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Ethics theories and business case studies
Case study on ethical situation case in business
Ethics theories and business case studies
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Starbucks Business Ethics Case Analysis INTRO Ethical issues in business are a common placed every day occurrence that will never cease to exist. We will discuss an ethical issue that involves a large American corporation and its practices when dealing with suppliers of produce that is essential but not solely used by this business. We will present several point of views backed by literary findings that suggest ethical practices may or may not be at hand. BODY Mr. Donald states that one of the main goals of Starbucks is to expose the world to the coffee production/industry in Africa by showcasing African coffee name brands. However, there is evidence that points to the real goal that goal, simply put, is greed. The article "Starbucks Seeks The Right Blend of Global Ambition And Ethical Trade", written by Robin Pagnamenta, of the Times Online, in my opinion would be a goal oriented based theory. Last year the American chain operated 12,800 stores globally and earned 6.4 billion dollars in revenues. Further, Mr. Donald plans to open a total of 40,000 Starbucks stores, 50 percent of them outside of the United States. "We open six new stores every day", says Donald. "We opened our first in Brazil last week. Cairo opens next week", he continues. Incidentally, Donald was paid $2.7 million last year, a former chief executive of America's Path mark supermarket chain a far cry from the salary he earned at that level. Manifested Ground Rules Every thriving company must embrace some sort of code of ethics ground rules which will guarantee its success. In this case, Starbucks wants to promote high standards of practice; by selling the richest and aromatic coffees in the world to the ... ... middle of paper ... ...m of discrimination and promote equal opportunity in all sectors of Starbucks business transactions. We will set down with leadership and emphasize the importance of honesty, integrity and the reason it flow's so diligently through this corporation. Our company doesn't subscribe to dishonest practices, such as corruption or fraudulent business dealings. We must hold our selves to the same standards that we hold our employees. Understand that diversity in all aspects of our company's daily ventures creates a worldly image and increases ability to fulfill our goal of opening 40'000 Starbucks with half being outside the US. CONCLUSION With a council in place and clear ethical guidelines established, we are sure that Starbucks will reconsider its current position on coffee trademarks and make way for new and improved trade between us and the whole world.
The structure of Starbucks business communication is exceptional. Rather you are in their store buying a Caramel Frappuccino®, visiting their website or watching one of their advertisements on television; as the consumer, the message is loud and clear. Pick up any newspaper and you are likely to find an article about the coffee giant. Starbucks pledges a commitment to their over 172,000 partners (employees) and the community. “We realize our people are the cornerstone of our success, and we know that their ideas, commitment and connection to our customers are truly the essential elements in the Starbucks Experience” (Starbucks, 2008).
Every company faces ethical dilemmas in their dealings with customers and conducting business in multiple companies adds to the difficulty in adopting ethical models that conform to nation’s policies throughout the world. Nestlé, known for their chocolate and confections also holds a large share in the breast milk substitute or formula market and in the past few decades has been under sever scrutiny for the ethics employed in the advertisement and distribution of formulas in third world countries. For one employee’s opinion the company crossed an ethical and moral line by bribing healthcare workers into promoting free samples of their product in order to secure
Within this paper the ethics policy of one of the world’s largest research-based pharmaceutical companies, Pfizer, will be analyzed. Pfizer’s policy on business conduct will be compared to the Global Business Standards Codex which was developed by Paine, Deshpande, Margolis and Bettcher (Pfizer, 2012; Paine, 2005). The codex consists of eight foundational principles that predict how a company will handle certain ethical situations. This codex will also be analyzed with respect to how it should be applied within the Christian world view. The codex principles are fiduciary, property, reliability, transparency, dignity, fairness, citizenship, and responsiveness; each of which will be analyzed individually.
Today, they have expanded lunch programs to a total of 4,150 stores and introduced the ability to warm pastries and provide hot breakfast sandwiches to stores across the nation. Starbucks retail stores are operated through a number of joint venture and licensing arrangements in South East Asia countries as well as Thailand, Singapore and China. When they do the business in foreign countries, the most important issues will have to be aware of the exchange rates. They are planning to open 2,400 stores internationally in 2007, and they have approximately set financial growth targets for total revenue 20 percent and annual earnings-per-share 20 to 25 percent for the next three to five years. In addition, they have proposed new stores count target to 40,000 worldwide (20,000 U.S. and 20,000 International) in the long-term (Starbucks Financial Release, 2007).
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
...healthy environment, economy, or political state is left up to those who buy and distribute coffee. While the model that Starbucks follows to come by and sell their coffee may not be perfect it is at least a step in the right direction.
Starbucks was founded in 1971 and today there are almost 20,000 stores worldwide with tens of thousands employed. Starbucks has many ethically sound practices; however, of particular note is their treatment of employees. Starbucks has very progressive incentives offered to an employee population that is often not included. Starbucks has a full range of benefits offered for part-time employees as well as full-time. Man...
Marketing ethics in the 21st century has become a priority for organizations. Society has a growing impatience with selfish actions that deprive some, while enriching others all for the bottom life, at whatever costs. Ethics is no longer an option for organizations in today’s society; it must be incorporated into their business plan. Each organization must have a concern for the society as a whole. Ethics has been at the top of the headlines in today’s society. Ethical behavior of a company can be the difference between their failure and success. A code of ethics is currently used by many corporations, which details the importance of every day responsibilities of the employees. Ethical decisions must start at the top of the firm’s organization, meaning from the CEO and then downward, how can one expect an employee to be ethical if the people in charge are not be ethical themselves. The Sarbanes-Oxley Act is currently the only act in place that has a clear system of rules and penalties. This act was created to protect investors by enforcing the accuracy and reliability of compan...
Moving on, Starbucks Corporation proves that consumers can trust them because one of the main goals of the company is ethical service, their goal is to serve the customers with less than three minutes. The author said, “Starbucks’ “Just Say Yes” policy empowered partners to provide the best service possible, even if it required going beyond company rules” (Moon). Having this policy shows that the company tries to make customers satisfied. Also, it is ethical to have this policy because service is a key that makes the company successful. For example, if the customer spilled a drink, he/she can ask for another one. Additionally, if a customer does not have cash or credit and wants to pay by check, he/she will get a simple drink for
Starbucks did not escape the common practice of adapting and integrating the business to different geographic regions, but they did stick to their guns when it came to their standard product line-up and their no-smoking policy. Surprisingly, these conditions were met with wide acceptance. Analysts felt the real challenge would be in the European marketplace, what with coffeehouses on every corner to compete with. Again, the stores did very well, mainly because of the newer, cleaner environment they provided compared to the older locations of established houses.
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).
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
Business ethics courses, taught in higher institutions of learning such as colleges and universities have always been thought, in terms of making students more ethical. However, this is not what business staff considers as the most critical task during this 21st century. Instead, the most crucial task according to business staff is to ensure that students are able to comprehend complex ethical issues that the managers of this century must confront together with the most effectual ethical management, and sensible public policy in regards to the relationship of the business to the society. Despite the fact that ethical managers are faced with a myriad of ethical issues, the fact remains that those ethical issues differ from one business to the other. To coherently understand the complex ethical issues that managers must confront, this study will examine two specific ethical issues of this 21st century. In addition, the study will document the most appropriate ethical perspectives that can be used to solve the ethical issues and why they are suitable.
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.