Introduction

The term "business ethics" refers to a body of moral principles that serve as a constructive roadmap for
a company to follow in order to achieve its aims. A better understanding of what constitutes good and
wrong in a corporate environment is made possible by studying business ethics. As a result, the firm is
better able to make decisions that are in line with the needs and expectations of its constituents.
Businesses that engage in ethical activities enjoy a more positive brand reputation and experience faster
growth. A variety of factors, including corporate governance, nondiscrimination, and social
responsibility, contribute to a company's forward momentum (Cavanagh, 2005). Effective execution of
corporate policy and practice in the face of contentious issues and continued growth is another benefit
of adhering to ethical standards. The company has a wide variety of interested parties and moving parts
to which it must attend. In the long run, sensible corporate strategy is what will win out. The researcher
has picked Costa Coffee as the company to which ethical procedures would be applied. They have a solid
reputation as a brand and a commitment to ethical business practices that bodes well for the company's
future success. This report also explains how the senior management team's responsibilities have
evolved and how it has influenced the company's approach to business. In this report, we also go
through the many responsibilities of staff members in upholding the company's quality standards.
Therefore, in order to effectively manage the entire research, and to move forward toward the aims of
this research, the researcher must draw on the findings of secondary sources.

Reason to call Costa as ethical business

After Starbucks, Costa Coffee is one of the largest and most successful coffee chains in the world. While
Starbucks is present in the United Kingdom, Costa is the market leader among coffee shops. In addition,
they are deemed to be the most consumer-friendly coffee shop in terms of ethics. A total of 3,121
customers were asked to select Costa as the company they felt had the most morally upstanding policies
and procedures, and the results from the various studies reveal that Costa came out on top. Costa's
100% renewable energy strategy is a great example of the company's commitment to environmental
responsibility. The 40 schools involved in the programme have received substantial financing, which has
impacted the lives of almost 75,000 students. In the United Kingdom, this company has a number of
community outreach initiatives designed to encourage employee participation in volunteerism,
appropriate community support, and further ethical development (Costa Coffee, 2021).

The various coffee and services offered by Costa are an attempt to provide clients with a variety of
emotions. They care deeply about maintaining morally sound relationships with their clients and
vendors. Both the company's goods and its employees share in Costa's dedication to quality. The People
not only features employees but also vendors. Products encompass not just the beans used to make
coffee, but also the methods used to provide customer service. Costa is optimistic about the reforms
that will help them cut energy use and is worried about their reliance on fossil fuels (Costa Coffee,
2021). The cost-effective zero-waste formula is drawing near. In addition, they employ an innovative
technological recipe that allows them to roast the beans 30% less. They may also think about providing
training to their vendors in an effort to encourage the production of rainwater collecting systems.
Consequently, Costa is making efforts to create new methods that aid in ensuring ethical procedures.
They are thinking about their workers' work-in safety, motivating methods, and compensation plan. As a
result, they are prioritizing long-term success over short-term gain, which should result in improved
public perception of their brand and continued financial success.
Ethical philosophy that Costa is following

A company has a variety of ethical concerns it must address to maintain good ethical standards. Costa is
thinking about elevating the importance of caring for people, products, and the environment. Costa is
working to improve its service by providing the finest possible products and experiences to their target
customers (Cavanagh, 1982). They don't discriminate on the basis of colour, gender, or sexual
orientation when hiring new employees. This aids the company in attracting qualified workers. They
have a careers page on their website where interested candidates may learn more about the company
and its open positions. In addition, this company is thinking about diversity and inclusion. They have a
firm faith in inclusiveness. The United Kingdom is already a very diverse and multicultural society. This
means that all employees, regardless of their background, have access to the same service (Costa
Coffee, 2021). As a company, they are also committed to giving back to the LGBT community and
assisting its members in leading normal, fulfilling lives. They are hiring without considering a candidate's
gender in the first place, instead focusing on acquiring individuals with the most relevant expertise and
skills. Target workers get a variety of training and development opportunities designed to boost their
abilities and foster a deep emotional investment in the company and their work. Therefore, they are
trying to inspire their workers by providing opportunities for advancement that demonstrate their
commitment to the company's success.

With the firm's belief that its businesses are at the centre of the UK community, Costa is focusing more
on giving back to the neighborhoods where its stores are located. It gives them an edge over their
competitors and gives them the skills they need to compete in the highly competitive UK market. This
company is in charge of a community service initiative that spans the entire country. The group is trying
to keep depressed people from sinking further into their misery by spreading positive messages about
preventing food waste. Every shop has its own bulletin board, where locals may post announcements
and other important information for the community. The company's operations span more than 30
countries, and its global strategy centres on community development. They also have a plan called the
Chatty Café, where individuals may come on the weekends and sit at a designated table to strike up
conversations with strangers. Ethical techniques such as good communication with the community and
continued growth in one's relationships with others are made possible by this (Costa Coffee, 2021).

