Starbucks vs. Ethiopia (Csr Issue)

The inoculate Fair Trade coffee beans which satiate consumers ' morning desire for a pick-me-up as well as bettering the lives of the growers begin their journey in the Northern highlands of Sumatra in the Indonesian Island chain. Trader Joe’s Fair Trade Organic Sumatra Coffee beans are grown on the small Indonesian island of Sumatra in the tropical South Pacific. Rather than being produced on large Multinational Corporation owned-and-operated plantation style coffee farms, this global commodity begins its journey from creation to consumption on small, several acre large plots owned, operated, and harvested by small-scale farmers in the

It is impossible to overestimate coffee’s global importance. Valued at over $100 billion, it is the second most sought-after commodity. Ponte, an expert on the coffee-trade, maintains that over two billion cups are consumed daily. The majority of consumption occurs in developed countries, whilst 90% of production takes place in developing countries. For many nations, coffee cultivation forms the backbone of their economy, an essential avenue for employment and revenue. In Brazil alone, the industry employs an astounding five million people. Seeing as millions depend on this commodity, I always felt good about buying my daily coffee– I was contributing to the economic enfranchisement of millions! However, recent readings have cast a doubt on my strategy.

It is overwhelming how corporations have embedded a social responsibility in their mission statements and company objectives. This leaves us with one assertion that is that corporations do have some level of obligation towards society’s morality; however, the corporation itself is not a moral agent (Klaus M. Leisinger). The discussion that follows is about corporations being moral agents or otherwise; however I will reach a conclusion that corporations do have an obligation that extends beyond obeying the law; evens so this obligation have been derived from the corporations quest for profit making. Corporation’s obligation

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

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).

National governments in coffee growing countries have a major investment in Starbucks. Some of these countries include Costa Rica, Guatemala, Kenya, Nicaragua, and Tanzania. Starbucks strive to be responsible for its

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

In many U.S homes, as is the custom in most western cultures, the first beverage consumed at the start of every day is coffee. From its origins in Ethiopia, the strong black liquid has evolved from its modest beginnings to become an art form, a gourmet luxury, and the addiction of millions. The documentary Black Gold directed by Nic and Marc Francis addresses issues that rarely cross the minds of its consumers: who produces the coffee, and how does the coffee we drink directly affect the livelihood of those farmers who grow it? The documentary highlights the poverty that plagues Ethiopian coffee farmers by contrasting the impoverished African cities with the wealth of the western countries that control the market in order to gain the

As a worldwide leader in coffee and coffeehouse chains, Starbucks has been faced with both scrutiny and praise for their practices in regards to community engagement and corporate social responsibility. With locations across the globe from the United States to Saudi Arabia to Guatemala, Starbucks has seventy-two locations spread across 26 countries. With such a large footprint, this paper will be address employees and local communities within the United States operations and the suppliers in the Coffee and Farmer Equity (C.A.F.E) Practices program. Starbucks has broadcasted and built a platform upon their ethical sourcing, employee relations, and community engagement with an impressive transparency not often seen by global corporations today.

Coffee is one of the most profitable and most traded commodities on the planet. It is second in trade to that of oil and gas. There are so many issues that surround this product, otherwise known as black gold. Coffee growers typically only get around three cents from over $1.50 cup of coffee that is sold in the United States. The world surrounding coffee is not fair. There are so many problems that arise because of its lack of fair trade. According to the United Nations, women do around two thirds of the work are only rewarded five percent of the world’s income and own less than one percent of the world’s real property. Coffee is a luxury food that many people take for granted and because of that, a large portion of coffee growers and their workers are exploited leading to the lack of fair trade.

As previously mentioned Starbucks has numerous initiatives in social responsibility. Examining each exposes the company’s values revealing why Starbucks is a leader in business ethics, and why it continues to thrive in an economic down-turn. First, is how Starbucks treats its partners; partners is the term used throughout Starbucks to refer to its employees. Each partner, full or part time is eligible for health care benefits. In 2008 when Schultz resumed his role as CEO, multiple institutional investors called asking Schultz to reduce partner healthcare coverage, which cost the company $250 million annually. Schultz refused the calls. He believed not paying the premiums would be inconsistent with the goal of turning profit (Kaplan, 2011). In addition to health care, partners can participate in the company’s Bean Stock program. The program offers Starbucks stock at 85% of its fair market value, four times a year. Starbucks partners also enjoy a 401(k), where the company matches 25% of the partners’ contribution. These benefits lead to extremely loyal employees. Food industry turnover rates are about 400% per year, while Starbucks’ is only 50% (Reis, 2010).

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

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.