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¶ … Sulzberger, A.G. (2009, August 18). Starbucks workers protest rise in health premiums.
The New York Times. Retrieved July 11, 2011 at http://cityroom.blogs.nytimes.com/2009/08/18/starbucks-workers-protest-rise-in-health-premiums/
Starbucks has long promoted itself as an ethical company. While some of its prices are extremely high, such as its famous three and four-dollar lattes and Frappucinos, it has always used the fact that it provides its workers with a fair wage and benefits as an important 'selling point' for its brand. However, Starbucks workers are being called upon to pay a much larger premium for their health insurance than ever before. Even the cost of the most basic healthcare plan has been raised from $12.50 to $20, which is extracted from each worker's paycheck. The annual sign-up cost has been raised from $100 to $200 (Sulzberger 2009). For a part-time, minimum wage employee struggling to get by in a major metropolitan area, this cost could be prohibitive and calls into question Starbucks' claim to be an ethical company that provides care for all of its employees.
The main...
Unlike Starbucks' commitment to fair trade, this issue has generated little outrage in the larger public, given that all workers' healthcare costs are increasing and employees are being forced to pay more out-of-pocket expenses. "Medical inflation and the continuing trend of rising health care costs" are causing overall healthcare expenses in America to rise -- and premiums as well (Koff 2010).
Businesses like Starbucks argue that their primary responsibility is to make a profit. Starbucks workers argue that for low-wage workers such costs are prohibitive and it is unethical for the company to advertise that it offers comprehensive coverage to all. The statistics do not lie: "65% of its employees…
References
Andrews, Michelle. (2010, October 11). Health insurance premiums and other costs will rise for many workers in 2011. The Washington Post. Retrieved July 10, 2011
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/11/AR2010101104488.html
Big companies become big targets unless they guard images carefully. (2005, December 12).
The Wall Street Journal. Retrieved July 10, 2011
http://online.wsj.com/public/article/SB113434423829619691-1crMaKQC_Sj81pFbdgvsIXQcntc_20061212.html?mod=tff_main_tff_top
http://www.cleveland.com/open/index.ssf/2010/10/health_care_premiums_to_rise_b.html
The New York Times. Retrieved July 11, 2011 at http://cityroom.blogs.nytimes.com/2009/08/18/starbucks-workers-protest-rise-in-health-premiums/
Starbucks Innovation Competencies Last year, I wrote to you that the company's improved operational foundation, invigorated innovative muscle, and heightened customer relevance presented us with an opportunity to build a different kind of organization. One that would leverage and extend our strengths both inside and outside our stores. I am pleased to report that in fiscal 2011 we delivered. Howard Schultz, Starbucks Chair, FY2011 Annual Report -- Welcoming Message Starbucks is often thought
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