Do you see that delicious pizza right there? It’s from Domino’s. When Domino’s delivers to you, your pizza may or may not look like this. While Domino’s isn’t making pizza, it is trying to have an impact on the world. I am here to talk to you today about that—the way in which Domino’s handles its corporate social responsibility and what things might be learned from this company’s handling of those issues.
Slide #2 Notes:
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As you might know, Domino’s is a massive, international company. If you’ve ever been outside of the US and looking for a little piece of home, you may be among the people who maligns the fact that the only thing you can find is American fast food. Domino’s is in that. The company has a more complex CSR situation because of its role in the international realm. If CSR is considered the act of taking into account the needs of the local community and the specific stakeholders of a company in all decision making, then Domino’s has many different markets to think about. Domino’s takes a country by country approach, considering every nation in which it works and the specific challenges of the people there. This fragmented approach can leave Domino’s without guidance and seemingly without values in some cases. In addition, in order to come up with its overall strategy, Domino’s considers both internal and external issues. With company the size of Domino’s, there are many issues to consider. Here are some of the internal challenges.
Slide #3 Notes:
Domino’s is one of many companies that seek CSR as a means by which employees can have higher happiness and better productivity. This is based on the idea that employees will work harder when they are convinced a company actually cares about them. In Malaysia, Domino’s has put into place a program where they support poor students. In the US, Domino’s has participated in Make a Wish programs. These things are designed to show that Domino’s is an active part of its community, and they also improve engagement with employees. However, Domino’s in some ways goes for the flashy solution rather than practicing CSR as a core value. For instance, in the US, delivery drivers recently sued Domino’s for wage theft, alleging that the company has failed to meet minimum wage requirements. Domino’s also tends to pass along some of the costs to its customers, expecting them to subsidize Domino’s drivers. The Domino’s approach to not make a living wage a core element of its business practice largely the result of high costs in this industry. In trying to survive, Domino’s has compromised its values in some ways.
Slide #4 Notes:
Looking at the external challenges, you can see a picture of the owner of Papa John’s here. It shows how he has been vilified in cartoons. He has come out as a major supporter of Republican political candidates, and many see him then as being an enemy to his workers. Domino’s has avoided these types of crises and plays things close to the vest rather than getting involved. In fact, externally, Domino’s tries to take an approach that allows it to show commitment. Domino’s has been known to donate pizzas during hurricanes and others natural disasters. To be a part of the solution and make itself known during difficult times is a part of the Domino’s ethos. However, it has stayed out of the political fray, while competitors like Little Caesars and Papa John’s have been tied to politics. Domino’s has remained neutral in part to avoid having to deal with these CSR challenges.
Slide #5 Notes
At the core of any good CSR approach is an understanding of the people the company impacts. Here, one can see a Domino’s franchise owner and some employees. These are examples of internal stakeholders. Others include managers and even the people who own a share in Domino’s as a corporate entity. As a franchise-based business, Domino’s is “owned” in earnest by shareholders, but individuals can own single stores. There are also external stakeholders, including customers like us, who like the pizza. Suppliers who send Domino’s cheese, sauce, and the like also are impacted by Domino’s decisions. Society as a whole, including communities and governments, are impacted, as well. This is because Domino’s is such a large company and plays such a major role in the food ecosystem. Its actions have wide-reaching impact, so it must be careful in what it does so that it does not have a negative impact. Given its huge size, it has many more stakeholders than the typical business. This means that there are more people and more interests to consider with every single decision. This is not an easy thing for Domino’s and can create unique problems and constraints.
