To sum up, all what was said I would like to give an
example of the company which is considered one of the most ethical companies. Starbucks
makes great effort to run their operations and business in the most responsible
and ethical manner through helping the society, environmental friendly
operations, diversity in the workplace and responsibility towards customer
care. Starbucks publish their mission and vision statements, values everyday in
their restaurants and in website. Starbucks claim and position themselves as
social responsible company and they want their customers to know what exactly
did Starbucks in certain timeframe. They are printing their achievement in
social responsibility in their coffee cups, and more officially, they are
publishing the annual reports of their corporate social responsibility
activities. The purpose of choosing this company as example of ethical company
is that, I am going to analyze whether company can achieve growth in
profitability and increase shareholder value by developing ethical operations. Customers
of Starbuck are willing to pay higher prices for the coffee of this brand,
knowing that this company is supporting a social responsibility and by
purchasing the products of the company they are helping community as well.
is a large corporation with a headquarter in Seattle, Washington, producing
coffee worldwide. Starbucks has the largest coffeeshop chain and is considered
as the coffee brand which is mostly known in the world as it has about 20
thousand coffeeshops in more than 60 countries. About 25 million people are
coming to drink delicious coffee to Starbucks every day, customers of Starbucks
who consider themselves as loyal are coming to the coffeeshops approximately 20
times in a month.
is publishing on their website environmental mission and vision statement to
share that with partners and customers to make everyone know environmental
issues, and after that developing solutions in innovative. Starbucks is the
only corporation in the world which sets the goals and objective for the
corporate social responsibility activities in management level, measure, track
and monitor the progress of each corporate social responsibility project, for
example one of their objective is to decrease their and their suppliers’ emissions.
They have achieved it in several ways, starting with the recycling paper and
plastic. In 2011 Starbucks have achieved 50% decrease in wastewater in thousand
of their stores.
its values in several ways. For instance, Starbucks shows their care and
retaining satisfaction of their employees by providing their full time and part
time employees with health benefits. Starbucks is the only beverage chain
company which do that, because, in this sector employee retention rate is very
high, meaning that everyday many employees are leaving Starbucks and many
employees are coming to the Starbucks. Providing employees which will probably
leave the corporation soon with health benefits is very costly for corporation.
However, despite this high cost, Starbucks is undertaking it to care about
their employees. Furthermore, Starbucks are promoting the charity and
volunteering activities between their employees, and employees of each stores
are allowed to establish their own social responsibility project and undertake
it, and management incentivize this undertakings by promising promotion for the
number of successful projects. Due to the high unemployment in the US
particularly in the state of Georgia, Starbucks established new factories and
provided more than 200 manufacturing jobs. And what is more important,
Starbucks have developed Supplier Diversity Program, which is about to develop
good relations with suppliers, encourage suppliers to work in the poor African
countries in order to increase their GDP and increase their living standards.
In addition, they are caring about elimination of any discrimination in their
value chain, starting with suppliers and ending with the partners. In addition,
Starbucks are preparing their products in way that their products do not
contain more than five hundred calories, and they eliminate harmful ingredients
as artificial flavors and trans fats.
stated above, Starbucks is definitely ethical company that is highly engaged in
social responsibility projects. By developing social responsibility projects,
and taking care of environmental issues and issues related with depriving human
rights, Starbucks encourage all its stakeholders, particularly partners,
customers, suppliers, shareholders to strive for better future for the planet.