Starbuck’s Ethical Relationship with Stakeholders Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Starbuck is one of the most prosperous coffee companies based in Seattle, Washington DC in the United States. As it has been observed, Starbucks Company has been conducting its business ethically by considering the needs of its key stakeholders. According to Starbuck (2011), ethical sourcing and social responsibility are the company’s key values that facilitate its success in the coffee industry.

Based on the company’s operations, providing employees with favorable working condition has been prioritized in Starbucks. By referring its employees to as ‘partners’, Starbuck acknowledges the ultimate value of a well motivated workforce.

According to Enquist Sebhatu (2008), when employees are highly motivated by being valued by their employers, they tend to become more efficient in their various duties, resulting into more customer satisfaction. Particularly, Starbucks’ good relationship with its workforce, customers and their stockholders can be attributed to its overall market leadership in the coffee industry.

To ensure that Starbuck sustains its ethical business operations, it established a program called ‘Business Ethics and Compliance’ with an aim of ensuring that all its key stakeholders make ethical business decisions (Starbuck, 2011). This program aims at establishing standards and measures of facilitating resolutions for any kind of conflicts that may arise within its key partners.

Based on Moon (2007), findings on corporate strategy of enhancing sustainability in its operations and maintaining ethical balance between organizations’ key stakeholders facilitate success and achievement of the laid down goals and objectives. Issues like legal compliance and channels to voice out various concerns by stakeholders need to be prioritized among organizations.

With the establishment of ‘Business Ethics and Compliance’ program in Starbucks Company, stakeholders are largely encouraged to share all areas of concerns within the organization to ensure coherence successful resolution of all potential conflicts. By doing this, the company has ensured coherence within its key stakeholders, leading to its overall current business prosperity.

As one of the ways to ensure highly motivated workforce, Starbucks Company has provided all its employees with healthcare benefits among other key benefits as a way of showing concern for the welfare of its workforce as part of its partners (Starbuck, 2010). In fact, the company has for long been considered as ‘the employer of choice’ as a result of its tendency to take good care of its employees and the other stakeholders.

As noted by Moon (2007), one of the key areas to ensure highly motivated workforce is the ability to provide the employees with incentives that enable them to perceive themselves as part of the organizations.

When employees are provided with medical cover by their employer, they tend to develop more trust with their organization. As a result, they tend to remain highly motivated in their job. By providing their employees with appropriate incentives like healthcare benefits, Starbucks Company has facilitated trust with its key stakeholders.

Besides taking care of its employees, Starbucks Company has established good rapport with its stockholders and all the other key stakeholders within its supply chain (Starbuck, 2010). To ensure that the company’s stockholders remain in line with its mission statement, Starbucks Company has established good link with its stockholders within the supply chain for consistency in the product distribution.

With the establishment of the ‘Business Ethics and Compliance’ program, it has been easier for all the company’s stockholders to remain consistent with the company’s ethical standards and practices. With an aim of ensuring consistent supplies within its supply chain, Starbucks Company has built sustainable store malls that facilitate effective flow of products across its markets.

According to Enquist Sebhatu (2008), the ability of an organization to develop appropriate product distribution strategies facilitates its overall success in its operations. In this regard, the tendency of Starbucks Company of involving its stockholders in ethical operations on the course of the products distribution portrays the company as being socially responsible in all its operations.

Further, Starbucks Company has reported to established ‘partner engagement’ project that aims at engaging all its key stakeholders in corporate social responsibility activities (Starbuck, 2011). For instance, Starbucks Company in Thailand launched new non-coffee beverages with an aim of supporting the neighborhood communities in the country.

According to Enquist Sebhatu (2008), the strategy of corporations of engaging in community development programs establishes trust with its key stakeholders for sustained growth and development. When Starbucks Company engages in CSR activities, it establishes strong basis for its sustainable popularity in the markets. As a result, all the products bearing the brand name will be highly valued by the customers in the markets.

Conclusion

In conclusion, Starbucks Company has been observed to adhere to various ethical practices to all its key stakeholders including its employees and stockholders. The company’s strategy of considering its workforce as partners, apart from offering it healthcare benefits, has highly motivated the employees.

Further, the company’s tendency to engage its stockholders in ethical practices through ‘Business Ethics and Compliance’ program has facilitated consistency with its mission. Generally, Starbucks Company’s ability to conduct its operations in ethical manner has largely contributed towards its overall success in the coffee industry.

References

Enquist, B, Sebhatu S, (2008). Corporate social responsibility for charity or for service business. The Asian Journal on Quality, vol. 9, no. 1, pp. 69-83.

Moon, J. (2007). ‘Implicit’ and ‘Explicit’ CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, Vol. 34, No. 1, pp. 258-274.

Starbuck, (2010). . Web.

Starbuck, (2011). Business ethics and compliance. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, May 28). Starbuck’s Ethical Relationship with Stakeholders. https://ivypanda.com/essays/starbucks-ethical-relationship-with-stakeholders-essay/

Work Cited

"Starbuck’s Ethical Relationship with Stakeholders." IvyPanda, 28 May 2019, ivypanda.com/essays/starbucks-ethical-relationship-with-stakeholders-essay/.

References

IvyPanda. (2019) 'Starbuck’s Ethical Relationship with Stakeholders'. 28 May.

References

IvyPanda. 2019. "Starbuck’s Ethical Relationship with Stakeholders." May 28, 2019. https://ivypanda.com/essays/starbucks-ethical-relationship-with-stakeholders-essay/.

1. IvyPanda. "Starbuck’s Ethical Relationship with Stakeholders." May 28, 2019. https://ivypanda.com/essays/starbucks-ethical-relationship-with-stakeholders-essay/.


Bibliography


IvyPanda. "Starbuck’s Ethical Relationship with Stakeholders." May 28, 2019. https://ivypanda.com/essays/starbucks-ethical-relationship-with-stakeholders-essay/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1