...Professor Sarin Jarvis August 1, 2015 Starbucks Ethical Or Unethical? I chose to do my paper on Starbucks because I love their company and get my coffee there every morning of the work week. I was interested in finding out whether the company I was supporting was being ethical to its employees or not. I will research Starbucks and who they get their products from and find out just how ethical of a company they are. Thesis: Starbucks claims that they are very ethical and have won awards for being so ethical. But, are they really as ethical sense day one till present as they claim to be. The question is does Starbucks do all their business from grower to a cup of coffee ethically. I start my paper by telling you, the public; about when Starbucks started business and how many stores around the world they have at this current moment. I will show you how Starbucks tries really hard as a large company to come across to their investors and the public as being an ethical company and how they are fair to all their employees and the farmers that grow their coffee beans. I will show you how they are unethical in the way they treat their farmers. I will also show you how they became known as unethical by the way they treated their unionized workers in Chile. This unfair pay that the Chilean workers were receiving was not a fair wage. Starbucks workers in Chile went on strike and Starbucks hired nonunion workers to replace them which were unethical and Starbucks was fined for doing so. I will provide...
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... 2.1 Company History and Background 2.2 Mission and Principle 3.0 Stakeholder Analysis 3.1 Ethical theory Section 2 4.0 Dilemmas 4.1 Starbucks Cup Recycling 4.2 Starbucks Coffee Bean 4.3 The Dorosin Issue 4.4 Breastfeeding in Starbucks 4.5 Financial Loss 4.6 Starbucks Water Waste Section 3 5.0 Best practice 5.1 Official Website / information 5.2 Stakeholders 5.3 Environment 5.4 CSR – Corporate Social Responsibility Section 4 6.0 Recommendations 1.0 Methodology In this report will show that the ethical issues facing by Starbucks and the solution which can help Starbucks overcome the issues of Starbucks facing. Except researched the official website of Starbucks, but also viewing external agencies and individuals, journals and text books. Based on these sources, so author will be able provide an overview with objectivity of Starbucks organization. Besides, author appoints a stakeholder analysis, appropriate theory for state the better ways for Starbucks organization. In the beginning, it will show the company history, background and principles of the Starbucks organization. Based on these information can be enhance reader more understanding the Starbucks organization and find out what has been done or done in future and why Starbucks make these decisions. 2.0 Introduction Business Ethics can be define as the examination of the variety of problems that can arise from the business environment, and how employees, management, and the corporation...
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...and a social conscience”. The Business Ethics and Compliance program for Starbucks was also created to ensure the traditions and character that Howard Schultz had envisioned for this company. This program provides resources to help partners make ethical decisions at the workplace (Starbucks, 2011). The program also develops and issues materials such as the Standards of Business Conduct, provides compliance and ethics training, and provides a confidential channel for partners to voice concerns (Starbucks, 2011). * Identify processes the organization uses to comply with SEC regulations. In regards to organizational process that Starbucks complies with under The United States Security and Exchange Commission (SEC). The SEC was created back in 1933 and 1934 to protect investors, maintain fair, orderly, efficient markets, and facilitate capital formation (SEC, 2012). In reference to this, it is essential that all companies and organizations should follow the SEC guidelines to ensure companies and organizations are operating in an ethical and legal manner. In regards to Starbucks processes complying with the SEC, this company is not exempted, every quarter and annually the company facilitates their entire financial statements. These financial statements provide and ensure al details of the documents that are sent is accurate and honest to the best of their knowledge, and this information is sent off to the SEC to verify (Starbucks, 2011). These financial statements and...
