Evaluate the workplace ethics at Starbucks and how they are impacting its growth
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Workplace ethics refers to a set of morals that govern a workplace and the overall behavior of employees with respect to what is right and wrong when it comes to employee conduct and decision-making. Just like ethical behavior has the potential to boost an organization’s growth, unethical conduct can motivate damaging headlines that can potentially destroy an organization. This is one major reason why organizations are constantly promoting ethical behavior and encouraging a culture of reporting unethical behaviors. In today’s connected world, it has become very easy for unethical conduct to destroy the reputation of organizations since such behaviors can easily be recorded and shared online. All business stakeholders including customers, suppliers, retailers, investors, employees, the media, the government, members of the surrounding community, and competitors are individuals and entities affected by decisions made by a business. Today, stakeholders are placing more value on organizations and leadership teams that choose to accomplish their legitimate for-profit goals in an ethical way. Although satisfying consumers’ demands, going green, being socially responsible, and acting above and beyond the basic requirements consume time and money, they profit organizations in the long run, especially today when people are placing more consideration on brand values and are willing to spend more on ethical brands.
This report evaluated the workplace ethics at Starbucks and how they have impacted its growth. According to the findings, Starbucks is today one of the most ethical companies in the world, perhaps one major reason why it is one of the biggest brands in the world. Besides, the company is the most admired company according to Fortune's 2023 World’s Most Admired Companies list.
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workplace ethics at Starbucks and how they are impacting its growth Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Discuss workplace ethics and how they impact the growth of an organization
- Analyze how consumerism and the changing global marketplace might challenge the belief system of an organization
- Discuss the relationship between ethical behavior and an organization's profitability
1.0 INTRODUCTION
As competition continues to escalate and companies pursue maximizing stockholder profit, it is essential for organizations to acknowledge that all their operations affect society to some extent. According to Byars and Stanberry (2018), an organization owes society a reciprocal obligation for allowing it to incorporate and engage in business, irrespective of whether they are stockholder or not.
Ethical business leadership is grounded in doing right by all stakeholders directly affected by a firm’s operations, including, but not limited to, stockholders. Business leaders thus do right when they give thought to what is best for all who have a stake in their companies. Besides, ethical firms tend to achieve greater material success, especially over the long run.
Through the years, Starbucks has been able to earn the trust of its partners, customers, and communities by leading with a purpose that goes way beyond the pursuit of profit. In 2022, the Global coffee chain made its 14th appearance on the list of the most ethical companies globally by the Ethisphere Institute (Ethisphere 2022). With the mission ‘to inspire and nurture the human spirit’, Starbucks aims at enhancing the well-being of all communities it serves through actions and programs that are rooted in opportunity and inclusion. Starbucks was recently recognized by Fortune on their 2023 World’s Most Admired Companies list, retaining the number 1 spot in the Food Services industry, and ranking 14th overall out of 645 companies (Starbucks 2023).
One major factor that sets Starbucks apart from many of its competitors across the world, is its commitment to its people management skills and social responsibility. It is one major reason has put the company on Fortune’s World's Most Admired Companies over the years. The rest of the report discusses the workplace ethics at Starbucks and how they have contributed to its growth and success.
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