Starbucks Ethical Processes
In line with this, Starbucks Coffee is recognized as one of the largest and leading multinational corporation in the world. Starbucks was able to extend the scope of its business corporation to different counties around the world and in 1999 the corporation was also able to infiltrate the market of the Middle East. Starbucks Corporation was able to successful established numerous branches of Starbucks Coffee in the Middle East. However, despite the success of Starbucks Coffee, there are still some problems that it needs to address, especially when it comes to the ethical processes of the corporation in dealing with its employees and customers. Being the case, this paper focuses on the ethical processes of Starbucks Coffee, specifically the ethical processes of the corporation in their Middle East branch that deals with their employees and customers. In doing so, the paper includes a brief overview of how Starbucks began in the Middle East. In relation to this, the processes of Starbucks Corporation in dealing with its employees and customers is also given due attention. The paper also emphasizes on the ethical dilemmas that the Starbucks Corporation is experiencing in the UAE when it comes to the way they handle their employees and customers. In addition, the ways by which the ethical dilemmas in Starbucks Middle East are currently addressed is also highlighted. Lastly, the ethical dilemmas of Starbucks Middle East are also analyzed by means of projecting it five years from now and assessing the ways these problems can be addressed.
Brief overview of Starbucks Middle East
Starbucks Coffee Corporation had been present in the United States since 1970s. The corporation had started in the United States and was named from Herman Merille from the book Moby Dick. Hence, the Starbuck Coffee Corporation had continuously grown into a bigger corporation which provides quality coffee and customer service for their clients in different parts of the world. Moreover, Starbucks Coffee Corporation had established its market in different continents in the world such as Europe, Latin America, Middle East, the Pacific Rim and the North America. Thus, Starbucks Coffee Corporation had been excelling in providing the best coffee for its customers in different parts of the globe.
Starbucks Coffee Corporation in the Middle East had started in 1999 in Kuwait. The process started by attaining a license agreement with a private Kuwaiti family business which is M.H. Alshaya Co. WLL. Thus, this corporation had partnered with the Starbucks Coffee Corporation in order to attain a Starbucks Coffee shops in the Middle East. Hence through this, the Starbucks Middle East had started expanding due to the high demand of the people.
The first Starbucks coffee shop had first opened in Souk Sharq, Kuwait. Hence, the start of Starbucks in the Kuwait became a significant aspect of the boom of coffee in the Middle East. Due to this, M. H. Alshaya Co. had managed to spread its Starbucks business to different parts of the Middle East such as The Kingdom of Saudi Arabia (KSA), United Arab Emirates (UAE), Egypt, Lebanon, Jordan, Qatar, Bahrain and Oman. It is noted that there are 117 stores which had been established in Turkey and 13 Starbucks coffee shops in Russia. In total, The M. H. Alshaya WLL is operating 286 Starbucks coffee shops in the Middle East alone (Starbucks Coffee Company, 2008).
Processes in Dealing with Employees
The Starbucks Coffee recognized its corporation as the premier vendor of the finest coffee (Starbucks Coffee Company, 2008). As part of the aforementioned reputation that the corporation wants to preserve people behind Starbucks give emphasis on providing the best experience to their every customer at each of their branches around the world. In line with this, hiring local employees is part of the commitment of the corporation to respect the customs and tastes of each country. In providing their customers the unique Starbucks experience, they hire local employees to ensure that the feel of the community is preserved (Starbucks Coffee Company, 2008).
At present, Starbucks has already given almost 2700 jobs to more than 30 employees with various nationalities and this includes Arab nationals. In over 280 operating stores of Starbucks in the Middle East, most of their employees have Arab nationality. Starbucks Middle East recruits their employees through the help of M.H. Alshaya. M.H. Alshaya is the partner of Starbucks in the Middle East, it is known as an Arab company that is responsible for the local recruitment of Starbucks in all the markets that the coffee company is operating within the region. Majority of the employees recruited by Alshaya are Arab nationals, specifically 100 of all employees in Jordan, Lebanon, and Egypt are Arab nationals 85 in Oman 26 in the Kingdom of Saudi Arabia, and 8 in Bahrain. Starbucks Middle East together with M.H. Alshaya are targeting to further increase the percentage of local hiring in the Middle East at the end of 2010 (Starbucks Coffee Company, 2008).