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...Starbucks: Ethics and Compliance FIN 370 August 7, 2012 Professor Tom Brady Starbucks: Ethics and Compliance Business Ethics and Compliance is a platform that undergirds Starbucks operation and assists to safeguard its philosophy and name by supplying ways that help associates make moral judgments at work (Starbucks Corporation, 2012). Starbucks has been on the scene since 1971 and has continued to grow at a minimum rate of 20 percent annually. Starbucks is known as the collegiate meeting place and the patrons are as diverse as its employees. Business professionals, students, stay at home mothers and dads alike find that Starbucks is one of the many places that are not biased in service or its beliefs. For the last 5 years Starbucks has been awarded as one of the most ethical companies in the world. The award recognizes companies that actually go past making statements about doing business "ethically" and transform those words into deeds that benefit all mankind (Ethisphere, 2012). As a company Starbucks believes that equal and fair treatment of every person is detrimental to making any business successful. In an effort to make sure that Starbucks remains a thriving business ethical compliance has been a major focus of the company from its beginning. Every employee is educated in what ethical policies are and the expected role he or she is to play once employed. Starbucks is known to embrace diversity and consider every employee a partner in changing the world one...
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...Ethics and Compliance Paper FIN/370 July 14, 2011 Ethics and Compliance Paper Introduction Starbucks boasts that they serve the best coffee possible to meet their mission to inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time. Starbucks has grown from one store in Seattle founded by two teachers and a writer in 1971 to more than 17,000 stores throughout the United States and overseas companies. Of these, 53% are directly owned by Starbucks and the rest in franchised contractor leases. This amazing feat brought three people together, each using $1,350, and borrowing $5,000 to make over a billion dollar per year successful business 40 years later. The name Starbucks was their original name in reference to the coffee-loving first mate in Moby Dick, and the design was from the two-tailed siren mermaid. Most recognize the Starbucks brand as a house-hold name and should also know that they are proud and committed to their coffee knowledge, customer service, and product expertise. They call their employees partners and offer Starbucks internal programs such as comprehensive health coverage and equity in the company. Every Starbuck’s employee knows he or she is a visual symbol of the company and needs to work as if each store was hid or her own. Starbucks also adheres to the requirements of the Security Exchange Commission (SEC), which is a publicly traded company known as SBUX. The aim of this paper is to discuss the roles of ethics...
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...The role of ethics and compliance in Starbucks is set in place to ensure that all of Starbuck’s staff from the baristas working the front counter to the corporate staff are all abiding by federal laws and regulations. Ethics in financial practices are sometimes hard to believe. The agency problem is the result of conflict of interest between stockholders and the managers of a firm (Titman & Keown, p. 15, 2011). “A conflict of interest is a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties (“Business Ethics”, n.d.). An example of a conflict of interest would be if the CFO attempted to acquire a property or investment from a friend or family member without acting in the best interest of Starbucks and it’s shareholders. Corporate advisors, in this case a CEO or CFO are legally required to make fair and ethical financial decisions. The Sarbanes-Oxley Act or SOX, passed by Congress in 2002 holds corporate advisors that have access to influence company decisions legally accountable for any instances of misconduct (Titman & Keown, p. 11, 2011). The SOX act is in effect in order to protect corporate shareholders against financial misconduct and accounting fraud. According to Starbuck’s Code of Ethics for CEO and Finance Leaders are required to follow the following seven duties: act with honesty and integreity, avoiding actual or apparent conflicts of interest, provide internal...
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...Starbucks’ Ethics and Compliance Paper Ethical behavior within a company is very important to its future and success. This type of behavior is not just important for the employees to follow, but for the entire company. In 2001, a failing company called Enron was involved in numerous unethical behaviors. For example, Enron’s Chief Financial Officer temporarily suspended their “code of ethics” not once, but twice in order to partake in personal financial gain. Enron’s actions eventually resulted in bankruptcy and assisted with the creation of a new set of guidelines for companies to follow. The so-called guidelines were called the Sarbanes-Oxley Act (Titman, S., Keown, A.J., & Martin, J.D. 2011). The SOX helped institute a set of rules for companies to follow, one being the creation and compliance of a code of ethics within every company. One company that seems to do a very good job with complying with the guidelines of SOX is Starbucks Corp. They have a strong program set in place to support their mission of making ethical decisions at work. The use of their program “Business Ethics and Compliance” might just be the very reason why their SEC filings show a relatively successful business. Financial Environment In regards to the finance environment, Starbucks plays an active role in ethics and compliance. Not only are their employees offered ways to voice concerns of unethical issues in the work place, but also Starbucks’ partners as well. Starbucks holds a meeting...
