Starbucks and fair trade coffee
Based on the details portrayed to me, the issue is whether or not Starbucks should buy fair trade coffee, as pressure and accusations from NGO Global exchange to do so has presented Starbucks with this challenge. Failure to respond cooperatively to this demand may have negative outcomes- a national boycott, which can ultimately harm Starbucks’ corporate image. There are a few risks associated with the fair trade movement; however, the benefits of sourcing fair trade are greater in terms of long-term sustainability. I recommend that you impose the implementation of fair trade, as it is a viable and responsible option when conducting business morally and ethically, and doing so would be suitable with your organization’s mission statement.
I propose that you collaborate with producers who have their fair trade certification to assist small-scale coffee farmers in poor countries to compete in large global economies, and ensure they receive a fair amount of wage to sustain their quality of life and alleviate poverty. The outcome of such action would be substantial; establishing equitable, long-term partnerships and mutual respect between Starbucks and less-developed nations is crucial for the prospect of business sustainability. Moreover, you may consider the fact that Starbucks is a successful, large company and should take on the responsibility of helping developing nations in return for using their agricultural products in the past years. You must, nevertheless, ensure the quality of the coffee as well as the source’s reliability. I will present to you how fair trade coffee can thrive in the market and make Starbucks better off. In the short-run, you will be paying a higher cost for coffee, which means higher prices for consumers, causing a decrease in demand from some consumers. However, in the long-run, buying fair trade coffee will promote competition, guarantee a vast number of coffee plantations, and can ensure that the supply chain of Starbucks coffee will be secure, which can reduce costs. Additionally, with higher wages, coffee farmers can grow better, healthier coffee without the use of pesticides.
Although bearing additional costs, I also advise that you go ahead and launch a campaign to persuade consumers to buy fair trade coffee. By doing so, Starbucks will represent corporate social responsibility; it will encourage
buyers to do good by educating them to make more ethical choices and be aware of sustainable environmental and ecological issues. I consider this to be the right step in taking towards allowing consumers to make better use of their spending power to create better working conditions, healthier farms, and more well-off communities around the globe. Another vital impact that this campaign will bring is a respectable relationship between Starbucks and society, which is what I believe to be of great importance for the future of the Organization.
Starbucks must also consider the impact free trade will have on the environment. Since deforestation has caused habitat damage and become a major threat to birds, consumer demand for organic and shade grown coffee has increased. The environmental benefit of sourcing free trade coffee is worth noting. Organic and shade grown coffee refrains from the use of toxic pesticides as well as chemical fertilizers, which protects the ecosystem. Ultimately, the environment is improved by the sales of fair trade coffee; not only are farmers producing a better, healthier product for consumers, they are also preserving the environment.
By offering the choice of a product based on principles of fair trade as a part of Starbucks’ retail selection, you show that you are considering the future of your organization, as the demand for fair trade products is continually rising at a fast rate. Through the use of fair trade coffee, Starbucks will be a leader in ethics.
Thank you for the time and opportunity to assist you with your needs. Should you have any queries or require additional information, please contact me and I will do my very best to find the right solution for you.