Starbucks
2010 MOST ETHICAL RESTAURANT
Starbucks Coffee Company was chosen Most Ethical Restaurant for 2010, according to strict screening methods and criteria (Ethisphere, 2010). These criteria were corporate citizenship and responsibility, corporate governance, innovation in public well-being, industry leadership, executive leadership, regulatory and reputation track record and internal systems and ethics or compliance program. Starbucks is the lone recipient of the award in the restaurant and cafe category (Ethisphere).
Company History
Starbucks Coffee Company started as a single an narrow store at the Pike Place Market in Seattle in 1971 (Starbucks, 2010). Its name was inspired from the novel, "Moby Dick," which describes the romance of the high seas and the traditions of the early coffee traders. From the start, the company offered and served some of the world's finest fresh-roasted whole bean coffees. Current chairman, president chief executive officer Howard Schultz first entered a Starbucks store in 1981 and sipped his first cup in Sumatra. He was drawn to it and joined it the following year. In 1983, he went to Italy and chanced upon Italian coffee bars and the romantic aspect of the coffee experience. He dreamed of bringing the Italian coffee house concept back to the United States. It would be a place where people could talk and come together as a community. It would be the third most preferred place to be next to home and work. Schultz left the company to put up his own Il Giornale coffee houses. But in August 1987, he returned to purchase Starbucks with assistance from local investors. At the outset, the company not only offered excellent coffee and its rich tradition but also a strong sense of connection. At present, it has more than 15,000 stores in 50 countries. It has gained the reputation as the premier roaster and retailer of specialty coffee in the world. It strives to express its heritage with every cup (Starbucks).
Starbucks and Society
It has consistently aimed at inspiring and nurturing the human spirit into a whole, a cup and a community all at the same time as its mission statement (Starbucks, 2010). The company operations are founded on the principles of the quality of its coffee, its partners, its customers, its stores, its neighborhood and its shareholders. It's company passion to ethically locate the finest coffee beans, carefully roast them, and help improve the lives of their growers. This is the company's constant and basic pursuit. People within the organization view themselves as partners with a common passion and goal. They observe diversity within the ranks so they can be themselves. Respect and dignity are their standard. They establish human connection with their customers even for a few moments, which start with perfectly made coffee. They make sure their customers get that sense of belonging the company endeavors to achieve at their stores. They envision these places as a respite from the pressures of the outside world. These are places meant for their enjoyment and full of humanity always. Every store is also part of a community for which the company takes serious responsibility. The company wants to be a force for positive action of bringing its partners, customers, and the community together. And it recognizes full accountability to its shareholders to put these principles to work so that the company may thrive and endure (Starbucks).
Stakeholders and Issues
The stakeholders are primarily Starbucks' employees, then the customers, shareholders, partner organizations, government organizations, non-government organizations focusing on social issues, university student organizations and academic institutions, regional community groups and the media (Reid, 2006). Shareholders comprise the socially responsible investment community. Partner organizations include licensed stores and food service accounts. Government organizations include the USAID and the national governments of coffee-grower countries, such as Costa Rica, Guatemala, Kenya, Nicaragua and Tanzania. Non-government organizations are those lobbying for social issues, such as human rights, social justice, environmental issues and microfinance. And university student organizations have been an influential audience. These stakeholders directly relate to Starbucks' organizational mission, goals and operations (Reid).
Issues include fair trade, shade grown and organic coffee, and overall supply chain transparency (Reid, 2006). The company must make sure it fulfills its commitment to buy coffee in a fair, transparent and equitable manner and makes it known and understood. It also needs to make sure its consumers welcome the coffee they are buying and consuming. The company needs to establish and maintain positive links with the other groups focusing on social justice and environmental issues, especially in coffee-growing countries. Good working relationships with them will insure a steady supply of high-quality coffee beans as well as protect company reputation and license to operate (Reid).
Business Ethics and Managing It
Starbucks Coffee Company believes that...
Starbucks is the leader of the coffee and coffee-based beverages industry across the world, having transformed the simple act of drinking coffee into a valuable and memorable experience. The business model implemented by the firm is based on the creation of various coffee and coffee-based beverages, of a multitude of flavors and sold in pleasant stores across the globe. The Starbucks stores integrate relaxing and modern ambiance, free wireless internet,
However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor Relations, 2011). Starbucks was also able to manage costs of closing locations
Starbucks struggled in the late 00s as a result of increased competition and the economic slowdown. However, the company has since righted its ship and now has a bright future. The firm has addressed its economic and competitive threats, and improved its internal performance. As a result, it is now well-positioned to take advantage of its opportunities, and faces few serious threats to its business. Starbucks is positioned to drive
The points of difference can vary based on the nature of the company, its resources or the industry in which it operates. Multinational corporations which possess vast resources, as is the case of Starbucks, are more and more focused on social and environmental responsibility in an effort to create points of difference. They promote the development and well-being of the communities in which they operate and they strive to improve
Costa Coffee: An Overview What market is it in? As one of the premium espresso chains in the United Kingdom, with a price point higher than that of Starbucks or standard pub coffee, Costa Coffee is clearly focused in its efforts toward the consumer market.[footnoteRef:1] It primarily sells coffee and accompanying sandwiches and beverages. It also sells beans and other coffee products to consumers, but these aspects of its trade are a
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