Finance

Ethics and Social Responsibility

The company also owes the duty of care to every single person or region that it operates from thus bringing in the issue of corporate social responsibility. This paper aims at assessing the ethics and corporate social responsibility at Starbucks Corporation. Ethics and Social Responsibility: The Case of Starbucks Farmer Loans According to Washington (2010), Starbucks coffee processer understands the financial positions of its collaborate farmers, which at times lures the farmers into borrowing high interest loans to finance their activities. Starbucks also understand that financial shortage could make farmers opt for premature harvest of coffee that they sell at lower prices thereby cutting their profit margins (Washington, 2010). To cushion the collaborate farmers from the effects of financial depravity, Starbucks has established pioneering programs designed to provide access to credit to help farmers in managing risks and stabilize business. In 2008, Starbucks offered $12.5 million as loans to collaborate farmers. In 2009, Starbucks coffee company launched Small farmer Sustainability Initiative (SFSI) in collaboration with the TransFair USA and Fair-trade Labeling Organization International with projections to help in thriving of small scale farmers (Washington, 2010). … Starbucks relies on water for making coffee beverages and washing of containers. In that line, Starbucks coffee processors have prioritized measures to introduce new water conservation strategies. Starbucks have set strategies of sanitizing the coffee handling equipments to reduce excessive wastage of water (Washington, 2010). In 2008, Starbucks made clear their intentions to reduce water consumption in their operations. Starbucks coffee processors have set targets of reducing water consumption by 25% by the end of 2015. So far, Starbucks have made commendable achievements after having managed to reduce its rate of water consumption by 4.1% during its financial year 2008 to 2009 (Washington, 2010). Statement and codes of ethical responsibilities of Starbucks Company The operation of Starbucks coffee company recognizes and embraces diversity as an essential component o its business activities. Starbucks Company also operates under the vigils of providing ample working environment by showing abundant respect of personal dignity to all of its employees (Starbucks Coffee Company, 2007). In addition, Starbucks Company operates with the basic missions of providing high quality coffee under fair prices. Starbucks coffee company operates towards all time satisfaction of its customers’ expectations. Moreover, Starbucks missions and objectives entail positive contribution to community and environmental protection. Starbucks also recognizes the purpose of operation as basic profitability for future survival. Starbucks accountability on ethical and social responsibilities Starbucks have an established Business Ethics and Compliance program that provide guidelines that help partners in ensuring the business operates

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