Starbucks Ethical Behavior

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.

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

“Ethics is knowing the difference between what you have a right to do and what is right to do” (“Potter Stewart Quotes”). There are two types of companies either ethical or unethical. Ethical companies try to do the best and the right things for the customers, community, environment, planet, and others. While the unethical is the company that tries to use anything to sell their products. They use unethical advertisements, pathos, faulty analogy and others. To begin with, companies are a group of people who have goals to make money. To be a successful company the customers need to trust it, so they can support it with their money when they buy their products. One of the most famous coffee companies is Starbucks Corporation. Howard Schultz bought the company from the founders, “the idea was to create a chain of coffeehouses that would become America's “third place”” (Moon). The company provides many types of drinks to provide tension between products and the customers. Also, Starbucks is serving twenty million customers over five thousand stores in the globe and the store growth over average three new stores a day (Moon). Although Starbucks follows their basic services like quality and speedy service which makes them have a good ethical business, but they use unethical advertisements to get the customer's attention to buy the products.

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 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

Nowadays, organizations have a corporate social responsibility to fulfill in the business industry. There is a variety of definitions for corporate social responsibility however; a common definition is a business integrates social and environmental concerns in their everyday business operations on a voluntary basis (Murphy, 2010). It is important that managers behave ethically and morally so other individuals will follow their guidance. A manager is responsible for fair treatment of employees, customers, and suppliers, building trustworthy relationships, and being transparent (Murphy, 2010). As a result, managers that are in executive level positions are oftentimes, most responsible for any unethical or

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.

One of the most important factors that plays a huge role in the success of a company – is ethics, which can have long-term impact on the company. It does not matter how high the company’s profitability level is, if there is unethical behavior or a lack of corporate social responsibility it will eventually damage company’s reputation and make it less appealing to stakeholders.

Corporate ethics and social responsibility has increasingly become a way for a company to market itself to consumers and shareholders alike. In the wake of recent scandals at organizations such as Enron and WorldCom and the 2008 credit crisis that was widely attributed to corporate greed, some organizations are using their ethics as platforms to market their goods and services. This is seen as advantageous for the company as well as the investor or consumer. However, this may not be true for all, but merely some organizations.

The mission statement is an opportunity to show the company’s ethics, goals, culture, and norms for decision making. The perfect mission statement should include the company’s goal minimum in 3 ways: What the company does to their customers, what the company does to their employees and what the company does for its own stakeholders. Better mission statements go further and define fourth and fifth dimensions: how the company helps in the community, and around the world. The mission statement should be about one or two paragraphs. It should take about 30 seconds to read the mission statement. The mission statement should state particular question such as Who is your company? What does your company do? Why are you in that particular business?

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.

In recent years, owing to the internationalization of markets, businesses and production processes, more and more marketers and entrepreneurs have to deal with ethics and social responsibility issues in cross-cultural settings. Growth in globalization increased the ethical and social responsibility of corporations across the world. Huge

Starbucks is one of the top leading coffee sellers in the world. With more than 17,000 stores in more than 55 countries, Starbucks has created the ultimate brand and coffee shop (Ferrell, Fraedrich, & Ferrell, 2015). Building Starbuck’s name was a process performed by the founder Howard Shultz that focused on quality ethics and good coffee. One of the main aspects of Starbuck’s culture is its mission. Starbucks brand has been ranked number 16 in the Fortune’s one hundred companies to work for because of its honorable, ethical back-round (Lemus, von Feigenblatt, Orta, & Rivero, 2015). However, like all businesses, Starbucks has encountered some ethical issues along the way of their success.

On the business ethics side, the business world requires a greater effort, thought and execution from corporations in general as well as social responsibility and propaganda. It is important to combine the social responsibility factors with your goals as stakeholders and my goals as an executive to ensure the company’s resources are optimized to ensure profitability. Finding the balance in between social responsibility, business ethics and profitability is the key factor. Moreover, applying good business practices to ensure the business and the people around it are taken into consideration, would ensure the values of our business ethics. “The decision made by the company should consider the impact it would have not only on the