Business Ethics

Student Name: ______________________________________

Student ID: ______________________________________
Submitted To: ______________________________________
Date of Submission: ______________________________________

Starbucks
America

Page 1|9
 Business Ethics
Starbucks

Introduction
A large number of Starbucks Coffee shops may be found all over the world. Due in part to its
dedication to social responsibility and business ethics, Starbucks has been able to achieve its
current level of success Having ethical marketing and sound corporate responsibility initiatives
have been a cornerstones of Starbucks since its inception in 1971. But despite this, Starbucks has
taken judgments that are frequently contentious and antithetical to the company's corporate
ethical stances. Comparing Starbucks' local image with its worldwide coffee trading activities
reveals this issue. Corporate citizenship is prominently shown in Starbucks' advertising and
branding initiatives, making it clear that the company takes corporate citizenship seriously. There
are photographs and advertising of foreign coffee producers all around the shop, demonstrating
how Starbucks is a responsible buyer of coffee by paying higher prices to the growers who
provide it. There have been several instances when Starbucks exceeded expectations. Starbucks
spends more money than any other buyer of coffee to guarantee that it has ethical supply
management practices. The company also lowers coffee costs in poor nations, where the majority
of its beans are procured. These patent and legal rights are blocked by Starbucks, which has the
financial wherewithal to do this. With its legal and financial might, Starbucks was able to defeat
the trademarking attempts of competitors and keep the price of coffee at Starbucks' levels.
Implications for Branding Decision
Starbucks' efforts to position itself as a socially responsible corporation have broad ramifications.
The corporation is now being assessed based on its own rules and activities. Branding is effective
as long as it seems socially responsible. The issue is that the corporation must maintain a profit
margin. Inhibiting patents and regulating prices blur the boundary. The concern is that Starbucks'
actions may be regarded as antithetical to its defined ethics and societal responsibilities. The
subjective idea of fairness is one of the most significant components that deeply impacts the
firm. The dedication to ethical supplier management makes Starbucks a fair marketing firm.
Starbucks works hard to retain this bad reputation.

Page 2|9
 Starbucks is a well-respected firm among business experts because of its
social commitment. A devotion to its purpose and ideals has earned Starbucks
this reputation. Inspire and nourish the human spirit - one person, one cup, one community at a
time says the Starbucks website. A secondary environmental mission statement from Starbucks
states: “Starbucks is committed to a role of environmental leadership in all aspects of our
business.” Starbucks works hard to achieve its goals. Starbucks' website mentions the following
ways it fulfils its social duty:
 Coffee
Quality has always been and will continue to be the most important consideration. Because
we care about the people who cultivate our beans, we responsibly source the best ones, roast
them to perfection, and give back to the communities where they're grown. This is something we
take very seriously, and our job is never done.
 Partners
Partners are referred to as such since their work represents more than simply a job to them.
Together, we welcome difference in order to create a safe haven for every one of us to be who
we really are. Each other is treated with decency and respect. And we hold one another to it.
 Customers
For a short time, we can make our customers laugh and feel better by giving them our whole
attention. As much as it starts with the promise of a well-made beverage, our work goes well
beyond that point. To sum it up, building a relationship is key.
 Stores
It's a location where you may gather with pals when you feel like you belong. What it's all
about is living life to the fullest and taking pleasure in the moments as they come at whatever
pace suits you best. Always ready to help others.
 Shareholders
In each of these areas, we know that exceeding expectations will be beneficial to our
stockholders. Starbucks' and everyone else's prosperity relies on our doing these things right.
Achieving financial responsibility and making environmental stewardship a business value are
both critical for the future of the environment's well-being. 
Starbuck’s corporate social responsibility adopt its business

Page 3|9
 Starbucks corporate social responsibility (CSR) efforts are directed on
producing a social benefit in addition to increasing shareholder profits and
fulfilling legal duties. With its efforts to be more ecologically friendly, Starbucks has proven
social responsibility as a corporation. In the coffeehouse industry, Starbucks is a massive
behemoth, and its decisions have far-reaching consequences. This has been realized and as a
result, the firm has made an endeavor to focus on sustainable development by employing
recycled materials and other environmentally friendly techniques for their commercial
operations, such as the shop it has built in Seattle. This corporate attitude has infiltrated the
company's shops and helped build consumer confidence and value in the company's goods while
also raising awareness about environmental issues. Aside from employing recycled paper cups
and napkins, the firm also buys Fair Trade certified coffee beans as part of its commitment to
environmental sensitivity.
Critical Thinking
The Starbucks brand was built over time as the firm and its management expanded. The issue is
that no one has ever looked into the branding to see whether it has any problems. Many factors
are created by the complexity of global markets and commerce while striving for corporate and
social responsibility. Because of this, producers in developing countries are frequently obliged to
sell their coffee below their actual production costs in order to meet Starbucks' labor and
compensation criteria. Starbucks makes billions of dollars by promoting its image as a fair trader
while yet contributing to global poverty.
Analyzing the methods of ethical decision-making of your choice.
To make an ethical choice, one must evaluate and choose amongst several options in a way that
is in accordance with ethical ideals. Making ethical judgments requires being aware of and
eliminating possibilities that aren't ethical, then selecting the most ethical one.
In order to arrive to ethical conclusions, one must go through:
 Commitment: being driven by an ethical sense of duty, regardless of the consequences.
 Consciousness: Consciousness of the need to behave consistently and morally in
everyday life.
 Competency: The capacity to gather and assess data, to come up with alternate solutions,
and to anticipate negative outcomes and hazards.
Good decisions are both ethical and effective:

