Starbucks has been well-known in thirty-eight countries for some period of time, but this success has also attracted hard criticism on some issues. One of the areas where Starbucks faces challenges is catching up with some of its competition in providing fair-trade coffee. The company purchases and roasts high-quality whole bean coffees and sells them along with fresh-brewed coffees, cold blended beverages, coffee-related accessories and equipment, Italian-style espresso beverages, and a variety of complementary food items primarily through its company-operated retail stores. However, a survey conducted by Global Marketing Institute found that even Starbucks customers view the company as “arrogant, intrusive, and self-centered.” Therefore, Starbucks has put more effort in corporate social responsibility to reduce the customers’ negative perception. In 2002, Starbucks was one of the first major coffeehouse brands to introduce “ethical” coffee. Therefore, the company started to offer a “fair-trade coffee of the week” and later inserted it permanently into the main menu. Starbucks has made the $4 coffee drink acceptable and opened the door for competitors to charge similar prices. Even though it can improve the customer’s perception, many competitors followed suit and switched to 100 percent fair-trade coffee in order to compete with Starbucks. Thus, Starbucks has acted as an ethical trailer instead of a pioneer in this situation.
Deontological ethics refer to ethics of individual morality and public policy, which emphasize the fact that sometimes the correct path is determined not by its consequences but by certain duties. It means that there is something that we should, or should not, do regardless of the consequences. Refer to the German philosopher Immanuel Kant, business managers have direct ethical responsibilities to all stakeholders who are affected by business activities. The company owed an ethical responsibility to the customers who are the stakeholder. Thus, the company must possess goodwill in order to execute their responsibility. In this case, Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed coffees, cold blended beverages and others through its company-operated retail stores. On this Kantian theory, Starbucks is responsible to provide high quality coffee at a fair price to everyone. Therefore, Starbucks started to offer a “fair-trade coffee of the week” and made the $4 coffee drink which induced the other competitors to charge similar price. Moreover, Starbucks has invested significantly in Corporate Social Responsibility activities such as grants to charities. As a part of this society, Starbucks is obliged to “give back to the society” willingly for what they have earned without any conditions or motives behind.
Criticism extends far beyond fair-trade policies in that accusation have centered on Starbucks’ clustering strategy that covers areas with branches everywhere, thus forcing many local coffee shops out of business. Starbucks has been expanding across the United States. It estimated to open about five new stores a day and serve over 30 million customers a week. Starbucks definitely believes that opening a new store adds immediate value to the community since the store becomes a gathering place that crowded people together. Twenty-eight stores opened in urban communities in order to provide new employment and revitalization to several U.S. cities. Starbucks is changing urban streetscapes. The Starbucks logo can be seen everywhere and even the advertisements for apartments for rent state that they are near a Starbucks. Ethical Consumer magazine researcher Ruth Rosselson stated that they would recommend the consumers to choose non-chain shops that offer fair-trade coffee even Starbucks has a number of useful policies. With this policy, Starbucks can never be 100 percent ethical. Corporate Watch researcher Chris Grimshaw thinks that Starbucks’ CSR program is just a “smokescreen to create the illusion of ethics. Moreover, the company is more concerned about shareholders’ wealth.
Moreover, Starbucks is trying to change pop culture about what we eat and drink, when we work and play, and how we spend our time and money, which has brought some negative impacts to the society. Starbucks is changing what we eat. However, the food is not always healthy since the portions are too big, and the drinks are full of calories and fat. Nowadays, people are more concerned about healthy lifestyle even though it is possible that healthier food is in Starbucks’ future. This has made the success of Starbucks in conflicting with healthy lifestyle. In utilitarianism point of view, by looking at the consequences, we can determine the ethical significance of any actions. Utilitarianism is typically emphasized on “maximizing the overall good” or producing “the greatest good for the greatest number”. Good and bad acts are determined by their consequences. Social institutions should be structured in whatever way that will maximize the overall good. According to Utilitarianism theory, we must observe the consequences of the actions to the majority people before taking any actions. In this case, Starbucks is planning a new pop culture to the society. Thus, the company has to examine the consequences of taking such action to the society first as to whether it is considered ethical. It has proved that the new pop culture has brought some negative impacts to the society where the food is not as healthy as the society preferred. The portions of food are too big, and the drinks are full of calories and fat may result in overweight or heart attack and other health problems. Thus, the act is bad for the majority people and is considered not ethical. Moreover, Utilitarian is concerned about the feeling of majority. They thought that society likes happiness and dislikes painful naturally. Starbucks should always have a mind or way of doing things which will maximize the overall good by providing healthier food to the society who demand for healthy lifestyle.
