BUS FPX 4801 Assessment 3 Creating an Ethical Culture

Student Name

Capella University

BUS-FPX4801 Ethics and Enterprise

Prof. Name

Date

Introduction

Starbucks Corporation has garnered recognition for its ethical corporate conduct and has recurrently secured a place on Ethisphere’s compilation of the world’s most ethical companies (Ethisphere, 2021). Nevertheless, continuous scrutiny and enhancement remain vital in navigating the intricate realm of international business ethics. This paper aims to scrutinize Starbucks’ prevailing organizational culture, propose a blueprint for augmenting its ethical culture, and recommend learning strategies to cultivate enduring ethical practices.

Analysis of Starbucks’ Current Culture

Starbucks’ mission statement underscores the nurturing of the human spirit, implying a commitment beyond mere profitability (Starbucks, 2021). However, certain value statements, particularly those concerning growth and performance, seem incongruous with this ethos. Lencioni (2002) delineates between core and aspirational values, intimating that Starbucks’ emphasis on growth may align more with the latter. Nonetheless, the company’s value statements generally advocate for ethical conduct, inclusivity, and integrity.

BUS FPX 4801 Assessment 3 Creating an Ethical Culture

Despite these assertions, Ethical Consumer censures Starbucks for several ethical deficiencies, including executive compensation disparities, tax practices, and inadequate environmental and labor policies (How ethical is Starbucks Corporation?, 2019). This underscores a discrepancy between Starbucks’ lauded corporate culture and its operational realities.

A Plan for Creating A More Ethical Culture

To fortify its ethical culture, Starbucks should confront the concerns raised by Ethical Consumer. This entails revising labor policies, especially in regions with documented human rights issues, and ensuring equitable compensation for employees. Moreover, the company should prioritize transparency in tax matters and environmental impact reporting. Although such modifications may entail financial implications, they are imperative for harmonizing corporate practices with ethical principles.

Learning Strategies to Foster an Ethical Culture

Initiatives to inculcate ethical values should encompass both top-down and bottom-up approaches. Executives can benefit from lectures, simulations, and mentorship to deepen their comprehension of ethical considerations. Meanwhile, employees should partake in regular ethical training sessions, potentially incorporating interactive elements and managerial involvement to bolster engagement and accountability.

References

Ethisphere. (2021, August 10). Honorees 2021 – World’s Most Ethical Companies. World’s Most Ethical Companies. https://worldsmostethicalcompanies.com/honorees/

How ethical is Starbucks Corporation? (2019, May 20). Ethical Consumer. https://www.ethicalconsumer.org/company-profile/starbucks-corporation

Lencioni, P. M. (2002, July). Make Your Values Mean Something. Harvard Business Review. https://hbr.org/2002/07/make-your-values-mean-something

Starbucks. (2021). Starbucks.com. https://stories.starbucks.com/press/2015/starbucks-mission-and-values/

BUS FPX 4801 Assessment 3 Creating an Ethical Culture