Detailed Analysis: Ethical Issues in Accounting, Domino's Enterprises

This report provides a comprehensive analysis of the ethical issues in accounting faced by Domino's Pizza Enterprises Limited, focusing on its operations in Australia. The report delves into critical issues such as wage fraud, including underpayment of wages and unpaid overtime, as well as allegations of visa scams and untimely remuneration payments to employees. It also addresses the penalties imposed due to these ethical breaches. The report further offers several recommendations, including implementing proper audits, ensuring timely remuneration, and adhering to government regulations to mitigate these issues. The findings highlight the need for improved ethical standards and transparency within the organization, emphasizing the importance of fair labor practices and compliance with accounting regulations to maintain the company's reputation and operational integrity. The report concludes with a call for Domino's to prioritize ethical conduct and implement the recommended measures to foster a trustworthy work environment and ensure its continued success in the Australian market.

Running head: ETHICAL ISSUES IN ACCOUNTING
ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
Name of the Student
Name of the University
Author Note

1ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
EXECUTIVE SUMMARY
The following report dealt with the various ethical issues that are faced by Dominos’ Pizza
Enterprises Limited in the matters that are related to the accounting within the organization. The
report opened with the discussion on the issues that are faced by the organization in terms of the
ethics that are related to the accounting within the given organization. The report thereafter
proceeded to discuss the recommended measures that might be implemented within the
Dominos’ Pizza Enterprises Limited.

2ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
Table of Contents
Introduction..........................................................................................................................3
Issues....................................................................................................................................3
Wage Fraud......................................................................................................................3
Untimely Remuneration payment....................................................................................4
Penalties...........................................................................................................................4
Recommendation.................................................................................................................5
Wage Fraud......................................................................................................................5
Untimely Remuneration payment....................................................................................6
Penalties...........................................................................................................................6
Conclusion...........................................................................................................................7
References and Bibliography...............................................................................................8

3ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
Introduction
Dominos’ Pizza Enterprises Limited can be termed as the largest pizza chain in the region
of Australia, mainly in the terms of numbers of network sales and network stores numbers. The
organization is also the largest franchisee for the brand of Dominos’ Pizza globally. The
headquarters in the nation of Australia is situated in Hamilton, Queensland. Dominos’ Pizza
Enterprises is regarded as the exclusive master franchise for the brand of Domino’s in the nations
of New Zealand, The Netherlands, Denmark, Japan, Belgium, Luxembourg, France and
Germany. There are more than 2,400 stores in the market places of these regions, and the
organization became the first publicly listed organization from pizza background in the region of
Australia (Dominos.com.au, 2019). There are more than 700 stores present in Australia only
(Dominos.com.au, 2019). The first store was opened in the year of 1983 (Dominos.com.au,
2019). The main purpose of this report will be to discuss the ethical issues related to accounting
of the organization of Dominos’ Pizza Enterprises in the market places of Australia. It will
include allegations and scams related to untimed payment of the wages to the employees of some
of the franchisees of the organization apart from other scams related to visa.
Issues
Wage Fraud
Dominos’ Pizza possesses a brand name in the global market place for the pizza lovers
around the world. But there are some ethical issues which damaged the reputation of the rand
value of the organization, which includes ethical issues in accounting. The major issue is the
wage fraud which happened with one of the franchisee present in Australia. The management
was caught for illegal selling of visas which amounted to $150,000 (Sivaraman and Turner,
2016).. The employees who previously worked for the franchisee claimed that the issue was

4ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
followed by that franchisee for a long period of time. Apart from this, there are also complaints
or allegations against the franchisee related to underpayment of wages and underpayment of
penalties which were done deliberately. The Fair Work Ombudsman has found that there are
issues related to underpayments and unpaid time done by the employees of the franchisee
forcefully. In peak seasons, the employees are forced to work overtime but they are not paid the
extra amount or wages for which they are working for those extra hours in the stores of the
franchisee of Dominos’ Pizza Enterprises.
Untimely Remuneration payment
There are also allegations related to this franchisee, which deal with unequal treatment of
the workers from different departments within the franchisee. The persons who dealt with the
delivery of the pizza and in-store employees left the stores at midnight whereas some of them
were forced to stay after midnight for cleaning and closing up the outlets, which were done
forcefully by the management along with without paying a single buck to them for working
overtime. Though the management refused the allegations which were tagged on them, the share
process fell in the market place of Australia due to all these allegations and scams (Fang and
Zhang, 2019). The franchisee of Dominos’ Pizza Enterprises said that all these issues did not
reflect any bold or powerful performances related to accounting background and there is an
emergency requirement of ethical standards for all the employees who are working in all the
stores of Australia. The senior management said they do not tolerate any excuses or reasons
related to untimed payment of wages to its employees or unpaid overtime to its employees, and
due to performing of these issues in some of the franchisees of Dominos’ Pizza Enterprises, they
have removed four franchisees who are operating a total of seven stores from the several system
or the network of Domino’s, who are involved in underpaying their employees (Sungaila and

5ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
Ellison, 2015). All these issues came into forefront while audits were made based on the payroll
reports of those outlets of the franchisees.
Penalties
Huge wage violations were done by the human resource department of the organization
of Dominos’ Pizza Enterprises, where there was a serious involvement of the headquarters as
well. The management failed to pay the legal minimum wage which is to be paid to the workers
of those outlets from those franchisees. No accounting rules and regulations were followed by
the higher authority of the global branded organization of Dominos’ Pizza Enterprises. The
allegation related to visa scam involved students who worked in those outlets as part-time
workers. The franchisees were found to be the part of the sponsorship scam related to visa.
Lucrative business models were followed by the franchisees, which were found to be unethical in
the time of the investigations. The amount which was said to be paid to those students did not
match with the amount which was shown in the record books followed by those franchisees
(Dumay and Hossain, 2019).
Recommendation
The above discussed issues might be resolved with the help of the following
recommended measures.
Wage Fraud
In order to resolve the wage issues that have been taking place within the organization,
the concerned management might be advised to implement the measures that are required for the
overall development of the wage conditions within the company. The company is advised to
implement the proper audits within the operations of the company as well. The company should

6ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
make an audit to develop a proper understanding of the issues that are highlighted within the
organizational workforce. This might be conducted with the help of an analysis of the time
period during which the concerned employees have not been receiving the proper wages. The
company might further be advised to make attempts at the increasing the revenues of the
company which in turn might lead to the increase in the scope of the proper distribution of the
wages within the organizational workforce. The company in discussion might further be advised
to make proper audits in order to understand the grievances that are highlighted by the workforce
with the help of the meetings and feedbacks that are provided by the employees of Domino's
Pizza Enterprises Limited.
Untimely Remuneration payment
The untimely payment of the remuneration and the incentives is another major issue that
is faced by the company in discussion, Domino's Pizza Enterprises Limited. The company might
be advised to implement the proper conditions wherein the organizational workforce might have
access to their remuneration and the incentives on the specified dates as has been communicated
by the concerned management of the organization. The company might further be advised to deal
in the proper communications with the concerned workforce. This in turn might help in the
overall development of the trust among the employees of the organization. The building of the
trust among the employees and the organizational management might help in the overall
development of the motivation that is provided to the employees of the organization as well. The
proper motivation to the employees of the organization might help in the achieving the
conditions wherein the members of the organizational workforce would put in the greatest
amount of the effort that is required for the overall development of the given organization as

7ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
well. This in turn would help in the increase of the competitive advantage of Domino's Pizza
Enterprises Limited in the Australian markets.
Penalties
The company had also been facing issues due to the penalties that they have been facing
in terms of the various frauds regarding the visas that were granted to them. The company might
be advised to follow the rules and the regulations that have been set by the Australian
government in order to take care of this issue. The company might be advised to implement strict
measures in order to ensure the fact that the employees face a proper workplace environment
within the organization. The company advised to implement the proper audits within the
operations of the company as well. The company should make an audit to develop a proper
understanding of the issues that are highlighted within the organizational workforce. The
company might further be advised to look into the matters that are related to the visa
sponsorships within the organization. The company should take special care for the
implementation of the visa sponsorship regulations that are to be implemented for the various
part-time students who have been serving the organization in return for the sponsorship amounts.
The company might further need to maintain the proper transparency among the organizational
workforce in order to develop a harmonious work-culture within the organization.
Conclusion
In conclusion it might be stated that the company in discussion, Domino's Pizza
Enterprises Limited, have been facing issues in the operations at the Australian markets. The
company might be advised to deal in the overall development of the organization in the given
markets. The company should make an audit to develop a proper understanding of the issues that
are highlighted within the organizational workforce. This might be conducted with the help of an

8ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
analysis of the time period during which the concerned employees have not been receiving the
proper wages. The company might further be advised to make attempts at the increasing the
revenues of the company which in turn might lead to the increase in the scope of the proper
distribution of the wages within the organizational workforce. This in turn would help in the
increase of the competitive advantage of Domino's Pizza Enterprises Limited in the Australian
markets.

9ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
References and Bibliography
Clibborn, S. and Wright, C.F., 2018. Employer theft of temporary migrant workers’ wages in
Australia: Why has the state failed to act?. The Economic and Labour Relations Review, 29(2),
pp.207-227.
Dominos.com.au. (2019). Domino's Pizza | Order Pizza Delivery Online | Food Delivery &
Takeaway. [online] Available at: https://www.dominos.com.au/ [Accessed 21 Sep. 2019].
Dumay, J. and Hossain, M.A., 2019. Sustainability risk disclosure practices of listed companies
in Australia. Australian Accounting Review, 29(2), pp.343-359.
Fang, H. and Zhang, Y., 2019, August. Domino’s Shareholder Value Analysis in Australian
Market. In 1st International Symposium on Economic Development and Management Innovation
(EDMI 2019). Atlantis Press.
Kennedy, T., Rae, M., Sheridan, A. and Valadkhani, A., 2017. Reducing gender wage inequality
increases economic prosperity for all: Insights from Australia. Economic Analysis and
Policy, 55, pp.14-24.
Kinnaird, B., 2017. Australia: Foreign Students Exploited as Temporary Workers: University
World News, 23 October 2015, Issue 387. In Understanding Higher Education
Internationalization (pp. 235-238). Brill Sense.
Lynch, P., 2018. Australia at the Human Rights Council. Alternative Law Journal, 43(1), p.3.
Preston, A., 2018. The structure and determinants of wage relativities: evidence from Australia.
Routledge.

10ETHICAL ISSUES IN ACCOUNTING IN DOMINO'S PIZZA ENTERPRISES LIMITED
Sivaraman, G. and Turner, P., 2016. The 7-Eleven wages scandal: The need for law
reform. Precedent (Sydney, NSW), (135), p.53.
Smith, D., Payne, D., Horne, M. and Claridge, D., 2016. Developments in Australian
migration. Canadian Studies in Population, 43(1-2), pp.117-145.
Sungaila, M.C. and Ellison, M.M., 2015. Joint Employer Liability in the Franchise Context: One
Year after Patterson v. Domino's. Franchise LJ, 35, p.339.
Tachibanaki, T. ed., 2016. Wage differentials: An international comparison. Springer.