Starbucks 2010 Most Ethical Restaurant Starbucks Coffee

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 ethical business and doing the right thing important ingredients to its business success (Starbucks, 2010). The Company enforces this belief through its Business Ethics and Compliance program. The program supports the company mission and protects its culture and reputation. It does this by providing appropriate resources, which enable its partners to make ethical decisions at work. It produces and distributes awareness materials; facilitates legal compliance and conducts ethics training; investigates issues and conflicts; and provides links for partners' concerns.

It encourages partners to communicate these issues and concerns through their chosen communication channel. At this time, reports received by the Business Ethics and Compliance program center on employee relations. Like the programs of other companies, this serves as an alternative reporting mechanism as a vital part of its comprehensive ethics and compliance policy (Starbucks). Workplace Environment Starbucks Coffee Company consistently practices equal opportunity in hiring employees, recruits entirely according to job-related criteria, and does not uphold forced labor (Starbucks, 2010).

Managers comply with all legal requirements in employing partners under the age of 18, such as the number of hours of work and tasks performed. These requirements are meant to protect the employee's education, health, safety and mental or physical development. Company employees deal with one another with respect and dignity. This ensures an environment, which is free of harassment, bullying and discrimination. These behaviors may take the form of unwelcome remarks, gestures or physical contact; offensive communications, jokes or comments, verbal or physical abuse or threats (Starbucks).

Customer Relations The company holds legendary customer service a top priority (Starbucks, 2010). Its employees strive to make every customer's experience pleasant, memorable and fulfilling. They treat customers with the same respect and dignity that they treat one another within the organization. They do not harass or discriminate against customers. It promotes diversity by respecting the unique abilities, strengths and differences of all people. It directly promotes diversity as a competitive business advantage. It views diversity as vital to its long-term success in every aspect.

It is inherent in its total operation and the procurement of goods and services as it continues to grow. Its employees respect diversity among themselves, their customers, suppliers and others who interact with them. Starbucks Coffee Company aims at becoming the most inclusive company in the world, operating at full equity, inclusion and accessibility for all who come in contact with it (Starbucks). The Company also takes steps to protect its customer's health and safety (Starbucks, 2010).

It conducts all proper procedures for storage, handling, preparation and service of its coffee and other products. It insures clean, sanitary and safe conditions in all its facilities, standards and practices (Starbucks). Workplace Health, Safety and Security Starbucks employees follow all safety rules and practices of the company (Starbucks, 2010). They cooperate with officials who enforce these rules and practices. Employees take proper steps to protect themselves and one another. They attend required safety training and immediately report accidents, injuries, unsafe practices and other similar conditions (Starbucks).

Substance Abuse and Weapons The Company strictly forbids employees from using or possessing alcoholic beverages within company premises, except when permitted during official social events (Starbucks, 2010). Those who are involved in the sale of alcohol are not allowed to consume it and required to undergo pertinent training for it. The Company also strictly prohibits the sale and possession of illegal drugs and other controlled substances within the premises or when conducting company business outside. Employees may not work under the influence of alcohol or any illegal drug or controlled substance.

They are not allowed to own any weapon while working or conducting business at any Starbucks store, plat or property (Starbucks). Rules on Wages and Hours The Company pledges to follow all applicable wage and hour laws and regulations (Starbucks, 2010). This compliance assures that all employees and other business partners are correctly compensated. For their part, employees report for work and record time accurately according to established local procedure. The Company complies with the laws, rules and regulations of the country in which it operates (Starbucks).

International Business The company lives by the same and highest ethical standards in all its business transactions and relationships everywhere else (Starbucks, 2010). It complies with the applicable laws, rules and regulations covering business in the countries where it operates stores. It remains accurate, truthful and transparent in all its dealings with government agencies in foreign countries. The payments it makes to foreign agent or government official are consistent with the laws of both the United States and the foreign country.

Those payments are strictly for or on behalf of Starbucks to concerned foreign agents or government officials. The payments are also always reasonable amounts for the services. It will not, under any circumstances, make payments in violation of these laws or to motivate foreign government officials to conduct business with the company. Instead, its partners in foreign countries comply with all local and foreign laws regulating customs and trade. All the information they provide customs officials or an authorized agent will always be accurate and truthful.

Employees and other partners who conduct foreign transactions for the company have a thorough understanding of laws concerning business. They also know enough about third parties in the foreign country who conduct business with Starbucks so that they are capable of making correct decisions in behalf of the company. At no time are they allowed to influence business decisions through bribes or kickbacks (Starbucks).

