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Ethical issues in Starbucks
Five main ethical issues that can arise with Starbucks coffee suppliers
Ethical issues in Starbucks
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Introduction
What is fair? Is fair assuring everything is equal and evenhanded? Is fair avoiding cheating and fraud? Or, is fair simply an event filled with bright lights, colors, and candy that many of us go to as children. In the business and trade world, fair is defined as assuring equitable treatment and opportunities to all consumers and producers. The business world revolves around products (50).
Virtually every person in the entire world is either a coffee drinker or is acquainted with one. One may think, “Coffee? Why? I mean, its just coffee...” The fact of the matter is that it is not “just coffee.” Coffee is a beverage that is a societal accepted addiction: people of all ages, teenagers, adults, and the elderly, thrive off of it. Because of the significant demand, there is a considerably large amount of coffee plantations across the world. The majority of coffee grown is either in South America or Africa. Because of the strong coffee aroma that overtakes the planet, it is crucial that it is stocked in our supermarkets to buy whenever someone needs. Getting the coffee to the supermarkets and into the people’s cups creates an extremely detrimental effect that may be potentially fixable (Cycon).
Trade is now a complex matter. Trade is between consumer and producer. In the beginnings of history, trade served as a means to get by. Specialized workers created goods to trade with one another. This cooperation made it possible for chicken farmers to trade eggs for milk from a cow farmer. Co existing with one another was embraced. In modern times, trade has become corrupt and focused on productivity rather than sustainability (Peace). A capitalized market is what causes this; supply and demand, the higher demand, the more ...
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...rld of Fair Trade Coffee. New York: Chelsea Green, 2007. Print.
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What is fairness? Fairness in law is decisions which will be made on the basis of a set of established rules that are known (Banks, 2007). For example, if there were no laws about using mobile phone while you are driving, it would be unfair for a person ...
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
In this chapter of Naked Economics, by Charles Wheelan, he describes many aspects of trade. It begins by showing the capabilities of trade and how it affects everyone as a whole. It makes it so that everyone is better off than normal. To put it into perspective, he put the image in your head of how hard your life would be without trade, you would have to make your own clothes, find a way to get/make your own food, make your own car, etc... After showing some of the advantages to trade, he applies it to a global persona and begins to introduce his opinion on how global trade (globalization) makes us richer. One of the key explanations of this point is that trade frees up time in our busy schedule, therefore allowing us to use that freed up
Trade, of course, is only part of a larger network of relationships between our two countries. This network evolves in response to many complex influences, and exporters need to consider how our two countries' ever-expanding, ever-changing relationships will affect their activities. To take just a few examples:
Bentley, J., & Ziegler, H. (2008). Trade and encounters a global perspective on the past. (4th ed., Vol. 1, pp. 182-401). New York: McGraw-Hill.
Cafédirect is the UK’s first and largest 100% Fairtrade drinks brand. It is the only tea and coffee brand to have received ethical accreditation from the Ethical Company Organization, top marks in all categories across Fairtrade, human, anima...
“The selling of coffee has grown into a multibillion-dollar industry in the past decade. The coffee beans fueling this burgeoning business are grown in the rainforest”.There are two ways to grow coffee; In the shade,which preserves rain forest ,and in the sun,which destroys the rain forest”. This brings out that there are ways coffee can help the rainforest and can even also destroy it.
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
The movement particularly emphasizes on exports from developing countries to developed countries, with products such as handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold. Moreover, coffee is one of the most widely traded goods in the world. For many developing countries, coffee trade is an important source of income. Producers can provide a better trading and improve terms of trade. Moreover, this allows producers to improve workers’ living environment and future life in general (De Pelsmacker, Driessen and Rayp, 2005).
Caffeine is the single most widely consumed psychoactive substance in the United States (Einöther & Giesbrecht, 2013). According to Einöther and Giesbrecht (2013), 80% of the world’s population consumes caffeinated products every day, with coffee and tea being the primary sources. In the recent years, the demand for
Brazil is an entrepreneurial country. Brazil is the largest coffee producer in the world! The country has gained its position in the last 150 years of production and maintenance. The crop first arrived in Brazil during the 18th century and the country had become the supreme producer by the 1840’s. Coffee remains as an important export, although its vitality has reduced in the last 50 years. Brazil is the world’s biggest coffee grower and exporter and the size of its annual harvest can have a strong effect on world prices. Brazil itself is the second largest consumer of coffee, next is Germany, on the authority of the International Coffee Organization in London. Brazil increased its coffee production to an amazing 46 million bags in 2008, easily beating its
An article in the Seattle Post, describes the alliance that Starbucks is making to ensure that a sustainable supply of high quality of coffee is produce in Latin America. "Starbucks President and CEO Orin Smith said the alliance is partly his company's effort to pass on the "high price" of a cup of coffee to farmers." (Lee, 2004). He states that the high price enables them to pay the highest price to the farmers. Though the high prices to suppliers can demonstrate that money get to farmers with being diverted. Starbucks overall goal with this alliance is to buy 60 percent of its coffee under the standards agreed upon by 2007. "The agreement reflects the growing power of the premium coffee market and efforts to exploit it for the benefit of small farmers" (Lee, 2004).
When comes to Economic aspect, coffee is the second most traded product in the world after petroleum. As the country’s economy is dependent on agriculture, which accounts for about 45 percent of the GDP, 90 percent of exports and 80 percent of total employment, coffee is one of the most important commodities to the Ethiopian economy. It has always been the country’s most important cash crop and largest export commodity. (Zelalem Tesera p
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
Two common products that are Fair Trade Certified are Cocoa and Coffee, each of which contains problems that producers face but gain benefits from Fair Trade. Fairtrade International states that cocoa is grown in tropical regions of more than 30 developing countries, such as West Africa and Latin America, providing an estimate of 14 million people with livelihood. Fair Trade Standards for cocoa includes no forced labor of any kind - including child labor and environmental standards restricts the use of chemicals and encourage sustainability. A problem cocoa producers face is the lack of access to markets and financing. Since cocoa is a seasonal crop, producers need loans to meet the needs for planting and cultivating their crop. With this in mind,...