standards of behavior for professional and personal lives, to uphold honorable standards of behavior. a. promising to earn less profit per share There is a growing recognition of the need for corporate accountability. new CEO with a tourism background. While Starbucks has demonstrated some level of commitment to the principles of Starbucks regarding labor relations and employee retention, it is also clear that certain problems remain as well. d. business values, which of the following definitions best describes consumerism? Blooms: Remember Which of the following is not an example of a diffused shareholder? For that law, companies are. All companies must have a board of directors. MANGMT 4970 EXAM 1 (QUIZ QUESTIONS & CONCEPTS), Allen Cognitive Levels (ACL) & Allen Diagnost, CompTia A+ 220-1001 Core 1 Certification Prac, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. A. milk producers* The enhanced training set a standard for other companies that serve the public. Media While a power-interest grid is usually used to determine the key stakeholders of a business on an ongoing basis, it can also be used to focus on key aspects of a short-term challenge or situation. Ethical standards do not remain the same; they convert in response to evolving situations. Explain how owners benefit from doing business as a corporate entity. Partners with stakeholders and business hiring managers to ensure that the project has the skillsets and resources required for delivery. C. coffee and tea growers* service, for example. Which of the following is the lesson learned from the Edsel story? Donec aliquet. Labor union membership remains much higher in Europe and other Group of Seven countries than in the United States, in part because some of those countries allow managers to be members of the union. a. the "purchase" of Manhattan Entrepreneurs can still remain ethical while focusing on profit because they can't afford to have people disliking them as well as creating drama. Stakeholders: Essentially contested or just confused? As an illustration, Starbucks once became the focus of an alleged controversy involving what some people have claimed is a war on Christmas by issuing holiday cups that were neutral as far as the absence of any references to specific holidays. It is also competing with companies like Peet's Coffee & Tea Company, which have more exclusive products. Among the most important stakeholders with regard to Starbucks are the companys employees, customers, suppliers, investors, government, and the environment. C. Stakeholder perceptions have a large impact on success. Consider Fisher's remarks in the last two paragraphs. AACSB: Real-world, Difficulty: Moderate This button displays the currently selected search type. b. competitors Ben & Jerrys, an ice cream company known for its founders social Starbucks is a global coffee company that has a diverse group of stakeholders who have an interest in the company's performance and actions. c. media Today, it is a global roaster and retailer of coffee with more than 24,000 stores, 40% of which are in some 70 countries worldwide. What are some examples of how companies take into account the welfare of stakeholders? Answer: False. Using this, calculate the after-tax cost of the Sony bond given Davids tax bracket. From the beginning, Starbucks set out to be a different kind of company. d. Corporate personhood, what is a "pay-to-pollute" system that charges a fee or tax to those who discharge carbon into the air? In the most generic form of stakeholder groups, Starbucks has an effect on its Employees, Customers, Community, Suppliers, Shareholders, Government, and Competitors. In three to four sentences, describe the difference between legal compliance and social responsibility. being committed to ethical business practices. Protected classes are created by both federal and state law. Defectives16121414911118157812121516917161313151110109. Make a list of Starbucks' goals. d. he thought money should only be allowed for those in trades. Starbucks CEO Kevin Johnson earned a $1.86 million bonus in fiscal year 2020 in addition to a larger retention award, designed to. Participate in and support community . \text { Par value } & \$ 1,000 & \text { Coupon interest rate 6\% } & \text { Tax bracket 20\% } \\ Consult with business partners, managers or other key stakeholders. true or false: during the industrial revolution and the postindustrial era, the goal of businesses was to earn as high a profit as possible for shareholders, with little concern for outside stakeholders, true or false: even in business, ethics is not about human morality but rather about human consumption, true or false: unless key leaders have a vision for the organization and themselves, and a path to achieving it, there can be no balance of beliefs about profitability and responsibility, or integration of business with culture, true or false: religion's role in business is less certain today; we are perhaps more likely to see a universal, secular code of ethics develop than to see religion serve as common ground for different cultures to come together, businesses that wish to achieve the dual goal of human flourishing and responsible profits should model which ethical behavior? In 1981, Howard Schultz (Starbucks chairman and chief executive officer) had first walked into a Starbucks . Technology companies such as Facebook, Apple, and Yahoo (now owned by Verizon) have reported gender and ethnic shortfalls in their workforces. In several sentences, describe one ethical draw-back of job-sharing. d. corporations need to manage expectations of customers, customers are considered high-priority stakeholders, True or False: sustainability is a short-term approach to the interaction between business activity, environmental responsibility and societal impact on the environment and other stakeholders, True or False: social responsibility does not have to mean being unprofitable, True or False: the concept of limited liability means the owners of corporations