How Ethical is Starbucks Corporation? | Ethical Consumer

Overview

Starbucks is one of the world's most recognizable coffee brands, with over 36,000 stores across 84 countries. Despite its success, the company faces several ethical concerns across various domains, including supply chain management, workers' rights, political activities, and environmental practices.

Ethical Issues

People

1. Operations in Oppressive Regimes

   • Starbucks operates in regions known for poor human rights practices such as China, Mexico, the Philippines, and Turkey.

2. Supply Chain Management

   • Scores poorly for supply chain management.
   • Fails to ensure a living wage for supply chain workers, only meeting minimum wage standards.

3. Workers’ Rights Violations

   • Investigations in Guatemala revealed children working up to 40 hours a week on farms supplying Starbucks.
   • In Brazil, workers' wages were illegally reduced to cover operational costs.

4. Union Busting

   • Accusations of Starbucks intimidating and terminating workers involved in union activities in the USA.

Politics

1. Tax Conduct

   • Starbucks utilizes tax havens (Barbados, the Bahamas, Cayman Islands) for tax avoidance.
   • Paid minimal UK corporation tax despite significant profits.

2. Lobbying

   • Invests heavily in political donations, primarily to Democrats.
   • Member of Business Roundtable, influencing policy decisions.

3. Boycott Calls

   • Partnership with Nestlé has led to boycott calls due to Nestlé's controversial practices.

Environment

• Received middle rating for Environmental Reporting.
• Aims to reduce water usage and waste by 50% by 2030.
• Best rating for Carbon Management; uses 100% renewable energy for retail operations.
• Invested in solar projects and partnered with conservation NGOs.

Palm Oil Sourcing

• Receives lowest rating for palm oil sourcing.
• Less than 50% palm ingredients from certified supply chains.
• Fails transparency in palm oil sourcing.

Animal Rights

• Sells factory-farmed animal products and uncertified dairy.
• Lacks sustainable fish sourcing policy, attracting boycott calls for non-organic milk usage.

Consumer Actions

Consumers are encouraged to contact Starbucks via social media or email to express ethical concerns.

• Tweet or email to share positive or negative feedback.
• Support boycott movements against Starbucks and Nestlé due to ethical controversies.

Conclusion

Starbucks, while a leader in the coffee industry, faces significant criticism over its ethical practices. Issues span environmental, political, and social domains, urging consumers and stakeholders to pressure for improvement.