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Starbucks Financial Ratios Essay

1937 words - 8 pages

Week 2 Learning Team Ethics and Compliance Paper
Rebecca Mouser
Jose Baho
Daniel Williams
Natalie Sadler
FIN/370 Finance for Business
July 1, 2013
Instructor Brad Simon

Week 2 Learning Team Ethics and Compliance Paper

Introduction – Jose Baho
What started as a store in Seattle, Washington’s Pike Place Market in 1971 has flourished into a gourmet coffee empire that is as recognizable worldwide as any of the major food industry giants known today. The current number of Starbucks stores is approximately 18,000, which has been achieved by following a strict recipe that has nothing to do with their coffee beans. Throughout history, Starbucks Corporation has ...view middle of the document...

The Starbucks “Business Ethics and Compliance” manual is a 32 page guide that covers a wide range of topics from how to act in the workplace environment to how to conduct his or herself in the community as a member of the Starbucks family.
Starbucks has additional resources put in place to educate employees, including “The Ethics and Compliance Helpline” a free phone number, which is used to ask questions or raise concerns. The Helpline is available 24 hours a day, seven days a week, and an interpreter is available upon request. The Ethics and Compliance Web line is an online tool that serves as another way for partners to ask for guidance or voice concerns” (Starbucks: Business Ethics and Compliance, 2013). This level of resources exemplifies how Starbucks goes beyond to walk a straight line concerning ethics and compliance.
An extremely sensitive topic is outlined in the handbook and is concerning how Starbucks employees/partners/shareholders should conduct themselves while involved with securities. This section comes straight from the manual and touches on the subject of securities knowledge. “As a partner, you may become aware of significant and confidential information about Starbucks business, often called “material non-public information.” Partners may not buy or sell stock (including by cashless exercise of stock options) or any other security based on this information. To avoid any potential problems, you should interpret the term “material non-public information” broadly (Starbucks: Business Ethics and Compliance, 2013).
Ethical Behavior – Natalie Sadler
“Many organizations develop guidelines to train and educate employees on proper ethical behaviors in the workplace” (Lauren, 2013). At Starbucks, leadership is the primary way they foster proper ethical behaviors. The executive team sets the tone by responding ethically to ensure opportunities in the company are identified quickly and handled appropriately by both managers and employees.

“In 1998, we began working with the globally renowned nonprofit group Conservation International to create our ethical buying guidelines known as CAFÉ (Coffee and Farmer Equity) Practices” (Coffee Education, 2010). These practices are buying guidelines created to ensure they are purchasing high-quality coffee produced in socially and environmentally responsible ways. There are four fundamentals of CAFÉ Practices: product quality, economic accountability, social responsibility, and environmental leadership.

Starbucks also has an initiative called Shared Plant. It is “a set of strategic initiatives we undertake to ensure our business is a positive force” (Coffee Education, 2010). Their philosophy is “it’s all connected” working with the farmers to make a better quality product results in better prices. Better prices mean a better way of life for the farmers (their families and communities). A better way of life results in environmentally...

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