[BUSINESS ETHIC] Table of Contents I. Introduction....................................................................................................2 II. Analysis.........................................................................................................2 Task 3.1 Assess the role of the company acting as moral agent........................2 Task 3.2 Analyze the development of mechanisms for achieving employee involvement and empowerment........................................................................9 Task 4.3 Design a suitable ethical code...........................................................12 Starbucks Code of Ethics.............................................................................13 III. Conclusion.................................................................................................14 Bibliography.......................................................................................................15 1 Analysis | Besides.It is noted that business ethics try to embrace the corporate social responsibility. In 1990s Starbucks opens 60 retails shops in United Kingdom. in order ensure about the competitive advantage (Carroll. most of the businesses are trying to promote their social values. I also use case of violation business ethics of Starbucks is one of the most famous brand in coffee business in the world. 1999) . In 1981 when Howard Schultz visited the store he plan to build a strong company and expand high quality coffee business with the name of Starbucks. and it will help to increase the efficiency of a company.766 stores in 65 countries and territories. most of the business is focused towards the affects created by the business operational activities to the business environment.802 in the United States. 1.[BUSINESS ETHIC] I. as well as production. In result of increased concern towards the ethical concerns and increase in customer awareness.. 2014) Starbucks was established in 1971 by three local businessmen to sell high quality whole beans coffee. Introduction According Carroll currently. Analysis Task 3.121 in Japan and 825 in the United Kingdom. the rules. Starbucks open its first coffee store in Seattle. Good working environment depend most on the ethics of that environment. Washington. with 22. Starbucks is the largest coffeehouse company in the world.930 in China. In 1990 Starbucks expand its headquarters in Seattle and also build a new roasting plant. accounting practices. human resource management. At the end of 2000s 2 Analysis | . 1.409 in Canada. along with ethics that associates with the marketing.1 Assess the role of the company acting as moral agent About Starbucks Starbucks Corporation. including 12. doing business as Starbucks Coffee. retail expansion and provide service quality for long term. Washington. Starbucks air is to provide high quality of coffee to its consumer and aim to achieve product innovation. II.. 1. (Starbucks Coffee Company. is an American coffee company and coffee house chain based in Seattle. Starbucks target market was 18 years to 24 years young professional because they are not yet been loyal with coffee industry. underground main entrance and urban areas. Starbucks also focus on consumer habits and share its speciality of coffee with the buyers. Starbucks sells coffee and tea products through many others channels like distribution targeting restaurants. According to Fleisher & Bensoussan (2002) Starbucks target market was wealthy. upper class and educated who are agree to pay high prices of Starbucks due to its high quality and customer service. Starbucks sales totally depends on company operate retail stores and certified retail operations. colleges and universities and other work places. thirty years is the changes of economic policies over the world. hotels. In the end of 20th century there are many changes in market that helped Starbucks getting successful.[BUSINESS ETHIC] Starbucks total branches was 3500. Structure (2015) 3 Analysis | . According to national coffee association. Coffee industry was in peak of its success at the end of 1990s. Target market means to select one or more market segment and product position. Coffee is one of the rapidly growing industry in this world due to its business strategy. Starbucks strategy comprises to locate its stores at picky places such as the first floor of blocks of offices. The most important change of the last twenty. USA 49% of American age 18 and more drink coffee beverage every day. 1999). 2015) About the ethical case On 13/5. This is the way managers are so interested in empowering employees: if they work good. All the companies have their own teams. authority. and customers. as he walked into the store located on the Elmhurst. There are also lots of stores around the world and each store has different from the authority. power. female employee asked her name but 4 Analysis | . The organizational culture in Starbucks is focus on its teams. they can get good position. a social network users posted clips recorded scene girl named Ruby Chen serves Starbucks staff were verbally abused badly. rewards. L and Millett. We can use Starbucks’ methods in building teams to see how they lead to “ return for happiness”. Starbucks believes return for happiness. (Starbucks Coporation. B. Queens.