Read the Case Study given below and Answer the following Questions:

1. What are the legal ramifications to the “Pesos por Pizzas” practice? Discuss.

2. Is the pizza chain being “unpatriotic,” as some have claimed? Is it leading to a “parallel” Hispanic “mainstream” in the United States? Why or why not?

3. Is the pizza chain acting morally pursuant to the doctrines of ethical egoism, ethical relativism, Utilitarianism, and Kantian ethics? Discuss.

4. What would a Value Driven Management analysis of “Pizza por Pesos” indicate to the pizza chain as the “value-maximizing” course of conduct? Discuss.

Case Study: Pesos por Pizzas?

The New York Times in January 2007 reported that a large pizza chain in Dallas, Texas, called Pizza Padron, initiated a controversial promotion called “Pesos por pizzas,” in which customers can pay for pizzas with Mexican pesos. There are 59 Pizza Padron establishments in five Southwestern and Western states. Many customers of the chain travel regularly to Mexico, and then they return to the U.S. with Mexican currency, which now can be used to purchase pizza. The customers are given their change in U.S. currency or coins. The promotion, however, now has emerged as another “hot-button” in the immigration debate in the United States. The company’s Dallas headquarters had received almost 1000 email messages when the practice became publicly known; some messages were supportive but many called the policy unpatriotic. Several “emailers” and phone callers have called for a boycott of the chain. The New York Times reported that the president of the company, Antonio Swad, stated he was surprised by the outcry. He related that the peso policy was only an effort to reinforce the company’s “brand promise” to be the “premier Latino pizza chain.” He further related that this was a business decision; and that the Latino population was a significant part of the company’s customer base. He also asserted that the United States was “not going to be like it used to be.” It is going to be different, he said; and the U.S. has an “opportunity to be better,” he also said. Mr. Swad is of Italian and Lebanese heritage; he was born and raised in Columbus, Ohio; and he does not speak Spanish. He opened his first pizza business in Dallas in 1986; and saw an opportunity in the growing Latino population in his neighborhood. He soon changed the name of the business from Pizza Pizza to Pizza Padron; hired bi-lingual staff; and offered Mexican style pizzas. Pizza Padron became a franchise in 2003. From 10-15% of the business from the five Dallas area stores has been in pesos. Despite the criticism, he stated he would continue the promotion, at least for the near future. One critic who seeks to limit immigration expressed concern that Hispanics could create a “parallel mainstream” in the United States. A co-founder of a Hispanic-American public relations organization, as reported by the New York Times, stated that he did not see the policy as a major business trend, but did view it as a “symbolic acknowledgement of the importance of the large and growing Hispanic market.” He also said from a business standpoint, the issue is not whether the customers are legal or illegal immigrants, but whether they have money. He also said that the customers also spend U.S. currency on the Mexican side of the border. The policy is clearly for the convenience of the customers since banks offer a better exchange rate than Pizza Padron, which as of this writing gives an exchange rate of 12 pesos per dollar.