E T H I C S

TERM 2

STARBUCKS
M A N E G E R I A L

Medha Das : H22146

Shivangi Chaudhary: H22166
Stuti Biswas: H22172
Gaurang Srivastava: H22137
Srinivas R Pai:H22170 25
Trisha Amalnerkar : H22175
Chetna Sharma : H22132 11
Ranjani: H22159
Akanksha: H22123
22
Vishruthi: H22179
 How coffee is
S T A R B U C K S

a big
commodity?
Coffee is the most highly traded
agricultural commodity on the planet
From growers to Roasters to Brewers,
125 million people around the world
depend on this plant for their livelihood
rest of us rely on it for our daily sanity

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 STARBUCKS
M A N A G E R I A L

BUC
T AR K

S
Started in early 1970s as a single
storefront and has now grown to
33,833 stores around the world
World’s largest coffee house chain
Created a creative take on coffee,
by making coffee drinking an
experience in itself
E T H I C S

Corporate ambience, wifi, upscale,

a plethora of options and
customizable drinks providing the
ultimate coffee experience

03
M A N A G E R I A L

S T A R B U C K S
. BRE
ON

K S CTI
E T H I C S

A
K S ECT
E
IO

A
N . BRE

How they introduced the

concept of a third place-
04
their USP
 How are they
M A N A G E R I A L

ethical ?

01. 02. 03.

E T H I C S

Starbucks was the They have always They vouch to treat

first company to wanted to be a their supply chain
integrate the entire responsible partners with the
coffee supply chain neighbour to the utmost dignity and
and enforce ethical communities that respect and
practices in the they serve. encourage
05
industry. autonomy
 How are they
M A N A G E R I A L

ethical ?

04. 05.
E T H I C S

Employee treatment: Strictly condemns

they treat their the use of GMOs
employees quite well
by retail standards- and hazardous
they recognize materials in
tenured partners and coffee cultivation
ensure at least a 5-10%
increase, above the
06 market rate
 Starbucks also Starbucks used
M A N A G E R I A L

drives down legal power and

prices in financial
developing resources to
countries where block the
the bulk of its trademarking
coffee is efforts to protect
purchased. purchasing prices
for coffee.
E T H I C S

Starbucks takes

How are
actions such as
blocking
patents and

they price
controlling.
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unethical?
 Starbucks settled an In 2008, a California
employment lawsuit court ordered
M A N A G E R I A L

with eight workers at Starbucks to

its Kent, Washington, reimburse baristas
plant in 2005. for more than $100
Employees claimed million in tips. The
they were retaliated company had
against because they illegally distributed
supported the union. tips to shift
supervisors.
E T H I C S

In October 2006,
the British NGO,

How are
Oxfam, accused
Starbucks of

they
harming coffee
farmers in Ethiopia
by not honouring its
08
unethical? fair trade
agreements.
 Not all
M A N A G E R I A L

glossy..
in real
E T H I C S

life Starbucks claims to Ever since they Conservation

International is
be one of the largest collaborated with
purchasers of fair conservation arguably a
international, they greenwashing PR
trade certified
company which
coffee, but now they made their own
engages in
have started using certification C.A.F.E
euphemistic labeling
their in-house and now acts as a
09 to masquerade the
certification called self-regulatory dirty works of large
C.A.F.E. company. corporations.
 R B UCK
M A N A G E R I A L

TA

S
No clarity
about
payment to
workers,
E T H I C S

that they
source
coffee from
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 60% of all coffee
species are threatened
with extinction.
M A N A G E R I A L

How starbucks
R BUC
T A K

S
has a role to
play in the
extinction
E T H I C S

this kind of disassociation from their

supply chain has some real world
ramifications coffee is an incredibly
dramatic plant you can't just stick it
anywhere and hope that it grows and it's

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very susceptible to changes in the
environment
C.A.F.E - Starbucks in-house verification
program. More of a cover up?

 01. 02.
M A N A G E R I A L

Starbucks had been

The coffee and working with Fair
Farmers Equity Trades, a standard
program is a coffee certification

The major red flag.

since 2000, but this
was only in certain

C.A.F.E countries.
E T H I C S

Program 03.
By 2013, Starbucks
04.
Much like writing and
correcting their own
started phasing out
answer sheets,
fair trade entirely in
Starbucks has been
favour of this new in- certifying its own
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house program they coffee for a long time
developed. now.
 S T A R B U C K S
CKS
BU
R
STA
KS
C

ST
ARBU
The Grey Reality
M A N A G E R I A L E T H I C S

15
 Starbucks used But now this
M A N A G E R I A L

to publish how data has been

much they paid removed from
per pound of the website
coffee till
about a decade
back
E T H I C S

It is widely In an article
regarded that published in the
Starbucks Guardian, five
Absolute stopped
reporting this
coffee farms in
their supply
lack of because they had
stopped paying a
chain are
reported to

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transparency respectable
amount which
they used to be
employ child
labour in 40-
hour week jobs.
paying earlier.
M A N A G E R I A L

Starbucks has adopted a

utilitarian approach to ethical
decision-making at the
corporate level.
E T H I C S

Starbucks’s commoditisation of coffee and

coffee growing has put small farmers out of
business by decreasing the price of coffee
beans worldwide in a race to the bottom which
ultimately helped large growers.
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 S T A R B U C K S
S
BUCK
AR

ST
Violation of The
Ethics of Trust
M A N A G E R I A L E T H I C S

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 https://en.wikipedia.org/wiki/
M A N A G E R I A L

Criticism_of_Starbucks

https://www.fairtrade.net/pr
oduct/coffee

https://starbucks.in/responsibility.h

References tml
E T H I C S

https://www.studysmarter.us/explanati
ons/business-studies/business-case-
studies/starbucks-ethical-issues/

https://stories.starbucks.com/press
/2020/cafe-practices-starbucks-
approach-to-ethically-sourcing-
coffee/
19
https://www.notesmatic.com/starb
ucks-business-ethics-case-study/
 I N TOU
06 August 2022

Y
C
H . STA

H . STA
C

Y
I N T OU
Thank
You
M A N A G E R I A L E T H I C S

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