[BUSINESS ETHIC] Starbucks has decentralized authority because they created decisionmaking for each manager. According to the share of Ruby Chen. For example Starbucks’ crossfunctional teams could be someone from one department being responsible to work with an identified person in making to sell the product: each department within Starbucks will know the details of business activities in the other departments. They are used to improve communication between the employee group who is responsible for the product and the group who provides the specific functional skill. and establish cross-functional teams. While open payment applications on mobile phones. So Starbucks will be an organization and its employees to behave in a flexible way even as the organization grows and becomes taller. teams reflect the organizational culture. only if the staff works with happiness that can cause client consume in the future. friendship and respects (Willcoxson. she was called a Frappuccino cup. it means only if the customers satisfied that they will back for next consumption. Culture The anthropological approach toward identifying organizational culture is shared by many organizational members with reference to status. managers. 5 Analysis | . 2010). and denying the concept of responsibilities and rights. Starbucks has fired female employee. the online community was really pressing for employees above. Moral agent and Moral agency A moral agent is a being that is “capable of acting with reference to right and wrong” (Moral agnet. The company said the female employee in video surveillance is just not the store manager. If you do not believe that anything or anyone should ever be blamed or deemed responsible. Accompany it. do not wait too long. Shortly after recording the clip spread.[BUSINESS ETHIC] Ruby did not hear should not return. she took large straws after calling up the map it acceptable. Immediately. the representative immediately apologized Starbucks did her Ruby Chen about the incident. The company also promised that similar incidents do not recur (Starbucks. because it is moral agents whom we take to have choices and the power to choose” (Black Crayon. However. Not stopping there. 2015). "To the Ruby Chen. the staff have voiced rebuked her badly. many outraged customers and to defend Ruby Chen but were berated staff profusely. 2009). And immediately after the incident was discovered. Even these women also say: "Go away and never come back here again" while tugging hand scanner application. Many voiced support for Ruby Chen and ordered Starbucks to offer proper treatment measures. A moral agent is anything that can be held responsible for behavior or decisions. Starbucks transmits a message that the content: "The fact that customers can not currently experiencing quality of our service. “It is moral agents who have rights and responsibilities. Managers of us are trying to contact the customer to apologize to her. the female employees also accused Ruby Chen stole a syringe should ask your colleague to call the police. Witness the spectacle. According to Ruby Chen's explanation. she also confirmed that Starbucks has formally apologized and offered her a gift card for $ 100. then you are going against the idea of moral agency. Advantages and disadvantages to becoming moral agent 6 Analysis | .and long-term effects of your business decisions to ensure your organization impacts the world in a positive way. 2015). and so on” (Moral agent. They must have “self-consciousness. Low wages will likely result in a lowskilled or unhappy work force. memory. When a person performs or fails to perform a morally significant action. 2003). Also.. we sometimes think that a particular kind of response is warranted. To regard such agents as worthy of one of these reactions is to regard them as responsible for what they have done or left undone. All of your business's decisions. and the reasoning faculty. If all of your values could be easily and immediately be achieved. and you could not practice moral agency. whether ethical or not. or alternatively. which allows him to devise plans for achieving his objectives. to weigh alternatives. Monitor the short. For example. you would not have to pick between your moral and non-moral goals. other values. 2015). one may be regarded as worthy of blame for not having used one's mobile phone to call for help. will affect the world. How a moral agent act to guarantee moral principles A moral agent must be a living creature. one who encounters a car accident may be regarded as worthy of praise for having saved a child from inside the burning car. A poorly made or dangerous product could harm a customer. as they must be able to comprehend abstract moral principles and apply them to decision making.[BUSINESS ETHIC] Moral agency is an individual's ability to make moral judgments based on some commonly held notion of right and wrong and to be held accountable for these actions (Angus. starting with your employees and your customers and extending to the larger community. Praise and blame are perhaps the most obvious forms this reaction might take (Stanford Encyclopedia of Philosophy. a moral agent must “attach a positive value to acts that conform to his moral principles and a positive value to some of the results that he can achieve by violating his moral principles” (Stan Mack and Demand Media. moral principles. 