AN ASSESSMENT ON BUSINESS ETHICS IN REGARDS TO STARBUCKS CASE STUDY
Table of Contents
Business ethics is an important aspect of considering all sorts of ethical practices and also safe practices at the business sites and as well as in case of all sorts of business-oriented activities. It allows the organization to have an effective management system and to get a better organizational culture while ensuring that they are able to prioritize their consumers at all costs (Tikson, 2018). The case study incident where the two men were arrested for allegedly “trespassing” according to one of the employees is probably one of the most appropriate examples for the violation of business ethics and inappropriate training to the employees about ethical work policies and practices (CBC News, 2018). They were waiting for the third individual(unnamed) and hence yet to place an order. They were denied washroom services and also later they were arrested. This incident sparked how business ethics are often found to be racially biased and require revision of the same (Gheraia, Saadaoui & Abdelli, 2019).
Identifying the interconnection of mission, core values, and ethical practices in the case
Some of the most effective core values that are commonly integrated and infused with the organizational policies of any organization across the globe are integrity, respect, responsibility, sportsmanship, leadership (Kang & Namkung, 2018). These core values are usually infused and efficiently implemented into organizational policies and business ethics. However, this situation and the incident do testify to the violation of these core values since the employees and then Starbuck committee did not commit to their integrity, and the aspect of respect and being responsible were absolutely absent. Although post the incident and after numerous criticism the CEO of Starbucks, Mr. Kevin Jonson stated his intention to apologize to the two victims face-to-face (CBC News, 2018). The aspect of ethical practices was also equally violated since the company authority did not showcase any sense of trust and were racially motivated behind dialing the calls to 911 and made that arrests to two innocent men (Lutge & Uhl, 2021). This does also show the companies in compliance with their own mission- which is to nurture and inspire the human spirit. The consistent sense of the racial motivation behind harassing them in front of a white majority population in that café speaks volume about the innate racism that white citizens have been imposing upon the black citizens of the country, something that also raises concern regarding an immediate investigation into the company policies and their business ethics (Nguyen, 2020).
Analyzing the actions taken by Starbucks and the effectiveness of these actions.
Starbucks according to the CBS news, the authority is investigating further into such consequences and the CEO decided to personally apologize to them for the effectivity that this incident had caused on those men (Rhodes, 2019). However, their most effective action has been to revise and take further sense of assessment into their business policies and all sorts of practices while making sure that they are able to train their employees regarding it to ensure that they are able to showcase the actual company policies and organizational practices effectively while making sure that they can possibly initiate a discussion and a possible healthy investigation in case of occurrence of similar incident in the future (Subramaniam, 2020). However, the in effectivity lies in the fact that the amount of trauma that could have caused to those two men, considering the exiting trauma that they have already had growing up as Black individual (CBC News, 2018). The public sense of embarrassment is something that can be compensated with any personal apology and also that the police department did not do much of press to ensure that they did not consider an investigative gestures before arresting the two men, something that shows the in-effectivity in the law enforcement system and also all sorts of actions facilitated by the company post incident (Tikson, 2018).
Demonstrating an understanding of a pro-active approach in addressing ethical issues.
In the development of an ethical policies in a company and them for its effective implementation it is very important that the company has a team to ensure for a pro-active approach set up to effective address those ethical concerns at the business sites or within the disciplines of the organization (Gheraia, Saadaoui & Abdelli, 2019). One of the most important thinks for the first step of adapting any sorts of pro-active approach is to develop. A code of ethics something that would potentially set the tone of behavior in the workplace, in this case the Starbucks (Kang & Namkung, 2018). The next step is to establish protocol, something that the company workers and all the employees are required to be incompliant with and are required to be abided by at all costs. The aspect of empowering the employees working at the company is definitely an effective way to go about it and set a beautiful example for how to address all sorts of ethical concerns effectively (Lutge & Uhl, 2021). The consistent review and monitoring and if required revision of the code of ethics previously set into the organisation is definitely important and crucial for the effectivity of the business and a steady update of the overall system that the business ethics of the company claims to follow (Nguyen, 2020).
Synthesizing the facts and issues in the case and analyze the course of action taken by Starbucks.
