Stakeholder exercise for socially responsible companies - Research Paper Example

Teacher List 3 major stakeholder groups that it socially responsible to . Describe each of the stakeholder groups and how the company is responsible to that group. Give a few examples of how the company is socially responsible to that group. Explain your answer.The company chosen is Starbucks which is considered as one of the most ethical companies in the world (www.ethisphere.com, 2012) . The 3 major stakeholders it is socially responsible to are its consumers, stockholders and the future generation.

It is socially responsible to its customers by giving excellent products that are not only tastes good, but is also safe for them to eat and drink as well. It is socially responsible to its stockholders because these are the group of people who trusted Starbucks to report to them the true financial standing of the company and to provide decent return on their investments. Finally, Starbucks is socially responsible to the future generation by ensuring that their farming practices of coffee is environmentally sound that will not deprive the future generation of coffee. 2. Then, look for information that is not so favorable about this company from a reputable news source.

What does the information say about the company? What do you think about the information you found?This is about a Reuters news in Britain that Starbucks has been telling its investors that they are profitable even as it consistently reported losses. This contradiction stems from the Starbucks avoidance of tax as it tells government one thing and its investors another (Reuters, 2012). The news is basically telling that Starbucks is lying both to its investors and to the government tax agency.

It says that it profitable to its investors so as not to scare them away and then reporting losses to avoid tax. This is a very disappointing news considering that Starbucks is considered as one of the most ethical and profitable companies in the world. It is hard to believe that Starbucks is doing this but since the news is carried out by a reputable business news agency Reuters, there must be some credibility to it.3. What recommendations would you give the company?Starbucks may not be used to losses because it has been profitable around the world.

Thus it follows that it is used to telling its investors that the company is profitable in most franchise except in Britain. I would suggest that Starbucks to be honest in its financial reporting in Britain even if it does not look good. This is necessary because the continuous giving of false financial information could hurt the good reputation of the company in other countries. They may also be taken in the same bucket of Britain to be giving false information to investors and government tax agency when in fact this case is isolated in Britain.

I will also recommend a change in the top management of Starbucks in Britain because obviously, they are not doing their job well considering that Starbucks is profitable all over the world except in Britain.Work CitedEthisphere.com. “WME Honorees”. 2012. Retrieved from http://ethisphere.com/wme/"Special Report: How Starbucks avoids UK taxes." | Reuters. N.p., 15 Oct. 2012. Web. 14 Apr. 2014. .