Macquarie University: WACC100 Domino's Pizza Ethical Issues Case Study

This case study examines the ethical issues faced by Domino's Pizza, focusing on the company's background, the ethical dilemmas that arose, and the identification of stakeholders impacted by these issues. The study explores the consequences of the company's decisions and evaluates whether these decisions aligned with business ethics principles. It delves into specific incidents, such as the viral video controversy involving employees, and analyzes the impact on various stakeholders including customers, business partners, government, and investors. The analysis considers how the company's actions affected its reputation, sales, and brand image. The study also highlights the role of business ethics in ensuring the long-term growth and sustainability of a company, emphasizing the importance of ethical practices in addressing competitive threats, preventing unethical behavior, and maintaining financial and non-financial performance metrics. The conclusion emphasizes the critical role of business ethics for organizations, noting the adverse impacts of non-compliance and the importance of adherence to ethical principles.

Accounting in Society

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 the Ann Arbor, Michigan at 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
time when 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

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. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
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]
Media Ethics, 2012. Domino's Pizza Controversy (Online). Available from <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]