Starbucks and Tim Hortons

Starbucks and Tim Hortons being in the same industry, I am able to compare their existing
ethical business policies, rules, legislation and regulations. The two companies have outlined their
business/code of conduct in four sections, namely, for Starbucks, first is the 1.) Workplace
Environment, 2.) Business Practices, 3.) Intellectual Property and Propriety Information, and 4.)
Community Involvement. While Tim Hortons has 1.) Compliance with Applicable Laws and
Standards and our BPSCC, 2.) Workplace Environment, and 4.) Business Ethics. Lastly, under
these sections are numerous points that state its meaning and purpose for being put and
implemented into the company. (The varying highlights mean that the points are similar while the
yellow highlight means that it is a point that differs or is not present from the other company)
 Starbucks
Business Ethics and Compliance:
Standards of Business Conduct
1. Workplace Environment
a.) How we treat one another
b.) How we treat our customers
c.) Diversity
d.) Workplace health, safety and security
e.) Starbucks quality and customer protection
f.) Substance abuse and weapons
g.) Wage and hour rules
2. Business Practices
a.) Compliance with laws and regulations
b.) International business
c.) Interaction with the government
d.) Sales practices and advertising
e.) Fair competition
f.) Conflicts of interest
g.) Gifts and entertainment
h.) Securities
3. Intellectual Property and Propriety
Information
a.) Confidential Information
b.) Other intellectual property
c.) Use and retention of company records
d.) Books and records
e.) Financial accounting, internal controls
and auditing matters
4. Community Involvement
a.) Environmental mission statement
b.) Environmental commitment
c.) Personal activities
d.) Political activities
e.) Public relations
Tim Hortons
Business Partner and Supplier Code of
Conduct
1. Compliance with Applicable Laws and
Standards and Our BPSCC
• Business partners and suppliers are
expected to comply with all applicable local
and national laws and regulations of the
jurisdiction in which the suppliers are doing
business
• Business partners and suppliers should
maintain appropriate records and
demonstrate their compliance and adherence
to this BPSCC and must provide such
records, or access to such records, as Tim
Hortons may reasonably request to verify
their compliance
2. Conditions of Employment
a.) Management practice
b.) Compensation
c.) Working Hours
d.) Forced Labor
e.) Child labor
f.) Discrimination/human rights
g.) Discipline
h.) Association
3. Workplace Environment
a.) Product quality and food safety
b.) Working conditions and occupational
health and safety
c.) Environmental practices
4. Business Ethics
a.) Bribery/corruption
b.) Conflict of interest
c.) Gifts, promotional items and
hospitality/entertainment
d.) Animal Welfare
e.) Sourcing of raw materials including
conflict minerals
f.) Verification/review
 Similar Points
Starbucks
1.) How We Treat One Another
• Recruiting decisions based solely on job-
related criteria; does not use forced labor
• Under 18; managers must comply with all
Starbucks-established or legally required
limitations on minimum hiring age, hours,
and tasks
• Respect and Dignity
• Entitled to work in an environment free
from harassment, bullying, and discrimination
2. How We Treat Our Customers
• Treat customer as we treat one another, with
respect and dignity. Free from harassment,
bullying, and discrimination
3. Diversity
• Inclusive of all people and their unique
abilities, strength, and differences.
• Promotes diversity as a strategic and
competitive business advantage
• Vital to long-term success
• Goal: One of the most inclusive companies
globally working toward full equity, inclusion
and accessibility for those whose lives we
touch
4. Wage and Hour Rules
• Committed to following all applicable wage
and hour laws and regulations
• Compensate on the basis of hours worked
must report and record time accurately in
accordance with established local procedure
5. Workplace Health, Safety and Security
• Partners/Employees are expected to follow all
safety rules and practices; cooperate with