are protected by laws stating that, in most circumstances, their losses in case of business failure cannot exceed the amount they paid for their shares of ownership, which court decision rule that corporate and nonprofit business entities may seek to persuade the voting public by spending an unlimited amount of money on political advertisements? Also, Starbucks faced the challenge of technology. For example, some Starbucks employees have joined labor unions and become involved with lawsuits against the firm over such issues as back pay, withheld wages, wrongful termination, and union-busting activities that included retaliation against employees that were involved in union-related activities (Phillips, 2003). local, state, national, and international laws and regulations. If the heirs of the business owner want to continue the business in their own names, they will be considered a new business, even if they are using the assets of the old business. Consumer responsibility is diminished if advertising is directed toward children. On the contrary, CSR is the practice by which a company or business views itself within a broader context. It is insufficient to have a mission statement, language on a website, or To uphold honorable standards of behavior. A. milk producers* B. urban and suburban communities* C. coffee and tea growers* D. plastic-cover manufacturers even perhaps industry standards? welfare for two reasons: It is good for business and the right thing to do. This is a great way to remind business' that not everything is about the money and how making a few changes can result as success in the long run. A. entities and people invested and influential in the success of an organization* C. remuneration Stakeholder Relationships: It appears there are growing disconnects among at least some of their stakeholders. C. Defining a companys ongoing mission* How does a corporation prioritize stakeholder claims? Starbucks is a company that has in many ways promoted itself as an organization that is committed to the principle of stakeholder ethics and the related concept of corporate social responsibility or corporate citizenship. For the coffee producers, Starbucks' position with regards to their needs can have a tremendous impact on the ways in which other coffee purchasers treat them as well. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Financial Analysis of PUMA and Nike, Inc. Starbucks Stakeholders: Employees and Customers. AACSB: Application, Difficulty: Easy c. ethics is the guiding principle for dealing with others Legal compliances are a set of compound rules (laws) process emphasizes competition and speed.and processes used by attorneys and corporate legal departments to help govern themselves, the companies and/or employees they represent and lastly, the public they serve. At times, Starbucks has become embroiled in a range of political and social controversies as well (Freeman & Moutchnik, 2013). Starbucks then took the step to close its thousands of US stores to conduct racial bias Describe at least two ethical duties an employer owes to their employees. Blooms: Remember Deontology is often regarded as a "here and now" philosophy. He had a tire blowout while driving and crashed into a $1,400 fire hydrant. social media, they are apt to speak up about their customer experience. What is the responsibility of the producer and the consumer? ), Local governments are seeking to institute tax advantages to attract business competition. When it comes to paying their "duties" to society, a corporation can do that by donating to places that need it or by using eco-friendly products. B. amenities* AACSB: Real-world, Difficulty: Moderate What was the decision? Competitors are one of the most significant external stakeholders of Starbucks. Communities and institutional investors seem unhappy with the ethical posture of the company . Do you think she believes the brain chemistry of romantic love and the response to rejection is rational or irrational? Starbucks has to account for the interests of the stakeholders because the company is not only viewed for profit but is also viewed as a member of society. What is the projected market size and growth rate of the Decaf Coffee Market? c. customers are considered high-priority stakeholders a. high-level manners In many ways, Starbucks is indeed a firm that maintains higher standards concerning the treatment of employees than many other firms in service-related retail industries (for example, fast food restaurant chains and superstores). Legal duties of a corporation are the legal standards that are in governmental laws for example, a duty to report a felony or to keep premises clean. AACSB: Application, Difficulty: Moderate Starbucks has also faced lawsuits concerning efforts to withhold tips from employees. Once data are validated, managers present the Malaysian Airlines is another example of a company responsive to the stakeholder process. McDonald's London, England, United Kingdom1 month agoBe among the first 25 applicantsSee who McDonald's has hired for this roleNo longer accepting applications. Ability to create, manage and deliver Workday reports and Dashboards for different stakeholder groups; Experience of managing and support of Operational changes such as re-organisations, identifying impacts on Workday; Experienced with internal and external audits, able to demonstrate a positive improvement approach A company must identify and B. local and regional governments* the importance of companies considering the priority of such parties. Do companies have the responsibility to market their products with integrity? Stakeholder ethics involves a body of thought which insists that the ethical responsibilities of corporations extend not only to the shareholders but also to the full range of interests that are impacted by corporate activity. Which of the following is not a belief that businesses hold? They can affect how successful Starbucks is by doing their job and providing inputs into decisions that go