Starbucks – Ethics
Ouriel Blum
MAR 100 B050
Professor Buckler
November 5, 2023
Starbucks
Starbucks is an example of a company that takes social and ethical and issues very seriously. Starbucks issues a public report each year which measures its progress on its efforts in these areas. The 2022 reports says, “To be the best we can be, we set ourselves ambitious goals across a range of Environmental, Sustainability and Governance (ESG) initiatives. We do this to meet the moment, and to exceed the expectations of our partners, customers, suppliers, and the communities we work in every day. By doing this well, we support the responsible growth of our business.” Starbucks focuses on sustainability, reducing its carbon footprint, fair trade, fair employment, and many other valuable goals.
Starbucks states that they are committed to racial, ethnic and gender diversity. To achieve this goal, they are increasing the percentage of people in higher positions who are diverse. For example, they state as a goal that their senior leadership team (includes manager levels and above) in enterprise roles will be at least 30% people of color and 50% women by 2025. They are measuring this goal and reporting to the public each year on how they are doing at this goal. In addition, Starbucks achieved 100% gender and racial equity in pay. This means that there is no disparity in how men and women and people of different races are paid to do the same job. Starbucks is also committed to hiring refugees and has hired over 1,100 in the past year. Starbucks also has a Foundation that collects donations and makes charitable contributions. In 2022, their Foundation provided $17.5 million to non-profit organizations.
Starbucks is also committed to environmental sustainability and has many initiatives to achieve its goals. Starbucks in the United States and in Canada use 100% renewable energy in their retail operations. They are also committed to moving away from single-use packaging and towards reusable packaging. Starbucks is focused on forest and water conservation to support ecosystems in their supply chain.
A key area for ethical business practice for Starbucks is in how they source their coffee. According to Starbucks, 98.2% of the coffee they use is ethically sourced. There is a verification program that monitors the supply chain for coffee which is based on social and environmental standards, and which aims to encourage sustainable practices for growing coffee while also protecting coffee workers and their communities. Starbucks uses that program to verify its coffee producers, so it is not biased. Starbucks is working towards having carbon neutral coffee production by 2030 and they are also developing responsible sourcing for tea and other manufactured products.
My recommendations for Starbucks would be to engage their enormous customer base to participate in their environmental and sustainable goals. In order to achieve that, they should make their stores more educational. Many people sit in Starbucks and drink their coffee, so perhaps they could have information on their different initiatives on a screen in the stores that people could read while they sit there. They could also change their cup holders so that it has an interesting fact about sustainability – a different message on each one – that the customer can read. They can educate the public to participate in their goals. Starbucks is already doing incredible things, but by having more and more people engage in the conversation, they can have an even bigger impact. I would purchase more from Starbucks, over say Dunkin, if I understood that by buying a coffee from them, I was supporting a better world too. Increasing their customers will increase their revenue and allow Starbucks to have an even bigger impact. Many customers might think that smaller, more boutique type coffee places are better, but Starbucks can show that a bigger company means more benefit to employees, social causes and the environment.
Source Used: 20, April. “2022 Starbucks Global Environmental and Social Impact Report.” Starbucks Stories, stories.starbucks.com/stories/2023/2022-starbucks-global-environmental-and-social-impact-report/. Accessed 4 Nov. 2023.