What is a company’s reputation worth? It is worth everything and without it a company will not last for long. Ultimately, if a company has poor quality products, lack of customer service, and lack of integrity their customers will lose trust and quit doing business with them. “Among the rewards for being more ethical and socially responsible in business are increased efficiency in daily operations, greater employee commitment, increased investor willingness to entrust funds, improved customer trust and satisfaction, and better financial performance” (Ferrell, Fraedrich, & Ferrell, 2011, p. 18).
In order to survive, businesses must make a profit and be competitive. However, there must be a balance with how these goals are achieved and they cannot be achieved at the expense of their customers. Ultimately, companies have to promote transparency and Starbucks is no different. Transparency provides the public with knowledge of operations and does not cover up
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Notably, Starbucks implemented social responsibility to protect their brand image, balance economic prosperity, promote social integrity, and encourage environmentally sustainable standards (Lemus, von Feigenblatt, Orta, & Rivero, 2015). In fact, Howard Schultz publically stated, it is important to balance profits and social consciousness by always doing the right thing (Ferrell et al., 2011).
Importantly, Starbucks has been green before green was cool. Eventually, they established an environmental team, whose primary focus was developing policies to minimize their environmental footprint (Ferrell et al., 2011). Regularly, they look for new ways to assist in meeting their goal of total recyclability, for example: encouraging use of Starbucks tumblers instead of the throw away cups (Ferrell et al.,