In the modern-day society, issues of companies engaging in unethical business are not new. This could be due to various factors one of them being the failing power of unions, which are now under the influence of partisan individuals at the top. Instead of advancing the interests of workers, these individuals are bribed and thus neglect their duty to ensure such rights as fair wages, favorable working conditions at the workplace, among others. In Australia, a company, 7-11 stands accused of gross violation of employees’ rights. The organization is said to be ripping off its workers through being paid half of the required amount and when one attempts to raise an issue, they are threatened with deportation. An investigation into one of the country’s biggest convenience store chains revealed that workers were being underpaid and that the managed was doctoring payroll records. Such an outcome demonstrates how companies can engage in manipulation of workers, especially if they are from foreign countries as their bargaining power is low compared to local laborers.
The ethical responsibilities of 7-Eleven are similar to those of any company or organization. part of the company’s mission is to position itself in helping sustain communities not only locally, but also around the globe. Thus, its corporate social responsibility (CSR) was created to help in leveraging its business to promote the highest good around the globe (Goel and Ramanathan, 2014). However, news media reports demonstrate a different story about 7-Eleven as the giant convenience store chain faces various civil lawsuits concerning the unfair treatment of workers in Australia most of whom are international students. 7-Eleven operates in the supermarket industry, which is characteristic of having employees who are not as qualified when one considers academic certification. Such an industry involves retail employees who work part-time and are engaged in other tasks, such as school, or even another part-time job following the high cost of living (Goel and Ramanathan, 2014). Therefore, having such an understanding, the ethical responsibilities of a company like 7-Eleven become clear in that regardless of the low academic qualification of workers, here is an obligation to maintain fair pay alongside favorable working conditions.
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Advancing the issue further, David Morris (2014) spoke about the issues that retail employees deal with on a daily basis. He noted that, for part-timers, retail employment is uncertain and not as clear-cut as one would expect. As an example, Morris (2014) referenced a study under the authorship of the University of Chicago, which found that “… part time schedules fluctuated between 17 and 28 hours per week. Many employers schedule shifts as short as 2-3 hours” (Morris, 20140, para. 6). Such a finding demonstrates that retail employees, such as those working for 7-Eleven are mostly on the receiving end as they are forced to always be available in the event that their employer requires their service. Additionally, the study also found that about 47% of part time workers received advance notice of only a week or less regarding their work schedules, as many of them are on call (Morris, 2014). This means that retail employees are not as flexible and hence are expected to respond promptly to their employers’ call when they are need at work. With such knowledge, it becomes evident that a company like 7-Eleven should consider the limiting nature of retail employment, which would prompt fair treatment of workers through compensating them for their work done and, in some cases, giving them bonuses as an incentive for the many hours they are at work.
The United Nations outlines a number of principles, which businesses should adhere to when it comes to promoting the well-being of employees among other things. As an example, principles one and two read that, “Businesses should support and respect the protection of internationally proclaimed human rights; and make sure that they are not complicit in human rights abuses” (United Nationals Global Compact, n.d.). Such a requirement means that organizations should not engage in activities that are likely to constitute violation of employee rights. However, a close analysis of 7-Eleven’s conduct demonstrates that the company has been engaging in complicit activities leading to the manipulation and abuse of its workers. One of the workers, Pranay Alawala gave a testimony explaining how the company has been underpaying international students who are part-time workers in most of its convenience stores. Alawala confessed that at one time, he was asked to train for a week, but was not paid even after being promised that he would be hired. He put in about 40-plus hours at work and claims that 7-Eleven owes more than $30,000 in unpaid wages (Ferguson and Danckert, n.d.). This provides a clear example of how the company has been engaging in unethical conduct. Of the two principles mentioned, 7-Eleven actions lean more towards gross violation of the second principle, which focuses on avoiding to engage in activities that would lead to complicit abuse of human rights. Alawala was forced to quit his job after a back problem and when he asked his boss for the money owed to him, the company’s lawyer sent a letter, “… threatening to report him to immigration for working more than 20 hours a week, which is in breach of his visa conditions as a student” ( Ferguson and Danckert, n.d. ). This confirms how 7-Eleven has been using the foreign status of some of its workers as an advantage to deny them their right to be paid. Alawala is just one among many workers who have suffered under the insensitivity of 7-Eleven’s management body.
From a business ethics and CSR theory approach, 7-Eleven is not meeting its obligations as far as meeting employees’ demands is concerned. Business ethics demands that an organization should behave in such a manner that its activities promote the wellbeing of its employees as well as other stakeholders. In this case, a CSR approach would require that 7-Eleven consider how underpaying its workers affects the larger society. The public, for instance, are part of the stakeholders whose interests should be recognized and considered. However, when workers are underpaid, they are likely to resort to other measures to getting money such as resorting to robbery among other deviant behaviors. Therefore, this would mean that 7-Eleven’s denial of fair pay would be the cause of an increase in crime in the neighborhood. Having such an understanding, one could notice why there is need for the organization to re-evaluate its managerial approach and adhere to business ethics requirement as well as the demands of CSR.
Conclusion
Based on what is known about the ethical issues facing 7-Eleven, two recommendations can be made. One is that the company should consider revising its wages in such a manner that foreign as well as local employees are compensated fairly. This would improve the company’s reputation across the global market. While that is the case, 7-Eleven could also engage more in CSR activities, such as giving donations to charities, among other things. Such an act could improve public trust and confidence in the company’s transition from being engaging in unethical business practices, to being one that is sensitive towards the needs of the society within which it operates.
References
Ferguson, A. and Dacnkert, S. (n.d.). Revealed: How 7 Eleven is ripping off its workers. [online] Theage.com.au. Available at: https://www.theage.com.au/interactive/2015/7-eleven-revealed/ [Accessed 12 May 2018].
Morris, D. (2014). The New Rules for Retail Workers. [online] HuffPost. Available at: https://www.huffingtonpost.com/david-morris/the-new-rules-for-retail-_b_6322568.html [Accessed 12 May 2018].
Goel, M. and Ramanathan, M. (2014). Business Ethics and Corporate Social Responsibility – Is there a Dividing Line?. Procedia Economics and Finance , 11, pp.49-59.
United Nations Global Compact. (n.d.). The Ten Principles of the UN Global Compact. Retrieved from https://www.unglobalcompact.org/what-is-gc/mission/principles
