Unit 6 Ethical & Legal Considerations. Small Business Operations. Social Responsibility. Social responsibility is the concern a business has about the consequences of its actions on others.
Small Business Operations
Source: Marketing, 3e, page 47
Corporate social responsibility (CSR) or corporate citizenship entails companies behaving in a socially responsible manner, and dealing with other business parties who do the same. With growing public awareness and demand for socially responsible businesses, it is little wonder that companies of today take corporate social responsibility into account when planning future socially responsible business operations. This case study examines one such example of corporate social responsibility exemplified by Starbucks.
Starbucks is an international coffee and coffeehouse chain based in Seattle, Washington, United States. It is famous for its skinny lattes, espressos, mochas and frappes. According to the Starbucks website, Starbucks’ take on corporate social responsibility is by being responsible, acting ethically and doing things that are good for the planet and each other.
Use of Fair Trade Ingredients
Procurement of Fair Trade ingredients has been adopted by various socially responsible businesses who exemplify corporate citizenship. This is part of its wider Framework for Corporate Social Responsibility. Fair Trade products such as fair trade coffee, fair trade clothes and fair trade chocolate are meant to remedy some of the problems associated with regulating factory and workplace conditions of companies that produce goods and services in foreign countries and import their products into their home countries. Fair Trade standards ensure that employees have safe working conditions, work reasonable hours and are paid a fair amount for their work.
According to the Starbucks website, in order to purchase Fair Trade Certified™ coffee as part of its supply chain strategy, Starbucks pays a minimum of $1.26 (U.S.) per pound ($2.77 per kilogram) for Fair Trade certified ingredients such as non-organic green Arabica coffee and $1.41 per pound ($3.10 per kilogram) for organic green Arabica coffee, which are substantially over and above the prevailing commodity-grade coffee price.
Engaging the Community through Community-based Projects
One approach to engaging in corporate social responsibility is through community-based development projects. Community-based and community-driven development projects have become an important form of development assistance among global socially responsible companies. An economic relationship implies a strategy of engaging the wider community into the core business activity of the company so that communities become embedded in corporate supply chain strategy to create a sustainable business. An example of this approach can be seen in the development project CARE International and Starbucks started in 2007 in Ethiopia in the GewgewDingete villages in West Harrarghe, Ethiopia. The project aims to provide farmers and their families with better food, safe drinking water and greater income, as well as diversified income opportunities. Through the project, community warehouse facilities were built, a haricot bean loan scheme and vegetable seed bank were initiated and farmers were trained in crop husbandry and marketing. These would thus help the farm become a more sustainable business for each farmer in the village.
The Rainforest Alliance Certified seal is a guarantee that coffee is grown on farms where forests are protected, rivers, soils and wildlife conserved; workers are treated with respect, paid decent wages, properly equipped and given access to education and medical care.
These farms are on a path toward true sustainability. Forested coffee farms are critically important to serve as migration stopovers for birds traveling from as far away as Canada and Alaska. In areas where deforestation is rampant, these coffee farms may be the only habitat available to provide shelter and food for wary birds.
Source: Marketing, 3e, page 50
To the best of my knowledge and ability, in executing my job responsibilities:
1. I act with honesty and integrity, avoiding actual or apparent conflicts of interest.
2. I provide internal and external constituents with appropriate and objective
information that is full, fair, accurate, timely and understandable.
3. I comply with all applicable governmental laws, rules and regulations, and other appropriate private and public regulatory agencies’ requirements.
4. I act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing my independent judgment to be compromised.
5. I respect the confidentiality of information acquired in the course of my work except when authorized or otherwise legally obligated to disclose. I will not use confidential information acquired in the course of my work for personal advantage.
6. I proactively promote ethical behavior as a responsible partner among others in my work environment. I understand my accountability for adhering to this code and my responsibility to report violations of this code to the corporate compliance officer or other appropriate individuals in accordance with Starbucks Standards of Business Conduct.
7. I exercise responsible stewardship over company assets and resources and maintain appropriate internal controls.
The Sanitarian will check the holding temperature of food items to ensure that they are being held at a temperature that will prohibit the growth of bacteria.
The following slides have an abbreviated list of items that the Sanitarian will look for. The complete list of rules and regulations for retail food establishments can be found at www.healthyarkansas.com.
Wash hands with soap for 20 seconds then rinse. Use paper towel to dry hands and turn off facet.
An individual with a disability is a person who:
A qualified employee or applicant with a disability is an individual who, with or without reasonable accommodation, can perform the essential functions of the job in question. Reasonable accommodation may include, but is not limited to:
An employer is required to make a reasonable accommodation to the known disability of a qualified applicant or employee if it would not impose an “undue hardship” on the operation of the employer’s business. Reasonable accommodations are adjustments or modifications provided by an employer to enable people with disabilities to enjoy equal employment opportunities. Accommodations vary depending upon the needs of the individual applicant or employee. Not all people with disabilities (or even all people with the same disability) will require the same accommodation. For example:
Many employers will display a poster similar to this one. Most businesses will also include a statement such as “equal opportunity employer” along with job posting and on their official business stationary.
Source: Business Principles and Management, 12e, page 39
Starbucks recently announced that 50 percent of each store’s energy will be derived from renewable sources, and that stores will be 25 percent more energy efficient. All stores’ incandescent bulbs will be switched to energy efficient LED bulbs.
Source: Marketing, 3e, page 47
Can the SBE initiate a recycling program? How and what would be recycled?
Starbucks redesigned their Pike Street location (not far from the original Seattle location) to include wood cabinets made of fallen Seattle trees, a community table re-purposed from a old ship and preserved columns, floors and ceiling.