Similarities And Differences Between Starbucks And Walmart

1380 Words Nov 16th, 2015 6 Pages
“Every business has its own business strategy which leads the company towards success and accomplishment.” (Stankeviciute et al., 2012, p. 1200). The following analysis will examine the similarities and differences between Starbucks and Walmart in regards to people, profit, and planet.
People
Legal Compliance. Determining the relationship between a company and people can be evaluated in several ways. Legal compliance issues not only provide powerful insight into an organization’s ethical business practices, but also how these engagements affect people within the company. In Chou vs. Starbucks, it was determined that Starbucks misclassified shift supervisors as nonexempt customer-service employees in violation of California law enabling supervising employees to share in tip pools with non-management baristas. (Brody et al., 2008). Here, a significant amount of employees were prevented from receiving fair compensation in this tip-sharing model. Many employees are reliant upon tips as part of their compensation and allowing managers with higher pay rates to also share tips diminishes the ability of baristas to earn a proper wage. Starbucks has also struggled to comply with tax codes as seen through its failure to pay the appropriate amount of taxes owed based on profits over a fourteen year period. (Brody et al., 2008; Shaheen, 2012). Not only did Starbucks consciously engaged in tax avoidance, but also did so consistently for over a decade. Tax dollars are used to promote the…
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