Ethical issue at Starbucks Research Paper Example | Topics and Well Written Essays - 1250 words

Ethical issue at Starbucks - Research Paper Example However, recent discoveries show an otherwise picture (Cross et al 2009). According to Rhetoric Society of America et al (2004), Starbucks has been covering up many things such as serving milk with GM growth hormone in US. Besides, it has been running relentless campaigns of bursting unions. According to Schultz et al (2011), the company is also accused of attempting to block the attempts of Ethiopia to improve the coffee grower’s livelihoods. Furthermore, it has also petitioned a federal judge to accept in past sexual history evidence of a former employee aged 16 years when she took sexual harassment case to court. Despite the fact that the company has sold as standard Fair-trade Coffee since 2009 in all its stores in UK, the rest of the operation globally on the uptake has been slower. The firm has been criticized even for its operations in US by Organic Consumers Association also dragging its feet in Fair-trade launch (Michelli 2007). In addition, Gilbert (2008) points out the order by the US court on Starbucks to pay low wage staff more than $100million in California in a ruling that the workers improperly shared with their bosses some tips although was overturned subsequently after a successful appeal. The lawsuit against Starbucks was for using tactics that are anti competitive to eliminate their competitors. The employees of Starbucks would give out their coffee rights as free sample outside the small shops of coffee in their neighborhoods, thereby gaining more profit and business for themselves. Furthermore, Bussing-Burks (2009) add that they sometimes even tried to buyout other shops of coffee near them. They would sometime sign leases for almost 3 times of the market price to make the landlords not rent it out to other sellers of coffee. Marie et al (2009) adds that Howard Schultz the chief executive officer earned a pay rise of 25% after a cost of $580 million slashed from the company in the year 2009. By analyzing the actions of Starbucks, it is unethical because the stores of small coffee give much to the people in the towns they are located compared to what Starbucks does. Majority of people love small coffee shops with reasonable coffee prices in their surrounding towns. On the other hand other people would be contented with Starbucks. However, Kachra (1997) explains that although you might love Starbucks, you would not like a coffee shop that has been in existence in your town for long being faced out of business. According to Schultz et al (2007) the small coffee shops found in most towns gives happiness to more people unlike Starbucks which overcharge their coffee. It is very unethical for a firm like Starbucks to overprice their products since they know they are alone in the market after displacing other businesses therefore people will lack other options. Moreover, they disregarded other small business by being selfish and negatively facing them off gaining all the clients and profits. Fellner (2008) observes th at the company did not value people but considered them as sources of profits. Their technique of expansion does not have goodwill and they are also not motivated rightfully. Simon (2009) observes that the company does not also comply with their set legislations. This is because Starbucks motto clearly elaborates they will treat their clients dignity and respect. However, no dignity or respect is shown to their clients or even the communities. According to Olsen (1994), Starbucks