Question

In May 2018, in the wake of a global uproar after two black men in a Philadelphia Starbucks were arrested while awaiting a friend, Starbucks closed its approximately eight thousand U.S. stores to conduct racial bias training (Figure 3.1).1 The company also officially changed its policy to allow people to visit its stores and restrooms without making a purchase, hoping to avoid more incidents like this one (sparked by a white employee calling 9-1-1 when the men did not buy anything). The two men who were arrested eventually settled with Starbucks for an undisclosed sum.

As one of the largest beverage retailers in the world, Starbucks directly affects countless stakeholders: food and drink distributors; coffee and tea growers; milk producers; urban and suburban communities; local, state, and national governments; more than 300,000 employees and 1,600 institutional investors; and millions of customers.2 The company’s decision to close its U.S. stores for half a day was financially costly, and the training session could never fully solve the problem of conscious or unconscious bias. But the firm believed it was the right thing to do. Why does it matter to its stakeholders what Starbucks does? What role do stakeholders play in a company’s decisions about its ethical behavior, and why. Discuss why Starbucks took the action in did in response to this incident.. In your answer, be certain to frame your discussion using the concepts presented in the chapter. (Recommended length 300 words.)

and

Watch Professor Stout’s views of the role and obligations of corporations, and read Milton Friedman’s classic essay (https://www.nytimes.com/1970/09/13/archives/a-friedman-doctrine-the-social-responsibility-of-business-is-to.html) . What are the essential points of Friedman and Stout and how do they differ? Which do you find more persuasive and why. (Recommended length 300 words.)

Answer:

Answer 1:

Stakeholders are groups or individuals who have an interest or investment in the operations and outcomes of a company. Starbucks has a wide range of stakeholders, including customers, employees, investors, suppliers, and the wider community. Each stakeholder has a particular set of expectations and concerns about the company’s actions, and these interests can sometimes conflict.

The incident at the Philadelphia Starbucks demonstrated the impact that a company’s actions can have on its stakeholders. When two black men were arrested for waiting in the store, it sparked outrage among many stakeholders who saw it as an example of racial bias. Starbucks recognized the need to address the issue and took significant steps to respond. By closing its stores for a day of racial bias training and changing its policy to allow non-paying customers to use its facilities, the company demonstrated a commitment to ethical behavior and social responsibility.

The decision to take these actions was not only a response to the immediate incident but also a recognition of the importance of building trust and goodwill with all stakeholders. By addressing the concerns of its customers, employees, and wider community, Starbucks aimed to maintain its reputation as a socially responsible company and avoid further harm to its brand.

The incident at the Philadelphia Starbucks highlights the critical role that stakeholders play in shaping a company’s ethical behavior. Companies must consider the interests and concerns of all stakeholders when making decisions and taking actions. Failure to do so can result in significant harm to the company’s reputation and bottom line.

Answer 2:

Milton Friedman and Lynn Stout hold different views about the role and obligations of corporations. Friedman argues that the sole responsibility of corporations is to maximize profits for shareholders, and that any other social responsibility is a misuse of corporate resources. He suggests that government, not corporations, should be responsible for addressing social problems.

In contrast, Stout argues that corporations have a broader set of responsibilities, including to their employees, customers, and society as a whole. She suggests that corporations have a duty to consider the impact of their actions on all stakeholders, not just shareholders, and that this broader perspective can actually lead to long-term financial success.

The essential point of Friedman’s argument is that corporations have no social responsibility other than to make profits. He believes that any social responsibility that corporations take on is a misuse of resources and a threat to the free market system.

In contrast, Stout’s argument is that corporations have a broad set of responsibilities, including social and environmental responsibilities, and that these responsibilities are critical to long-term financial success. She suggests that corporations must balance the interests of all stakeholders, including employees, customers, and society as a whole.

Personally, I find Stout’s argument more persuasive. While maximizing profits is undoubtedly an essential goal for corporations, it cannot be the only goal. Corporations have a significant impact on society and the environment, and they must take responsibility for that impact. Focusing solely on short-term profits can lead to long-term harm to the company, its stakeholders, and society as a whole. By considering the interests of all stakeholders, corporations can create a more sustainable and equitable world.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Boom Grades
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Medicine
Great content.
Customer 452549, February 8th, 2022
world civilization
Thank you for the quick response
Customer 452509, June 27th, 2021
english comp
Great paper and done before the deadline. Thank you
Customer 452509, June 15th, 2021
English 101
perfect! thanks!
Customer 452543, December 1st, 2021
Exercise Science
Thank you so much for your time.
Customer 452545, December 5th, 2021
Religious studies
I recommend this service they always help. I got an A in this project thanks.
Customer 452507, October 5th, 2021
Classic English Literature
Awesome Job... you are the best!
Customer 452531, November 27th, 2021
english comp
Thank you for all your hard time.
Customer 452509, June 27th, 2021
Classic English Literature
Absolutely LOVE the essay I received. I really appreciate it so much.
Customer 452529, October 25th, 2021
Gerontology
Thank you so much this looks great !!!!
Customer 452585, November 4th, 2023
Literature
Absolutely LOVE having help especially from the person who wrote this last one. THANK YOU
Customer 452529, November 19th, 2021
Public Health
Thank you so much !!
Customer 452589, November 28th, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat