a) The main facts about the activities of the company ?
Starbucks is a coffeehouse that offers a variety of products, mainly coffee (30 different blends), but also handcrafted beverages, fresh food (pastries, sandwiches, salads etc.) and merchandise (like coffee mugs, books and music). They started with only one store in a market in Seattle in 1971 where they were a roaster and retailer of whole bean and ground coffee, tea and spices. Except what they are offering in their coffeehouses they also have company-operated retail-stores were they sell beverage-related accessories and equipment and they also licenses its trademark through other channels to sell ready to drink beverages. They also have an online store where you can buy coffee or equipment. Furthermore they want to create a welcoming environment in their shops and work for it to be the meeting point in a neighborhood, for example, they offer free internet connection in their coffeehouses. The company works with the goal of serving the best coffee possible, grown under the highest standards of quality and with the use of ethical trading and growing practices. They are committed to being ethically responsible and work to be so in several different ways.
b) The ethical challenges this company is addressing ?
Starbucks believed that businesses can - and should - have a positive impact on the communities they serve. So the main ethical challenges they address are:
? Sell coffee verified through C.A.F.E. Practices Starbucks Coffee Company initiated C.A.F.E. (Coffee and Farmer Equity) Practices to evaluate, recognize, and reward producers of high-quality sustainably grown coffee. C.A.F.E. Practices is a green coffee sourcing guideline developed in collaboration with Scientific Certification Systems (SCS), a third-party evaluation and certification firm. C.A.F.E. Practices seeks to ensure that Starbucks sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production against a defined set of criteria, as detailed in the C.A.F.E. Practices Guidelines. Starbucks defines sustainability as an economically viable model that addresses the social and environmental needs of all the participants in the supply chain from farmer to consumer.
? Essential criteria of the standard:
1. Financial transparency
Including traceability of the coffee back to the farmer
2. Social Responsibility
Payment of minimum wage, compliance with national laws on overtime payment
Freedom of association and collective bargaining
Vacation and sick leave program
No child labour, discrimination, forced labour
Decent housing conditions for workers living onsite
Access to education, medical care
Safe pesticide handling
3. Environmental Leadership (Farm)
Watercourse and water quality protection
Controlling soil erosion
Improving soil fertility
Shade cover
Wildlife conservation, natural conservation areas
Ecological pest and disease management
Management and monitoring practices
4. Environmental Leadership (Processing)
Minimize water consumption (wet mill)
Minimize water pollution
Waste recycling
Minimize energy use
? Community
Starbucks has created a variety of programs to facilitate community service and giving. The Starbucks Foundation was created to support commitment to community. Programs:
Supporting Coffee, Tea and Cocoa Communities Starbucks supports social development projects that help the communities that produce coffee, tea and cocoa. Projects include improving access to education and agricultural training, microfinance and microcredit services, improving biodiversity conservation, and increasing levels of health, nutrition and water sanitation.
Access to Get Clean Water, with the goal of providing people in developing countries with access to clean water.
Fostering Education in China commitment to support educational programs in China at Give2Asia.
Rebuilding the Gulf Coast, to assist in the recovery and revitalization of Gulf Coast communities devastated by hurricanes Rita and Katrina.
(STARBUCKS)RED product makes a contribution to the Global Fund to help people living with HIV in Africa. With your help, already generated contributions equaling more than 14,000,000 days of medicine.
Starbucks work on-the-ground with farmers to help improve coffee quality and invest in loan programs for coffee-growing communities.
Wellness, means supporting policies and efforts to improve the health of communities in addition to offering balanced food and beverage options to customers.
Starbucks committed to upholding a culture where diversity is valued and respected.
c) What makes you believe this company is really ethical and why you trust it ?
Starbucks get involved with local efforts to bring people together and create positive change, they believe that being involved in the communities is not only the right thing to do, it?s also good business.
? Environmental impact
In 1999, Starbucks started "Grounds for your Garden" to make their business more environmentally-friendly. This gives leftover coffee grounds to anyone requesting it for composting. Customers can request and lobby their local store to begin the practice.
In 2004, Starbucks began reducing the size of their paper napkins and store garbage bags, and lightening their solid waste production by 816.5 metric tons (1.8 million pounds). In 2008, Starbucks was ranked #15 on the U.S. Environmental Protection Agency’s list of Top 25 Green Power Partners for purchases of renewable energy.
Starbucks construct green buildings.
Starbucks cups are recyclable in form and in practice. Served 4.4 million more beverages in reusable cups in 2009 than in 2008
In June 2009, in response to concerns over its excessive water consumption, Starbucks re-evaluated its use of the dipper well system. In September 2009, company-operated Starbucks stores in Canada & the United States successfully implemented a new water saving solution that meets government health standards. Different types of milk are given a dedicated spoon that remains in the pitcher and the dipper wells were replaced with push button metered faucets for rinsing. This will reportedly save up to 150 gallons of water per day in every store. Water use decreased by 4.1% in company-owned stores in.
Starbucks Support programs that facilitate farmers? access to carbon markets, allowing them to generate additional income while helping to prevent deforestation.
In 2010 company purchase renewable energy equivalent to 50% of the electricity used in company-owned stores, and reduced by 25% the total energy consumption.
? Community
Through grants awarded in 2009, the company engaged 20,868 young people in community activities.
Starbucks has established Farmer Support Centers in Costa Rica and Rwanda to provide local farmers with resources and expertise to help lower the cost of production, reduce fungus infections, improve coffee quality and increase the production of premium coffee.
Starbucks provides funding to organizations that make loans to coffee growers, which will help them sell their crops at the best time to get the right price. The loans also help farmers to invest in their farms and make capital improvements. Over the years, we?ve committed over $15 million to a variety of farmer loan funds
In total, Starbucks partners and customers around the world contributed more than 186,000 hours of community service in 2009.
Starbucks encourage diversity with suppliers by actively seeking out women- and minority-owned businesses to do business with.
Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. So Starbucks make a lot of actions that make us trust is a ethic company, and is in constant hardworking to improve everyday.
d) The possible challenges facing the company in the future and how you think this company may improve ?
By 2015, Starbucks plan to meet the following goals:
? Environmental stewardship:
100% of cups will be reusable or recyclable
Significantly reduce environmental footprint through recycling, energy and water conservation and green construction.
- Have a recyclable cup developed and launched by 2012
- Have 25% of the cups used in stores be reusable
- Have recycling available in stores
- Reduce greenhouse gas emissions by making company-owned stores 25 percent more energy efficient.
- Have a significant reduction in water usage
- All new company-owned stores will be certified green
- Champion tropical rainforest protection as a solution to climate change
? Ethical sourcing:
Buy and serve 100% responsibly grown and ethically traded coffee
- Purchase 100 percent of coffee through ethical sourcing practices
- Invest in a better future for farmers and their communities by nearly doubling funding to organizations that provide farmer loans from $12.5 to $20 million
- Proactively impact climate change by offering farmers incentives to prevent deforestation beginning with pilot programs in Sumatra, Indonesia and Chiapas, Mexico.
? Community involvement:
- Contribute more than 1 million community service hours per year in communities where we do business.
- Engage 50,000 social entrepreneurs to innovate and take action, who will in turn inspire 100,000 individuals to take action in their communities.
These commitments will help ensure future of the company. Need a healthy environment and farmers that are paid well so that Starbucks continue to bring you the high-quality coffee that you expect from us.
Starbucks can actually show, for the puplic, that they have made a difference. Because we don’t think it is totally clear for the general public that they are doing ethical work. We think that many people think that they are just another big corporation that only care about profit.
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