Interactions with the Government The Company complies with local laws, regulations and codes of a given community and deals fairly and honestly with government officials and others in that community (Starbucks, 2010). It is contrary to company principles and policies to offer or insinuate a payment or gift to facilitate the conduct of a transaction or influence the decision of a local government official. Its employees, agents and other partners are always truthful and straightforward in their dealings with the government.

It deals honestly and fairly with government authorities and complies with valid and lawful government requests and processes as a matter of company policy. Its employees, agents and other partners are prohibited from directing or encouraging anyone to provide false or misleading information to any government official or representative about the company. Its partners do not command or encourage anyone to destroy records of relevance to an investigation.

Concerned partners are trained on a regular basis on compliance to relevant federal laws, such as those relating to lobbying disclosure, anti-bribery, and anti-corruption (Starbucks). Sales Practices, Advertising and Fair Competition The company policy on sales and advertising is to compete on the merits of its products and services (Starbucks, 2010). As in all its other operations, its communication with customers and potential customers remains truthful and accurate. The claims they make about their products and services are substantiated.

The company sells the quality of what they do but does not downgrade competitors (Starbucks). It is in the company's best interest to promote free and open competition (Starbucks, 2010). It makes decisions freely, that is, free from the influence and without any agreement with competitors or suppliers. These would restrict competition. The company considers compliance to these laws of vital importance. Its business partners do not discuss pricing, production or markets with competitors or customers. They do not set resale prices with them.

They always present company services and products according to its core values. They do not motivate a third party to break or violate an existing agreement. They do not behave in a way that excludes present or potential competitors or controls market prices (Starbucks). Conflicts of Interest A conflict of interest occurs when a personal interest or act interferes with or goes against one's duty (Starbucks, 2010). Even the most ethical person may be affected by a conflict of interest or bring his acts or personal integrity to suspicion.

Annual disclosures at Starbucks prevent conflicts of interest. Its Business Ethics and Compliance program conducts an independent review before a contract is made with a potential partner. This can later serve a protection for him in the event of a conflict of interest or a suspicion.

Typical examples are employment by or operating a firm, which conducts business with the company or competes with it; substantial investment in that firm by the person or his family; acting for anyone -- besides Starbucks -- in transacting with Starbucks; and personal involvement in transactions where Starbucks has an interest (Starbucks). Gifts and Entertainment As a matter of policy, the Company does not accept gifts or favors as these create a sense of obligation and blur professional judgment (Starbucks, 2010).

Their value may require public disclosure and embarrass the giver or the company. It views gifts or entertainment as an inappropriate attempt at influencing a relationship or an outcome of a transaction or negotiation. Partners are limited to accepting gifts from a vendor or business associate to U.S.$75 per year and as a customary expression of business courtesy. Gifts may be coffee samples, coffee cups, pens and similar items.

Partners are prohibited from soliciting gifts, especially during traditional gift-giving seasons in countries, such as China, Japan, Malaysia, Singapore and Thailand. They may exchange cash with non-governmental business associations in amounts equivalent to U.S.$20 only. They may not trade items of value with other businesses, such as shops and restaurants. Neither are they allowed to encourage or solicit meals or entertainment from those who do business or intend to do business with Starbucks.

Accepting meals or entertainment may be made in exceptional cases when these treats are reasonable, customary, appropriate, infrequent and inexpensive. Partners who violate this policy will be seriously penalized (Starbucks). Environmental Ethics and Concerns The Company's environmental commitment is another matter of policy (Starbucks, 2010). Its employees and other partners are sworn to proactively address environmental impacts on its operations. That commitment is ingrained in company culture. It makes sure its business practices and activities comply strictly to the law and company policies.

The Company believes the environmental responsibility helps preserve the earth for future generations. It adopted an environmental mission statement in 1992, which has guided its operations on the environment and how to be an environmental leader.

It fulfills this commitment and mission by understanding the issues involved and sharing the information with its partners; developing new and flexible solutions to effect change; buying, selling and using environmentally friendly products; recognizing that business operations are vital to the future of the environment; adopting environmental responsibility as a corporate value; measuring and monitoring the progress of every project; and encouraging partners to share the mission and commitment (Starbucks). Corporate Responsibility and Sustainability Starbucks Coffee Company has a unique corporate responsibility and sustainability history (DeLoitte Consulting LLP, 2009).

Many of the issues the Company has faced ultimately redounded to their success in the field. These consist of challenges of Fair Trade Certified practices and its coffee and their marked presence in people's daily lives have made Starbucks both visible and unique in its strategy. Corporate responsibility and sustainability are not only a compartmentalized concept in Starbucks but also an active part of its core business approach. This function has paralleled the company's growth itself as.