Subject: Business Ethics and Public Policy Students will work in groups of 2-3 o
ID: 369343 • Letter: S
Question
Subject: Business Ethics and Public Policy
Students will work in groups of 2-3 or individual to prepare a professional report on the ethical activities of a company of their choice. The report should follow the following guidelines:
1. Introduction. Introduce the company. Give a brief history and outline the mission of the organization. Give some information on the current status of the company.
2. A) What the Company says about their Ethics. Based on the company website, research and critically analyze the company’s apparent ethical status and commitment towards business ethics as reflected by their website.
B. the company’s ethical responsibility and commitment in the following areas. Paraphrase and explain what the company writes about these areas:
- Marketing Human
- Resources
- Finance and Accounting.
- Supply Chain Management.
3. Critical Research.
4. Conclusions.
5. References & Appendices
Explanation / Answer
Subject: Business Ethics and Public Policy
Students will work in groups of 2-3 or individual to prepare a professional report on the ethical activities of a company of their choice. The report should follow the following guidelines:
1. Introduction. Introduce the company. Give a brief history and outline the mission of the organization. Give some information on the current status of the company.
As a coffee company who's mission and vision statement is " To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time." Starbucks has branded itself in a way where it presents itself as a part of the community that its set up at, where it ads value, through its employment programs that value diversity, equal opportunity, facilitate young baristas with the times and resources to complete their education and hire veterans.
2. A) What the Company says about their Ethics. Based on the company website, research and critically analyze the company’s apparent ethical status and commitment towards business ethics as reflected by their website.
Ethical Sourcing of Coffee
Starbucks controls over 59 % of the Coffee Market within the United States of America, followed by Mc Donald's. Dunkin Donuts. and other brands. While its does have significant global presence, the Global or Regional Market Share of Starbucks isn't clear. Despite of spending a lot of money in growth and Expansion in Asia, particularly India and China, where Starbucks has opened closed to 5000 stores in China and close to 73 Stores in India, the Coffee Company still remains profitable with healthy margins. With a revenue of 21,315,900 $ and Gross Profit in 2016 totalling upto $12,804,800.
Despite of having such a tremendous control over the coffee market and its ability to be a dictate prices Starbucks compensates its vendors and farmer from whom it sources from with the utmost degree of care. the Firm Believes in ethical sourcing. Ethics in supply chain management have to do with sustainability and ethical sources of raw materials. Ethical sourcing involves sourcing and working with Vendors who comply with ILO (International Labour Organisation) and Human Rights Standards set by individual host countries and the world
B. the company’s ethical responsibility and commitment in the following areas. Paraphrase and explain what the company writes about these areas:
Marketing
Starbucks has close to 25,000 stores word wide and close to 13,500 stores in the United States alone, its next biggest markets are Europe and Asia. As far as volume is concerned, the Seattle based coffee giant sells close to 3 billion coffee cups annually across all of its stores around the world. Starbucks enters markets using brick and mortar stores. They own and control their instead of expanding through franchising. They enter markets after thorough research on consumer trends and preferences and use forecasting and planning in order to meet consumer needs in a market.
Starbuck's marketing is centred around projecting itself as a community centric brand
They also add value to the community. not just by providing consistent , high quality coffee and service but also by providing a place for people to meet, relax and disconnect from their daily routine and find a home away from home. Which is why it ran a very successful ad campaign called "Meet me at Starbucks", which was surpassingly the most common word that almost all Starbucks Patrons use.
Human Resources
Starbucks Barista's make around $9.43 and their shift supervisors make $11.65 an hour. Which means that Starbucks Pays has always paid their employees a salary which is above the minimum wage. The current minimum wage in the United States is currently 7.25 $ per hour. A bill introduced by congress would increase the minimum wage by 107 percent to $15 an hour by 2024, by first raising it to $9.25 this year gradually & incrementally until it reaches $15.00 in 2024. Now inflation rate in the United States is around 2.5 % annually, in 7 years , that compounds to 17.5 % of inflation when compared to today's prices, while the minimum wage is Which means that if a person works 8 hours a day for 7 days a week in ay year, he or she could earn 15,312 $ a year as of today's date and and around 31,680 $ an hour by 2017.
Finance and Accounting :
Starbucks follows financial reporting laws and ethical standards based on the provisions of Sarbanes-Oxley
The compliance requirements of section 404 are as follows
Section 404.A.1.1 – Disclose security safeguards to independent auditors.
Section 404.A.2 – Disclose security breaches to independent auditors.
Section 404.B – Disclose failures of security safeguards to independent auditors.
To disclose accounting and balance sheets publicly just like firms listed on the stock markets,
as required by the Securities and Exchange Commission.
Supply Chain Management :
Despite of having such a tremendous control over the coffee market and its ability to be a dictate prices Starbucks compensates its vendors and farmer from whom it sources from with the utmost degree of care. the Firm Believes in ethical sourcing. Ethics in supply chain management have to do with sustainability and ethical sources of raw materials. Ethical sourcing involves sourcing and working with Vendors who comply with ILO (International Labour Organisation) and Human Rights Standards set by individual host countries and the world
3. Critical Research.
Sustainability at Starbucks
Starbucks pays a great deal of attention to its stores. They're carefully designed to be a perfect blend between local and global tastes. Their objective is to make you feel at home. Coffee continues to be their top selling product. And within coffee. frappuccinos are their best selling beverages. Their process design involves a lot of planning. Starbucks is good at forecasting its business volumes. It knows its average consumption for every store, region, sub region. state. country and continent. Forecasting , helps determine or gauge the quantity of demand and supply for the product in the market and the manufacturing requirements or specifications. Starbucks ensures that is minimises wastage of its cups, raw materials, food and beverage, electricity / energy and water consumption.
4. Conclusions : Starbucks sets the standards for all other F&B franchises and brands across the world and continues to grow and scale with ethics, sustainability and valuing its employees, customers and neighbourhoods.
5. References & Appendices
Starbucks Official Website > Investor Relations > Sustainability > Business Practices