6.4 Ethical Sourcing
Howard Schultz to take a comprehensive approach to ethical sourcing, using responsible purchasing practices; farmer support; economic, social and environmental standards; industry collaboration and community development programs. The cornerstone of his approach is Coffee and Farmer Equity (C.A.F.E.) Practices, one of the coffee industry’s first sustainability standards of coffee.
Ethical leadership includes efforts to encourage ethical behaviour as well as efforts to stop unethical practices. Ethical leaders seek to build mutual trust and respect among diverse followers and to find integrative solutions to conflicts among stakeholders with competing interests (Yuki, 2012).
As Starbucks have grown to now more than 23,000 stores in over 70 countries, ethical leadership has lead them commit in create global social impact in neighbourhoods around the world. This has aligned with its vision that together elevates their partners, customers, suppliers and neighbours to create positive change.
Ultimately, Starbucks innovation aimed to achieve a
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Mobile application payment option generates barcode to be usable in targeted stores. Mobile marketing strategy is used by Schultz has establish it as an important channel to reach and interact with consumers and give rise to a higher level of emphasis placed on the marketing mixed used in mobile devices.
Starbucks enables customers to receive rewards in free coffee after usage of the mobile application in a certain amount of purchases via the card. This also serves as a positive reinforcement for users of the mobile reward card (Alreck & Settle, 1999). Mobile marketing will play a major role for future marketing strategies, because it may establish it as an important channel to reach and interact with consumers, may give rise to a higher level of emphasis placed on the use of mobile devices in the marketing
In E. Lockhart’s book, The Disreputable History of Frankie Landau Banks, Frankie demonstrates the attributes of an ethical leader. An ethical leader is someone who values the rights of those around him/her, and strives to demonstrate leadership through moral deeds. Frankie is 15 years old, and attends Alabaster Prep Academy. She obtains those characteristics, and creates change in her community. Frankie leads the Bassets, a group of patriarchal secret society in Alabaster, to change the state of the cafeteria’s current vegetable offerings.
Anticipate the ethical conflict: after the resolution of the conflict, it is important to find out how future conflicts can be prevented (Nelson, 2015, p. 48). PHMC’s CEO should implement standards of ethical conduct and become a role model of it (Perry, 2014, p. 35). By exercising leadership many of the ethical conflict can be avoided and the whole organization is impacted positively. The textbook quotes Bennis and Namus (1985, 186) to define a leader: “leaders are persons who are able to influence others; this influence helps to establish the organizational climate for ethical conduct; ethical conduct generates trust; and trust contributes substantially to the long term success of the organization” (Perry, 2014, p. 36).
Having an understanding to ethical consideration and accountability will improve customer satisfaction, employee performance, and the continuum for accountability ("Ethical Leadership: Fostering An Ethical Environment And Culture",
Starbucks’ is a premium valued brand; costly to imitate. Its human capital deploys it operations and provide supreme customer support (Geereddy, n.d.), while organizational direction and culture is impacted by leadership (Kokemuller,
The organization I work for, Starbucks is highly diversified. In my opinion, Starbucks successfully employs each of the seven diversity components: “authentic leadership commitment, clear organizational communication, inclusive recruitment practices, long-term retention strategies, incorporating diversity into main work of the organization, diversity management metrics, and expansive external relationships” (CanÌas, Sondak 2014). With that being said, Starbucks could improve by incorporating diversity into main work of the organization. One way Starbucks proves their commitment to diversity is authentic by holding a diverse board of directors. Of the seven board members, three are women and one of these women is of an African descent.
The History of Business Ethics and Stakeholder Theory in America Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical
Therefore, it is essential for Starbucks to establish different platforms to share their company information to different stakeholders in order to let them realize the current business situation of Starbucks. In the following paragraphs, we would introduce the
Introduction The key ethical issues that were presented in this case study were quality control, lack of customer care, responsiveness, and harming the customer. The Johnson and Johnson case may have been seen as a turning point due to many things the company did right. However, there were many ethical issues in this case which will be explored more throughout this paper.
What is Ethical Leadership some may ask. It is leadership that shows through the actions of having respect for ethical beliefs and values, and for the dignity and rights of others. Ethics is associated with the morals and values an individual finds desirable. It is a philosophical term originating from Greek word “ethos” meaning custom or character. While in the United States Marine Corps, the definition of ethics in an organizational setting was as follows:
However, choosing the appropriate technology is essential to the success of the advertising industry because different markets prefer different ways of conveying information. The use of applications in phones or e-commerce to order goods and services all over the world may be appropriate to a certain market, but media may be appropriate to an illiterate market (Porter, 1998). The development of smart phones is also an added advantage to the development of marketing activities in the advertising industries. For instance, in Singapore China the Taxi industry uses the application in the smart phones to access the consumers. Although the media are one of the appropriate medium to convey the adverts to the consumers,
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
It is the long-term self-interest of Starbucks. Conclusion In conclusion, Starbucks only concern and goal is to generate profit. Thus, to achieve their goal, Starbucks is selfishly putting the small coffee retailers out of business to gain more profit and disregarding the effect that it could cause to the various stakeholders.
This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization. The employee performance can also incredibly increased by ethical and moral behavior in a workplace that practice good ethics. Finally, the overall performance of an organization in term of its financial outcomes is also benefited from the ethic practice. The case study of L’Oreal also provides a good example of all
The initial Starbucks established in 1971, it set out to be a different kind of company. One that not only just passionately committed to world-class coffee and the rich tradition, but also the way they engage with customers and communities to do business responsibly. Today, Starbucks has become a great example of an iconic brand and operates worldwide. The brand has strengthened their consumer engagement with the use of digital marketing strategies. In this essay, the author… Technology has developed throughout the last decade at a great rate to make human’s lives more convenient.
STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment.