Starbucks holds the belief that carrying out their business in ways that are ethical, and doing the right thing are vital to their success.

1. BUSINESS ETHICS (Case Study)
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2. BUSINESS ETHICS - ORGB60394
George Scott - S020964J
-
The Senior
Management Team
Starbucks - An ethical company
• Recognised as the world’s Most Ethical Company by the Ethisphere Institute (2017).
• One of the first retailers to offer comprehensive health coverage to part-time employees (and their
families).
• The Starbucks College Achievement Plan provides full tuition reimbursement to eligible employees
who wish to earn a college degree.
• The Starbucks C.A.F.E. practices (Coffee and Farmer Equity) include four key ethical areas:
1. Quality
2. Economic accountability and transparency
3. Social responsibility
4. Environmental leadership
(Boone, Kurtz & Berston, 2019)
(Ethisphere Institute, 2017)
(Starbucks, 2019)
As a global company, Starbucks are
mandated to deliver the ‘highest
standards of ethical conduct and
behaviour’. The Senior Management
Team are directed to maintain these
standards to demonstrate that the
company take their ‘legal and ethical
responsibilities seriously’, (Starbucks,
Standards of Business Conduct, 2017).
(Starbucks, 2017)
‘The Board of Directors of Starbucks Corporation is responsible for overseeing
the exercise of corporate powers and ensuring that the Company’s business
and affairs are managed to meet its stated goals and objectives and that the
long-term interests of the shareholders are served’, (Starbucks Corporate
Governance Principles, 2020).
Elimination of discrimination in leadership is also embraced at the entity.
‘I proactively promote ethical behaviour as a responsible partner’ to ensure that
‘stakeholders’ interests are appropriately balanced, protected and preserved’,
(Code of Ethics for Starbucks CEO, COO, CFO and Financial Leaders, 2017).
Ethics & Compliance
Starbucks holds the belief that carrying out their business in ways that are ethical,
and doing the right thing are vital to their success. They have in place a Business
Ethics and Compliance program that supports and helps with the protection of
their reputation, and culture through the provision of resources that enable
partners make decisions that are ethical at work (Starbucks, 2020). Through this
program, awareness materials are developed, and distributed, and these include,
Standards of Business Conduct; provides partners with additional channels of
voicing their concerns, investigates issues that are sensitive like potential
conflicts of interest; facilitates ethics training and legal compliance.
Within their social responsibility, there are adequate clauses documenting forced
labor, freedom of association, and discrimination.
Starbucks, also, knows too well that
well treated employees, treat customers
well. Starbucks, in an effort to treat their
employees well offers them with
opportunities of receiving various
meaningful benefits including, stock
options, full healthcare benefits, and
discounted tock purchase plans, among
others (ethical consumer, 2021).

3. Ethical Philosophy
The ethical philosophy at Starbucks is modeled on four
guiding principles:
1. Quality
2. Economic accountability
3. Social responsibility
4. Environmental leadership
Role of employees in maintaining business standards at the company
Customer Service
Motivation of employees
Transparency and career growth opportunities
Starbucks ensures that they constantly and closely engage their employees maintaining a close connection necessary in improving the quality of
service to the customers
 Employee needs are important to the entity a factor that is seen in the hierarchical structure and management board.
The Starbucks employee Code of Conduct bestows responsibility onto its employees to deliver their ‘critical role in ensuring
that Starbucks is a great work environment’ and in protecting the ‘culture, reputation and brand’, (Starbucks, 2017).
(YCHARTS, 2017)
Starbucks view their employees as ‘partners’. Such partnerships are bound up with ‘corporate governance by linking responsible
practices to business success’. Starbucks’ multiple Cross-Sector Social Partnerships (CSSPs) are ‘implemented in part through
employee involvement’. Employees (Baristas) are ‘strongly encouraged to incorporate and follow Starbucks’ mission statements
by participating in brand-sponsored activities’, (Seitanidi & Crane, 2013).
Ethical theories
 Utilitarianism
 Deontological theory
 Rights
 Virtue
Motivational theories
 Maslow's motivational theory
 Herzberg's motivational theory
 McClelland's Needs theory
BUSINESS ETHICS - ORGB60394

4. References
• Boone, L, E., Kurtz, D, L., Berston, S. (2019). Contemporary Business. John Wiley & Sons.
• ethical consumer. (2021). Company Profile: Starbucks Corporation. Retrieved 11 April 2021, from https://www.ethicalconsumer.org/company-profile/starbucks-corporation.
• Fleckenstein, M., Maury, M., Pincus, L., Primeaux, P. (2012). From the Universities to the Marketplace: The Business Ethics Journey: The Second Annual International Vincentian Conference Promoting Business
Ethics. [online] Available at: https://books.google.rw/books?id [Accessed 15 Jan 2021].
• Ganta, V. C. (2014). Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences, 2(6), 221-230.
• Gupta, V., Gollakota, K., Srinivasan, R. (2007). Business Policy and Strategic Management: Concepts and Applications. PHI Learning Pvt. Ltd.
• Hurd, A, R., Anderson, D, M. (2010). The Park and Recreation Professional’s Handbook. [online]. Available at: https://books.google.rw/books [Accessed 17 Jan 2021].
• Iyigun., Okyu, N. (2018). Creating Business Value and Competitive Advantage With Social Entrepreneurship. [online] Available at: https://books.google.rw/books?id [Accessed 15 Jan 2021].
• magazine.ethisphere.com. (2017). The World’s Most Ethical Companies. [online]. Available at: https://magazine.ethisphere.com/wp-content/uploads/eth-mag-wme-2017.pdf [Accessed 16 Jan 2021].
• Mika, A. (2012). The Importance of Codes of Ethics: Examination of the Need of Business Ethics and the Efficient Usage of Codes of Ethics for Good Corporate Governance. [online] Available at:
https://books.google.rw/books?id [Accessed 14 Jan 2021].
• Prasad, L. M. (2020). Principles and practice of management. Sultan Chand & Sons.
• Rochman, B. (2017). Sustainability is at the heart of Starbucks coffee sourcing. [online]. Available at: https://stories.starbucks.com/asia/stories/2017/sustainability-is-at-the-heart-of-starbucks-coffee-sourcing/
[Accessed 18 Jan 2021].
• Starbucks. (2020). Ethics & Compliance. Retrieved 11 April 2021, from https://en.starbucks.com.cy/about-us/company-information/business-ethics-and-compliance.
• Seitanidi, M, M., Crane, A. (2013). Social Partnerships and Responsible Business: A Research Handbook. [online]. Available at: https://books.google.rw/books [Accessed 17 Jan 2021].
• Starbucks. (2017). Standards of Business Conduct. [online]. Available at: https://globalassets.starbucks.com/assets/84F7DBEA77914F119230581D3EE50FD7.pdf [Accessed 17 Jan 2021].
• YCHARTS. (2017). Starbucks Revenue per Employee. [online]. Available at: https://camaca.imaspmedia.com/starbucks-corporation-organizational-chart/ [Accessed 17 Jan 2021].
• Robbins, S. P., Coulter, M. K., & DeCenzo, D. A. (2017). Fundamentals of management.
• Ganta, V. C. (2014). Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences, 2(6), 221-230.

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