officials who enforce these rules and practices
• Attend required safety training; and report
immediately all accidents, injuries, and unsafe
practices or conditions
• Should be familiar of all safety information
and training provided
Tim Hortons
1. Management Practice
• Provide fundamental worker protection as
outlined in this BPSCC; Incorporate worker
protections into their company policies
2. Child Labor
• Exploitation of child labor is not acceptable
• The minimum age for full time workers will
be not less than 15 years of age (14 years of
age where local law permits in accordance
with ILO Convention 138)
• Any workers over the age of 15 but younger
than 18, must not be made to perform work
under dangerous or hazardous conditions,
consistent with ILO Convention 138
• All applicable laws for the protection of
young workers will be observed
3. Forced Labor
• Employment should be freely chosen and
workers should be free to leave work or
terminate their employment with reasonable
notice
• Business partners and suppliers should not
use any form of forced, debt-bonded, prison
or otherwise involuntary labor
• Workers should not be subject to any
restrictions on their freedom of movement
unrelated to the conditions of their
employment
• The conditions of employment must be
conveyed to the employee in a manner that is
easily understood
4. Discrimination/Human Rights
• Workers must not be subject to
discrimination in employment, including with
respect to hiring, salary, benefits,
advancement, discipline, termination or
retirement, on the basis of gender, race,
religious or personal beliefs, age, disability,
sexual orientation, maternity or marital status,
6. Starbucks Quality and Customer
Protection
• Rules regarding storage, handling,
preparation and service of Starbucks coffee
and other products
• Ensure clean, sanitary and safe conditions in
all facilities
• Exploring ways to maintain and improve
Starbucks quality standards and practices
7. Environmental Commitment (Under
Community Involvement)
• All partners should seek ways to proactively
address the environmental impacts of our
operations and incorporate the principles of
the environmental mission statement into
their work
nationality, political opinion or social ethnic
origin
5. Discipline
• Workers should be treated with respect and
dignity
• No form of discipline involving corporal
punishment, abuse, or harassment is permitted
• Disciplinary measure should comply with
local laws and internationally recognized
human rights
• No employee raising a complaint based on
this BPSCC, or based on applicable laws,
should be subject to disciplinary action or
reprisal
7. Compensation
• Compensate employees by providing wages
and benefits which follow the local and
national laws and regulations of the
jurisdiction in which the business partner or
supplier is doing business, or which are
consistent with the prevailing local standards
in the countries, if the prevailing local
standards are higher
• Workers should be paid in a timely manner,
and the basis on which workers are being paid
must also be clearly conveyed to workers in a
timely manner
8. Product Quality and Food Safety
• All business partners and suppliers must
meet product quality and food safety
standards required by applicable legislation
and regulations.
• When conducting business with Tim
Hortons, business partners and suppliers must
also comply with Tim Hortons product
quality and food safety requirements and meet
or exceed industry standards for product
quality and food safety
9. Working conditions and Occupational
Health and Safety
• Business partners and suppliers are expected
to comply with applicable local standard,
 legislation and regulations in relation to
working conditions and occupational health
and safety
• An occupational health and safety policy
should be established and reasonable steps
shall be taken to implement adequate health
and safety measures to protect workers from
accidents and injuries
• Business partners are also expected to
identify emergency and assess emergency
situations and events and to minimize their
impact by implementing emergency plans and
response procedures

