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Ethical Issues faced by Starbucks

University: Anglia Ruskin University

  • Unit No: 4
  • Level: Post Graduate/University
  • Pages: 2 / Words 399
  • Paper Type: Assignment
  • Course Code: MOD003325
  • Downloads: 371
Brief :
Organization Selected : Starbucks

Topic- Starbucks

Task: Write a report of a maximum of 2000 words answering the question below. You have to consider your answer by following the Starbucks case study:

If you are reading a degree in relation to Hospitality, Tourism, and events, you should consider your report on the basis of the Starbucks case study.

Question: To what extent this situation is explained in the case study that ruined the goodwill of a business?

What strategies are required to follow by an organization to rebuild the reputation of the company?

Starbucks case study

In October 2019, the Reuters news agency printed a special report researching major tax avoidance by Starbucks in the UK. The researching was efficient by the business practice of telling those who invest in it that the company is profitable while declaring that they are making losses in their financial accounting to the tax authorities. The company was founded first in UK branch in1998, and company earned more than £3 billion in sales of coffee.

Still, during first 14 years of business, they paid taxes of only £8.6 million. In the three years occupying up to the Reuters investigation, Starbucks do not account any profit and they have also paid the taxes on sales of £1.2 billion. Similar to this, the KFC company achieved sales of o £1.2 billion and also paid tax of £36 million. Meanwhile, transcripts of investor call over 12 years declared that officials from the corporation regularly referred to their company as “profitable”.

There are no recommendations that such practices are illegal, Michael Meacher go through the record to suggested that the practice is against the interests of the countries where they do work and this is unfair. They are trying to play the taxman. Is unfair.

You should consider the following structure:

  • Cover page
  • Summary
  • Content
  • Overview of the topic (250-300 words)
  • Evaluation (1250 words)
  • Conclusion (150 words)
  • Recommendations
  • Reference list
  • Appendix

You should also focus on following some points in the evaluation section

  • Managers
  • Revenue
  • Shareholders
  • Public relations
  • Regulators

Related Answer: Purpose and Scope of Organization - John Lewis

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