Corporate Responsibility, Ethics and Governance - The Starbucks Comeback Story

Running Head: CORPORATE RESPONSIBILITY, ETHICS AND GOVERNANCE 1
CORPORATE RESPONSIBILITY, ETHICS, AND GOVERNANCE
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CORPORATE RESPONSIBILITY, ETHICS AND GOVERNANCE 2
Executive Summary
This report presents an analysis of The Starbuck Comeback Story case study. In the case
study, a detailed account of the rise and fall of Starbucks is given. The report begins with an
introduction that explains the issue being analyzed, the prevalence of the issue and why it is
important. The report also presents a brief history of Starbucks, a discussion of the case study
and my argument regarding the issues raised by the case study. Also, the ethical decision-making
approaches i used in my argument are also discussed. The report then concludes with a summary
of the important points covered.

CORPORATE RESPONSIBILITY, ETHICS AND GOVERNANCE 3
Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Brief History....................................................................................................................................4
Discussion of the Case.....................................................................................................................5
My Argument...................................................................................................................................6
Ethical decision making approaches................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
The rise and fall of Starbucks brand present a classic example of how successful brands
can fail if they fail to consider certain aspects in their operations. Starbucks had been one of the
most successful brands throughout the 80s and 90s. It was perceived by consumers as a modern
brand earning a competitive position in the global beverages market. With this tremendous
success, the escape brand decided to invest in other opportunities available in the market. In
2003 this dream was actualized through the creation of a Starbucks Music recording company.
Also, the company also opened an entertainment office in Los Angeles. Five years into the new
venture, Starbucks had lost its original focus. Although its music business had won Starbucks
eight Grammys, it had come as a major distraction to the organization's original focus (Carroll &
Shabana, 2010). The organization’s coffee Brand which was its main brand was badly affected.
The focus of the organization's leadership had shifted from the coffee brand. As a result,
tremendous losses were encountered. The brand slowly faded from the market. What followed
was a financial crisis that almost brought the organization down to its knees. Upon this
realization, the company exited the music industry and delved into rebuilding its falling brand
image. The issue is important because it almost led to the absolute collapse of star bucks brand.
Brief History
Starbucks is an American Coffee company founded by Zev Siegel, Jewry Baldwin and
Gordon Bowker in 1971. The Multinational Corporation has its headquarters in Washington Dc.
The coffee chain has maintained it global position ruling the coffee industry for decades, with its
global stores currently estimated at 28218. The Company entry in the early 1990's came as a
major boost for an organization that had become profitable almost nine years after it was started.