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...seems clear that those businesses, which actively serve their many customers, employees and communities in creative, morally thoughtful ways also, over the long run, serve their shareholders best. Companies do in fact, do well by doing good! Typically, “social responsibility” is the term used by companies that give a percentage of their earnings to charity, or sell organic products, or try to save the rain forest. It is true that Starbucks maintains the focus of contributing positively to their communities and environment and this has always been their mission. In addition, Starbucks needs to grow and sustain its business. They need to generate profits to demonstrate that the company is healthy and well managed. Through effective socially responsible strategies, and well thought out charity work, and a very strong sense of business ethics, Starbucks has been able to use this concept toward their growth. They have figured out that running a socially responsible company entices people to spend money and become loyal customers of theirs. Before Starbucks went public in 1992, they were a struggling Seattle company, trying to make it big. Once they made it, though, public attitudes toward them began to change. Some of the same people who once rooted for them begin to criticize them. Once they decided they were no longer an underdog, they looked for ways to knock them down. When measured against five million satisfied customers a week, their detractors are few in number. But when you...
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...Business Ethics: Case Study 2: Starbucks’ Mission: Social Responsibility and Brand Strength 1. Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy? Starbucks has been so concerned with social responsibility because of the reduce its Eco-friendly mark and as became tangled with the community. Also it is important to the corporate because of its ethical corporate should improve in the stretched period of time. Consumers’ feels worthy about conveying business to social responsible companies and the organisation’ impression are good about working there and makes organisation provide much better consumer service. 2. Is Starbucks unique in being able to provide a high level of benefits to its employees? Starbucks is irreplaceable in actually able to offer a high level of benefits to its organisation. Many businesses do not deliver organisation with many profits. Starbucks understands how important its organisation is and that they are the face of the corporate. Happy organisation creates good consumer service understandings and repeat business. It seems like a lot of businesses oversee their internal consumer too often. 3. Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that consumer want? Starbucks express growth is exceptional to both its ethical and socially accountable activities and it providing products...
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...work, but you need to decide where personal values lie. Organizations have values just like people. Organizational values include setting goals, hiring the right people, standards on work ethics, pay rates, and time off offered to employees. These values are set by the owners and managers of the company. They are not defined in one day but created over years. Just as important as setting and defining values, is finding the right employees share these values. Starbucks maintains a desirable position with approximately 18,000 stores worldwide of which nearly 13,000 are in the North America and 255 are in New York City. Following is an exploration of the many ways that Starbucks aligns the organization’s values in their plans and actions. Evolution of Personal and Workplace Values The origins of personal values start at home with family and culture. As individuals grow, their values may change to incorporate new ideas. Workplace values start with individual values and then integrate the organization’s values to accomplish their duties. In today’s business world, an organization’s values are important to the culture and success of the company. A few important values anyone should live by include treating others with respect, treating customers as most important, and doing what is right. Starbucks Coffee Company is one of the most recognizable names in coffee. Few companies have experienced success...
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...Fall 2009 Starbucks in Tiawan [pic] History of Starbucks The first Starbucks was opened in Seattle in 1970s by three partners: Jerry Baldwin, Zev Siegel and Gordon Bowker. The name of Starbucks came from Herman Melville’s Moby Dick, a classic American novel about the 19th century whaling industry. The seafaring name seems appropriate for a store that imports the world’s finest coffees to the cold, thirsty people of Seattle. (Starbucks Coffee Company, 2009) Entrepreneur Howard Schultz joined the company in 1982. While taking a business trip in Italy, he visited Milan’s famous espresso bars. He was so impressed with their culture and popularity, he thought he could bring this idea to the United States, this idea would be successful. He was right, Seattle became coffee-crazy after trying lattes and mochas. (Starbucks Coffee Company, 2009) The development of Starbucks expanded beyond Seattle in 1990s. First, they expanded their stores to all states in the United States, and then extended to the world. The U.S. Starbucks stores around the world are based on different market conditions and different organizational structure. There are four kinds of structure which Starbucks uses to expand their stores around the world: own self-employed, joint venture, license agreement, authorized to operate. Moreover, they were the first firm which offered stock options to their part-time employees. Starbucks becomes a publicly traded company. (Starbucks Coffee Company...