2014). in order to weigh the options in decision making. For example. Disadvantage 7 Analysis | . as does acquiring a new one (Brian Hill and Demand Media. such as by being overcharged. career advancement within the organization to be based on the quality of the work they do and not on favoritism or is become part of a company whose management team tells them the truth about what is going on. a company's management may be tempted to cut corners in pursuit of profit. Johnson & Johnson spent over $100 million dollars recalling Tylenol. Consumers learn to trust ethical brands and remain loyal to them. at times. The company followed its credo. talented individuals in organization be compensated fairly for their work and dedication. and the result was a boost in consumer confidence. Society benefits from business ethics because ethical companies recognize their social responsibilities (Judith Rehak. 2015). in 1982. Having a loyal customer base is one of the keys to long-range business success because serving an existing customer doesn’t involve marketing cost. Consumers may let a company take advantage of them once. but if they believe they have been treated unfairly. And help company avoid legal problems. In addition to becoming moral agent help the company retains good employees. 2002). Companies that maintain the highest ethical standards take the time to train every member of the organization about the conduct that is expected of them. despite the contamination scare. after someone tampered with bottles of the painkiller. a set of ethical organizational values. The resulting negative publicity can cause long-range damage to the company's reputation that is even more costly than the legal fees or fines. even during difficult periods. such as not fully complying the provisions of the law. 2015). such as when layoffs or reorganizations are being contemplated (Brian Hill and Demand Media. its best-selling product. they will not be repeat customers.[BUSINESS ETHIC] Advantages Business ethics offer companies a competitive advantage. will not be tolerated by an ethical company. although the speed of the clip spread fast surface but also acknowledged that the measures Starbucks also launched smart handling and quick too.[BUSINESS ETHIC] Business ethics reduce a company's freedom to maximize its profit. Conversely. The result is that everything had soon subsided and the majority of customers are satisfied with how to handle the situation quickly. particularly in this age of social networking when dissatisfied customers can quickly disseminate information about the negative experience they had. equitable of Starbucks and they continue to this chain. which can bring in new customers through word-of-mouth referrals. such as child labor. poverty-level wages and coerced employment. Practices acceptable in that country. Advantages from the handling of Starbucks build customer loyalty because having a loyal customer base is one of the keys to long-range business success because serving an existing customer doesn't involve marketing cost. it could be argued that the restrictions on company freedom benefit wider society. the company will have to spend time in handling employee and while the employee was fired employee positions will be left empty and the company would have to spend the time and cost to find suitable staff for staff positions have been laid off. Improvements in working conditions. For example. Disadvantages: Handling of the employee giving the company a number of disadvantages such as employees and family members of employees parking felt an aversion to the company. poor health and safety. a multinational company may move its manufacturing facility to a developing country to reduce costs. as does acquiring a new one. such as a living wage and minimum health and safety standard. Application Moral Agent in Starbucks From the case above. a reputation for unethical dealings hurts the company's chances to obtain new customers. And can help it create a more positive image in the marketplace.s reduce the level of cost-savings that the company generates. However. 8 Analysis | . while providing important information to their partners. working conditions. suppliers etc.[BUSINESS ETHIC] but although find a new employee in that position the company well to take costs into employee training in order not to repeat the experience on. Hence. and shareholders. Starbucks adopted a policy in 2010 to provide greater transparency regarding their corporate political contributions and expenditures beyond what is required by law. The policies and positions of Starbucks commitment to being a responsible business. From how they buy their coffee to how they ensure the best possible workplace for their partners. 9 Analysis | . the infrastructure of the environment in which an organization exists. 2008) While analyzing this perspective from a an eco-efficiency viewpoint. 