Starbucks are looking for employees who are young, energetic and enthusiastic, with good English language skills and with the initiative to enrich peoples daily lives in the Middle East (Starbucks Coffee Company, 2008). In addition, Starbucks also wants to hire employees that are hard working, team players, and have a great interest in acquiring knowledge about coffee-making and other related activities that are included in the product creation and services of the corporation. In relation to this, Starbucks also give due importance in training their staff. Starbucks continually train their employees throughout their career in the corporation, by starting in the initial training and entry in Alshaya and Starbucks up to their chosen career paths (Starbucks Coffee Company, 2008).
Starbucks give due attention and importance to their employees and this can be seen from the very fact that the corporation refers to their employees as partners rather than mere workers. A part of the mission statement of Starbucks says that, Were called partners, because its not just a job, its our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard (Starbucks Coffee Company, 2008). The mission statement of Starbucks clearly stated they call their employees as partners because they do not see their business as a mere job or task but rather it is rooted in their desire to serve people and give them a unique experience that only Starbucks can provide. In this sense, Starbucks gives value to their employees by putting their welfare in mind and by developing their skills not only in the coffee industry but also as an individual (Hamilton, 2007).
Starbucks in dealing with customers
In the course of Starbuck Coffees progress it had gained a very significant value which is to provide the highest quality of coffee and customer satisfaction to different individuals whom are constantly appreciating the coffee produced by the company. Hence, the importance of consumers is often given highlight by the coffee company. Throughout the process of their growth, Starbucks had well established that people who are often consuming their products must be well taken cared of. Therefore, all the products utilized by Starbucks are the best while also maintaining its social awareness with different entities such as farmers, health and the likes.
Through the main value of providing a high quality of the companys services, it had lead to the building a much accessible locations for its coffee shops. As earlier mentioned, Starbucks in the Middle East currently have 286 stores. Due to this, Starbucks Coffee could be attained by various types of people in various locations. Thus instead of customers reaching out to the coffee shop, it is the Starbucks Coffee Shop that is reaching out to different individuals. Hence, the locations of the stores are very accessible which enables consumers to have their Starbucks no matter where they are.
In addition to this, it must be taken note that the mission statement of the company states that to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. And the principles of how we live that every day, revolves around our coffee our partners (employees) our customers our stores our neighborhood, and our shareholders (Starbucks Coffee Corporation, 2008). Through such mission statement it is very clear that Starbucks had taken its responsibility within the community. The social responsibility had expanded together with its realization that it is now part of a community. Thus, the mission statement places the corporation as a normal establishment which could not be taken a part outside of the neighborhood. Starbucks is currently a lifestyle which different individuals could not live without.
Accordingly, the Starbucks Coffee Company is well aware of the different issues which are currently being faced by the society. Some of these activities are for the environment which the company helps lessening its environmental impacts through the solid wastes that the company creates. Starbucks had realized that we individuals have the same planet that we should conserve different materials and enhance the renewal of the resources which we are slowly losing. In the year 2015 the goal of the company is to attain different types of coffee which are traded ethically and are grown responsibly with less of chemicals and harmful to the body are well as the environment. At present, the cups which are being used by the coffee shop are said to be 100 recyclable or reusable (Starbucks Coffee Corporation, 2010). Also, the corporation had committed that it will provide one million community service hours each year (Starbucks Coffee Corporation, 2010). In order to further strengthen its social awareness the corporation had also acted in providing consumers different options of creating change in the world.
Provided that there are events such as the World Aids Day, Womens Day and the likes, the Starbucks Coffee Corporation Creates different schemes which stretches out to the people and the issue at hand. In such occasions, Starbucks partners with different governmental or nongovernmental organizations in helping people in need. One of the schemes that they create is the providing portions of their sales to different specific organizations. The money which is gathered is mostly utilized for programs for sick individuals who are on their way to recovery or for the continuous research for new medicine and methodology to prevent such. Through this, type of method, the Starbucks Coffee Corporation is still on the ground and maintains its connection and importance to the world and the people living in it.
Ethical Dilemma with Consumers
The coffee corporation had been actively participating and devoted to the needs of the people. It had already gained the trust and loyalty of its consumers that it had different branches in many parts of the world. Therefore, Starbucks is evidently prioritizing its people through its daily activities. However, there is a very controversial ethical dilemma which had been brought about by different individuals.
In the course of the Starbucks Coffees stay in its industry and the community, it had been active in supporting various kinds of awareness such as the Breast Cancer Awareness Aids awareness and many more. Season to season the company is imposing a marketing scheme which seeks to provide funding for different organizations. In this case, through the sales of the Starbucks with its every cup a portion of its price is donated to an organization which is in dire need of help in terms of funding as well as research and development (Griffin, 2007).
