Introduction
Starbucks Coffee is an international coffeehouse that began as a single store in Seattle’s Pike Place Market in 1971. Entrepreneur Howard Schultz founded the company and instilled several strategic initiatives, including solid brand creation, premium product development, and company expansion to international markets (Lombardi et al., 2021). The company is concerned with ethics by utilizing quality, fair trade, a green environment, and other procedures.
Interest in the Organization
Starbucks Corporation is the world’s largest coffeehouse chain. It is known for its exquisite coffee and outstanding customer service, which has helped it maintain its position as a market leader. As a result, Starbucks is the “choice coffeehouse” for both domestic and international customers. Starbucks’ net revenue increased to 24.61 billion US dollars in 2021, up from 19.61 million in the preceding year (Lombardi et al., 2021). The particular interest in the company arises from the fact that Starbucks is one of the most prominent and competitive companies within the food and beverages market. Looking at Starbucks as a case, we’re curious about which ethics procedures are required for a large-scale business to remain relevant and competitive. Analyzing the strategies and principles of an international corporation would give a better understanding of business ethics and strategic management.
Ethical Practices
As a global corporation, it is critical to adhere to the highest standards of ethical behavior and conduct. According to Starbucks Coffee, “Starbucks Ethics & Compliance supports our mission and values and helps protect our culture and reputation by fostering a culture that is committed to ethical leadership” Ethical considerations are their top concern (n.d). The company employs such ethical procedures as product quality, fair trade certificates, green environment, and others.
Product Quality
Starbucks’ management has always acknowledged that quality product is not only beneficial to customers but also to the company’s long-term prospects. Starbucks established a Farmer Support Centre in 2004 to provide expert assistance in maintaining coffee quality and competitive pricing. Starbucks has coached over 200,000 farmers and provided free learning opportunities and assets through its Farmer Support Centers (Peiper, 2021). Its objective is to make coffee the world’s first agricultural product obtained sustainably.
Fairtrade Certificates
In most emerging regions, distributors try to capitalize on the needs of workers or farmers. Starbucks has been collaborating with Fairtrade since 2000. In addition to Fairtrade purchases, Starbucks has funded more than $14 million in farmer loans to Fairtrade cooperatives as part of its ongoing dedication to assisting farmers in risk management and business strengthening (Starbucks Coffee, n.d.-b). FairTrade guarantees reasonable product prices, as well as decent working conditions and wages.
Green Environment
Starbucks’ primary objective by 2025 is to establish a societal shift toward reusables by providing customers with easy availability of an individual or Starbucks-provided reusable cup for each visit. They proceed to replace traditional plastic straws with innovative recyclable alternatives around the world to optimize single-use packaging. By the end of this year, the company hopes to have eliminated per- and poly-fluoroalkyl substances (PFAS) from all packaging in the United States, and by 2023, it hopes to have eliminated PFAS globally (Starbucks Coffee, 2022). Increasing recyclability is a long-term commitment for the company in which they remain leader.
Conclusion
Business ethics provide a basic framework for enterprises to follow to obtain public approval. Looking at the case of Starbucks, it becomes evident how an efficient ethics initiative’s incorporation increases the status, reputation, and revenue of the enterprise. Broadly speaking, Starbucks shows a great interest in improving and implementing ethical practices in a variety of areas, such as recycling, fair trade, and decent quality.
References
Lombardi, C., T. Chidiac, N., & Record, B. (2021). Starbucks coffee corporation’s marketing response to the COVID-19 pandemic. Innovative Marketing, 17(2), 177–188.
Peiper, H. (2021). Keeping the farm. Starbucks Stories.
Starbacks Coffee. (2022). Join Starbucks partners in celebrating Disability Pride Month. Starbucks Stories.
Starbucks Coffee. (n.d.-a). Ethics & Compliance. Starbucks.
Starbucks Coffee. (n.d.-b). How We Approach Ethical Sourcing. Starbucks.