DEEPAK KUMAR JAISWAL

M COM. SEM (I)

DIV (B)

SUB ETHICS
ETHICS

The branch of philosophy that deals with morality. Ethics is concerned with distinguishing
between good and evil in the world, between right and wrong human actions, and between
virtuous and no virtuous characteristics of people.

The rules of conduct recognized in respect to a particular class of human actions or

a particular group, culture.

Introduction

What is workplace ethics? Workplace ethics is a group of moral principles, standards of

behavior, or set of values regarding proper conduct in the workplace. Workplace ethics are most
often related in decision making processes because it is the most important responsibilities that
we place on the leaders of organization is upholding the highest standards of ethical behavior.
Ethics at workplace refer to choosing the option that is determined to be the moral or right
choice.
 Workplace Ethics – Starbucks Case Study

Starbucks is one of the world’s most ethical companies. Starbucks makes conscious efforts to be
a responsible company and conduct business in an ethical manner. In its business, Starbucks was
proud of it ethical ways in doing their business. They are through community, sourcing,
environment, diversity and wellness. Starbucks has openly display its commitment to being
socially responsible and they want their customers to know exactly how they doing.

In Starbucks, Business Ethics and Compliance is a program that supports their mission which is
“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
It helps to protect their culture and their reputation by providing resources that help partners
make ethical decisions at work. Starbucks has makes conscious efforts to fulfill its company’s
mission. The majority of reports received by Business Ethics and Compliance involve employee
relations issue that provides alternative reporting mechanisms as part of a comprehensive ethics
and compliance program. Starbucks believes that conducting business ethically and striving to do
the right thing are vital to their success.

The program develops and distributes awareness materials, including the Standard of Business
Conduct. In social responsibility, the Standard of Business Conduct is a statement of some of the
company’s expectations of how they conduct Starbucks business, consistent with their mission
and core value. In workplace, Starbucks has emphasis in three sectors of their employees. First,
are global human rights, their commitment to basic human rights as a core component of the way
they do business and how they engage with their partners. Second is equal employment
opportunity, their non-discrimination policy help the large number of their employees have a
steady working situation. Third is health care, their support for healthcare reform that allows
them to continue to offer affordable coverage to our partners.

Case Study

Starbucks lead by its CEO Howard Schultz is an international coffeehouse chain based in Seattle,
Washington, United States. It is the largest coffeehouse company in the world with 16120 stores
in 49 countries. Products of Starbucks include drip brewed coffee, espresso-based hot drinks,
other hot and cold drinks, snacks and items such as mugs and coffee beans. Many products are
specific to the location of the stores. Starbucks Italian styles coffee, espresso beverages, teas and
confectionaries had made it one of the world’s biggest specialty coffee chain.

With the intention of communicating to employees and customers of the values and principles
that the company upholds, Starbucks Coffee Company has outlined its mission statements; “To
inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” .
Even though Starbucks has a unique style of combining both Mission Statement and Vision
Statement its meaning is clear and concise.

Viewing the statement in ethical perspective relating to its workplace it can be broken down into
4 key principles: Ethical sourcing of coffee – meaning a holistic approach to ethically source the
highest quality coffee carefully blending, roasting and packing fresh. Our partner – where
Starbucks refer to its employees will be treated with respect and dignity with safeguarded by
health coverage. Ethical environment stewardship – are committed to the conservation of
environmental resources.

Critical and Main Issues

Starbucks commitment to ethical practices in the workplace environment is reflected in its

setting up of a Standard of Conducts for its partners. The main ethical issues addressed in the
code of conduct can be broadly categories as commitment of partners to provide quality service
to customers, conducive workplace environment for the partners and emphasis on integrity and
fairness on all dealings.

Commitment to provide quality service

Partners should be committed not to harass or discriminate against customers, protect customers’
health and safety by following all proper procedure relating to storage, handling, preparation and
providing service for Starbucks products.

Conducive working environment

Consistent with global human rights standard, Starbucks promote equal opportunity in its hiring
and promotion practices make decision solely on job related criteria. Employment of partners
under age of 18 will take into consideration legal requirement of age, hour task and ensure the
partners’ education, health, safety and mental or physical development is not affected.

