Business Ethical

Audit
A Final Presentation
Stacey N. Geist

Introduction
For my Business Ethical Audit, I decided that I was going to work
with a manager from Subway named Tatiana. I sat down with her
and asked her different questions that related to her job and how she
viewed Subways ethical standards. In this presentation I will first
provide important information related to Subway, I will present
information about Tatiana, and I will give feedback about information
that I received from Tatiana during her interview process.

Note: All information obtained is subject to privacy per

request of interviewee. Managers name has been
changed per managers request.

Subway History
Back in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. Searching for a
way to help pay for his education, a family friend suggested he open a submarine sandwich shop.
With a loan of $1,000, the friendDr. Peter Buckoffered to become Freds partner, and a business
relationship was forged that would change the landscape of the fast food industry.
The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of
having 32 stores opened in 10 years. Fred soon learned the basics of running a business, as well as
the importance of serving a well-made, high quality product, providing excellent customer service,
keeping operating costs low and finding great locations. These early lessons continue to serve as the
foundation for successful SUBWAY restaurants around the world.
By 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut.
Realizing they would not reach their 32 store goal in time, they began franchising, launching the
SUBWAY brand into a period of remarkable growth which continues to this day.

Subway
Mission
Statement
"Delight every
customer so they want
to tell their friends
with great value
through fresh,
delicious, made-toorder sandwiches, and
an exceptional
experience."

The mission statement provides

guidance for the value of family.
Subway believes that it builds its
business relationships by serving
the customers and community the
same way that they would their
own family. Subways mission
statement states that one of its
main objectives to delight each
customerwith exceptional
service.

Subway Facts (continued)

Year Founded - 1965

Subway Head Quarters

1902 N. Campus Ave., Ste. J Upland CA
91784

Subway Facts
Industry Food

Subway Facts
(continued)

Products
Offered
Sandwiches
Salads
Cookies
Drinks
Sides

Subway Facts (continued)

As of 2014, Subway had
approximately 328,000 to 492,000
employees worldwide.

Subway Facts (continued)

There are 43,853 Subway Restaurants in
110 Countries

Meet Tatiana!
Tatiana is 24 years old and she has been working at Subway since
2012.
Tatiana started worked at Subway while she was attending college.
Tatiana became a manager in 2014.
Tatiana has found being a manager is not easy because she does not
get a lot of support from her boss, the owner of the store.

Ethical Questionnaire Standout

Information
Things that I stood out to me in particular
Leadership is not necessarily a huge part of an employees daily work day. Most managers train an
employee and there is often very little contact with the manager unless the employee requests otherwise. I
was surprised to learn that managers are seen more as co-workers and not as leaders.

Management is chosen by the owners of the restaurants and is usually chosen from the existing employee
pool and very rarely comes from outside of the company. I found it interesting that more experienced
managers are not hired. I assumed this was to save on cost.

Feedback is rarely given to employees on recognizable positive behavior. Employees are seen as a dime a
dozen.

There is no ethics training that takes place with employees except for when the application for
employment is signed at the start of being hired.

Turnover is high within the company because employees feel that they are not valued for their services.

My Recommendations to Subway Managers

Based off of the Ethical Environment Questionnaire

I recommend that Subway Managers need to be more open

and honest about how they truly feel about Subway as a
corporation. The questionnaire was filled out and the
answers appear to make Subway look like a decent
company. However, when speaking with Tatiana it became
very clear that this was not the case.
I recommend that an ethics and leadership program need to
be taken and implemented by management. Subway
University is available as a set of videos to watch, but
nothing is discussed or addressed from this information.

Measuring for Ethics

In regards to measuring for ethics, I sat down with Tatiana
and I asked her different questions about Subway.
Tatiana was asked questions about what values she
considers to be important when working at Subway as an
employee but also as a manager.
Tatiana was asked to give examples of different ethical
situations that she personally had to deal with.
Tatiana was asked to discuss what type of ethical behavior
she is measuring and what she wishes she saw more of
amongst her employees.

Semester Take Away

I learned that many businesses will claim to be ethical, when
in fact they are not.
I learned that in order for a business to be successful, it
needs to have a solid leadership standard behind it.
I learned that management plays a very important role in
helping employees act ethically.
I learned that even though a company has a mission
statement, doesnt necessarily mean that it is being taken
seriously.

My Recommendations to Subway Managers

Based off of Measuring For Ethics
I recommend that managers find away to show appreciation to their
workers when they do a good job.
I recommend that performance reviews are done so that it can be
verified that an employee knows how to do their job.
I recommend that the list of behaviors that management is
measuring actually matter and be reflected to the employee on
where they stand on their performance.

Conclusion
Throughout the interview process that I had with Tatiana, it was interesting to see
that she did not have a lot of support from the upper management. Tatiana
explained that anyone is able to start up their own store and that the person who
owns per particular store doesnt give her a lot of support. Tatiana ends up
making her own rules and the owner does not take any interest in what she does.
Tatiana also explained that raises within the company are very rare and that she
recognizes that employees are not paid very well. She also explained that because
employee wages are so low is the reason that sandwiches at Subway are sold at
lower prices.
By the end of my interview with Tatiana, I understood why it was that she
requested to remain anonymous. She outright did not say the nicest things about
the company or its owner. It was disappointing to learn that a restaurant that I
enjoy, appears to take its employees for granted and does not stand by its mission
statement.