10. Environmental Practices

• Comply with applicable local legislation and
regulations in relation to the protection of the
environment
• Business partners and suppliers are
encouraged to establish environmental
policies and practices to manage, monitor and
reduce their impact on the environment in an
effort to promote greater environmental
responsibility

8. Compliance with Laws and Regulations 11. Compliance with Applicable Laws and
• Committed to full compliance with laws, Standards and our BPSCC
rules and regulations of the countries in which • Business partners and suppliers are expected
it operates to comply with all applicable local and
national laws and regulations of the
9. International Business jurisdiction in which the suppliers are doing
• Committed to the highest ethical standards in allbusiness
business transactions
• Partners must follow all applicable laws,
rules and regulations when conducting
Starbucks business
• Payments by on or behalf of Starbucks to
foreign agents or government officials should
always be strictly for services rendered and
should be reasonable in amount given the
nature of those services
• Under no circumstances may a partner make
payments in violation of the law or to induce
government officials to do business with
Starbucks
• Partners must comply with all local and
foreign laws regarding customs and trade;
Starbucks will be accurate and truthful in
representing business transactions to
government agencies
• To conduct business internationally on
behalf of Starbucks, make sure to have a
thorough understanding of these laws and
know enough about any third parties doing
business in Starbucks name to ensure they are
making appropriate decisions on behalf of
Starbucks

10. Interaction with The Government

• Committed to complying with local laws,
regulations and codes and to working
fairly and honestly with government
officials and others in our communities;
Actions must meet high ethical and legal
standards
• Certain partners will be notified and trained
on a regular basis for the purposes of
compliance with relevant federal laws,
including those regarding lobbying
disclosure, anti-bribery and anti-corruption
11. Conflicts of Interest 12. Bribery/Corruption
• Everyone must avoid conflict of interest; • Business partners and suppliers are expected
Potential conflict of interest must be disclosed to comply with anti-corruption laws, and not
to the partner’s manager or the vice president engaged in any form of corrupt practices,
in charge of the partner’s department or including extortion, fraud, or bribery
business unit
13. Conflict of Interest
12. Gifts and Entertainment • Business partners and suppliers are expected
• A gift or favor should not be accepted or to disclose to Tim Hortons any situation that
given if it might create a sense of is an actual conflict of interest or that could
obligation, compromise your professional have the appearance of a conflict of interest
judgement or create the appearance of doing so
14. Gifts, Promotional Items and
Hospitality/Entertainment
• Any such gift, promotional item or
hospitality/entertainment received or provided
must be lawful and be such that it would not
obligate or appear to obligate the recipient or
otherwise be intended to influence business
decisions
 Varying Points

Starbucks Tim Hortons

1. Substance Abuse and Weapons 1. Compliance with Applicable Laws and
• Prohibited to use, possess, and plant alcoholic Standards and Our BPSCC
beverages, illegal drugs or controlled substance • Business partners and suppliers should
maintain appropriate records and demonstrate
2. Sales Practices and Advertising their compliance and adherence to this
• Competes on the merits of our products and BPSCC and must provide such records, or
services in all sales and advertising access to such records, as Tim Hortons may
• The communication with customers or reasonably request to verify their compliance
potential customers must be truthful and
accurate 2. Association
• What has been said about products and • Business partners and suppliers shall not
services must be substantiated discriminate with respect to employment
• Does not disparage competitors based on union membership, and shall not
make employment conditional on
3. Fair Competition relinquishing union membership or on
• Fair competition laws; It is in best interest to agreement not to join a union
promote free and open competition
• Starbucks must make own business 3. Animal Welfare
decision, free from understands or agreements • Business partners and suppliers will meet
with competitors or suppliers that restrict applicable regulatory requirements for the
competition humane treatment of animals
a.) Must not discuss pricing, production, or 3. Sourcing of Raw Materials Including
markets with competitors Conflict Minerals
b.) Must not set resale prices with customers • Tim Hortons is committed to ensuring that
or suppliers raw materials and components used in our
c.) Must always present Starbucks services products are responsibly sourced and
and products in a manner consistent with our manufactured by our business partners and
core values suppliers
d.) Must not induce a third party to breach an
existing agreement 4. Verification/Review
e.) Must never act in a manner that could be • Tim Hortons reserves the right, as a
seen as an attempt to exclude present or condition of acceptance or continuation of
potential competitors or to control market approval, to request information and/or
prices conduct verification and/or review of business
partner and supplier policies, programs,
4. Securities business practices and facilities to verify
• Partners may not buy or sell stock or any other compliance with this BPSCC
security on the basis of this information;
“material non-public information” or
significant and confidential information about
Starbucks
a.) Financial information
b.) The development of new products or services
c.) A proposed acquisition, joint venture or
merger
d.) Government investigations
e.) Changes in key personnel

