ORGB60390 - Cafe Direct: Business Ethics, Philosophy, and Challenges

This report examines Cafe Direct's business ethics, focusing on its ethical philosophy rooted in Utilitarian ethics and the various ethical challenges it faces. Cafe Direct, a UK-based Fairtrade beverage company founded in 1991, is committed to improving the lives of farmers through fair-trade practices and building a sustainable supply chain. The report identifies key stakeholders, including farmers and customers, and discusses how the company's actions impact organizational operations. Challenges such as uneven economic conditions due to the Pandemic and Brexit, which have affected the organization's ability to support farmers adequately, are analyzed. The report concludes that Cafe Direct's commitment to ethical business standards and fair-trade practices makes it a pioneer in the industry, contributing to its business growth and sustainability.

BUSINESS ETHICS
INTRODUCTION
Business ethics are known as the
ethical dilemma which is known to be
the controversial issues that helps the
company in the management of the
system that involves the procedure
which helps in the building the trust of
the consumer. In this project the chosen
organization is Cafe Direct which is
UK based organization of Fair-trade
beverages. It was founded in 1991 and
has its headquarters in London, UKREASON WHY CAFE DIRECT IS ETHICAL
Cafe Direct which is considered to be ethical is
because of its practices related to the
improvement it provides to the life of the
farmers. This organization is very committed
towards the making the building sustainable in
the supply chain and thus has its focus on the
fair-trade practices that helps the business in the
developing of its business standards. This
organization has always been a pioneer to the
ethics of the business. It started its fair-trade
practices when the organization was first
ETHICAL PHILOSOPHY
The ethical philosophy of this
organization is based on the ethical
philosophy of Utilitarian ethics that
states that an act which is good can
result in better outcomes. This
philosophy is applicable for this
organization because it is helping
farmers to have a better life. This is an
ethically positive step taken by the
organization. Hence, according to the
Utilitarian philosophy Cafe Direct will
be able to experience something good
for its organization due to the good
practice. According to this philosophy
the good practices of an individual can
also result in the benefiting the entire
population which shows the ethicality of
the Cafe Direct in its practices.
ETHICAL CHALLENGES FACED
This organization has faced different
challenges which has effected its
ethical practices such as,
Uneven economy :
Due to the unevenness in the economy
the organization has faced issues of
keeping up with the ethical practices
of helping the farmers in improving
their lives. These economic issues
have been caused due to the Pandemic
and Brexit. It can be said that these
issues in the economy has affected
organization in helping the farmers.
Due to lack of sufficient capital,
resources and other facilities which
had issues in the organization.
STAKEHOLDERS
The key stakeholders for this
organization are,
Farmers :
The farmers which get the financial and
other types of support from the
organization are the major stakeholders
for this company as its ethical practices
revolve around supporting the farmers
only.
Customers :
Actions of the company are very
influential for the organization in the
management of the organization
operations which impacts
organizational operations which helps
the business in the management of key
strategies which it can use for growth.
CONCLUSION
From the above project it can
be concluded that Cafe direct
is very ethical in the
production of its coffee and
has been able to improve the
business through developing a
role of business standards
which help the business in the
growth of the organization.
REFERENCES
Books and Journals
Craft, J.L., 2018. Common thread: The impact of mission on
ethical business culture. A case study. Journal of Business
Ethics. 149(1). pp.127-145.
Yekti, P.C. and Saddewisasi, W., 2020. Ethical business
practice, corporate social responsibility and competitive
advantage. In Facing Global Digital Revolution (pp. 203-
206). Routledge.