Starbucks: Internal and External Ethics

Starbucks’ commitment to ethical behavior is evident in the many steps they take to ensure employees not only comply, but also are able to report any issues. There are several available methods of communication for employees who wish to report unethical behavior, be it face-to-face, anonymously through the Helpline, or through their

* The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

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).

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

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

Two reasons Starbucks has been so concerned with social responsibility are the negative impact on the company if they aren’t and the financial and nonfinancial rewards because they are. According to our textbook, Starbucks has been engaged in responsible business practices almost from day one of operation.

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

The Starbucks’ code of conduct clearly illustrate its missions and conduct. They use rhetoric in clear words choice to attract people’s attention. Starbucks especially emphasize its social responsibility to be good neighbors in the community. They have been participating in a lot of community involvement. Also, Starbucks focuses on the workplace environment, such as diversity. Starbucks has been doing very well on social responsibility in the workplace environment as they are committed to on the code of conduct; however, they have not been doing very well on environment protection and fair competition.

Ethics are what people think are right and wrong things to do. Ethical values can change from one person to the next. There are many businesses that have good morals- making them ethical; but there are also many businesses that have make unethical decisions in order to gain more money. Unethical businesses can hurt that community and environment. Businesses that have been recognized for being ethical include: Costco, Starbucks, and UPS. Although many businesses are ethical many have been recognized as unethical include Phillip Morris and Chevron.

Partner satisfaction: Starbucks firmly believes that satisfying their employees in-turn satisfies the customers. They adopted a positive working environment to facilitate this.

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

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 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 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.