The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...
the basic information about the company. Name, national or multinational, based and operating in what country
Each year for the last eleven years, Ethisphere researches and lists the most ethical companies in the world. It starts out with a 200 question survey that is completed by company executives. The answers are checked and verified for their accuracy. Some of the questions are straightforward, and others are scenario based. Additionally, the company is looked at to ensure that ethics are present in the company’s culture starting from the most senior executive all the way down to the newest hire. Furthermore, corporate citizenship and responsibility are examined through questions and data relating to their environmental impacts and the company’s methods to analyze those impacts. Also, they look at the structure of the organization making sure the company’s CEO and board-chair positions are not one in the same and seated by different people. The diversity in the workplace has some impact on the company’s overall rating as well (Kauflin, 2017).
The last step involves the company’s innovation and overall reputation. Also, Ethisphere looks at notable top business lists to see where they rate. One of the listings that are looked at is Forbes’ Most Trustworthy Companies list. Moreover, the backgrounds of all of their executives are researched to ensure there are no questionable ethics violations. Finally, they look at the high-profile speaking engagements of the company’s high profile executives. This is a good indicator of the companies reputation and standing in the corporate world. Out of the 124 world companies chosen, only 13 made the “Worlds Most Ethical Companies” list each year (Kauflin, 2017).
1. Supply the basic information about the company. Name, national or multinational, based and operating in what country.
Gordon Bowker, Jerry Baldwin, and Zev Siegl started Starbucks in 1971 in Seattle’s Pike Place Market. They started out as a roaster company specializing in whole bean coffee. Starbucks corporate headquarters is located in Seattle Washington. It is a multinational store with Stores located in approximately 65 countries with a little over 22,500 stores (Starbucks Corporation, 2017).
2. Who are the stakeholders in this company?
The stakeholders of Starbucks include the employees, customers, suppliers, environment, governments, and investors. The organizational culture of Starbucks emphasizes the employees being first. It starts out by giving their employees a wage that is above the minimum wage standard. Additionally, they set up a scholarship program with the University of Arizona, which pays for 56 percent of tuition for employee’s junior and senior years of schooling. Currently, Starbucks executives are addressing wages in other countries as well. For example, New Zealand’s youth wage is extremely low, and they are attempting to improve social responsibility in a country with mandated low wages (Starbucks, 2017).
The customers are what makes the company successful. Corporate interests in the customer base are high, and they want to match that with high-quality products and customer service. The company’s culture is included at all of their locations around the world. There are strict guidelines in place as to how baristas communicate and interact with their employees. It is expected that all employees greet their customers in a warm and welcoming way. Furthermore, if the customer has an issue, it is dealt with and taken care of immediately (Starbucks, 2017).
The suppliers are composed of the wholesale coffee market and from individual coffee farmers. They are required to be transparent under Starbucks’Coffee and Farmer Equity program. Additionally, they address any national or international concerns through several other corporate social responsibility programs, and the interests of the stakeholders are continually discussed through these programs. Moreover, it is important that an atmosphere of a diverse supply chain is present within its culture. This diversity is accomplished by using suppliers from different countries. This creates diversity within the supply chain. Also, executives make sure their suppliers are paid properly and promptly (Starbucks, 2017).
The goal of Starbucks is to have environmentally sound operations. They have ensured higher biodiversity and shade quality in coffee farms. Consequently, it is a requirement that they are nationally and internationally certified utilizing only the best, environmentally sound procedures. Currently, over 90 percent of their supply is only from certified farms. The company is currently working on certifying the remaining 10 percent (Starbucks, 2017).
Starbucks addresses the investors and foreign governments as stakeholders. The investors look for high financial performance and longevity within Starbucks. Despite a decline in 2007, Starbucks has maintained high performance in local and global markets, which satisfies the interests of the investors. Furthermore, due to the global nature of the company, Starbucks has a responsibility to other governments. Remaining in compliance with the rules and laws of other countries is necessary for the company’s reputation as well as expansion into other markets. Investors will not invest their monies into a company that does not follow the rules (Starbucks, 2017).
3. What positive ethical behavior does the company demonstrate?
For Starbucks to experience success, the leadership believes that they have to adhere to ethical business practices while always striving to do what is right. Starbucks has an ethics and compliance department that protects its culture by fostering one that only supports high ethical leadership standards. Furthermore, the management provides training and other resources that ensure their leadership and other corporate partners only make ethical business decisions (Johnson, 2006). The “Standards of Business Conduct” are in place and apply to all members of the Starbuck’s team. Additionally, the corporation expects any third party companies or contractors to have similar ethical standards in place. Finally, they want to provide the best quality product to its customers. They do this by sourcing and ethically acquiring the finest coffee beans in the world (Starbucks, 2017).
The company takes care of its employees by providing competitive benefits packages and provides a respectful work environment regardless of color, sex, race, sexual orientation, etc. Furthermore, it strives to provide healthy choices and products. Also, the company helps its farmers by providing community outreach programs and loans to protect them from economic hardships. Starbucks has a continual assessment process in place that looks at the company’s zero-tolerance standards (Starbucks, 2017). In 2011, they discontinued their partnerships with 26 factories that were in violation of those standards.
4. What benefits are derived from positive ethical behavior for the company? The Stakeholders? The community?
Starbucks has many ethics programs in place that ensures employee behaviors align with the culture of the company. This alignment produces employees who have shared values with those of the organization. In turn, strong teams with high ethical standards form in the workplace. Having employees with high ethical standards affords the opportunity for a good relationship with the general public and community it services (Johnson, 2006). The ethical behavior needs to start from the top and go down to all levels. High ethical standards have a positive impact on all stakeholders. Starbucks has these ethical standards, which promotes an increase in all stakeholders wanting to do business with the organization. When ethical standards are compromised and publicly addressed, the company loses stakeholders from all areas. Having ethical company practices, stakeholders will remain loyal to the organization. In essence, it gives Starbucks a competitive edge and makes their products and services more attractive to old and new customers. If a company is respected in the community for ethical practices and relations, the benefit is seen by all stakeholders at all levels within the organization (Johnson, 2006). With so many social media platforms in place, the good and the bad within an organization can be known from one part of the world to another in a matter of seconds.
Johnson, C. (2006). Ethics in the workplace: Tools and tactics for organizational transformation. SAGE. Retrieved from http://books.google.com/books?
Kauflin, J. (2017, March 14). The World's Most Ethical Companies 2017. Retrieved November 24, 2017, from https://www.forbes.com/sites/
Starbucks Corporation. (2017). Starbucks Company Profile. Retrieved November 25, 2017, from https://www.starbucks.com/
Comments