Starbucks: Community, Ethical Sourcing, And Environment

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.

Starbucks had been rank as one of the World’s most principled companies around the world (Ethisphere, 2013). As the people are holding the corporation to the highest ethical and social responsibility, these are becoming the expectation of their consumers. Having all these responsibilities in mind, Starbucks is striving to enact its own Corporate Social Responsibility, guidelines for bettering stakeholders in its communities (Starbucks, 2013). Today the company not only focusing on the communities they are operating, but trying to make a huge impact globally. By doing so they are working with Non-governmental organization. Starbucks had been focusing on social responsibility since in 2009; one of the areas the company had been focusing is the Fair-Trade coffee selling. (Reis, 2009).

Starbucks is one of the largest known coffee distributors within the United States. Their mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Their objective is to be one of the most well known and respected brands around the world. With 21,366 stores around the world, operating in 65 countries, they are a major company that has influence on the economy in the United States and around the world (Starbucks 2015).

* Starbucks was one of the Fortune Top 100 Companies to Work For in 2008. The company is a respected employer that values its workforce.

Starbucks is one of the examples of a company which has corporate social responsibility policies regarding its stakeholders. Starbucks is an international coffee company with 13,100 branches in 40 countries around the world since 1971. Their products are coffee, tea, beverages and baked food (Harris, ND).According to Article13 (2002) Starbucks started to be corporate social responsibility to make their brand to be recognized and respected around the world. To achieve their goal, Starbucks leads to expand their retails around the world and introduce new product. In 2001, Starbucks created a production supply chain for coffee. Starbucks also donate cash and product for other organizations. As a result, they are trying to make their reputation more respected.

I think Starbucks is so concerned with social responsibility in its overall corporate strategy because of its founder Howard Schultz. After reading about Howard Shultz it is clear to me that one of the reasons this company does so well is because of the high standards he holds himself and his company to. As a young boy he witnessed what his father had to go through in order to put food on the table for his family. He saw the struggles his dad had to endure while working for a company that did not put their employees first. (Ferrell, Fraedrich, Ferrell pg 400) It was for this reason that he has such a strong ethical position. Howard is a long-time advocate for increased awareness in business ethics. (Ferrell, Fraedrich, Ferrell pg 398). He gave a speech at Notre Dame in 2007 and spoke to the students about the importance of balancing profitability and social consciousness. (Ferrell, Fraedrich, Ferrell pg 398) It seems apparent that Howard is very concerned about the well-being of the employees, customers, environment and the community as a whole. According to Starbucks Website (2016) the core values and mission statement is as follows: “With our partners, our coffee and our customers at our core, we live these values” (Starbucks website 2016)

Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks has lived up to that motto each and every year and with such great numbers and great feedback the company keeps on growing in the right direction. Starbucks is well known around the world for delivering fast, efficient coffee in all forms. From their frappachino’s, to their brew coffee and ice tea they are definitely the set example that other company’s in their area follow. They live by six principles that they practice each and every day they represent there coffee which has always been there passion to deliver

Whether one is a regular or ordering their very first latte, a connection is made with that person, even if it’s only for a few moments (Starbucks, 1). Starbucks stores are what give the customers a sense of belonging. It has become a place where one can meet your friends, and escape. Whether you live a slow or fast pace life, Starbucks accommodates that (Starbucks, 1). Our neighborhood is where everything described above comes together. It becomes where a customer is comfortable. Taking the same route to and from work or school to stop by their Starbucks neighborhood is something the company takes pride in. Building relationships is what Starbucks strives to do every day (Starbucks, 1). The immense growth of the company shows just how successful Starbucks has become. There are over 20 thousand stores worldwide and still growing. Starbucks has also very involved in community service. In 1977 the Starbucks Foundation was created. It inspires youth to be extraordinary leaders in their own community. The Starbucks Foundation also encourages employees to get involved (Starbucks, 1). Other community service projects include Surfers for Autism, food banks, and cleaning shelters

“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

Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy?

Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010

Starbucks awards grants through the Starbucks Youth Leadership program and has developed a barista training program to help invest in our employees for the long term. The Starbucks Community Stores program is one way our company works on collaborating and providing for the communities in which our stores are located. Volunteer service is another important concept to Starbucks with more than 520,000 hours of volunteer service recorded in 2014 around the world. The Starbucks Foundation works to provide grants to nonprofit organizations, leadership and community programs. Starbucks sees a necessity in having a diverse workforce and works to continue to evolve the diversity and inclusion strategy of our

Despite Starbuck’s natural efforts on trying to carry out sustainable business, must work towards improving/ reducing its carbon footprint on the planet. Starbucks, a multi-billion dollar company, containing over 16,850 stores in 40 countries (Lapore), follows the sustainable practices of B-corporations. Starbucks practices and strives to achieve environmental sustainability. Although, Starbuck’s tremendous struggle to increase environmental sustainability, they continue to break the rules that they have put in place through their malpractice of washing dishes and the non eco-friendly cups. Even though their gargantuan efforts towards increasing their practices, it is clear that it needs to improve its sustainability through reducing the energy

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