2015) Moral responsibility Much of Starbucks’ moral responsibility has revolved around the aspect of improving the quality of its products and services to its customer (Flynn. governments and other regulators. (Starucks. they believe it is important to operate consistent with their mission: to inspire and nurture the human spirit – one person. packaging. services. Starbucks should have two elements: legal responsibility and moral responsibility. They range from global ethical business standards to our own guidelines for doing business. It includes both standards about waste. Legal responsibility Refers to a company’s responsiveness to and compliance with legal expectations and laws about different standards. This policy supports Starbucks interests in promoting public policy issues of concern to the company and educating elected and public officials about their business. products. customers. These standards can be validated by various NGOs. Specific moral agent activities of Starbucks To become a moral agent company. with whom a company cooperates (Starbucks. resources. 2015). one cup and one neighborhood at a time. To better communicate their efforts. and this provided the opportunity for personal growth and development. Employees are motivated to make the right decisions by using their skills and knowledge. hence nurturing a positive organizational climate. From the company’s website. but our work goes far beyond that. This has been much enhanced through frequent training sessions that have aimed at making the employees deal with some of their unfavorable behaviors. This has ensured that Starbucks gains a competitive advantage over its competitors through work environment design and culture associated with such human resource practices. as well as services that seek to improve the quality of life consequently resulting in enhanced customer satisfaction. Sure. it starts with the promise of a perfectly made beverage.[BUSINESS ETHIC] it can be deduced that Starbucks has strived to remain competitive in the restaurant and cafes industry by offering good prices. Such efforts 10 Analysis | . The company’s management has continuously emphasized on the importance of maintaining cohesive dialogue that makes everyone feel at ease within the work environment. 2007). The design gives employees the freedom to be their best selves consistently (Wright. In this context. it has initiated several programs that assist in the conservation of the environment. products. Starbucks has continuously embraced a values-based service towards its customers for many years. we connect with. Starbucks Company has been consistent in handling communication barriers within its organizational behavior context. Howard Schultz. and uplift the lives of our customers–even if just for a few moments. the following passage reflects the true aspiration of its values-based service: “When we are fully engaged. 2014). has over time emphasized to all the employees that they ought to have efficient and sufficient communications amongst themselves regardless of their differences in cultural backgrounds. Starbucks Corporation has demonstrated its unwavering obligation of developing feasible environment friendly undertakings. The company’s chairperson. It’s really about human connection” (Stabucks. laugh with. while fostering an improved understanding of relationships amongst themselves. 2014). direct communication. code of conduct building. not theology. we can affirm that Starbucks is a moral agent. whose mission is to encourage respect for humanity and nature and to create a better world. and methods (Robert Bullock and Scontrino-Powell. From this definition. The machanism to enhance employee involvement and empowerment About the mechanism to promote the employee involvement and empowerment in corporates. Members are committed to personal ethical development in their relationships with others and in activities involving social justice and 11 Analysis | . expertise. (Empowerment in Management: Definition & Explanation. Task 3. they will be more productive and have higher job satisfaction. participation can include representative participation. 2015) Employee involvement can be defined as: The direct participation of staff to help an organization fulfill its mission and meet its objectives by applying their own ideas. Ethical culture Ethical Culture is a religion centered on ethics. Through these examples. and opportunity while being held responsible for their job outcomes. and upward problem solving. resources.2 Analyze the development of mechanisms for achieving employee involvement and empowerment Definition Empowerment is the concept in management that if employees are given information. and efforts towards solving problems and making decisions.[BUSINESS ETHIC] are aimed at enabling the farmers to mitigate climate change impacts on their respective farms (Stabucks. there are 3 processes: ethical culture. 