Some of the most effective and visibly problematic issues that could be deduced from this incident is how racially motivated the employee was to ensure that the two men get arrested and get publicly shamed whereas there are huge numbers of white populations who could sit at any Starbucks café or any café for that matter without ordering and leave (Rhodes, 2019). The major consideration was that they were waiting for somebody to arrive for some business meeting something that has been allegedly there as in why they did not feel the need to place an order and wait for their third fellow (Subramaniam, 2020). The overall development of the incident was therefore also a testimony to the systemic racism that organization, business, workplace, malls, café and every possible place hold and can exhibit when the right time comes (Tikson, 2018). Following the incident, the Starbucks authority took a series of actions for example the CEO announced to revise their organizational policies and also restructure their business ethics while ensuring that the employees would receive ample training program to have better understanding of all the better and much more effective ethical practices (Lutge & Uhl, 2021).
The overall incident has found to be quite monumental of how relevant is to have discussion against the systemic racism and how ineffective the law enforcement and judiciary system of the country is against such shameful progression of the events, However it is also relevant that the aspect of preconceived notions and judgements amongst the human is something that needs to be accepted and the healthy resistance has to be consistent along with it (Lutge & Uhl, 2021). The reaction on the social media and the customers during the incident at the venue their reactions have also been an example why people and the country citizens have not yet forgotten to be consistent with their individual sense of integrity something that makes the incident and the following actions taken by Starbuck authority (Kang & Namkung, 2018).
CBC News. (2018, April 15). Starbucks CEO offers ‘face-to-face apology’ after arrest of 2 black men sparked outrage. https://www.cbc.ca/news/world/starbucks-arrest-black-men-apology-philadelphia-1.4620764
Gheraia, Z., Saadaoui, S., & Abdelli, H. A. (2019). Business Ethics and Corporate Social Responsibility: Bridging the Concepts. Open Journal of Business and Management, 7(04), 2020. https://www.scirp.org/html/33-1531003_95926.htm
Kang, J. W., & Namkung, Y. (2018). The effect of corporate social responsibility on brand equity and the moderating role of ethical consumerism: The case of Starbucks. Journal of Hospitality & Tourism Research, 42(7), 1130-1151. https://journals.sagepub.com/doi/abs/10.1177/1096348017727057
Lutge, C., & Uhl, M. (2021). Business Ethics: An Economically Informed Perspective. Oxford University Press, USA. https://books.google.co.in/books?hl=en&lr=&id=v34fEAAAQBAJ&oi=fnd&pg=PP1&dq=business+ethics+of+starbucks&ots=dXtgxvNKmu&sig=5Y-EgxgNL95SUkKPH2XmsyAShlI&redir_esc=y#v=onepage&q=business%20ethics%20of%20starbucks&f=false
Nguyen, C. (2020). Sustainability marketing concept: Case Starbucks. https://www.theseus.fi/handle/10024/355410
Rhodes, C. (2019). Disturbing Business Ethics: Emmanuel Levinas and the Politics of Organization. Routledge. https://books.google.co.in/books?hl=en&lr=&id=j9SlDwAAQBAJ&oi=fnd&pg=PT7&dq=business+ethics+of+starbucks&ots=lKaxEvJJf0&sig=sIPfcuhKlTtV6Pfgc6iLvZTo2F0&redir_esc=y#v=onepage&q=business%20ethics%20of%20starbucks&f=false
Subramaniam, T. V. (2020). Impact of social media on digital marketing: starbucks marketing strategy on Twitter. Case study, 2, 1-7. https://www.researchgate.net/profile/Tevayshini-Subramaniam/publication/338448273_IMPACT_OF_SOCIAL_MEDIA_ON_DIGITAL_MARKETING_STARBUCKS_MARKETING_STRATEGY_ON_TWITTER/links/5e157dcf4585159aa4bcf716/IMPACT-OF-SOCIAL-MEDIA-ON-DIGITAL-MARKETING-STARBUCKS-MARKETING-STRATEGY-ON-TWITTER.pdf
Tikson, S. D. S. (2018). Human Resource Policies and Work Culture: A Case of Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), 1-12. http://journal-old.unhas.ac.id/index.php/jbmi/article/view/1773
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