012). This was the main crisis engaging Domino’s Pizza and their employees which took national media notice to the company. In this case, the employee made their video recording, and the same was uploaded on YouTube, considering inappropriate aspects which were prepared for consumers. However, the controversy was very negative for the corporation. Further, they considered the issue as an opportunity to turn their company more strong. Identification and evaluation of the stakeholders impacted by the ethical issues By this viral attack and ethical issues, the stakeholders inclusive of customers, business partners, government, investors and Dominos as a whole suffered from high panic and adverse impacts. The customers were impacted by the fact that some new customers lost their loyalty towards the brand since the brand reputation was damaged by the controversy which directs impacted on the sales, revenue and brand image(Weiss, 2014). The government was impacted due to the fact that, they were forced to make more severe guidelines on employment laws, and companies were strictly and mandatory told to follow the standards and laws. Domino’s suffered from negative impact, as this situation harmed corporate reputation and image and sales. Although they immediately made an official statement and considered effective strategies to address the issue, they're making their position even stronger. Impact of the decision on business By considering the ethical dilemma arising in the company, the parties make the decision to immediately broadcast the video on the YouTube which consists of the apology by the company. Along with this, this video can be found along with the anti-social video of the company. The company also described the manner in which they were engaged to take the correct decision. On the broadcasted video, the company shows its genuineness and improve brand in a realistic manner. The company also improves its communication strategy, so that the employee can get to know about the exact and true information (Michaelson and et al., 2014). Moreover, the president of the United States named as Patrick Doyle personally broadcast the video in response. The company also explain to people that in the future this situation will never arise. All
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the decision taken by the parties are ethical. The decision leads to the company by enhancing the brand reputation again and gradually on the social media the company achieve its better position. The financial performance of the company also gets improved with the satisfaction of the customers. Business ethics Business ethics plays a very important role in the present era. Since, it is already known that business ethics are important for the business as it assists in adopting the proper policies and practices by the organization (Crane, and Matten, 2016). Moreover, it is essential for the company to follow the practices of the business ethics for the long run growth of the business. Along with this, it gives the opportunity to the business to cope up with the competitive threat of the industries. Moreover through the business ethics organization can get to know about the insider trading, discrimination and also unethical practices prevailing in the organization. Nowadays, it is very important to the companies to achieve financial growth by considering social and environmental responsibility; therefore the significance of business ethics is greatly recognized. CONCLUSION By considering the present study, it can be concluded that business ethics are highly important for any organization if it is overlooked than it can create a significant impact on the organization. However, on the basis of this study, it is considered that it is compulsory for organizations to follow business ethics. Non-compliance of the business ethics make the very adverse impact on the organization, as it leads to the not only reduction in the financial performance of the company but also the non-financial factors such as the brand reputation, customer satisfaction, quality of the product and services and many other factors get impacted.
REFERENCES Crane,A.andMatten,D.,2016.Businessethics:Managingcorporatecitizenshipand sustainability in the age of globalization. Oxford University Press. Michaelson, C., Pratt, M.G., Grant, A.M. and Dunn, C.P., 2014. Meaningful work: Connecting business ethics and organization studies.Journal of Business Ethics,121(1), pp.77-90. Weiss, J.W., 2014.Business ethics: A stakeholder and issues management approach. Berrett- Koehler Publishers. Online Domino’s, 2018.About Us(Online). Available from <https://www.dominos.co.in/about-us>. [Accessed on 22 October 2018] MediaEthics,2012.Domino'sPizzaControversy(Online).Availablefrom<http://em- trevino.blogspot.com/2012/05/dominos-pizza-controversy.html>.[Accessed on 22 October 2018] Melissa,A, 2012.Domino’s Pizza: A Look At the Timelessness of A Social Media Crisis Plan (Online). Available from <https://melissaagnes.com/dominos-pizza-a-look-at-the-timelessness- of-a-social-media-crisis-plan/>.[Accessed on 22 October 2018]