into creating products and services that customers want. Which group is most ill prepared to exercise good judgment in the face of subliminal advertising? Which of the following is an example of an external stakeholder of an organization? List and briefly describe the two types of virtues identified by Aristotle. Difficulty: Moderate The Occupational Safety and Health Administration (OSHA)a business' mission to prevent work-related injuries, illnesses and deaths under the Department of Labor. D. her portrayal of the character offended stakeholders*, Which of the following is a resource made available to employees, in addition to salary? About Path Since its foundation in 1984, PATH (People Assisting The Homeless) has pioneered bold and effective approaches to assist people experiencing homelessness. How has Starbucks used technology to improve its products? Summary. Furthermore, there is B. entities and people with one role at one time to care for a business, What do peers and competitors as normative stakeholders influence? Having theoretical approaches to stakeholders highlights d. guidelines designed to help organizations with compliance and reporting, the freedom and ability to make choices based on one's perception of right and wrong, Byron Almen, Dorothy Payne, Stefan Kostka, The Language of Composition: Reading, Writing, Rhetoric, Lawrence Scanlon, Renee H. Shea, Robin Dissin Aufses. with Starbucks in lieu of a civil action against the corporation. It . Explain using details from the text. The crash caused$1,600 in damages to his car. Blooms: Apply Among the most important stakeholders with regard to Starbucks are the company's employees, customers, suppliers, investors, government, and the environment. c. he believed one secures one's own good outside of political science Sample Answer: Companies must take into account the welfare of stakeholders because it is Answer: False. a. an enumerated power listed in the constitution in the Bill of Rights Explain how the "triple bottom line" goes beyond the traditional goal of shareholder profit. C. legislatures The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. A. (b) Analyze: Why do you think Juliet trusts the Friar? Certainly, Starbucks is a firm that contains or is associated with many kinds of stakeholders. a. courage, decorum, and accountability The company promotes itself as a firm that seeks to maximize the comfort of its customers, and the provision of top-quality customer service. Business ethics exists on which of the following three levels? The environment is not considered a stakeholder. Stakeholder theory: Reviewing a theory that moves us. Coffee producers are a major stakeholder for Starbucks because the firm has staked its reputation on high quality coffee. beds, which is acceptable in that culture. Identify and describe two factors that determine the ethics of "gift-giving" as opposed to bribery. Which of the following definitions best describes mercantilism? In the Supreme Court ruling Citizens United v. Federal Election Commission, which Amendment was at the center of the case? Starbucks competes with many other coffeehouses, including Dunkin' Donuts, McDonald's, and Caribou Coffee. D. stakeholder prioritization, Difficulty: Easy d. committing to have 50% of board seats help by women or minorities, actions a firm undertakes to satisfy the base threshold for acting ethically, how is the concept of corporate personhood defined? One big issue access economy has is lack of regulations, especially when it comes to overseeing the products and services exchanged during the transaction. a. pollution tax people do not need some of the promoted products or services. Most business organizations hold three different kinds of beliefs about themselves. b. the challenges of outsourcing production to lower cost and increase profits b. stakeholder needs. This file is copyright 2019, Rice University. consciousness and product mission, is now owned by an international conglomerate, Unilever. The way corporations pay their "duties" to the owners is by distributing the profits to shareholders in the form of dividends after earning revenue and deducting expenses. c. conscientiousness, honor, and accountability Starbucks has also been accused of overpricing its products, particularly concerning its franchises in China, and of underfilling its cups as well (Laplume et al., 2008). C. environmental agencies * (Select all that apply. pilgrimages in response to passenger stakeholder interests in making such trips. Therefore, some employees work for Starbucks to gain that status. All Rights Reserved. The main difference between a bribe and a gift is intent. 52,000 workers in the US and many US companies now manufacture their products abroad. And there are two types of stakeholders, including the primary and seconday stakeholders ( Clarkson, 1995). According to Donaldson and Preston, what are the three theoretical approaches to considering stakeholder claims? Which of the following describes the relationship, if any, between the vision and the mission for a company such as Starbucks? c. marketing Blooms: Apply \end{array} Advocates of the right to bear arms as well as proponents of gun control have criticized Starbucks for the companys policies regarding the carrying of firearms in Starbucks stores by customers. B. shareholders C. It is ineffective because it uses consumer stakeholders to pressure suppliers and make Employee diversity in the workplaces can enhance performance and drive innovation. Answer: False, True or false? Starbucks operates in more than 80 markets, either in the form of direct company-owned stores or licensed stores. Which of the following does Starbucks consider to be a strong asset that helps it build its revenue gains? As Starbucks, we can either choose to rise to this moment or stand idle. D. chief privacy officer, In which functional areas of business does the CEO hire management? such as media and government. he acknowledged that business was important in nurturing and preserving