Profit responsibility holds that companies have a simple duty that is to maximize profits for their owners or stockholders. Nonetheless, there are concerns about profiteering. Profiteering occurs when a company makes excessive profits usually by taking advantage of a shortage of supply to charge extremely high prices. In addition to sales through company-operated retail stores, Starbucks sells whole bean coffees through supermarkets and it has leveraged its brands by expanding beyond its coffee kiosks and stores to bring the Starbucks’ coffee experience directly to workers at their employer’s offices. Through its business alliance programs, corporate cafeterias and other businesses are able to serve Starbucks coffee and its related products.
Starbucks reinforces its brand through multiple channels ranging from the relatively low profit grocery market segment to the high profit margin, experience-based, retail business cafes and kiosks.
However, Starbucks viewed the profitability as essential to it future success. When Starbucks’ guiding principles were conceived, profitability was included but intentionally placed last on the list as it was least important. It was believed that adherence to the five other principles would ultimately lead to good financial performance.
Stakeholder responsibility focuses on the obligations an organization has to those who can affect achievement of its objectives. These constituencies include consumers, employee, suppliers, and distributors. Stakeholder responsibility... [continues]
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