The World’s Most Ethical Company

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Table of Contents

Introduction
Moral and responsible behaviors of Starbucks
Effects of the morally conscious decisions
Critical review of Starbucks’ policies
Conclusion
References

Introduction

Starbucks is an international coffee company that is present in 62 countries around the world including America, Mexico, China, Germany, and the United Kingdom (Bussing-Burks, 2009). It has stores in different parts of the world that provide coffee, pastries, and other related beverages.

Starbucks has appeared in the list of world’s most ethical companies for seven years. Because of its strong policies and procedures that promote best practices with regard to conservation of the environment, as well as treatment of consumers and employees.

Its environmental and social policies play a key role in maintaining a good reputation as an ethical company (Bussing-Burks, 2009). It has been awarded many times because of its policies that promote conservation of the environment.

On the other hand, Starbucks’ work environment and reward schemes provide job satisfaction among employees. Finally, it values its customers and as such maintains good business relationships by providing high quality products and customer service.

Moral and responsible behaviors of Starbucks

Starbucks values its customers and provides quality services to their satisfaction. Two ways through which the company acts in a morally responsible manner towards employees include adherence to the equal employment opportunity policy and maintenance of global human rights (Schwartz 2011).

The company has a workplace that does not discriminate against any employee regardless of their sexual orientation, religion, sex, gender, or place of origin (Griffin, 2007). Anyone seeking promotion or employment at Starbucks is treated fairly and equally.

Skills, job experience, and academic qualifications are the only factors considered during employee promotion, hiring, or dismissal (Griffin, 2007). On the other hand, Starbucks is committed to provision of basic human rights for its employees.

For example, all employees are provided with comprehensive health care covers that include their families (Schwartz, 2011). The company advocates for healthcare reforms in order to offer affordable health care services to employees.

Starbucks has established several policies that promote environmental preservation and conservation. In addition, it has well-developed recycling policies that reduce wastage of raw materials. First, they have strict conservation measures. For example, they reduced the size of their paper napkins and garbage bags (Griffin, 2007).

In addition, they changed their dipper well system of cleaning utensils because it was wasting a lot of water. Secondly, the company has a strict recycling policy. It uses recycled materials to manufacture beverage cups.

Furthermore, it is committed to building greener stores that conserve energy and water. In order to reduce waste materials, the company has embraced innovation and new technology in all its stores.

Starbucks acts in a morally responsible manner towards consumers by providing high quality products and providing quality customer experiences (Schwartz, 2011). To maintain the quality of products, Starbucks developed a policy for suppliers to ensure that their raw materials are produced in an ethical and responsible manner.

The Cocoa Practices and the Starbucks Social Responsibility Standards for Manufactured Goods and Services provide guidelines that ensure that customers get quality and healthy products (Schwartz, 2011).

The company provides quality customer experiences by improving the design of its stores, providing free Wi-Fi, developing mobile applications that improve customer service, and creating an online community for customers to present their complaints and compliments.

Effects of the morally conscious decisions

The decisions that Starbucks makes with regard to its employees, consumers, and the environment would have far-reaching effects on its bottom line. Executing policies that conserve the environment would lower expenses.

For example, using green energy and recycling waste materials would lower costs of production and operation. Treating employees fairly would serve to increase the productivity and efficiency of the company. A motivated team of employees would work hard, embrace risk and change, and improve the efficiency and effectiveness of the company (Bussing-Burks, 2009).

Providing quality products and customer service to consumers would improve consumer satisfaction, thus building loyalty and improving sales. These decisions would improve the sales and profits of Starbucks. Increasing net earnings and reducing costs are two ways that companies employ to improve their net earnings (Pahl, 2009).

Executing environmentally friendly practices would aid in reducing production and operation costs while treating consumers and employees fairly would increase the company’s net earnings. Customer loyalty is one of the main ways through which companies increase sales.

Increased sales emanate from customers who come back because of the quality of services offered, and first-time customers who are referred by existing customers. Ethical decision making is an important aspect of improving the productivity, efficiency, and earnings of a company.

Critical review of Starbucks’ policies

Starbucks’ policies have been lauded for fairness and promotion of employee and consumer welfare. In addition, they have been lauded for promoting practices that conserve and preserve the environment.

However, several changes could be made in order to improve its treatment of consumers, the environment, or employees. The company’s policies on environmental conservation could be improved in several ways.

Starbucks provides several services to consumers that include snacks, food items, coffee beverages, and pastries that have great impacts on the environment. Many of their products are packaged in materials that generate wastes that pollute the environment because they cannot be recycled (Pahl, 2009).

On the other hand, their production processes release gases and fumes that pollute the air, thus degrading the environment. Policy changes should include adjustments that encourage reduction of pollution, better use of raw materials, recycling of waste materials, and conservation of energy and water.

First, starbucks should have a 100% policy on the use of green energy. Green energy is beneficial because it is cheaper than other sources of energy and it does not pollute the environment. Embracing green energy will reduce costs of production and operation.

For example, in 2010, the amount f electricity used in the production process and operation of stores increased by 1%. This rise in consumption increased the company’s expenses (Schwartz, 2011). This reduced the company’s bottom line tremendously. In order to conserve energy, starbucks should establish a policy that requires all stores and production facilities to use equipment that conserves energy.

For example, they should use hybrid water heaters and energy saving refrigerators that consume very little energy. On the other hand, the company should explore cheaper ways of making customers comfortable.

Currently, their HVAC equipment used to create a comfortable environment for customers consumes a lot of energy. Finally, the company should develop policies that advocate for purchase of modern ovens, freezers, refrigerators, and cookers that consume little energy.

Secondly, their recycling and pollution reduction policy could be improved for better treatment of the environment. Starbucks packages some of its products in materials that generate waste that cannot be recycled (Schwartz, 2011).

The management of the company should change their packaging policy so that at least 80% of all its packaging materials involve recyclable materials. Recyclable materials will reduce the amount of waste products generated and decrease the cost of operation.

For example, the company should recycle food wrappings, coffee cups, bottles, and cardboard boxes. In addition, the policy should involve the participation of customers in the company’s recycling initiatives. Recycling initiatives have not been very successful because of the exclusion of customers (Schwartz, 2011).

One of the solutions would include creating awareness among customers of the importance of proper waste recycling and disposal. Starbucks’ production facilities release gases that pollute the environment.

In order to reduce pollution, the company should change its pollution policy so that all stores and production facilities embrace green energy. Renewable energy sources are cheap and environment friendly. Use of renewable energy in all stores would reduce gaseous emissions, decrease the cost of operation, and conserve energy.

Conclusion

Starbucks policies have been lauded for promoting environmental conservation. In addition, they have been lauded for promoting fair treatment of employees and provision of quality customer services.

The company’s best practices include adherence to international laws on human rights, embracement of renewable sources of energy, and maintenance of quality products and customer service. Starbucks offers equal opportunities for employment and promotion of employees at the workplace.

Its workplace maintains high standards that improve the efficiency and productivity of employees. The company has been awarded several times for its policies. In addition, it has been recognized many times as one of the most ethical companies in the world.

Despite this recognition, Starbucks’ policies can be improved. For example, it could improve the policies on environmental conservation to include use of renewable energy and proper recycling of waste materials.

References

Bussing-Burks, M. (2009). Starbucks. New York: ABC-CLIO.

Griffin, R. (2007). Fundamentals of Management. New York: Cengage Learning.

Schwartz, M. (2011). Corporate Social Responsibility: An Ethical Approach. New York: Broadview Press.

Pahl, N. (2009). The Idea behind the Starbucks Experience. New York: BoD-Books on Demand.

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