Case 15 - Starbucks Serves Up Its Social Responsibility Blend.edited

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Surname 1 Your Name Supervisor Name Course Name Due Date Case 15 - Starbucks Serves Up Its Social Responsibility Blend Q1 Starbucks was confronted with a complex ethical issue of downsizing, race-based offense, and sustainability problems. Short-term gains, race discrimination, and environmental sustainability have created major ethical issues requiring different approaches. There were questions about the ethics of cutting the global corporate workforce by five percent (Ferrell et al. 486). An intricate review of the dilemma reveals that it operated between short-term profit versus the longer-term impacts on the individuals, the society and the company itself. Another ethical dilemma occurred in terms of racism when two black people were not allowed to use a toilet in Philadelphia (Ferrell et al. 490). This situation threatened customers' trust in Starbucks and created an ethical problem, necessitating immediate correction, anti-bias courses, and steps to restore confidence in Starbucks. Another ethical dilemma occurred involving issues relating to the sustainability of disposable cups (Ferrell et al. 491). The company served numerous clients using disposable cups, but an unending waste challenge generated moral issues about environmental accountability. This is due to the firm's difficulty finding a perfect balance between profitable activities and sustainable practices, representing a broader industry problem. At the base of this ethical failure were strong financial forces, outdated company rules, and striving for corporate interests versus ethics. Q2 Analysis of the ethical issue at Starbucks reveals that it occurred due to many reasons within its decision-making structure. Firstly, the corporate layoffs were driven by stagnant sales and a need for innovation to attract investors and customers (Ferrell et al. 486-490). The company was already affected by financial pressures, which prompted it to prioritize short- term financial goals over the long-term welfare of its employees. With such a condition, the company's decision-making structure got performed improperly because it focused on profitability taking precedence over employee well-being. Another reason is that the racial bias incident in Philadelphia indicated improper training by the company for its employees and that it had no policies to prevent such biases (Ferrell et al. 490). This highlights a structural flaw in fostering an inclusive and bias-free environment for the company, yet it had already gained a significant market share with all types of customers. Another reason is sustainability challenges due to the struggle to balance profitability with environmental responsibility (Ferrell et al. 491). The decision-making structure prioritized short-term profits over long-term sustainability goals, leading to the continued use of non-recyclable cups. For this reason, a significant industry challenge called for a fundamental shift towards environmental stewardship. Q3 The ethical statement below suits the Starbucks issue: "Starbucks commits itself to take the right step to the betterment of the globe. Operating with the principles of Utilitarianism ensures we balance the happiness and satisfaction of shareholders, staff, and customers while still accounting for Mother Nature. This principle stems from our conviction that the most desirable outcome involves providing for the unique needs of all parties to the

Surname 2 best of our capability. We give equal and better prospects for career advancement to our team of employees who come from different backgrounds. This creates an environment where all workers feel welcome regardless of their ethnicity or cultural origin. Provides an inclusive and welcoming environment where issues are handled quickly as we aim towards delivering excellent service to each customer. Involvement in community life and welfare acknowledges that the neighborhoods are necessary for survival, too. In addition, we recognize that we live on a planet with limited resources and, therefore, always work towards minimizing our environmental impact. Additionally, we respect the fact that there is only one environment on earth with finite materials, which is why we strive to improve our environmentally sustainable practices. We ensure that we perform eco-friendly packaging innovations daily and reduce our overall waste impact on earth. Starbucks accepts utilitarian principles by considering measures that achieve the highest net social benefit for all people, including those directly affected." Q4 The ethical statement below is suitable for the Starbucks issue: “Starbucks commits itself to making the right step to the betterment of the globe. Operating with the principles of Utilitarianism ensures we balance the happiness and satisfaction of shareholders, staff, and customers while still accounting for Mother Nature. This principle stems from our conviction that the most desirable outcome involves providing for all parties' needs. We give equal and better prospects for career advancement to our team of employees from different backgrounds. This creates an environment where all workers feel welcome regardless of ethnicity or cultural origin. Provides an inclusive and welcoming environment where issues are handled quickly as we aim towards delivering excellent service to each customer. Involvement in community life and welfare acknowledges that the neighborhoods are also necessary for survival. We also recognize that we live on a planet with limited resources and, therefore, will always work to minimize our environmental impact. Our sustainability measures include eco-friendly packaging innovations and reducing our overall waste impact on the earth. Starbucks accepts utilitarian principles by considering measures that achieve the highest net social benefit for all people, including those directly affected.” Q5 The stakeholders involved at Starbucks that might be affected by corporate decisions include employees, customers, shareholders, local communities, and environmental groups. The utilitarian-based ethical statement underscores a commitment to overall well-being. To address potential negative impacts on stakeholders, Starbucks should change their methods. To manage employees, it is essential to prioritize fair treatment, transparent communication, and provide support services during corporate changes. Emphasizing employee development, welfare, and inclusion can foster a positive workplace culture. Handling customers requires actively addressing instances of discrimination, investing in diversity training, and implementing customer-centric initiatives. The company must communicate transparently about sustainability efforts to enhance customer trust. The company's leaders must assist stakeholders by balancing short-term financial goals with long-term sustainability. Communicating strategic decisions transparently and ensuring shareholders understand the commitment to ethical and sustainable practices will improve the company's performance. Mitigating issues is also possible in the local community by engaging in community development projects, providing support during store closures, and prioritizing local sourcing to contribute positively to community well-being. A more detailed approach can accelerate

Surname 3 efforts to achieve sustainability goals, invest in eco-friendly alternatives, and actively collaborate with environmental organizations to demonstrate a commitment to environmental responsibility. By aligning corporate decisions with utilitarian-based ethical principles, Starbucks can navigate potential negative impacts on stakeholders, recognizing and avoiding ethical dilemmas while promoting a holistic approach that contributes to the overall well- being of its diverse stakeholders. Q6 The Starbucks scandal, particularly involving racial bias incidents and sustainability challenges, is likely to have a notable impact on both society and the economy. Instances of discrimination may influence public perception, potentially affecting customer trust and brand loyalty. Additionally, the company's struggles with environmental sustainability may contribute to broader conversations about corporate responsibility. While the immediate economic impact may be felt through shifts in consumer behavior, the long-term consequences could drive changes in industry practices and societal expectations regarding ethical and sustainable business conduct. Q7 Stakeholder capitalism could significantly impact Starbucks' future ethical value statements and decision-making. The company may emphasize not only shareholder value but also the well-being of employees, customer satisfaction, and environmental responsibility (Markkula Center for Applied Ethics). Ethical value statements might underscore inclusivity, fair labor practices, and sustainable business operations. Decision-making processes would likely prioritize the interests of diverse stakeholders, reflecting a commitment to social responsibility ( D’Souza ). This shift aligns with Starbucks' brand identity, which has traditionally emphasized stakeholder concerns. The concept of stakeholder capitalism could strengthen Starbucks' reputation, fostering a more ethical and socially conscious approach to business decisions.

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Surname 4 Works Cited D’Souza, Deborah. “What Is Stakeholder Capitalism?” Investopedia , Investopedia, 2022, www.investopedia.com/stakeholder-capitalism-4774323. Ferrell, O.C., et al. Business Ethics: Ethical Decision Making and Cases . 13th ed., Cengage, 2022. Markkula Center for Applied Ethics. “A Framework for Ethical Decision Making.” A Framework for Ethical Decision Making , 2021, www.scu.edu/ethics/ethics-resources/a- framework-for-ethical-decision-making/.

Case 15 - Starbucks Serves Up Its Social Responsibility Blend.edited

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