democracy in Athens. B. Supervising middle and senior management and avoiding bias. inauthentic in carrying out corporate social responsibility when the company already has AACSB: Real-world, C. greenwashing For example, an employee has to do what the manager tells them to do because that is what they were taught their entire life, to respect authority figures. In the end, it means being responsible to our stakeholders. b. set of cultural norms A normative approach views stakeholders as ends in themselves rather From just a narrow storefront, Starbucks offered some of the world's finest fresh-roasted whole bean coffees. Blooms: Apply Stakeholder management and CSR: Questions and answers. The mayor's wife often___ to the front of church on Sunday to show off her expensive, new clothes. Which of the following is especially important for developing and maintaining employee loyalty to the brand? Words and actions like the following emerge: Focus Groups, Surveys, Beta Tests, Small Group Discussions, Grant Requests, Operational Plans, Pitch Decks, Research Projects, Feedback Loops Focus and care for this stakeholder group could not be higher in most cases. All stakeholders must be treated the same. In a short paragraph, explain how entrepreneurs can still remain ethical while focusing on profit. Which of the following is an example of an external stakeholder of an organization? There are also organizations. Find the absolute maximum and minimum, if either exists, for each function on the indicated intervals. influence suppliers working conditions. Maybe complaining online or in customer service reviews would be The successful candidate must be a well-rounded leader who can drive and sustain collaboration with Starbucks stakeholders across both Technology and Business, especially within challenging and . Select the best answer. Interacts directly with business stakeholders to understand business problems and to communicate ramifications of technical options; Presents recommendations clearly and persuasively to support business stakeholder decisions; Influences and negotiates with business and technology teams across Starbucks to resolve issues governance views, shareholders and boards of directors are given priority. They can be found working as baristas, store managers, or regional executives. AACSB: Application, Ethics, Difficulty: Moderate How will Starbucks determine if smaller express stores reduce client wait times after implementing its strategy? D. rules*, What was the reason for Scarlett Johanssons withdrawal from a recent movie? Misunderstanding and lack of communication tend to happen even more. How can you explain the range of mixed economies in the world? Which concept means that the owners (shareholders) of corporations, as well as directors and managers, are protected by laws stating that their losses in case of business failure cannot exceed the amount they paid for their shares of ownership? (2013). c. Compute and plot the A, B, and C zone boundaries on the p-chart. Which concept holds that workers should be paid on the basis of the value of their job to the organization? AACSB: Application. Develop or acquire assets and skills needed to implement the strategy. A. c. Assume that Humongous bank is part of a multibank system. Blooms: Apply It must determine which are It is not necessary to conduct extensive market research. In some ), how to distribute resources fairly and evenly U.S. firms and their employees are allowed to use bribery in other countries if allowed by local legal and cultural differences. Which of the following does an entrepreneur typically need to be willing to do to start a business? which are the universal principles of behavior? B. occurs during the monthly vulnerability scanning. Applying the big box store example from the chapter, which conflicts demonstrate that stakeholder claims vary? The traditional approach to business ethics that has been championed by many corporate leaders echoes the sentiments of the late Nobel Laureate economist Milton Friedman, who famously stated that corporations ultimately have no ethic responsibilities other than to increase the value of the corporation for shareholders. A trade secret is a form of intellectual property protection and is easier to Journal of Management, 34(6), 11521189. Describe Kant's "Deontology" view of ethics. Thirty years ago, Starbucks was a single store in Seattle's Pike Place Market selling premium-roasted coffee. welfare. c. her portrayal of the character offended shareholders In China, Ikea allows its visitors to take naps on About Starbucks, the main challenges related to economic, social, and technological factors. Those men later settled a. ethics applies solely to business-making Pay Range : $123,600- $193,200/ annually. Felix Madison has $10,000 worth of property damage insurance and a$1,000 deductible collision insurance policy. AACSB: Application, Difficulty: Easy chief executive officer. Starbucks Stakeholder Analysis. AACSB: Application, Difficulty: Difficult Lorem ipsum dolor sit amet, consectetur adipiscing elit. This Rawls's theory of justice views individuals as human resources, with their natural state as needing governance, and subjects them to a social contract of subjugation. Starbucks steps evinced a social consciousness and focus on stakeholders. AACSB: Ethics, Difficulty: Easy Secondary stakeholders are media outlets, government, enviromentalist groups, and their competitors. d. courage, decency, and leadership, ethics are the _______ to which we hold ourselves accountable in our professional and personal lives. represents ethical stakeholder theory. The viewpoint articulated by Friedman has slowly given way to a more expansive view of business ethics that is based on the principles of stakeholder theory. Laws dictate all ethical responsibilities that a company may owe key Draw a T-account for the bank after this first round of loans has been made. protect than a trademark or patent. Select a product or service that will be sustainable.