On looking at the standards of business conduct of Starbucks, there are three aspects of the company profile that can be admired from it. Additionally, there are certain weaknesses that the business conduct generates. This is obviously based on the company’s view and explanation of what it considers their business heritage. Three positive aspects of the company’s business conduct are:
- Its detailed explanation of their ingredients sourcing: on the website, Starbucks commits to explaining in details on its ethical ingredients sourcing. This ethical sourcing information includes the company’s purchasing practices, their support of farmers and forest conservation programs, and their consideration of quality first when producing and packaging their products.
- Its consideration on environment: by stating their commitment to the environment around them, Starbucks gives a clear picture of what they stand for in their endeavor to create a better future and a consistent global climate.
- Their community involvement: the company is committed to promoting the thriving of communities around them.
The business conduct for Starbucks, however, lacks clarity when it comes to: (a) investor information since it is so brief. It would be hard in such case to demonstrate how the company is able to link up with the investors on some of their businesses. (b) Also, Starbucks have not been able to demonstrate in totality how their community involvement works; having explained their ethical sourcing and environmental stewardship so well, it is disappointing to see the briefness of their community involvement. (c) The company also fails to address its code of conduct when it comes to the employees. Little information is given about its employees, given the role they play in the company’s structure and future.
Looking at McDonalds’ business conduct, there is a clearer picture of a near-standard business conduct statement. McDonalds clearly give information about their employees, franchisees, and suppliers. They also state - in details - their commitment to creating a good neighborhood while cooperating with the locals in areas where they operate. Secondly, the company is able to demonstrate their stand by their prioritization of quality and universal efficiency. Thirdly, McDonalds have vowed to ensure – in their mission – that their actions and ambitions are indeed holistic and are based on outcomes. This shows that they care more about what their actions will yield that is positive to them and the community around. However, there also exist weaknesses in their business conduct statement. First, they fail to present it in a manner understandable to all. It is presented in form of reports, which keep on being archived as new ones are generated. Lack of proper presentation and documentation is thus a problem for them. Secondly, McDonalds fail to mention more about their ingredient sourcing. Unlike Starbucks, McDonalds does not mention their sourcing in details. They plainly state that they are committed to ensuring that their ingredients are ethically sourced. Lastly, it seems like their business conduct lies mostly in providing enduring, sustainable and profitable business models for them. There is no detailed proof that they are so committed to the community around them. The best business conduct statement would be that of Starbucks. It is clearer and properly presented than the McDonalds’ statement. It also touches on investor information ethics that the McDonalds’ one.
Having a code of business ethics is not enough by itself in any organization in ensuring ethical behavior. There needs to be additional supporting areas of implementation of the code of ethics. Such supporting areas mainly focus on monitoring and evaluation programs as well as policies that concentrate more on code of ethics implementation. Without such programs and policies, only little can be achieved by the code of business ethics. However, when monitoring and evaluation programs to place, every execution of ethical behavior is closely monitored to ensure that it is in line with what is required.
References
Murdick, R. G., & Murdick, R. G. (2001). Business policy and strategy: An action guide. Boca Raton, Fla: St. Lucie Press.
