Fin/370 Starbucks Ethics & Compliance
Ethic and Compliance
FIN/370
Ethics and Compliance
Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010 Starbucks Global Responsibility Report; “one person, one cup and one neighborhood at a time.”
Ethical Behavior
Ethical standards play an intricate role in safe guarding companies’ assets. To ensure that all employees understand what the company expects of them, Starbucks establishes procedures for the employees to follow. One of Starbucks’ procedures is to use “ethical trading and responsible growing practices” (Ethical Sourcing, 2011, para. 1). This procedure ensures that Starbucks’ product is the best on the market. Starbucks has also established Coffee and Farmed Equity (CAFE) Practices. The CAFE Practices are a set of measurable standards focused in four areas: Product Quality, Economic Accountability, Social Responsibility, and Environmental Leadership (Starbucks Corporation, 2011). The CAFE Practices are in place to ensure that all parties involved are conducting business ethically. Product Quality is essential to ensure repeat business. Economic Accountability is set in place to ensure that the company purchases products ethically. Starbucks has a third-party to evaluate Social Responsibility and Environmental Leadership (Starbucks Corporation, 2011). These two areas evaluated by a third-party, guarantees Starbucks
FIN/370
Ethics and Compliance
Starbucks celebrates 40 years with 17,000 stores in more than 50 countries (Goals & Progress, 2010). Starbucks thrive on their values as a company to improve the lives of people who grow their coffee, neighborhoods where the company does business, and they care for the environment (Goals & Progress, 2010). Starbucks strives to incorporate good business practices and ethics across the globe not only for the enhancement of the company but also for the enhancement of the stakeholders and the communities the company impacts. Starbuck’s mission statement is “to inspire and nurture the human spirit. As said by Howard Schultz, Chairman, President and Chief Executive Officer, in the 2010 Starbucks Global Responsibility Report; “one person, one cup and one neighborhood at a time.”
Ethical Behavior
Ethical standards play an intricate role in safe guarding companies’ assets. To ensure that all employees understand what the company expects of them, Starbucks establishes procedures for the employees to follow. One of Starbucks’ procedures is to use “ethical trading and responsible growing practices” (Ethical Sourcing, 2011, para. 1). This procedure ensures that Starbucks’ product is the best on the market. Starbucks has also established Coffee and Farmed Equity (CAFE) Practices. The CAFE Practices are a set of measurable standards focused in four areas: Product Quality, Economic Accountability, Social Responsibility, and Environmental Leadership (Starbucks Corporation, 2011). The CAFE Practices are in place to ensure that all parties involved are conducting business ethically. Product Quality is essential to ensure repeat business. Economic Accountability is set in place to ensure that the company purchases products ethically. Starbucks has a third-party to evaluate Social Responsibility and Environmental Leadership (Starbucks Corporation, 2011). These two areas evaluated by a third-party, guarantees Starbucks
References: Goals & Progress. (2010). Starbucks Global Responsibility Report: Message from Howard Schutltz (para. 1). Retrieved from http://www.starbucks.com/responsibility on July 23, 2011. Goals & Progress (2010) Starbucks Global Responsibility Report: Year Review: Fiscal 2010. Retrieved from http://www.starbucks.com/responsibility on July 23, 2011. Keown, A., Martin, J., Petty, J., & Scott, D. (2005).Financial Management: Principles and Applications (10th ed.). Upper Saddle River, NJ: Prentice Hall, Inc. National Federation of Independent Business. (2009). Financial Performance. Retrieved from http://www.financialperformancecenter.com/The_Financial_Performance_Center/Why_Switch.html on July 24, 2011. Starbucks Corporation. (2009). Starbucks Investor Relations. Retrieved from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsAnnual. Starbucks Corporation. (2011). Ethical Sourcing. Retrieved from http://www.starbucks.com/responsibility/sourcing Titman, S., Keown, A.J., Martin, J.D. (2011) Financial Management: Principles and Applications (11th ed.). Upper Saddle River, NJ: Prentice Hall, Inc.