Case Study: The Story Of Starbucks Corp.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time ("Starbucks", 2012).” Starbucks mission is to not only provide the highest quality of coffee but also make a positive impact on the world. Ethisphere Institute over the last six years has selected the World’s Most Ethical Companies and Starbucks has made the list every year. What are the key components that make Starbucks one of the most ethical companies in the world? Starbucks has developed the Standard of Business Conduct guide for their financial environment, as well as the behavior of their employees. Starbucks uses strict regulations and a variety of audits to ensure their

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks has been around for more than four decades, and from the very beginning it has worked hard to operate in an ethical manner. Starbucks ranked as Fortune Magazine’s fifth most socially responsible company in 2012. There are a number of good reasons for the high ranking. The company looks for better ways to develop sustainable production of its coffee. It has set in place some guidelines it calls C.A.F.E Practices, ensuring environmental leadership, economic accountability, and product quality. Starbucks also supports Ethos Water, which provides clean water to more than a billion people

The understanding of Starbucks is that ethical behavior and protocol is imperative to ensure a good working relationship within the company. This not only includes conducting oneself correctly with coworkers but also with all the clients they serve. Within the same Standards of Business and Conduct material is additional information for the partners, which include information that will enable them to make the right choices when faced with a difficult and possible ethical dilemma:

In this current economic Era, it has become more evident with time, that being someone who is ruthless and unmoral is more popular, moral, profitable and more essential to being successful. This is the known motto of many of the big cooperate heads, they do this so they can far exceed their goals. Goals of making the highest profit by any means. But not all Big corporations are like this. We now have companies like Starbucks that are setting a new standard towards being Socially Responsible and globally conscious. Starbucks has been known to make huge amounts of profits over something as simple but yet so complicate as a cup of coffee. Starbucks is hugely involved towards bring social justice into its supply chain and while doing so also want to have a positive impact in the communities they enter. Starbucks isn’t the only company that’s doing something different, then the set path of “success” all ready drawn out by others.

The primary use for this encouragement is for preserving the woods. Founded on research, Americans drink 100 billion cups of chocolate per year. At least 14.4 billion are served in disposable paper cups. Most of their paper cups are un-recyclable due to the plastic lining inside the cup. Aims for Starbucks by 2015 are they launch 100% recyclable cup and their coffee must be 100% ethically sourced. The causes they promote good ethics are portraying a serious public image of the company and want to protect image as being a socially responsible governance and a good option for consumers. Other than that, Starbucks wants to increase focus on ethical and moral issues in business generally. In addition, Starbucks makes it a priority to always pay coffee farmers proper wages for the chocolate that they produce. They even travel as far as buying all the coffee that one specific farmer can bring forth to make a coffee unique and exclusive to Starbucks. Non only does Starbucks work with the coffee farmers that they are purchasing from, but they also play with the local governments to ensure fair treatments, and social conditions. They suffer with these governments frequently to ask for aid to be socially responsible. In return, Starbucks does their best to help them by building schools and education programs. According to the individualism theory Starbucks would be considered ethical because

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Starbucks values and respects the diversity of it 's culture.[1] Starbucks partners (the employees) are sought out and engaged to create a business environment as diverse as the communities and customers they serve.1

Starbucks sustainability and corporate social responsibility is focused on three key areas, which include community, ethical sourcing and the environment. At the community level, the company understands that its activities have the capacity to influence positively or negatively on the lives of the communities where it has its activities, whether at the retail level, or at the raw material production level of farmers. At the community level, the company strives to ensure better lives for the people through education support program, bringing people together and providing employment opportunities for people of all ages. These activities are important in supporting and making a difference in people’s lives. For instance, the company works closely with farming communities to not only ensure that the produce is of

Howard Schultz, chairman and CEO of the international coffee-giant Starbucks, makes his point clear that it is the collective goal to create a “world-class company with a conscience” (Starbucks Corporation, “2014 Global”). There is no doubt that the progress made by Starbucks Corporation has led the way to how businesses involve themselves and address community and social concerns, both on a national and global level. Traditionally, a corporation is run solely to make a profit. However, Starbucks seem to break the mold when it comes to social responsibility and seems to jump onto the social media band wagon when it pertains to promoting their reputation. In 2015, their “Race Together” promotion was meant to open the lines of communication and tackle some of the harder racial conversations that are presently taking place in the world, however the campaign received much criticism for the superficial longevity of such a complex dialogue. But some praised Starbucks as well for their initiative and willingness to broach some of the more sensitive issues within the world. Starbucks’ 2014 report on global responsibility breaks down their ideas and goals into three concepts: ethical sourcing for their products and resources, environmental awareness and the part they play in encouraging green and renewable energies, and community consideration for the customers and partners that make the Starbucks brand so well-known.

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Starbucks is renowned for its morality due to their innovative sustainability and environmental policies and operations. They strive to go beyond mandated regulations by implementing ethics as part of their core practices. However, no matter how flawless their code of ethics is; they, too, face ethical issues and commit unethical acts. First, they are responsible for putting small, local coffee shops out of business which creates a uniform retail culture throughout cities. Second, they advertise to provide 100% fair trade coffee when it is not truly 100% fairly traded. Third, they use hormone added milk that is detrimental to the human body as well as the environment. Fourth, they set unrealistic, unattainable recycling goals, so they were unachievable; in turn, their trustworthiness is hindered and their reputation is tarnished. Lastly, it was revealed that Starbucks discovered ways to avoid paying taxes in the UK. To this day, Starbucks continues to be recognized as an ethical company. Although sometimes controversial, they are innovatively striving to positively change the ways of society and business operations.

Starbucks acted ethically after their financial scare by upgrading their coffee equipment for their customers. Also, Starbucks added a new menu item to offer customers a more dynamic selection in their stores. Starbucks began to think more along the lines of a small mom and pop coffee shop to fit in with the local stores. To continue, Starbucks plays a significant ethical role within the community. Starbucks donates too many charitable causes within the community. Also, Starbucks allows their customers to provide feedback about their local coffee shop. Due to this ethical behavior, Starbucks gains new customers by offering them a place to relax and give their input on their

Starbucks is an American multinational corporation that is arguably considered as the best coffee house in the globe in terms of global performance. The company has for a long time considered CSR as an important part of its operations and currently, it adopts an Anglo-American model of corporate social responsibility. This is an approach to CSR that maintains close links between shareholder interests with the operations of the organization. The company ensures that its CSR initiatives are appropriately audited so that it is able to learn of its CSR performance and not as an effort of complying with legal regulations and this is what makes the strategies adopted by the company very relevant. The corporate social responsibility codes that are derived from Starbucks’ Anglo American model have contributed to great product development by the company, efficient production and quality customer service. All these have been made possible through the company’s Corporate Governance Codes . At starbucks, the codes have provisions for the code of conduct which acts as guidelines as to how the employees at the organization behave. The code of conduct guides the entire organization including the board of