5. Confidential Information
• Partners are trusted with maintaining the
confidentiality of this valuable information
• This includes supplier information, Starbucks
technologies, recipes, formulas, coffee blends,
business and marketing plans, internal
company communications, and existing and
future product information

6. Other Intellectual Property

• As a partner, the things you create for Starbucks
belong to the company; this work product is
Starbucks property if it is created or developed, in a
whole or in part, on company time, as part of
your duties or through the use of company
resources and information

7. Use and Retention of Company Records

• Starbucks Information Management Policy
states that partners will manage information in
such a way that supports the needs of the
business while ensuring efficiency, security
and compliance with any legal and regulatory
requirements

8. Books and Records

• Partners must ensure the accuracy and
integrity of Starbucks corporate records

9. Financial Accounting, Internal Controls

and Auditing Matters
• Concerns should be promptly reported
through the Ethics and Compliance Helplines
or Webline, described in the “Asking for
Guidance and Voicing Concerns” section of
this booklet

10. Environmental Mission Statement

• Starbucks is committed to a role of
environmental leadership in all facets of the
business
11. Personal Activities
• Partners should not impose their personal
beliefs or opinions on other partners or
represent their personal opinions as those of
Starbucks

12. Political Activities

• Political activities must be conducted on your own
time and using your own resources
• Must not promote any political or personal
views or beliefs on or around Starbucks
premises, and you may not indicate or suggest
that you speak for Starbucks or that the
company supports your views

13. Public Relations

• All information disclosed outside of the
company must be accurate, complete and
consistent, and disseminated in accordance
with Starbucks policies
 Discussion of Good Points

Starbucks and Tim Hortons are two very distinct and known businesses not only in their
circle of industry but also to the people who loves to engage different times of their day with
coffee. With that being said, they also have distinct policies in their existing list of standards upon
the code of conduct and business ethics. Both companies emphasized on the terms specifically
respect and dignity. It is a significant point to put into consideration upon evaluating and
remembering a name when they treat everyone as a human equal and with no judgement regardless
of their race, color, ethnicity, political and religious beliefs, and other factors that reveals a person’s
difference or uniqueness. Tim Horton’s outlined policies upon complying with local and
international laws may have mentioned an international organization which are the International
Labor Organization and the Universal Declaration of Human Rights, however, Starbucks have
been very detailed, precise, and clear with their own outline of policies, rules, legislation and
regulations in the company. The two also called out the legal age restrictions upon hiring children
to work in each company, together with the legal maximum working hours in a regular week and
in emergency or special occasions. With working hours, comes the wages and additional
compensations, and both companies know better. They knew how to properly compensate their
workers according to their quality and quantity of work. All in all, Starbucks and Tim Hortons are
undeniably part of the few best coffee shops that serve quality products and services, being unique
in their own way without disparaging other business organizations in the same industry.

Suggestions/Recommendations

It is good that Starbucks have all of these properly outlined ethical policies to practice in
the company but it would be better if they conduct an annual check for local and international
based business partners and suppliers to evaluate their status and if the following branch-outs are
really complying with the rules as outlined by Starbucks. It is also advisable if Tim Hortons would
update their standards to add and further improve their rules and guidelines. There is no limit when
it comes to improvements of an organization, it will only add to its efficiency, credibility,
foundation, and orderliness. The recommended update for Tim Hortons can include securities of
the facility for every local or international branch assembled by business partners and suppliers,
strict guidelines and restrictions for carrying and abuse of substance and weapons by both
employees and customers for everyone’s safety, and others that will promote refinement and
enhancement for both companies, and will ensure continuous operations in the future.

References

Starbucks
https://www.starbucks.ph/media/Business-Ethics-and-Compliance-eng_tcm70-11290.pdf
Tim Hortons
http://sustainabilityreport.timhortons.com/pdf/bpscc.pdf