Ethics Problems of Starbucks

Although the company has worked hard since 2009 establishing a Fairtrade Coffee standard for its UK stores, the larger global operation has been dragging with regard to uptake. A good example is the U.S.A operation that has received much criticism from the Organic Consumers Association (OCA) (Macdonald, 56). OCA has constantly blamed Starbuck for its slothfulness in launching Fairtrade. Additionally to the speculations laid on Fair-trade, Starbuck came under the spotlight when the U.S court ordered it to pay it’s low –wage employees more than $100m following a ruling that implicated its management for demanding a share of tips given to the employees. This ruling was overturned later following an appeal. In 2009, Starbuck company slashed the costs by $580, however, the then CEO Howard Schultz got a 25percent pay increase.

The exploitation of coffee farmers is the other unethical practice of Starbucks. Contrary to their claim of supporting coffee farmer’s welfare within the developing nations, this firm has been blamed for manipulating these farmers and even underpaying them. According to an NYC delegation that traveled to Ethiopia in 2007 with the aim of discussing the working condition with exploited farmers, the farmers were being manipulated, getting only $0.57 per pound from the Ethiopian Sidamo coffee. This represented a mere 2.2 percent of the expected retail price. Tedasse, a farmer from Fero Co-Operative said: “They deceive us by telling us that they’re going to help us grow, but they are the ones that are growing.”&nbsp. Starbucks is blatantly conscious of its mistreatment of coffee farmers. however, it fails to take action against the exploitation and help workers who are constantly living in poverty. While commenting on this matter with reference to what made Nike unethical, Douglas Holt, a professor at Oxford University said, “Just as consumers were disgusted by the fact.