WACC100 Accounting in Society: Analyzing Ethical Issues at Domino's

This case study analyzes the ethical issues surrounding Domino's Pizza, a leading pizza delivery company. It explores the company's background, ethical dilemmas related to environmental reporting, use of palm oil and factory-farmed meat, human rights concerns, worker underpayment, and safety issues. The study identifies and evaluates the stakeholders impacted by these ethical issues, including customers, workers, investors, and the community. It discusses the potential positive and negative impacts of ethical and unethical decisions on the business. The case study concludes by emphasizing the importance of ethical conduct in business for long-term sustainability and positive stakeholder relations. Desklib offers similar case studies and solved assignments for students.

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Accounting in Society
Essay
6/22/2018
Student Name

1 | P a g e Accounting in Society
Domino’s Pizza is regarded as the leading Pizza delivery company. The company has
more than 9350 stores in the market. The operation of the dominos is done with a proper
design and procedure. An operation in the company is implementation and process which
converts the raw material labour and technology into to finished goods and services that
satisfy the needs of the consumer. For operations of Dominos specific strategies has been
made by the top level as the food quality will matter in the service sector (James, Wooten &
Dushek, 2011). The company is providing the quality services which make the customer
satisfied. But the company has also done some unethical activities which make its survival
quite difficult.
There are many ethical issues which are faced by the Dominos in its business. The issues
are related to the not serving the good pizza to its customers. Other major ethical issues are as
follows:
 The company is found to have the worst consumer rating for environmental reporting.
 Dominos is using the palm oil in the making of its pizza which depicts that they have
no commitments to sustainability.
 The company is using the factory farmed meat in the making of pizza.
 The human rights are oppressive regimes (Ethical Consumer, 2018).
 The workers of the company are also underpaid. No commitment is given to pay a
living wage to the workers. There is a criticism faced by the workers of zero hour’s
contract.
 Many workers in the company have lost their lives in the delivery of Pizza within 30
minutes (Financial Review, 2018).
An ethical dilemma occurs when the company has two options and have to select only
one from them. The decision making in choosing the options are related to the moral

2 | P a g e Accounting in Society
obligation abide by two different courses of action. In the case of Dominos, a case of
unethical reporting of a loss marked by the top level and middle-level staff who are engaged
in some corporate fraud. Many employees in this situation get the fear of losing their job in
the company. The ethical dilemma faced by society is that the company is not responsible for
the environment and are not doing any activity which makes the resources save for the use of
the future (Cain, 2011).
A stakeholder includes the customers, suppliers, government, shareholders and
community. The stakeholders of dominos are facing some issues which affect the working
and investing behaviour in the business. Identifying the potential stakeholders is the
responsibility of the business as these persons are affected by the decision taken in the
business. Individual profitability and benefits are related to the decisions taken by the
company. If the company take the ethical decision it will be beneficial for the company as
well as for the stakeholders and vice versa (Burton & Soboleva, 2011).
The workers of the Dominos are facing the problem of low wages as compared to
their industry. The company has made the monopoly and make the network of fraud to offer
the low wage to its customers. The rate of investment by the investor is reduced in the
company due to that the company stock a price goes on the decline. After the seeing, a fall in
the stock prices of the company, the CEO and top official made the decision to increase the
wages of the workers and giving more importance to the society (He, Zha, & Li, 2013).
One of the ethical concerns is found in the Dominos delivery of pizza. The delivery
boys lost their lives in order to provide the pizza to its customers within 30 minutes or it’s
free. After coming of this slogan many delivery boys lose their lives and there is a rise in the
death due to the accidents involving the dominos drivers. This was the reason that the drivers
have to follow the promise made by their company and therefore they do it by driving fast

3 | P a g e Accounting in Society
which means more chances of an accident, some of which were fatal. This will impact the
low sales and revenues earned by the company. Many people in the society have boycotted
the consumption of the Domino’s Pizza as the company is not performing the operation of its
activities while maintaining the ethics and code of conduct that should be followed by the
food company (The Sydney Morning Herald, 2018).
The decision taken by the stakeholders is right in order not to have an investment in
the business. This will make the company realize that the maintaining and taking the ethical
decision in the business is a must. Dominos start giving more importance to the society as it
has understood that company will survive in the long term only when he does well for the
society. Company become more responsible towards the society, community and stakeholder
and start contributing towards the environment sustainability (Ethical Consumer, 2018).
According to my view on the business ethics, every business should follow the rules,
regulations and code of conduct in the society in order to maintain the ethical reputation in
the market. After having thorough research on Domino's pizza I come to know that the
company is surviving from the ethical issues. These issues are faced by its stakeholders due
to an activity performed by the company. The research done on the company issues and its
decision affecting the stakeholders makes me feel that the ethics should be followed in every
organization irrespective of its size and nature of the business. In my opinion, the business
ethics is a wider concept which is not confined to only maintaining the social responsibilities
of the business. Various concerns are highlighted in the report regarding the problems faced
by the workers of low wages and are responsible for the death and accidents of the delivery
boy. The company is not giving the importance to the sustainable use of the resources and are
not concerned with the environment resources like animals (Bizfluent, 2018).

4 | P a g e Accounting in Society
References
Bizfluent. (2018). What Are Stakeholders & Ethical Dilemmas? Retrieved from:
https://bizfluent.com/info-8100582-stakeholders-ethical-dilemmas.html
Burton, S., & Soboleva, A. (2011). Interactive or reactive? Marketing with Twitter. Journal
of Consumer Marketing, 28(7), 491-499.
Cain, J. (2011). Social media in health care: the case for organizational policy and employee
education. American Journal of Health-System Pharmacy, 68(11), 1036-1040.
Ethical Consumer. (2018). Product Score. Retrieved from:
http://www.ethicalconsumer.org/scoredetails.aspx?ProductId=1350858
Finnacial Review. (2018). Domino's Pizza investigates wage fraud, denies network pressure.
Retrieved from: https://www.afr.com/business/retail/dominos-pizza-investigates-
wage-fraud-denies-network-pressure-20170212-gubdst
He, W., Zha, S., & Li, L. (2013). Social media competitive analysis and text mining: A case
study in the pizza industry. International Journal of Information Management, 33(3),
464-472.
James, E. H., Wooten, L. P., & Dushek, K. (2011). Crisis management: Informing a new
leadership research agenda. Academy of Management Annals, 5(1), 455-493.
The Sydney Morning Herald. (2018). The Domino's Effect. Retrieved from:
https://www.smh.com.au/interactive/2017/the-dominos-effect/