Starbucks partners should respect each other’s dignity. All partners are entitled to work in an
environment that is free of harassment, bullying or discrimination.

Officers are assigned to enforce the rules and practices pertaining to workplace health, safety and
security to safeguard the partners.

Starbucks is committed to comply with laws and regulation applicable to wages. It emphasizes
that work performed should be compensated accordingly. Thus partners compensated on basis of
hours must report accurately.

Starbuck College Achiever Plan motivates all benefits eligible partners to complete a bachelor
degree with full tuition reimbursement through Arizona University top-ranked degree programs,
delivered online

Emphasis on integrity and fairness on all dealings

  Partners must be committed to work fairly and honestly with government official and are
not permitted to influence outcome by exchanging bribes.
 Partners must be truthful and straightforward in their dealing with government so as to
meet high ethical and legal standard.
 Sales practice and advertising must compete on merit of product and services and
communication with customers must be accurate and truthful.
 Partners committed to fair and open competition and must not use unethical means to
eliminate competitors or control market price.
 Partners are prohibited from offering, giving, soliciting or recovering any form of bribe
or inducement.
 Partners must ensure accuracy and integrity of Starbucks corporate reports and honest in
disclosure of information to the authority.

Starbucks Application of Relevant Organizational Behaviour Principles and Concepts

To monitor and enforce the ethical conduct of its partners at the workplace Starbucks had
developed asset of Standard of Business Conduct which is a resource distributed to all partners to
help them make appropriate decision at work. To further help the partners facing with ethical
problems Starbucks had set up a Business Ethics and Compliance unit headed by a partner
resource. Considering partners who are not comfortable facing an officer to report unethical
practices, Starbucks Ethics and Compliance Helpline is an avenue to report issues through free
phone call. This facility operates 24 hours every day. Ethics And Compliance Web line is
another way for partners to ask for guidance which can be submitted anonymously and treated in
confidential manner.

The above enforcement measures reflect Starbucks attempt to promote ethical behavior at the
workplace by applying the concept of motivation by rewarding partners through fair wages and
benefits, interpersonal communication with the resource partner of the Business Ethics and
Compliance to assist in preventing and resolving problem and the most important is through
setting up a structure standard code of behavior to modify the behavior of its partners.
All these efforts had resulted in the company being awarded one of the most ethical companies
by Ethisphere for the year 2007 to 2012 Allegra strategies had also voted Starbucks as the ‘Most
Ethical Company , European Coffee Industry for the year 200 to 2011

UNETHICAL BEHAVIOUR OF STARBUCKS

ENVIRONMENTAL CONCERNS

Starbucks completely fails to uphold their environmentally sustainable image

19,736 stores worldwide uses 6.78 kilowatt-hours of electricity, 0.058 thermos of natural gas and
94 liters of water per square foot per month.
Starbucks’ in the U.K. and the United States were targeted for wasting up to 23.4 million liters of
water per day by continuously keeping a tap running in its 10,000 stores.

UNION AND LABOUR DISPUTES

Starbucks provides job approximately 172,000 people worldwide.
Starbucks fired Daniel Gross illegally for union activity and spoke out against Starbucks.
Fluctuated working hours.
wage per hour $6.25.
BACKGROUND
1971 first store open in Seattle's pike place market.
1982 HOWARD SCHULTZ joined Starbucks
1983 HOWARD visits to Italy
17000 stores in 55 countries
"STARBUG"
Truth behind Starbucks

EXPLOITATION OF COFFEE FARMERS

Starbucks claims of supporting the welfare of coffee farmers in developing countries in order to
be portrayed as an ethical corporation.
In reality these workers are manipulated and underpaid. In 2007.
2 Millions childrens average children working 29.9 hours/week

CONCLUSION

Ethics are important for managing a sustainable business mainly because of the serious
consequences that can result from decisions made with a lack of regard to ethics. A lack of ethics
leads to a wealth of problems for a business.