Starbucks Ethics and Compliance 2009 Paper
FIN 370 Finance for Business
Starbucks is one of the places to find the world’s best coffees. The first Starbucks was located in Pioneer Square in downtown Seattle, Washington. Back in 1971, Americans coffee lovers traveled all the way to Seattle at the historic Pike Place Market to taste one of the best coffees in the world. The management of Starbucks has managed to improve their managerial process through location of their business, and quality and prices of their products. The price of their product is based on the quality they supply. This paper will discuss the procedures put in place to ensure ethical behavior, identify the processes use to comply with Security Exchange Commission (SEC) regulations, and evaluate the financial performance over the past two years using financial ratios. In addition, the trend for each ratio and the financial health will also be discussed using the 2008 and 2009 financial reports of Starbucks. Based on the history, Starbucks has enormously progress its business, not only in the United States, but overseas as well. Role of Ethics and Compliance
Starbucks’ Standards of Business Conduct in the employee handbook is designed to support their Global Business Ethics Policy. The idea is that every person in the employ of Starbucks is to act ethically and report any unethical or questionable behavior by any person under the employ of Starbucks. Starbucks also has committed to anyone who is reporting or questioning such behavior will not be retaliated against. Starbucks Chairman, President and Chief Executive Officer Howard Schultz stated “Each of us is personally responsible for supporting our core values, which require compliance with the law as well as ethical conduct. We have issued the Standards of Business Conduct to restate our long standing commitment to uphold that responsibility and to provide guidance to our partners.” The company firmly believes that continued support of their beliefs, of always acting ethically, the organization will continue to be successful. Employee procedure that is in place when any unethical behavior is suspected, have questions, or concerns the employee should contact their manager, any manager, Partner Resource Representative, or the Business Ethics and Compliance Department via phone or e-mail. Another tool put into place by the organization is a 24 hour Business Conduct helpline toll free number and a Business Conduct Webline which is also 24 hours 7 days a week. Finally, Starbucks has also outlined some suggestions for employees to ask themselves when making ethical decisions in the employee handbook. Role of SEC
Maintaining a high standard of ethics is part of Starbucks mission and part of this is complying with Securities Exchange Commission (SEC) regulations. Starbucks created a Business Ethics and Compliance Program to ensure that all regulations are met and followed. Along with this program Starbucks has a Chief Compliance Officer and an Audit and Compliance Committee of The Board of Directors in place. The Audit and Compliance Committee’s purpose is “to oversee the accounting and financial reporting processes of Starbucks and the internal and external audit processes” (Starbucks, 2009, p. 1). An open line of communication for reporting errors or wrongdoing is maintained by Starbucks to help ensure all data is reported correctly and accurately. On Starbuck’s website there is an easy to use tool for Starbucks employees to report any noncompliance with laws or regulations. As an active member of both the Ethics and Compliance Officer Association and the Ethics Resource Center, Starbucks is striving to keep up with any changes in regulations to help maintain their ethical standards. As part of their process for reporting to SEC Starbucks makes public all documentation that is submitted to the SEC so the shareholders, and anyone else, can see what...
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