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...Courtney Parker c.energizerbunny@gmail.com Courtney Parker c.energizerbunny@gmail.com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must...
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...Managing Diverse Employee at Starbucks: Focusing on the ethic and Inclusion Abstract Workforce diversity is a reality of the modern times for every organization and managing it effectively can lead to a sustainable competitive advantage. The purpose of this paper is to discuss how managers lead diverse employees in a global environment and what makes this company so unique. Effective management of diversity is not only employing diverse employees, but learning to appreciate, respect and respond to the needs, value, and beliefs of diverse employee and provide a positive work environment. Therefore, we will analyze the general environment and task forces that affect the diversity, as well as the challenges faced by Starbuck managers when managing diverse employees. Besides, the impact of diversity on the company performance will be subject of analysis through a value driven perspective. Lastly, we will identify some of the best practices for effectively managing diversity and propose some recommendations. Introduction One of the greatest challenges for managers today is managing the increase of diversity in the workplace. Diversity is defined as” dissimilarities or differences among people due to age, gender, race, ethically, religion, sexual orientation, education any characteristic that are used to distinguish between people. According to the Thompson (2005), organization who limits the kinds of people they are willing to hire, are limiting also the talent pool from...
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...decisions based on these factors. As a company continues to flourish they expand their business beyond international lines. By operating on a global scale the company opens their doors to other markets, gaining sales, and profits. Globalization is an invaluable opportunity for a company’s success. For the purposes of this paper the popular coffee shop Starbucks will be reviewed. Starbucks decisions regarding their influence on global interdependence, and effects of trade practices will be examined. The importance of demographics and physical infrastructure will also be summarized. Because Starbucks is a global company various influences of these environmental factors will be reviewed. A global company is highly reliant on global economic interdependence. Using economic interdependence Starbucks is able to increase revenue. Every Starbucks location uses different materials made in various countries. By purchasing low cost materials they can continue to produce high-quality product and increase market share. Their coffee cups are made from recycled products that are produced at a low cost, and environmentally friendly (Starbucks Corp., 2012). The effects of trade practices and agreements play a significant role regarding the company’s strategies and operations in each country. The company must consider a variety of different factors when pricing and selling globally. These factors include tariffs, taxes, trade barriers and agreements. The company must ensure they have all proper...
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...Starbucks started back in 1971 in Seattle at the Seattle’s Pike Place Market. Jerry Baldwin, Zev Siegl and Gordon Bowker had a passion for fresh coffee and decided to open a small shop. Their idea was to sell gourmet coffee beans and brewing accessories. Things changed in the 80’s when Howard Schultz was hired as their marketing officer. Shultz attended an international housewares show in Italy. Schultz fell in love with the idea of recreating the espresso bar culture in the United States. His idea was turned down by his bosses, and he decided to launch his own business, Il Giornalde. In 1987; with the help of a group of local investors Il Giornalde acquires Starbucks and changes its name to Starbucks Corporation. (Garza, 2004) Starbucks started from a base of 17 stores in 1987, and they now have over 19,767 stores in over 30 countries. (Starbucks Company Profile, 2014) Starbucks mission is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Business Ethics and Compliance Standards of Business Conduct, 2011) Starbucks is committed to treating their partners with respect and to make it a place where they enjoy going to work. At the same time, Starbucks embrace this same treatment to be passed on to their customers by providing quality products and quality services. Trust is the basis of a great place to work at, and Starbucks believes that communication is critical to build trust with their partners. Partners are Starbucks...
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