Internal Analysis Report: 7-Eleven Ethics, CSR, and Sustainability

This report provides an internal analysis of 7-Eleven, prompted by issues of employment record falsification and underpayment of employees. It examines the company's ethical standards, corporate social responsibility (CSR), and sustainability efforts. The report highlights declining working conditi...Read More

Internal Analysis of 7-Eleven Company

Introduction
 In the recent past 7-Eleven Company has been faced by cases of falsification of
employment records and allegations of underpayment of employees.
 As a result, the primary objective of this report is to provide an internal analysis report
for the Company.
 This report gives analysis of 7-Eleven Inc., ethics and business standards of the
company and corporate social responsibility.
 Also, it gives a check of the company’s sustainability.

7-Eleven Ethical Standards
 According to the Fair Work Ombudsman (FWO) report indicate that the working
condition of 7-Eleven Company has been declining over the years (Crane, &
Matten, 2016).
 The whole work structure at the company is flawed and the company is only
earning return by underpaying its employees particularly immigrants (Sivaraman,
& Turner, 2016).

Cont’
 The report shows that immigrant employees work for many hours and yet they are
underpaid (Ferrell, 2016).
 It is unfortunate that this practices is happening in the watch of the management
leadership.
 Certainly, this wage scandal shows that 7-Eleven is faced by corporate
irresponsibility.

7-Eleven Code of Ethics
 7-Eleven Inc., advocate for lawful and fair dealings at all times.
 As a member of the National Coalition of Association 7-11 has pledged to work
by strictly observing the highest standards of fairness, competency, and integrity
in its operations (Bryson, 2018).

Cont’
 As a member of the National coalition 7-11 believes in relationship of trust, respect, fair and equal
dealing.
 Nonetheless, regardless of 7-11 having code of ethics in place it does not seem to
adhere to these policies.

Theoretical Framework
 The case of underpayment can be described by two ethical theories subjective
and utilitarian perception.
 The ethical subjectivism theory is concerned with the company’s moral decision-
making process which ensure that employees are able to express their feelings.

Cont’
 According to utilitarian theory people are supposed to ensure that
they promote maximum good for each person.
 The maximum good for each individual has to be neutral, thus 7-
Eleven Company should work to ensure that abide by these theories
in all its practices.

7-Eleven Inc., Corporate Social
Responsibility
 According to Tai, & Chuang, (2014) the scholar defines corporate social
responsibility (CSR) as the way a company runs its operations to result in an
overall positive influence on society.
 CSR entails social impact, sustainability and ethics operated in line with the
company’s objectives (Goetsch, & Davis, 2014).

Cont’
 In the case of &-Eleven Inc., it is committed to ensuring that set a measurable
SCR responsibility goals to cut on its ecological footprint.
 To be able to realise this, the company sis working in association with
Conservation International (CI) to construct healthier, productive and prosperous
partnerships, and policies.
 The CRS focus of 7-Eleven Inc., is on people, products and the planet.

7-Eleven CSR Goals
 7-Eleven is working to realise the following goals
 To decline its packaging footprint by at least 20% by 2025.
 Intensify corporate giving to 1% of its operational net income yearly which took
off in 2017.
 Decline its footprint in offices and stores by at least 20% by 2025.
 Indeed, 7-Eleven is seriousness committed to ensuring sustainability.

Cont’
 For instance, in 2017 it introduced Rainforest Alliance Certified
coffees.
 This is a major product commitment towards sustainable move to a
new rainforest Alliance Certified single-origin Colombian coffee.
 Indeed, 7-Eleven is doing true CSR since it has embraced the
Rainforest Alliance which is a global organisation whose target is to
conserve biodiversity and sustainable livelihood.

7-Eleven Triple Bottom Line (TBL)
Analysis Model
 The triple bottom line is defined as an accounting structure which
entails three dimensions of performance financial, environmental
and social aspects (Wiengarten et al., 2017).
 These dimensions are also referred to as three Ps people planet and
profits.
 7-Eleven has incorporated TBL analysis in its operations particularly
environmental conservation to ensure sustainability.

Recommendation
 In order for 7-Eleven Inc., to ensure that an ethical environment it has to begin
with its top management by disallowing unethical happening as they watch.
 Instead they should lead from the front to foster an ethical culture within the
company.
 7-Eleven Inc., should abide by the National Coalition of Associations by
putting it into practise.

Cont’
 The company should value its workforce and work to ensure they are
protected and taken care of to limit cases of exploiting employees.
 7-Eleven Inc., should conduct comprehensive internal controls and
constant compliance checks using internal auditors and providing report to
the management (Kaptein, 2015).
 This will lead to continuous effectiveness of the company’s system design.
 7-Eleven should also balance its BTL operations and not only focus of
environmental conservation alone.

Conclusion
Accordingly, to some point 7-Eleven has failed to abide by its ethical standards.
As a result, the company has been faced by cases of underpayment and
discrimination of employees.
Indeed, these are unethical behaviours which should be avoided at all costs. For 7-
Eleven Inc., to avoid such cases in future it has to enact stricter ethical standards
and take corporate responsibility.

Cont’
 Also, the management should lead by example by not setting a blind eye on
unethical practices to take place.

References
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Ferrell, O. C. (2016). A framework for understanding organizational ethics. In Business
ethics: New challenges for business schools and corporate leaders (pp. 15-29). Routledge.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: Pearson.
Greene, R. R. (2017). Human Behavior Theory and Professional Social Work Practice.
In Human Behavior Theory and Social Work Practice (pp. 31-62). Routledge.

Kaptein, M. (2015). The effectiveness of ethics programs: The role of scope, composition, and
sequence. Journal of Business Ethics, 132(2), 415-431.
Sivaraman, G., & Turner, P. (2016). The 7-Eleven wages scandal: The need for law
reform. Precedent (Sydney, NSW), (135), 53.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Wiengarten, F., Ahmed, M. U., Longoni, A., Pagell, M., & Fynes, B. (2017). Complexity and the
triple bottom line: an information-processing perspective. International Journal of Operations &
Production Management, 37(9), 1142-1163.