In the point of view of a consumer such action of the Starbucks Coffee Corporation is very positive because it is very aware of the current issues of the world. Furthermore, it is taking its responsibility within the world. Hence, such activity is also helping different organizations in attaining its various advocacies and relieving the world from much suffering. But then again it is the reality of this activity which is very unethical and questionable.
In analysis, such activity does not fully attain the perspective of providing awareness. Such activity done by the Starbucks Corporation is much likely to make an individual to forget that social awareness is fully acting upon a situation in order to eradicate or simply lessen the issue at hand. In the case of Starbucks, it seems to handle the different aspects of social awareness. It address the problem through the help of the people however buying a product does not fully help in providing people the awareness of the issue. Starbucks creates an easier way for people to help while also increasing its production and profit.
Through the activity of Starbucks Coffee Corporation, people tend to be less aware of the situation. In such sense, people are able to be free of their social responsibility because someone could act upon these types of issues through buying different products. Moreover, consumerism tends to be higher compared to providing direct help for people who are facing grate difficulties due to diseases, calamities and the likes (Griffin, 2007).
In viewing such situations, it is important that the Starbucks Coffee Corporation should understand that the process of helping must not only come from the money which is provided by the people but also through their actions towards their society and environment. Further, although the actions of Starbucks Coffee Corporation are towards development, progress and abiding its social responsibility with towards the world, it is the attitude and perspective of the people that must be observed. It is very concerning that people are letting an organization handle their responsibility in order for them to be relieved and do other personal activities.
Ethical Dilemmas in Employees
One of the main strengths of Starbucks Corporation as a multinational company is the good reputation that they have built not only in the international economy but also with the general public. Starbucks was able to enhance its good image in the public by means of giving utmost emphasis in their corporate governance. As a result, Starbucks is making sure that they do not only serve good brewed coffees and other products to their consumers but they are also addressing the various social issues that are observable in the world. In line with this, Starbucks makes sure that it addresses concerns related with the welfare of their employees. Giving importance to the welfare and development of employees as well as showing value to their contribution in the company is essential in order to have efficient and loyal people (Gitman McDaniel, 2007). Starbucks also believes in this aforementioned adage, which is why they have implemented various ways in order to show their employees that they are valued in the company. The corporation provides safe and good working conditions for its employees. Starbucks also give various training programs in order to develop the skills of the people working for them. Moreover, since Starbucks Coffee is located in different parts of the world, the corporation also respects the cultural diversity of its employees (Quatro Sims, 2008).
However, despite the importance that is given by Starbucks to its employees, there are still ethical dilemmas that merged within the corporation. The main ethical issue that Starbucks is facing is the cultural differences of its employees that are located in various countries. Although Starbucks respect the cultural diversity of its people conflict still emerge because the corporation has a very American culture, which sometimes conflict with the local culture of the employees in other nations like the countries in the Middle East (Griffin, 2007).
Starbucks was able to establish stores in the Middle East by respecting and following the customs of the Arab nations. This can be exemplified by the presence of all-men Starbucks stores in the region. The corresponding actions of the Starbucks have allowed them to easily operate in the countries in the Middle Eastern region. Nevertheless, the employees and other stakeholders in the organization still experience cultural differences, especially when it comes to negotiations and dealings that are happening between the American representative of the corporation and the local officials of countries in the Middle Eastern region. In addition to this, the different protocols that are observed by employees of Starbucks tend to differ because they have to adhere to the respective customs and norms of the community where a particular store is located (Griffin, 2007).
Starbucks was able to successfully established numerous stores in the Middle Eastern region because the corporation was able to give due consideration in respecting the norms and practices of the Arab nations. However, an American firm and employees with different cultures poses a dilemma for Starbucks because they have to make sure that the cultural differences among employees are properly addressed. Cultural differences can be regarded as a threat for the company, especially if employees will not be able to work together due to it. There are instances wherein the company has to mindful of their practices and this can be exemplified in the training of their employees. Starbucks has to properly decide whether the local employees in a certain Starbucks store should be train by an American official or by a local manager. In this scenario the dilemma of an American firm collaborating with local companies is highlighted.
Starbucks also have to address the standardization of process of their operations, especially when it comes to the conduct and way of service of their employees. Due to the different culture that the corporation must adhere to, the behavior and work ethics of their employees also vary in order to coincide with the local culture of the Arab nations. In addition to this, the employees also have to put in mind that Starbucks is an American firm, which entails that they also have to represent certain American practices in the store. As a result, the organization might have difficulties in standardizing the operations of Starbucks Coffee because the employees do not have one concrete guideline in serving the customers and working within the store. The diversity of the employees and other stakeholders in the Starbucks Corporation can be beneficial if only the aforementioned problems are properly addressed.
