It will generate a significant social cost and thus is seen as illegal. Therefore, government regulator needs to examine closely and review it competition law to prevent any of such anti-competitive practices from occurring. Ethical Principles The actions of Starbucks are deemed to be unethical or ethical from the utilitarian benefits and self-interest theories. Utilitarian Benefits According to the utilitarian benefits theory, Starbucks’ actions are unethical as the actions of Starbucks result in greater harm than good for the society. Small coffee retailers are providing more to the people of the towns that they are located than Starbucks does as those small local coffee retailers offer reasonable priced for their coffee.
Secondly, Starbucks believes that "Eating well is as important as living well" (Starbucks Nutrition, 2015). There are number of improvements Starbucks has implemented in order to serve the needs of their vast customers. For example, high fructose corn syrup, artificial Trans fats, flavor and dyes were removed from their snacks. In order to meet the needs of their customers they now also offer a variety of "Milk" products such as Coconut, Almond and Soy. They have also worked to establish relationships with organically grown coffee farmers and implemented an incentive program to build and strengthen their long-term relationships with their
Rising prices of coffee beans and dairy products. Health conscious consumers Cases over illegal use of the Starbucks trademark Recommended Solutions / Actions Starbucks’ product pricing is expensive compared to their competitors. They should reduce their product prices by using cheaper beans to produce new type of coffees. Starbucks can offer promotions and special discounts to their customers as well. Such as buy one free one, or buy one and get 50% off for the second cup.
• In summary, Fair Trade coffee is a good start to help the coffee growers to get paid fairly but may not good enough to leverage and gain more bargaining power from coffee traders. PEST, in order to evaluate, each factor will be weighted in low, medium and high. As a result, Socio-cultural is low and Political and Economic are high and Technological is
And although jobs come to the less developed nations, boosting the economies there, the environment suffers because the restrictions against pollution are less strict. Major companies such as Suncor and Syncrude have legal obligations with the government to restore the land that they are using to as close as they can to the natural state they found it. Sometimes these legal obligations are too expensive for companies to adhere to so they do not proceed with building the plant. This has a significant impact on environmental sustainability as well as sustainable prosperity of the people in that area or
To their customers, it is their favorite coffee brand that could not get any better after helping save the environment. As stated in a Forbes article by Phil Wahba, other on-site actions include CEO Howard Schultz encouraging baristas to talk to their customers about current matters in the news. Online exchange of information also contributes to the Starbucks campaign set to fight world problems. According to their own website, “Starbucks ethical sourcing means responsibility in the merchandise, furniture and other items found in our stores.” With this statement, they suggest that their products are responsibly grown and traded, and the store décor is eco-friendly, in order to address the many environmental issues faced
The reason people clear the forests is because they lack access to more sustainable jobs, such as farming. Finding alternate professions for the people who clear the tropical rainforests in Borneo would be very helpful, because the people who live off of illegal forest clearing, only do this because they do not have nay another choice. The solution will not solve everything, however, because illegal logging is not the only problem in the rainforest. This way of helping will not completely stop deforestation, but it will certainly slow it down, which can already make it easier to put a stop to illegal logging and deforestation. An example of a company using this method is Health in Harmony, who has recently started an initiative called ‘The buyback entrepreneurship program’ this program focuses on couples wanting to begin their own business.
The consumer preferences is a guide for Starbucks to make changes and adjustments to their products and services. Cultural trend is a double-edged sword. It impacts the company in both positive and negative ways. For example, if the cultural trend shifts to a healthier, less caffeine consuming diet, it will affects Starbucks’ sales. If the cultural trend changes to a coffee-consuming trend, this will highly boosts Starbucks’ sales.
He shares knowledge about how non-fair trade companies don’t follow strict standards, use methods which don’t promote sustainability, pay workers unfairly and/or take advantage of undeveloped countries to increase their profit. When buying fair-trade coffee, you are not only getting a wholesome, delicious product, you are also helping decrease poverty. Josh Rothstein wrote to an audience who can help to end poverty in Ethiopia and those who can help to spread awareness of the issue and solutions. This affected his writing because he wrote as if we had no prior knowledge of the issues and
It will not be wrong to say that farmers actually rely on fair trade in order to live their daily life. • What are the ways to promote fair trade? The purpose of this question is to understand the diverse ways through which fair trade can be promoted. • How is fair trade used in coffee export? Fair trade has recently started to become a known factor in the coffee export.
The Environmental Social activism Starbucks achieves makes it one of the most environmentally friendly and conscience companies in the world. Some of the involvement the company does is supporting coffee, tea, and cocoa communities around the world. Starbucks commitment to communities extends beyond their stores to include the regions that supply Starbucks coffee, tea, and cocoa (Starak, 2). The company actively invests in programs designed to strengthen local economic and social development. For example, the projects include improving access to education and agricultural training, and managing finances, improving one’s health, and nutrition and water quality (Starak, 2).