Corporate Social Responsibility of Starbucks: An Ethical Case Study

Comparative business ethics and social responsibility
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1
The concept of corporate social responsibility (CSR) has been employed globally by the
corporations. Continuous debates about CSR take place amongst business, academia and society.
Corporations have to align with societal needs while generating financial returns (Smith 2011).
Many corporations have included citizenship in their mission statements, by putting into their
policies their commitment through their efforts to minimize their environmental footprint as well
as promoting a fair trade policy (Al Halbusia 2017). The ethical issues gain a big concern by
organizations, following the social and business ethics is highly appreciated by customers. With
this regard, this essay discusses the ethical case concerning the CSR of Starbucks.
The world is moving towards uncertainty, where ethics play a highly important role. The
morality of the executives that enact these changes will determine the future of their
organizations. The unethical behavior could be described according to Francis and Murfey
(2016), as the unsafe working conditions, bribery, environmental waste and legal loopholes. In
the ethical values paradigm, the ethical consumption must be autonomous from the market (Holt
2012; Laczniak & Murphy 2006).
Starbucks has started its business in 1971 as a small business, then it has grown as a coffee
house. It became public in 1982 with 120 branches. Today, it operates over 8000 stores in 34
countries (Tabberer 2010). The company goes beyond the product, its business pattern is
different it seeks to create a balance between making a profit, shareholder value and social
sustainability through involvement in health care and employment. It was challenging as the
company started to grow. Creating value for people will create value for shareholders
(genConnect U 2013). From my point of view, Starbucks is a world leader that could achieve a
competitive advantage in showing its ethical behavior to me as a customer and to the society as
well.

2
Starbucks core values assure compliance with the laws and regulations, as well as an ethical code
of conduct. Its values are also consistent with the Global Human Rights Standard that promotes
for equal opportunity in hiring new employees in its global branches. The recruitment decision is
based mainly on the job-related criteria. Hiring people under the age of 18 requires the managers
to comply with the Starbucks-established limitations on minimum hiring age and the working
hours. The company treats everyone with respect and dignity, which means that the workplace is
free of bullying, harassment and discrimination. These negative activities can take the form of
physical contact, unwelcomed remark or gestures. Also, it could be in the form of physical or
verbal abuse or threat. The legendary customer service is considered as the top priority at
Starbucks. The customer service strives to make every customer’s experience fulfilling. They
treat the customers as they treat the one of the staff with respect (Starbucks Coffee Company
2018a). This is what I feel when I am at one of their shops, the serving staff shows hospitality
and provides the most help. Also, the staff members never ask me to buy any of the available
products, they leave me at ease and I can stay as long as I can.
The company values prevent the discrimination against the customers. The work environment is
diverse and inclusive of all people and their abilities, differences and strengths and it promotes
diversity as a strategic competitive advantage. As a global company, standards of business
conduct of Starbucks help in making decisions on the daily activities. The Standards demonstrate
that the company has to take its legal and ethical responsibilities seriously. These standards are
applicable to all of the officers, partners, and the board of directors in addition to the independent
contractors and temporary service workers. Also, the third parties are expected to follow the
company high ethical standards (Starbucks Coffee Company 2018a). I fully respect Starbucks for