Case Study for 7-Eleven The Price Of Convenience - myassignmenthelp

Question: Write about theCase Study Report for 7-Eleven The Price Of Convenience. Answer: Introduction 7-Eleven has established itself globally as an operator, licensor and franchisor of convenience stores(7-Eleven Australia, 2017). Currently, in Australia, it stands as the largest retailer, with regard to market share, in petrol and convenience; it has stores across various states such as Victoria, New South Wales, Queensland and Western Australia. Over the years employees have raised complaints with regard to wages and working conditions, particularly for migrant employees(Fair Work Ombudsman, 2016). The allegations were only a tip of the iceberg as, in 2015, an investigation by Four Corners and Fairfax Media revealed fraudulent bookkeeping, intimidation and mass underpayment of employees. The following report aims to analyse the legal and ethical issues arising from the scandal keeping in mind the effect of the ongoings on employees, the public and the overall corporation. An Evaluation of the 7-Eleven Ethical Dilemma Does the dilemma breach regulations/law? Employers are ethically and morally bound to ensure they pay fair wages and avail proper working conditions to their employees. The basis for remuneration in an organisation that aims to be ethical is distributive justice; this is proper distribution of economic benefits and burdens(Shaw Barry, 2016). Further, organisations like 7-Eleven have an ethical obligation to ensure employees throughout their franchise network are not subjected to exploitative practices(Hardy, 2016). As such, an employee should be adequately compensated according to the value they bring to the firm; the criteria set should be clear and should also abide by the conditions set by law. At the time the story broke out, the standard set minimum wage was 24 dollars an hour; the investigation, however, revealed that some workers were earning as little as 10 dollars an hour, with the highest earning 15 dollars an hour(Ferguson O'Brien, 2015). The Fair Work Act 2009 (Cth) provides for maximum weekly hours as well as minimum wages that every employee is entitled to. Further, employees are entitled to other statutory awards and working conditions which the employer is obligated to provide. These obligations, under section 550 are also extended to a Franchisor who could be held liable if found to have aided or abetted conduct that contributes to a contravention of these provisions. The direct employers, that is the franchisees, are clearly liable for subjecting workers to forced long work hours that led to breach of their visa obligations and extensively underpaying and at times not paying them in order to gain profits. In its inquiry, the Fair Work Ombudsman was unable to find sufficient evidence to justify mounting a case against 7-Eleven under the provisions of section 550(Wheelahan Brooks, 2016). Due to the lack of sufficient evidence, the organisation could not be found legally at fault for the charges. However, this fi nding does not exonerate the organisation from its ethical obligation. It is evident that the model adopted by the company creates an environment where employers cannot operate profitably without breaking the law(Ryan, 2016). This serves as a clear ethical failure in terms of leadership. The Key Affected Stakeholders The most affected stakeholder in this case study is the employee, particularly student employees on Australian Visas. Strapped for cash and striving to make ends meet as they conduct their studies, the students appeared the most vulnerable target for exploitation(Ferguson O'Brien, 2015). Employees are a valuable asset as well as key stakeholders in any organisation; maintaining a healthy workforce secures the productivity and competitiveness of the organisation(Shaw Barry, 2016). Franchisors are another group of stakeholders affected by the dilemma. Additionally, the aftermath of the case affected the entire franchise as it has gained scrutiny from consumers and members of the public. Further, upcoming legal reforms are likely to affect the current business model. Conclusion In conclusion, it is evident that the case study in question presents an ethical dilemma with regard to leadership. In as much as the top management at 7-Eleven attempted to distance itself from the scandal, placing blame on individual franchisees, the investigation reveals that the illegal and unethical practices are widespread as a tactic to ensure profits are maintained. As such, the problem itself arises from the model set by the head company which creates an environment that makes compliance with rules and regulations and basic ethical obligations unfavourable to business performance. It is evident that employees were the most affected stakeholder and continue to be as they are subjected to long hours, underpayment and intimidation. References 7-Eleven Australia, 2017. Welcome to 7-Eleven Australia. [Online] Available at: https://franchise.7eleven.com.au/why-7-eleven.html[Accessed 29 September 2017]. Fair Work Ombudsman, 2016. A Report of the Fair Work Ombudsman's Inquiry into 7-Eleven, s.l.: Commonwealth of Australia. Ferguson, A. O'Brien, K., 2015. 7-Eleven: The Price of Convenience. [Online] Available at: https://www.abc.net.au/4corners/7-eleven-promo/6729716 [Accessed 29 September 2017]. Hardy, T., 2016. Can 7-Eleven be trusted to clean up its own mess?. [Online] Available at: https://theconversation.com/can-7-eleven-be-trusted-to-clean-up-its-own-mess-59302[Accessed 29 September 2017]. Ryan, G., 2016. 7-Eleven Scandal an Ethical Failure of Leadership. [Online] Available at: https://planforpersonalsuccess.com/7-eleven-unethical/[Accessed 29 September 2017]. Shaw, W. H. Barry, V., 2016. Moral Issues in Business. 13 ed. s.l.:Cengage Learning. Wheelahan, F. Brooks, L., 2016. Stricter Laws for Franchisors? Responses to the 7-Eleven Wage Scandal. [Online] Available at: https://www.corrs.com.au/publications/corrs-in-brief/stricter-laws-for-franchisors-responses-to-the-7-eleven-wage-scandal/[Accessed 29 September 2017].