Ethical Ethics Of Starbucks

Starbucks is a large organization that upholds many standards when it comes to their financial environment. Upholding ethical standards within a business is important if a business wants to become successful and maintains their credibility, Starbucks does not just operate on one ethical standard but eight different ones. They are all different sources that are used for different reason within the company. Starbucks has two specific organization standards they go by that deal with their financial portion of the business. Transportation, manufacturing, and supplies are the main ethics codes this organization deals with to earn financial stability. Starbucks has a zero tolerance policy that deals with human trafficking as well as forced labor for individuals. Suppliers play a major financial part within this company, and are held to higher standards when doing financial business. The supplier code of conduct is an ethical handbook, which states the ethical standards that a supplier must comply by. Suppliers as well as the organization have to comply by these standards in order for them to keep ethical financial standards.

This report is devoted to the model of global value chain in Starbucks and addressing the problems in coffee industry refers to decent work and HRM theory. The goal of the report is to analyse the Starbucks global value chain and decent work deficit in

Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767).

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 Corporation is a multinational coffee conglomerate that opened their first store in Seattle’s Pike Place Market in Seattle, Washington in 1971. Over the course of the next 40 years, Starbucks has grown in leaps and bounds in not only opening more stores domestically and internationally but also in selling a variety of some of the world’s best coffee and tea blends available. The selling of Starbucks products does not only happen in their stores, it also happens in grocery, convenient, and specialty stores across the world. With the growth of the Starbucks Corporation came the responsibility of ethical and financial compliance to their organization, their shareholders, and the multitude of government agencies they deal with

Based on past experience with Starbucks both as consumers, and undergraduate students studying about successful business, we predict that Starbucks will be a theory Y organization, that promotes empowerment within its entry-level staff. Our first impression of Starbucks when we enter a local store is simply that we are going to get a quality product. The staff always remains professional but appears to enjoy their jobs. You don’t see Starbucks employees being yelled at and it appears that all the staff is well trained and knows how to perform their jobs.

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 faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The next exhibits show payroll structure and income volume per location in 2002 and product mix for North American company-operated stores. Exhibit 6 shows US retail coffee market predictions till 2005 years. It clearly shows changing in Americans’ coffee drinking style into specialty coffee. It is very important for Starbucks because company’s main market is specialty coffee. Next of the exhibits, shows positive customer snapshot scores for North America stores. Those snapshots suggest further company’s success. The only issue we can find is the product quality. According to the exhibit product quality went down during 3rd quarter of 2002.

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.

The company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.

With Starbucks being on basically every corner, it is hard for other coffee shops to come in and be competitive. Another ethical issue that Starbucks faces is their use of hormone-addled milk in their coffees (Ferrell, Fraedrich, & Ferrell, 2015). With all of Starbuck’s unethical aspects and criticisms of their company, they are well-known for their ethical values. One of their top ethical attributes is their employee relationships. Their employee relationships with the company are what Starbucks is known for if you work for them. Starbuck’s offers their employees top healthcare and benefits. Naturally, their employee turnover rate is not high, and as I stated before, they are one of the top companies to be employed

The CEO (Chief Executive Officer), Howard Schultz pointed that the main reason from the decline of “Starbucks Experience” was that the number of Starbucks shops increased sharply from only 1,000 to 13,000 within ten years. Other people considered their brand has been commercialized, and the customers hadn’t had enough enthusiasms to appreciate every moment of their coffee any longer. He suggested that Starbucks should re-find its origin. Nevertheless, his advice apparently was opposite to the

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.