Evaluation of a Business Code of Ethics
Christopher L. Jones
March 3, 2012
About the Company and its Code of Ethics
When Howard Schutz took over Starbucks in Seattle in 1987, it was only a six-shop coffee bean seller. When Schutz semi-retired from working as Chief Executive Officer in 2000 is when Starbucks became a global brand redefining the cafe scene and the culture ...view middle of the document...
They follow certain principles, an underlying maxim that defines the way Starbucks does business. This is one of social responsibility from sourcing their beans and relations with suppliers and contractors to expected employee behavior and management system within the organization. Corporate social responsibility is something that the giant coffee company Starbucks takes seriously. This is according to several magazines Starbucks Coffee Company is ranked as the most ethical companies currently in business. The rank of the companies are by a method of going through the business activities, goals, affirmative action, and eventual effect and role of the companies in question in society from a local, domestic, and global perspective. Issues of corruption, environmental, and social responsibility, illegal activities, discrimination and diversity, legal issues, business model, customer, and stakeholder satisfaction come into play. Ethisphere declares that, "The World’s Most Ethical Companies use ethical leadership as a purposeful method to drive profits. Finally, each of these companies embodies the true spirit of Ethisphere’s credo: Good. Smart. Business. Profit." David Landau, Starbucks CCO shares (Ethispere, 2008),
“Starbucks was founded upon notions that all people should be treated with respect and dignity, that diversity is to be respected and embraced...Even during times of transition, Starbucks partners are focused on doing what’s right by each other, customers, farmers, vendors and shareholders; and we are driven by our mission statement and guiding principles."
Landau believes a prosperous and thriving corporate code of ethics makes expectations and responsibility clear and is flexible that it easily adapts to provide support to important decisions in a dynamic working environment and ever-changing industry, moving easily with the business. Within Starbucks' corporate culture the idea that diversity and fair trade is standard practice has become instilled and practiced all throughout the hierarchy from the Barista to the Executives running the company. Hence, while Starbucks worldwide share similar ambience and feel. They easily adapt to local cultures, assimilate, and share with local perspectives without losing the corporate ethics that run through the company. This made quality standards in terms of restaurant products and services of certain expected “Starbucks” quality and making employee relations and management relations free of intercultural conflict through managed communication and ethical diversity practices. Following the US EEOC's Diversity employee-training standards, Starbucks has instilled said methods are a regular part of maintaining the company's inherent ethical values creating a unique identity, one that is “green and fair.” A sample of a code of ethics for Starbucks' leaders can be found on the corporate website.
The effects of the code of...