Deontological ethics refer to ethics of individual morality and public policy, which emphasize the fact that sometimes the correct path is determined not by its consequences but by certain duties. It means that there is something that we should, or should not, do regardless of the consequences. Refer to the German philosopher Immanuel Kant, business managers have direct ethical responsibilities to all stakeholders who are affected by business activities. The company owed an ethical responsibility to the customers who are the stakeholder. Thus, the company must possess goodwill in order to execute their responsibility. In this case, Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed coffees, cold blended beverages and others through its company-operated retail stores. On this Kantian theory, Starbucks is responsible to provide high quality coffee at a fair price to everyone. Therefore, Starbucks started to offer a “fair-trade coffee of the week” and made the $4 coffee drink which induced the other competitors to charge similar price. Moreover, Starbucks has invested significantly in Corporate Social Responsibility activities such as grants to charities. As a part of this society, Starbucks is obliged to “give back to the society” willingly for what they have earned without any conditions or motives behind.
Criticism extends far beyond fair-trade policies in that accusation have centered on Starbucks’ clustering strategy that covers areas with branches everywhere, thus forcing many local coffee shops out of business. Starbucks has been expanding across the United States. It estimated to open about five new stores a day and serve over 30 million customers a week. Starbucks definitely believes that opening a new store adds immediate value to the community since the store becomes a gathering place that crowded people together. Twenty-eight stores opened in urban communities in order to provide new employment and revitalization to several U.S. cities. Starbucks is changing urban streetscapes. The Starbucks logo can be seen everywhere and even the advertisements for apartments for rent state that they are near a Starbucks. Ethical Consumer magazine researcher Ruth Rosselson stated that they would recommend the consumers to choose non-chain shops that offer fair-trade coffee even Starbucks has a number of useful policies. With this policy, Starbucks can never be 100 percent ethical. Corporate Watch researcher Chris Grimshaw thinks that Starbucks’ CSR program is just a “smokescreen to create the illusion of ethics. Moreover, the company is more concerned about shareholders’ wealth.
Moreover, Starbucks is trying to change pop culture about what we eat and drink, when we work and play, and how we spend our time and money, which has brought some negative impacts to the society. Starbucks is changing what we eat. However, the food is not always healthy since the portions are too big, and the drinks are full of calories and fat. Nowadays, people are more concerned about healthy lifestyle even though it is possible that healthier food is in Starbucks’ future. This has made the success of Starbucks in conflicting with healthy lifestyle. In utilitarianism point of view, by looking at the consequences, we can determine the ethical significance of any actions. Utilitarianism is typically emphasized on “maximizing the overall good” or producing “the greatest good for the greatest number”. Good and bad acts are determined by their consequences. Social institutions should be structured in whatever way that will maximize the overall good. According to Utilitarianism theory, we must observe the consequences of the actions to the majority people before taking any actions. In this case, Starbucks is planning a new pop culture to the society. Thus, the company has to examine the consequences of taking such action to the society first as to whether it is considered ethical. It has proved that the new pop culture has brought some negative impacts to the society where the food is not as healthy as the society preferred. The portions of food are too big, and the drinks are full of calories and fat may result in overweight or heart attack and other health problems. Thus, the act is bad for the majority people and is considered not ethical. Moreover, Utilitarian is concerned about the feeling of majority. They thought that society likes happiness and dislikes painful naturally. Starbucks should always have a mind or way of doing things which will maximize the overall good by providing healthier food to the society who demand for healthy lifestyle.
Bovine growth hormone (BGH) is given to dairy cows to increase milk production and boost farmers’ per-cow revenues. However, consumer advocacy groups opposed the used of BGH, claiming its full effects on humans are unknown and it can boost the risk of developing cancer. Starbucks was involved in this case where the products sold were consists of BGH milk. According to utilitarianism theory, we must observe the consequences of the actions to the majority people before taking any action. For solving BGH milk case, Starbuck had taken action which concerned about its majority consumers. It decided to make 37 percent of its dairy products BGH-free in a number of its stores in Oregon, Washington, Alaska, Montana, New Mexico, Northern California and New England. Starbucks cares about its consumer’s health.
The size of paper napkins used by Starbucks had been reduced. The main purpose is to reduce wastage and pollution that may cause our mother earth felt burden. Therefore, Starbucks is taking consideration of social responsibility. It earns from public. Thus, it also has to do something to save the public from pollution. By practising this, consumer may think before they throw any rubbish. It is an indirect method to educate public about recycle.
In order to save mother earth out from current situation, Starbucks may try to sell coffee with cup which can be reused again, encourage consumer to bring back the cup by giving them a small discounts or some free snack. This can protect the world from continuously become warming; Starbucks can also improve the image and increase the profits too.
Moreover, Starbucks may help third world country through taking out a portion of money earned from the products that have been sold and donating it. This will upgrade the existing and future customers’ perception towards Starbucks image. People who never buy a cup of coffee from Starbucks may think that by consuming a coffee can help on someone who needed and subsequently go to buy the coffee. The populations of consumer will grow bigger, sales will increase and social responsibility has been taking care off.
No comments:
Post a Comment