Starbucks's Corporate Ethics - Case Study Example

Sources used include company's official website and two printed books on the subject on CSR. As they say charity begins at home, Starbucks starts its CSR policy with its employees. The firm believes that employees are partners and must be treated with due respect. The company says on its website that one of the key benefits of CSR for the firm has been in the retention of its partners. Howard Schultz, the owner of Starbucks Coffee Co understands the importance of its employees. Ronald Sims in his book, "Ethics and Corporate Social Responsibility: Why Giants Fall" appreciates the ethical practices at Starbucks and writes: "Amazingly, Starbucks offers both full- and part-time employees equity in the form of annual stock options.

In 1987, when the company was losing hundreds of thousands of dollars a year in its drive for expansion, he extended medical coverage for any "partner" working 20 hours or more. Paying 75 percent of the insurance premium costs Starbucks approximately $1,275 a year per worker, while hiring a new employee costs the company almost twice that amount." (p. 304) Apart from the employee relations, the firm has been integrating CSR into its operation. . The company also undertook a research to find out how much greenhouse gas emissions could be attributed to its operations.

It found that only 18 percent was due to operations and the rest was due to energy use at its locations. This research however did not include Starbucks' foreign locations. Another important area of CSR at Starbucks is sourcing methods. The firm has to procure coffee from suppliers from around the world. The company has been trying to practice ethical means of procurement by buying from suppliers who are on C.A.F.E list of approved coffee-growers. By 2007, 65 percent of its coffee was being purchased from C.A.F.

E approved suppliers but the company aims to make it 80 percent by 2013. These are the suppliers who are following rigorous standards for sustainability throughout the supply chain. The firm has been trying to work in harmony with the governments of coffee producing nations. Starbucks feels "these relationships must be mutually beneficial. They must also be collaborative in nature in order to advance measures and practices that contribute to the sustainable production of high-quality coffee - and sustainable livelihoods for farmers and their families.

"But things have not always been smooth. Starbucks famously got into an argument with Ethiopian government over trademark issues. But over time, this rift was resolved and Starbucks now enjoys a warm relationship with Ethiopian farmers. Starbucks is also involved in community building ventures in supplier nations. For example it understands that a large number of Mayan people depend on coffee for livelihood. The company has been working on educational projects in this region. "For more than a