Marjon Limot & Jose Araneta Jr.

December 09, 2020

BSBA-3B MWF (6:00PM-7:00PM)

CBM130: Strategic Management Prof: Maam Teoxon

PAIRED ACTIVITY

Purpose:

This activity aims to familiarize you with corporate codes of business ethics. The Standards of
Business Conduct for both Starbucks and McDonalds are provided.

The two companies Starbucks and McDonalds are pioneers in giving quick food and refreshment
services. Where McDonalds is more centered towards the food area, Starbucks is slanted towards
coffee based refreshments. the two chains have gotten to be each other’s greatest competitor and
have a great deal in common. Basically, they conveniently provide customers with coffee
products and food that they need. However, each company features a special code of ethics.
Besides, I will be discussing three aspects that I like and dislike about each companies
statements. Through this write up we are trying to contrast between their Business Conduct and
finding out the positives and missing within the two.

Three Aspects that I liked the most in McDonald statements:

- People: They have a good business practice for protection against retaliation for
employees. So, they do not allow the environment of fear or threat to perspire in the
system. They are committed towards the inclusion of diversity in their system. They care
for their people. Also, they tend to provide safe working condition for their people.
People are also bound to be under the company’s protocol for conflicts of interests.
- Suppliers: Suppliers are bound to take after the thorough review of inspection to sourcing
of item and adherence to sustainability. They attempt and built a eternal relationship with
their suppliers.
- Company’s Assets and Frauds: Each worker is bound to defend the company’s resources
appropriately. There are set protocols against frauds. They are committed to the truth that
company’s frameworks should not be utilized for any individual work since it may lead
to information security issues. The definition of fraud is also capturing numerous
perspectives like treating with sales figures, false medical condition data.
Three Aspect that I didn’t like in McDonalds statements:

- Not so much emphasis on Sustainability. Indeed though they are working hard on that
front, but separated from an review of their supplier and guaranteeing the packaging
material to be reused. There is not much endeavors towards sustainability.
- Bounding employee’s relationship, the rule that a senior and a junior cannot experience a
relationship is pretty hollow. Why there's a have to be compelled to put such a
connection, individuals may be observed for their working though.
- Too much obstructions between Workers and Suppliers relationship. The level of
interruption is huge and it sometime leads to a thought that company is not trusting their
workers.

Three Aspect that I liked the most in Starbucks statements:

- Ethical Sourcing: They guarantee very thoroughly that all their raw materials are
sourcing through economical methods and don't harm the environment in any ways. They
put it clearly in their supplier’s protocol that sustainable sourcing is very vital which
should not obstruct the environment in any ways.

- Concept of Farmer Communities: The expansion of relationship for benefit to the grass
root level could be a critical aspect of their working styles. They have concepts like
Farmer Advances, Social Advancement Speculations, collaboration and collective
advancement etc. This essentially makes a difference in elevating their level of
relationship with the farmers and other important individuals of the value chain.

- Employee Respect: It is one of the establishing pillars of the company and it is clearly
seen in their mission statement as well. They are covering all the employees and hence it
not allows the company to work effectively but moreover making a difference the
employees to create choices effectively.

Three Aspect that I didn’t liked the most in Starbucks statements:

- As well many protocols for decision making. All their strategies for executing ethical
code of conduct is by undergoing a series of thorough steps and they guarantee it through
this way. This as per me could be a drive consideration and not inherent consideration.

- No particular provision of Women consideration in Starbucks which could be a

enormous issue as per me. Since all the companies of that level are making provision
these days with respect to the women consideration.
 - No specific courses of action for Work Life Balance in Starbucks unlike McDonalds
have particular course of action for vacations and leaves etc. So I feel that should be a
portion of the Business Code of Ethics.

As a matter of fact a written ethical code of conduct is not a necessary condition that
people will follow them, there has to be an effort toward motivating and directing employees that
ethical code of conduct must be followed. First, Standards and Procedures, this ethical code of
conduct must reflect in each Standard Operating procedure of the company and hence it helps in
becoming the culture of the company. Second, the Leadership Involvement, this must be a part
of the communication of every leader and helps people to understand and appreciate that Ethical
Code of Conduct is a very important document of guidelines and must be followed religiously.
Third, Training and Development, this is a strategy by which company can nurture thinking in
employees thought process that they must be in compliance with the Code of Conduct. Fourth,
Monitoring and Auditing the System regularly, this is a control and feedback mechanism that
must be in place and should be followed properly, to ensure that the communicated things are
followed properly or not. Lastly, Disciplinary Measure, In case of non-compliance of the code
of conduct there should be proper mechanism in place that will enforce the guidelines. These are
the basic things that must be followed to ensure proper compliance of the Code of Ethics.

Generally, it can be concluded that both Starbuck’s and McDonald’s focused and followed the
ethics in the organization. Additionally, both the McDonald’s and Starbuck’s offer regular
training, the guidelines and other materials that are related to the conduct of ethics of the partners
and the employees, so that they behave ethically in the work.

An example of breach of Code of Conduct that comes to my mind is the example when I was
working in the Pharmacy, one of the codes of conduct that we follow is not having a secret
relationship with co-workers without the knowledge of the superior. So, by that time one of my
co-worker caught that she has a secret relationship with her co-worker, and then they are hiding
for so long until one of my co-worker witness that day and it was automatically reported to the
superior, so by that breach they made of the code of conduct both of them are taking the offence
which is subject for 15 days suspensions. So, as for me noncompliance of Ethical Code of
Conduct is a threat to the business.