Ethical challenges faced by Costa and key elements of its successful addressing

Farmers who provide Costa Coffee with their beans have complained that the company does not pay
them a living wage. There have been claims that the firm uses forced labour and child labour in its
production process. When compared to its main competitor, Starbucks, which received a 6.5 on the
same scale, the ethical consumer's guide gave Costa Coffee a 9.5.

However, whether or not Costa Coffee follows fair-trade coffee rules is not the only question that can be
asked about the company's dedication to corporate ethics. Costa Coffee has taken a different, less well-
known approach to responsible and sustainable coffee distribution, despite the fact that customers all
over the globe associate the fair-trade label with honest and transparent business practices (WELCH,
2011). In 2008, Costa Coffee was reported to have become a member of the ethical trading group
Rainforest Alliance.

Role of employees to maintain the business standards in Costa

Barista is the most common title for those who work in Costa cafes. They are also performing an
essential function in upholding the company's quality standards. In this company, they must follow the
directives of upper management. The Costa Rican company's upper echelons have established a policy
of open dialogue with workers prior to implementing any major changes. As a result, employees are able
to voice their concerns and participate in the decision-making process. Workers must invest in their own
professional development and develop a sense of belonging at the company. They should work toward
common goals with the company if they want to advance in the coffee industry. There are some
requirements that must be met in the retail establishment. This company provides its baristas with a
dress code to follow. Staff members must adhere to the dress code at all times and always display their
ID badge so that they may more easily interact with clients and superiors. They should also treat their
target clients with respect and abide by the code of conduct. People who work in customer service need
to be outgoing and enthusiastic. They need to be helpful and courteous while they deliver the
merchandise to the consumer. It's imperative that they prioritise workplace cleanliness and safety
(Costa Coffee, 2021). They need to pay closer attention to the cooking process. Costa's upper
management displays a specific code about the preparation of meals and the maintenance of sanitary
conditions. Therefore, it is the responsibility of shop managers to keep an eye on these problems and
ensure that these workers have access to a proper training and development programme that will help
them improve their abilities and reach their full potential. In addition, the company's personnel must be
able to effectively communicate with one another. They, too, must sharpen their technological acumen
and proficiency. The improved client management and resulting streamlined business expansion will be
a welcome result. To ensure the company's long-term success, its personnel should consistently use the
company's established development norms and methods.

Role of senior management team to maintain the business standards in Costa

Costa's upper management has been instrumental in shaping the company's strategic direction. The
management team at Costa is actively working to provide inclusive and welcoming environments.
Costa's upper management places a premium on its employees and cares about the impact of the
company's culture on its ability to achieve its goals and maintain its standards. Managers at Costa are
making strides toward a more secure and healthful workplace. It's a crucial factor contributing to the
management's improved productivity. When it comes to maintaining a safe and healthy workplace,
Costa's upper echelons have established policies that are in line with UK regulations. They're worried
about a variety of personal matters. To improve workplace safety, employees might look to the
guidelines set out by Costa's upper management. They also provide a dress code, ID cards, and manage
attendance via a web-based interface. Both the app and the intranet portal may be used by employees
to submit their requests for time off. Costa's upper management is concerned about the possibility of
accidents, injuries, and other health problems in the workplace, and they issue warnings and provide
training to their staff accordingly (Costa Coffee, 2021).

Role of suppliers to maintain the business standards in Costa

Wholesale distributors and independent coffee producers make up Costas' supply chain. For this set of
stakeholders, Costas' increasing demand and pay are the two most important factors. Producing more
coffee means more money for farmers, so they try to maximise their crop. Several corporate social
responsibility initiatives run by Costa cater to the needs of these groups. To broaden the pool of
potential vendors, the company has implemented a supplier diversification initiative. As part of its
Coffee and Farmer Equity (CAFE) initiative, Costa expects its wholesale suppliers to maintain open
communication with participating farmers to guarantee that they receive fair compensation for their
coffee. So, it's clear that Costa has made a concerted effort to accommodate the concerns of this
constituency through its CSR initiatives.

Role of investors to maintain the business standards in Costa

Costa, like every other company, has a responsibility to its stockholders. Profitability is of paramount
importance to investors. High financial success may be inferred from Costas' global expansion and
sustained dominance in the coffeehouse business. Although Costa had a severe drop in 2007, the
company has since rebounded and is once again poised for rapid expansion. This stakeholder group's
interests are thereby met by the company.

Role of Government to maintain the business standards in Costa

Because of its global reach, Costa has to consider the needs of a wide range of countries. Generally
speaking, Costa follows the law. But the business has been accused of dodging taxes in Europe. Costa
takes advantage of tax loopholes in several European nations by opening multiple stores there. Much of
this structure is still in place today, with Costa paying very minimal taxes in the United Kingdom.
Therefore, the company's multifaceted CSR initiatives may be enhanced to better serve this important
stakeholder group.