Ethics and Sustainability in 7-Eleven: Two Major Ethical Issues and Decision-Making Frameworks

Running head: ETHICS AND SUSTAINABILITY
Ethics and Sustainability
Name of the Student
Name of the University
Author’s Note

1ETHICS AND SUSTAINABILITY
Part A
Answer to Question 1
At the time of conducting the business operations, the companies are needed to consider
all the ethical code of conducts in order to avoid any ethical issue. The following discussion
shows two ethical issues in 7-Eleven:
1st Issue: 7-Eleven is one of the largest convenience and gas stops in Australia. In the year of
2015, 7-Eleven breached the ethical code of conduct as the company was involved in the use of
exploitive and illegal work practice for the reduction of labor costs. For the purpose of the
reduction of labor cost, the company adopted the illegal strategy of underpaying young and
foreign workers (smh.com.au, 2018). Most of the time, the company was paying the young and
foreign employees with 50% below of the minimum wage. Apart from the young and foreign
employees, all the employees were facing the same problem related to the underpayment of their
wages. The investigation report of both the ABC Four Corners and Fairfax showed that the
company violated the Australian ethical code of ethics by taking the strategy of underpaying the
employee as this is a highly illegal business practice (smh.com.au, 2018).
2nd Issue: Apart from the above ethical issue, another ethical issue in 7-Eleven is the ethical
failure of leadership in the process of underpayment of the employees. It needs to be mentioned
that many of the employees of 7-Eleven were international student and their visas only permit
them to work for 20 hours per week (smh.com.au, 2018). However, as per the investigation
report of ABC Four Corner and Fairfax, the managers and franchisees of the company were
found in blackmailing those international students for complaining to the Fair Work Australia in
case they disclose the matter of underpayment to the authorities. After the publication of the