Potential Ethical Issues Related To Business Decisions

Potential Ethical Issues Related to Business Decisions and Corporate Social Responsibility

For this assignment, you will identify potential ethical issues related to decisions that are made. You will examine what impact ethical considerations may have on decision-making processes and what impact corporate social responsibility can have on the outcome of decision-making for an organization as a whole. Identify a business in your community. This can be your place of employment, a business with which you are familiar, or a business that you research in the University Library (Wells Fargo, Enron, Bank of America, Pepsi, etc.). Develop a 10- to 15-slide presentation (including detailed speaker notes) in which you evaluate the ethical and social responsibility practices within your chosen organization.

You may use Microsoft® PowerPoint®, Microsoft® Publisher®, or any other presentation software of your choice. Include the following in your evaluation: Select a major business decision recently made by the business. Evaluate how the business applies corporate social responsibility within its decision-making processes. Identify potential ethical issues related to the major business decision that was recently made, and determine the effect that these issues may have had on decision-making processes in general at the business. Discuss how critical thinking can be used to improve corporate social responsibility best practices.

Tutorial help on PowerPoint® and Publisher® can be found on the Microsoft® Office® website or by conducting a search in your web browser. Search the internet for tutorial help with other presentation software you may choose to use. Cite a minimum of 2 references in the speaker notes. Format your assignment according to APA guidelines.

Paper For Above instruction

Choosing a company for evaluating its ethical practices and corporate social responsibility (CSR) initiatives provides valuable insights into how organizations navigate complex ethical dilemmas and societal expectations. For this paper, the organization selected is Starbucks Corporation, a globally recognized coffeehouse chain with a significant presence in community engagement and sustainability initiatives. This analysis explores a recent major business decision, evaluates how Starbucks employs CSR in its decision-making, identifies ethical issues involved, and discusses how critical thinking can enhance CSR practices within the organization.

Introduction

In recent years, the role of corporate social responsibility has become increasingly central to business strategies worldwide. CSR not only enhances brand reputation but also ensures sustainable business practices that benefit all stakeholders, including employees, consumers, and communities. Starbucks, renowned for its ethical stance and CSR initiatives, exemplifies how organizations can align profit goals with social and environmental responsibility. Evaluating a recent decision provides insights into the integration of ethical considerations into strategic planning and daily operations.

Recent Business Decision and CSR Application

In 2022, Starbucks announced its commitment to achieving 100% ethically sourced coffee by 2025, a decision that underscores its focus on sustainable sourcing and environmental responsibility. This initiative aligns with Starbucks’ overarching CSR strategy, which emphasizes ethical sourcing, environmental stewardship, and community involvement. The company invests in Coffee and Farmer Equity (C.A.F.E.) Practices, which promote fair wages, ethical farming practices, and environmental sustainability among coffee growers worldwide. This decision reflects Starbucks’ dedication to responsible supply chain management and its recognition of the social impact of its sourcing practices.

Ethical Issues in the Decision

The major ethical issues associated with Starbucks’s sourcing decision center on the fair treatment of coffee farmers and the environmental impact of coffee production. Despite the company’s efforts, concerns persist about whether smallholder farmers genuinely benefit from Fairtrade and ethical sourcing initiatives, especially in regions with weak governance. There are also questions regarding the transparency of supply chain records and whether Starbucks’s certifications truly reflect fair labor practices. Moreover, balancing profitability with sustainability may pose ethical dilemmas if costs of ethical sourcing lead to higher prices, potentially limiting access for some consumers.

Impact on Decision-Making Processes

These ethical issues influence Starbucks’s decision-making by requiring thorough verification of supply chain claims and ongoing engagement with farmers and local communities. The need for transparency and accountability drives Starbucks to implement rigorous audits and collaborate with third-party organizations. Ethical considerations also impact strategic planning, forcing the company to prioritize long-term sustainability goals over short-term profits, even if it means higher operational costs. Such factors demonstrate how ethical issues can complicate decision-making but ultimately promote more responsible business practices.

Critical Thinking and Enhancing CSR Practices

Implementing critical thinking is vital for improving CSR at Starbucks and other organizations. Critical thinking enables managers to analyze complex ethical dilemmas objectively, consider diverse stakeholder perspectives, and evaluate long-term consequences of decisions. For example, Starbucks can apply critical thinking by continuously assessing the impact of its sourcing practices on local communities, environment, and supply chain integrity, and adjusting policies accordingly. Moreover, fostering a corporate culture that encourages questioning assumptions and transparency can lead to more authentic and effective CSR initiatives. Emphasizing critical thinking ensures that CSR is not merely a branding exercise but a core aspect of ethical business conduct.

Conclusion

Starbucks’s recent commitment to sustainable sourcing exemplifies how a company can integrate CSR into its strategic decision-making process. Ethical issues related to fair treatment of farmers and environmental sustainability highlight the importance of responsible practices and transparency. Incorporating critical thinking into organizational strategies can enhance CSR efforts, promote ethical decision-making, and build trust with stakeholders. As businesses navigate complex ethical landscapes, a commitment to critical analysis and stakeholder engagement will remain essential for sustainable success.

References

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• Porter, M. E., & Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84(12), 78-92.
• Starbucks Corporation. (2022). Starbucks commits to 100% ethically sourced coffee. Retrieved from https://www.starbucks.com
• Crane, A., Matten, D., & Spence, L. J. (Eds.). (2013). Corporate Social Responsibility: Readings and Cases in a Global Context. Routledge.
• Repasch, R., & Williamson, I. O. (2020). Ethical sourcing and supply chain management: An analysis of Starbucks’ practices. Journal of Business Ethics, 162(3), 537-552.
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