2015). ethical leader. We will focus on the latter two categories because this article is more about understanding outcomes. tools. Ethical leaders are ethical all the time. ethical leaders must also lead ethically – in the ways they treat people in everyday interaction. outlined initiatives and decisions. Ethical leader Ethical leadership means doing what is right and making good decisions when in a powerful position. Management style seniors express high levels of empowerment (empowerment) to employees.) Working in an ethical culture. Factors affecting work motivation of the staff in Starbucks office most important is the relationship with superiors (Relations with Supervisor). This suggests that. 2012). Ethical culture aim at the employees. and they’re ethical over time. thereby increasing intrinsic motivation (intrinsic motivation) in employees (Tuan. every employees must act in responsible ways. n. employees are also encouraged to involve in the company’s operations more dynamically and exert their empowerment more confidently. ethical leaders must act and make decisions ethically. encourages the members to show their respects to each others and company to create a new better working environment or ethical culture is the empowerment. it is living by a personal and professional code of ethics (Ethical systems.d. employees will be motivated to work better with the support from superiors and feel satisfied with the work for good relations with superiors. as must ethical people in general. Members join together in ethical societies to assist each other in developing ethical ideas and ideals. proving again and again that ethics are an integral part of the intellectual and philosophical framework they use to understand and relate to the world (Ethical Leader. will help people members find more meaningful work. 2015). bringing to give employees the opportunity creation. Relations with 12 Analysis | . and support each other through life's crises.[BUSINESS ETHIC] environmental stewardship. (Nysec. It is more than just obeying the law. First. But. Ethical leadership really has two elements. it focuses on ethics. secondly. in the ways they encourage. not just when someone’s looking. to celebrate life's joys. 2015). and in the directions in which they steer their organizations or institutions or initiatives. in their attitudes. 2015). or proper practices for. efficiency and customer service. linking them with standards of professional conduct It clears the mission. Code of conduct building A code of conduct is a set of rules outlining the social norms and rules and responsibilities of. Application for Starbuck Employee empowerment Studies have shown that employee engagement increases company moral. vision and core value of a company and integrate them to a standard ethics (Building Professionals Board . which is way communication helps employees can share their difficulties and express knowledge and new skills which employees hone is (Tuan. It is meant to clarify an organization's mission. 13 Analysis | .[BUSINESS ETHIC] superiors also expressed dimensional communication strong upward (Upward communication). employees remain committed to their employer. Relations with superiors as sticking the way communication from the top down (Downward communication) also strengthened. When engagement is done well. an individual. employees will be enable to exert their control power to ensure an ethical behavior of their colleagues and also company’s leader. 2012). threading feedback as well as the praise and recognition are communicated to employees to help them improve the efficiency of their work as well as increased motivation to contribute to the organization. 2012). Code of conduct is a type of a document which helps people in making decision. party or organization.It was afternoon upward communication will increase the confidence of staff to their superiors and the company (Tuan. Based on the documented code of ethics. 2015). values and principles. employee motivation. Starbucks see their employees as more than just workers but also brand ambassadors. Effective employee eempowerment means that employees transition from workers who show up everyday to brand ambassadors who incorporate the company’s mission into their daily work (Employee empowerment. within Effective an customer organization. Starbucks cares so much about boosting customer service from within. (Employee empowerment. partners are encouraged to take over the dayto-day workings of the teams including decision making (Nelson. Everyone on the team has a voice in the selection 14 Analysis | .600 store managers to their Leadership Lad conference and exhibition.[BUSINESS ETHIC] A company’s efforts to boost employee empowerment should translate into effective and service starts strong from customer service. Starbucks has recently instituted self-managed work teams at its coffee bean roasting plants. the theory goes. Starbucks CEO. 1998).”We can use Starbucks’ methods to see how team building and employee empowerment can lead to better customer service. Although plant managers and supervisors are responsible for the initial organization of the teams. that they $35 spent million to send 9. 