Starbucks in Five Years
In the span of five years, it is highly likely that the ethical dilemmas that are being experienced by Starbucks Corporation at present will still pursue in the following years. Five years from now, as an officer in the upper level management of Starbucks, I can be able to substantially and efficiently propose the corresponding changes in the corporation in order to address the ethical dilemmas of Starbucks. The ethical dilemmas that the corporation is facing have a lot to do with the cultural differences among its employees and also the way they relate corporate responsibility among their customers.
In terms of the ethical dilemma of Starbucks Corporation with their employees, the first thing that I will propose is a greater understanding and acceptance of cultural differences among the employees of the corporation. In doing so, I will implement cultural awareness seminars and training in order for the employees to become open-minded when it comes to cultures that are different from the one that they have. Employees in a certain Starbucks branch should not only be mindful of the social norms and practices of their community but the corporation should also expose them with the culture of other communities. In doing so, interaction among employees of Starbucks from different cultures will be easier sand more efficient.
Second, the dilemma between being mindful of the characteristic of Starbucks as an American firm and still incorporating local cultures would be easier by means of properly delineating the American influence and local culture adherence in the various branches of Starbucks around the world. The aforementioned proposal is especially applicable in the Middle Eastern region because there customs and norms are very much different from those of the Americans.
Third, as a manager in the upper level I will also plan on standardizing the protocols that employees follow in all the branches of Starbucks all over the world. In doing so, I will create a certain standard that employees must follow in order to guide their behavior in serving the customers of the store and also in dealing with other people in corporation. Nevertheless, I will put in mind the cultural consideration of the communities where the store is located. In this sense, I will establish a standard for employees that adhere to the basic rules and protocols of the company, which all the employees must adhere to regardless of their culture because it is part of the Starbucks experience that they have to provide for the customers. On the other hand, there will also be rules that pertain to the cultural differences of the communities or countries that the Starbucks Coffee Shops are located. In the case of the Middle East, the standardization of the employees will include the Arab culture wherein all employees within this geographic region will have a unified standard, which aims to give due respect to the culture of the Arab nations. By proposing and implementing these aforementioned changes in the Starbucks Corporation the ethical dilemmas when it comes to the employees of the organization will be addressed.
In addressing the problem at hand, it is very significant that the organization is well aware of the situation regarding the attitude of the society towards helping. As an officer, it is important that I create a different take in the perspective with the activities done by Starbucks. It significant that the whole corporation that the attitudes of people are changing due to such activities. Thus, the corporation should also have an awareness of the effects of such practice. Due to my position in the corporation I would be suggesting that Starbucks Coffee Corporation must conduct a study with regards to the activity of the people. Significantly, there must be surveys of the attitude of the individuals who are often drinking coffee in its various branches around the world. After conducting the research and seeing the results of the survey there must be changes in how the activities are handled by the department. Assuming that people had responded negatively on the survey thus, I would suggest a change of the process of attaining social responsibility.
In the course of the change, the act of social responsibility of the Starbuck Coffee Corporation must entail and active participation of different consumers that would want to take part with the activities of the Starbucks. Hence, in different trips or activity of the company must attain the support of their consumers through making them sign up for different activities such as providing relief goods, interacting with people who had been deeply affected by calamities and diseases and the likes. Moreover, the Starbucks Coffee Corporation shall ask their consumers to take a little time off from their busy schedules in order to help other people and experience a part of their likes. Through this, Starbucks is able to continue its marketing scheme while also providing the real social awareness for its consumers. With such type of methodology, it is important that every one is able to the create change not only through money but also through direct actions and awareness.
Conclusion
In conclusion, the Starbucks Coffee Corporation is a well known brand of coffee which provides its consumers a high value customer services. On the other hand, its partners (employees) are also a big part in attaining success for the company. Thus through the mission vision of the company it is very clear that the company is prioritizing the various entities present in the business. Therefore, it is one of the most responsible organizations in the global market. However there are different ethical dilemmas which are present and are a rising issue. On the employees perspective is presenting that the Middle Eastern region of the world is not fully opened due to the factor of culture and religion. Moreover, there are issues with gender and inequity which does not conform to the mission and vision of the company. On the other hand, the consumers also have a very concerning issue with different issues with regards to their attitudes towards social responsibilities and awareness. Although these are the case the future activities that must be done are presented in order to address the issues and eradicate future conflicts within the society.
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