Starbuck organization was a corporation that was purchasing and roasting high-quality whole bean coffee and later selling them to the market. The corporation also used to purchase, roast, and sell rich brewed coffee and Italian-style espresso beverages through the company’s operated and licensed retail stores. The company expanded in its operations due to the fact that it was the only company that was exporting coffee and it was able to make high sales and it monopolized the market it later experienced a decline in its sales due to the fact some of its stock was been reported to be missing in the store thus it filed its case with the Securities and Exchange Commission so that they would rectify the situation. The company offered shares of 2.8 million shares of common stock at $1.5 per share within a minimum purchase of 600 shares of $900 stock was as per the Securities and Exchange Commission thus it increased the level of its finances.
An annual report indicates all the company’s financial and corporate conditions. It also serves as a source of information about a company’s history and its current performance. It is used to help an analyst to understand a company’s financial health or patterns of spending or growth and it also describes the programs and initiatives that a company has undertaken. The Star Buck Company annual report indicated that it wanted to improve its performance by establishing policies that would improve the standards of the shareholders since the company was receiving a lot of profits at the expense of the stakeholders by paying them low prices for their produce. Mr. Howard Schultz was appointed by the board of directors to head the company. He led the company to prosperity by offering unique benefits to its full and part-time partners, health care benefits, and grants in the form of stock options.
Business ethics refers to the moral principles that are applied in companies. It provides acceptable behavior for the company both in its strategies and in its formulation. In the case of the Starbuck Company, the role of ethics and compliance in the company in the financial environment was to develop an inclusive workplace culture for its employees that would include programs designed to provide opportunities for employees to share ideas with their management. The benefits that the company acquired from supporting the ethical cultures were increased efficiency in their daily operations and decision-making, employee commitment, product quality improvement, customer loyalty, and improved financial performance.
The procedures that the star buck organization had put in place in order to ensure ethical behavior was that it established a program that would be implemented to ensure that the ethical procedures would be implemented. The company ensured that its store partners underwent several weeks of extensive training so that they would understand the operations of the company it also hired experienced personnel with skills and knowledge so that they would run the company effectively.
The process that Starbuck organizations used so as to comply with Securities and Exchange Commission regulations were it appointed board of directors who were given the responsibility of overseeing the exercise of corporate powers was adhered to and they ensured that the company’s business affairs were been managed to meet the stated objectives and goals. The board of directors was also required to engage and provide for the continuity of executive management that would ensure that the character, skills, and experience required to enable the company to achieve its goals were followed effectively. It selected nominees of the board of directors who would possess the appropriate qualifications to run the company successfully.