Page 4|9
  Decisions based on ethics build and maintain trust, show respect,
responsibility, equity, and compassion, and are in line with good citizenship.
Better decisions can be made because of these habits because they lay out the ground
rules for our behavior going forward.
 Decisions are successful if they help us achieve our goals and further our objectives.
Making a decision that has unforeseen and unwanted consequences is a waste of time and
energy. Make selections based on how well they will help us achieve our most essential
objectives if you want to make good ones. We must thus distinguish between urgent and
short-term objectives, as well as more distant ones.
Creative and up-to-date recommendations for how leaders have to overcome or handling
the ethical dilemma (challenges) in their organization.
1. Determine your legal obligations and duties
It's critical that we understand our professional and legal responsibilities. In the face of an ethical
issue, we will most likely be able to make a quick decision based on our professional and legal
commitments.
2. Establish the interested participants involved
It is critical to understand the people who will be influenced by the course of action that we
choose to take. Primary participants are often simple to identify, and it is the secondary
participants that are sometimes overlooked. Friends, family members, and coworkers who are in
some way linked to the principal actors in the ethical problem may fall into this category. Being
aware of the consequences of a choice to secondary players may be especially significant when a
decision is made based on utilitarian principles, in which the rights of people who are not part of
the majority may not be taken into consideration.
3. Determine the ethical values of each participant
Establishing ethical principles is critical in order for us to have a clear grasp of what is genuinely
at stake. During an ethical dilemma, one of the participants can consider loyalty to be the most
essential value. Another participant, on the other hand, may consider equality to be the more
significant value. When everything is taken into consideration, the value of loyalty may not be
comparable to the value of equality, depending on the ethical situation.
4. Consideration of the possible negative and positive outcomes of each possible option

Page 5|9
 Make an effort to anticipate any unforeseen implications of your action
that could occur. Despite the fact that these effects may not be immediately obvious,
a careful review of the ramifications of your action is required.
 When you see anything on the top page of a newspaper, think about how well it would be
accepted. While this should be taken into account, bear in mind that the proper option is
not always the most popular in the public opinion polls and vice versa.
 If the decision is relevant to your employment, would the agency or firm for which you
work continue recruit you if they knew you were going to make this choice? If you
answered affirmatively, you should consider the implications of your choice before
proceeding.
 If the choice is not connected to your employment, would the agency where you would
want to work still hire you if they were aware of all the circumstances surrounding the
difficulty and the option you were contemplating? If you answered affirmatively, this
should provide more significance to the choice you are going to make.
 Additionally, as customer preferences and lifestyles move toward additional food and
beverage alternatives, Starbucks should modify its menus and increase its product
offerings to include healthy options in their mix.
 A key component of Starbucks' growth plan in the crowded United States market should
be the expansion of the company's presence into previously unexplored rural regions.
 Packaged coffee packets and iced beverage goods are another area of expansion for the
company. Starbucks should strengthen its ties with large box retailers in order to get more
premium shelf space and improve the effectiveness of this distribution route, according to
the company.
Conclusion
Even while Starbucks has been attacked for growing too quickly and for damaging local cultures
by changing them into an American experience, the company is beloved by its customers and
well-followed on social media. Due to the high level of expectation among their target audience,
Starbucks should continue to diversify their product selection and actively monitor emerging
technology developments in the future. The company is very successful in this endeavor, as seen
by its consistently growing annual revenues.

Page 6|9
 Starbucks' primary strategy is the implementation of corporate social
responsibility; improving the lives of coffee and tea farmers is a top priority, as is
saving the environment through the establishment of more environmentally friendly stores, the
reduction of water consumption, and the use of recyclable cups. At the end of the day, their
customers perform the majority of the research and development for free.
References
1. Branding Personality (2014) How Starbucks Built and Engaging Brand on Social Media
[Online]. Available at: http:// www.brandingpersonality.com/how-starbucks-built-an-
engagin-brand-on-social-media/ (Accessed: 13 May 2014).
2. Fernandez, J. (2010) 'Starbucks takes ready brew coffee into supermarkets', Marketing
Week, 6 July [Online]. Available at: http://www.marketingweek.co.uk/starbucks-takes-
ready-brew-coffee-into-supermarkets/3015441.article (Accessed: 12 May 2014).
3. Meister, J. (2012) 'Corporate Social Responsibility: A Lever for Employee Attraction &
Engagement', Forbes, 6 July [Online]. Available at:
http://www.forbes.com/sites/jeannemeister/2012/06/07/corporate-social-responsibility-
alever-for-employee-attraction-engagement/ (Accessed: 3 May 2014).
4. Morriss, A. (2012) 'How Starbucks Trains Customers to Behave', Harvard Business
Review, 9 May [Online]. Available at: http://blogs.hbr.org/2012/05/how-starbucks-trains-
customers/ (Accessed: 3 May 2014).
5. My Starbucks Idea (2014) Home Page. Available at:
http://mystarbucksidea.force.com/apex/ideaHome (Accessed: 3 May 2014).

Page 7|9