2015) To increasing employee empowerment Starbucks was - Treat each store like a small business - Make employees feel like part of the larger mission - Be creative with training sessions - Develop a mission statement that matters Employee Involvement In an effort to increase employee involvement. Howard Schultz elaborates on Starbucks’ employee empowerment and engagement:“Give them reasons to believe in their work and that they’re part of a larger mission. and they’ll in turn personally elevate the experience for each customer–something you can hardly accomplish with a billboard or a 30-second spot. Cross-functional teams of partners and supervisors are used to make hiring decisions. partners. Code of conduct is a type of a document which helps people in making decision. and outsiders an idea of what the company stands for and how it's members should conduct themselves. Benefit of employee involvement: empowering. better improvement. 1998). vision and core value of a company and integrate them to a standard ethics (Building Professionals Board . which are often developed in response to legislation regulating business activities and behavior or some sort of ethical scandal (Code of Business Conduct: Ethics. 2015). A code of ethics can help a business determine its priorities and values. It can also help you down the 15 Analysis | . Task 4. It is meant to clarify an organization's mission. loyalty lncreases & floating population reduces. A code of business ethics usually doesn't stand alone. Organizational members are responsible for adhering to the code of conduct and will be held accountable for failure to do so. as well as matters of legal compliance that govern the conduct of the organization and its members. vendors. more money to share. The company’s "Mission Review Team"—comprised of partners from throughout the company—visits Starbucks outlets to review the consistency of the stores’ operations and the company’s guiding principle of providing quality service and products (Nelson. Standards & Examples. linking them with standards of professional conduct It clears the mission. and ethics. Most large businesses will have a code of conduct. effective cooperation & communication. corrective action.3 Design a suitable ethical code Definition Code of conduct is a set of organizational rules or standards regarding organizational values. it works in conjunction with a company's mission statement and more specific policies about conduct to give employees. beliefs.[BUSINESS ETHIC] process and partners are encouraged to offer their views on the candidates’ potential compatibility with the company. better decisions. Code of ethics is a collection of principles and practices that a business believes in and aims to live by. 2015). values and principles. and they take our responsibility to be good neighbors seriously. Stores: When their customers feel this sense of belonging. and uplift the lives of their customers even if just for a few moments. it starts with the promise of a perfectly made beverage. And they hold each other to that standard (Virginia's Community Colleges. 2015). It’s about enjoyment at the speed of life sometimes slow and savored. our work is never done (Starbucks. 2014). about quality. Now they see that their responsibility and their potential for good is even larger. They care deeply about all of this. they connect with. It’s really about human connection (Starbucks. laugh with. customers. their stores become a haven. They can be a force for positive action bringing together their partners. a break from the worries outside. and the community to contribute every day. it’s their passion. 2014). sometimes faster. yet again. The world is looking to Starbucks to set the new standard. Starbucks Code of Ethics Starbucks Mission: To inspire and nurture the human spirit one person. they embrace diversity to create a place where each of us can be ourselves. 16 Analysis | . 2015). Together. Neighborhood: Every store is part of a community. 2015). Partners: They’re called partners. Sure. a place where you can meet with friends. Here are the principles of how they live that every day: Coffee: It has always been. Always full of humanity (Virginia's Community Colleges. They’re passionate about ethically sourcing the finest coffee beans. but their work goes far beyond that. and improving the lives of people who grow them. 2015). one cup. and will always be. because it’s not just a job. 2015).[BUSINESS ETHIC] line if one of your employees or vendors drags you into legal trouble (Spiro. They always treat each other with respect and dignity. Customers: When theye are fully engaged. and one neighborhood at a time (Starbucks Coporation. They want to be invited in wherever they do business. They will lead (Virginia's Community Colleges. roasting them with great care. and required by the business in order to consider and learn how the ethical values development can impact over the behavior of the business. and also tries to assist the extent to which all the objectives impact the behavior and even try to ensure that business objectives are fulfilled. 17 Analysis | . mechanism to achieve employee empowerment and involvement. 2014). Conclusion This assignment to understand the main ethical issues in the work place and how the business could harmonize the ethics and its objectives. They are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive. which create impact over the company along with the external environment.[BUSINESS ETHIC] Shareholders: They know that as they deliver in each of these areas. III. they enjoy the kind of success that rewards their shareholders. Onward (Starbucks. 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