FIN/370 Finance for Business
Starting in Seattle with one store, Starbucks has grown across the country and has become a household name delivering one of the best tasting coffees in existence. The first Starbucks opened in 1971, serving fresh roasted coffees. “Today, more than 15,000 stores in 50 countries, Starbucks are the premier roaster and retailer of specialty coffee in the world” (Starbucks, para. 7, 2010). The organization has been successful because of excellent managerial skills and implementing sound business decisions. Starbucks mission statement reads as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2010, p. 1). The company values its relationships with communities, its stores, business partners, shareholders, and employees. Responsible ethical character and compliance helps the Starbucks brand protect its reputation. This paper will explain the role of ethics, procedures, Securities and Exchange Commission (SEC) compliance, and evaluate the financial performance of the Starbucks organization.
Ethics and Compliance Policies
A successful organization builds its reputation on honesty and trust displayed to customers and business partners. Starbucks conducts business in an ethical manner that protects reputation and supports its culture by unceasingly striving to do what is right. Starbucks has a commitment to company values that successfully employs a Business Conduct Helpline and a Business Conduct Web-line for questions and guidance. Starbucks has incorporated an Anti-Retaliation Policy and does not tolerate retaliation against anyone reporting misconduct. The organization is an equal opportunity employer and use best practices in the hiring process. Business practices include and are not limited to accurate and truthful business transactions and comply with laws and regulations in any country the company operates in, and encourage partners to understand and adhere to the rules. Starbucks has an outside agent who facilitates and ensures an honest and ethical relationship with government officials throughout the international arena. Partners associated with the Starbucks brand must practice ethical conduct in sales, services, and promote fair competition. Matters dealing with conflicts of interest, gifts and entertainment, and securities are also addressed and implemented by the company. The company closely monitors proprietary information such as new ideas, company records including financial and audit details.
Starbucks explains the Ethical Decision-Making Framework to identify ethical issues, give any possible solutions, pursue ideas from others, and take the best approach to resolve unethical matters and follow-up on results. The aforementioned framework empowers each Starbucks associate and affiliate to take responsibility to help maintain Starbucks ethical and honest reputation. “Ethical behavior is doing the right thing, and ethical dilemmas are everywhere in finance” (Keown, Martin, Petty & Scott, para. 1, 2005).
Securities and Exchange Commission’s Regulations
According to Ethisphere.com, (2010), Starbucks is one of the most ethical companies in the world for 2010. One of the key points to being an ethical business is to file reports for investors, government bodies, and the public to view. Starbucks complies in one way with the ethics policies set in place by the directors and organization by providing accurate data. The financial records of Starbucks are available to the investors, public and government in a timely manner via the website. The requirement set by the Securities Exchange Committee for a public business is to provide accurate reports in a timely manner.
Starbucks publishes an annual report to the Starbucks website for anyone to find via the Internet. The annual report contains cash flow statements of income and expenses. The reports show...