Starbucks: Ethics and Compliance Strategic Initiatives

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Business Ethics is one of the most important aspects about businesses that help to influence the performance of the products in the market; it is the application of business ethics that ensures that the perceptions of the consumers towards the products of an organization are positive. Business ethics not only influence the consumer choices but also the relationship between the employees in an organization, as well as the relationship between the management and the employees.

Ethics Compliance

Starbucks organization is recognized worldwide as a leader in the provision of quality coffee products; one of the factors that has greatly contributed to the success of Starbucks in the coffee market can be attributed to its strong organizational culture. This organizational culture is not only based on a corporate social responsibility (CSR) but also on strong principles of ethics which have ensured that there is a clear guideline on the relationship between the various parties (Anthony, Gales & Hodge, 2003). These ethics will be outlined below and their effects on the organizational performance in the financial markets. The reputation of the organization has been built on the trust as well as the focus on the observance of ethics amongst the employees of the organization. There are standards of business conduct that need to be observed in order to maintain cordial relationships with all the business partners.

In all its undertakings and business activities, the management of Starbucks is committed to upholding its set ethical principles to ensure that it competes fairly in the market. As per the ethical principles that have been set forth, Starbucks advocates for free and fair competition in the free market environment; one of the most important aspects that is given due consideration by Starbucks is the decision making process. This process is based on the principles of ethics which relies on the six point model; the steps followed in this model involve identification of the problem, which is followed by a process of listing down all the possible solutions to the problem as well as the impediments to the implementation of the solutions. The opinions of the others are then sought concerning the available solutions; then the best approach is determined with the best possible guidance depending on the availability and finally the decision that has been agreed upon is implemented (Anthony, Gales & Hodge, 2003).

The ethical principles at Starbucks are therefore in relation to the provision of a good working environment and ensuring that the employees are treated fairly and given the respect that they deserve. They also ensure that there is organizational commitment to diversity and as per the organizational corporate social responsibility; the organization is in a position to contribute effectively to the community and the environment and finally an unfailing dedication to fair competition in the market through competitiveness.

Financial markets in the US

Financial market is a term used to define a platform whereby businesses can be able to grow through an exchange referred to as a financial transaction. In the United States, financial markets involve investments and an expectation of getting returns from the investments that have been made; the investments can be either direct investments or indirect investments. In direct investments the lending and borrowing of money is carried out directly between the involved parties whereas indirect investments take place when the businesses carry out the lending and borrowing processes through financial intermediaries. One of the most important components of the financial markets in the US is the stock market; members of the public are allowed to own shares in a company and these shares are traded in the stock market; through trading in these shares, an organization can be able to raise funds to undertake its activities and enhance productivity (Moon & John, 2003).

Strategic and Initiative

Starbucks strategic initiatives have been geared towards ensuring that the business is able to grow and that profitability is attained and maintained. This is in line with ensuring that there is a creation of a long-term shareholder value. This will be achieved through a rigorous expansion program not only in the US market but also in the other established coffee markets throughout the globe. It is important to note that all these strategic initiatives have been formulated in line with the ethical principles that have guide the organization.

Effect on financial planning

This expansion program will involve a high financial investment which will bear into the company’s finances quite heavily (Moon & John, 2003). This therefore calls for a more rigorous financial planning to ensure that the financial allocation is done effectively; ultimately the costs associated with these investments will increase but as per the ethical principles at Starbucks, the prices of the products cannot be increased to ensure that the costs are covered in the short term. However it will be necessary to allocate the available funds more effectively to ensure that any shortfall the may arise is covered effectively.

Effect on costs and sales

The costs that are to be incurred in the implementation of the strategic initiatives will go up; an expansion program involves an input of more funds into the planning and expansion efforts at Starbucks. With the increase in the investments which will eventually result in more branches globally, the projected sales will increase and the profitability of Starbucks will go up. As the number of branches keeps on growing and the nature of services on offer is improved, then more customers will be attracted and this will lead to an increase in the sales. This will result in more value for the shareholders and the overall reputation of the organization (Moon &John, 2003). It is however important to note that while implementing the strategic initiatives, the ethical principles are observed and given due consideration.


Anthony, W., Gales, L., & Hodge, B. (2003). Organization Theory: A Strategic Approach (6th ed.). Upper Saddle River, NJ: Pearson Education, Inc.

Moon, Y., & John, Q. (2003). Starbucks: Delivering Customer Service. Harvard College. Boston: Harvard Business School.

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