Ethics and Compliance
Ethics and Compliance
Starbucks has one of the most recognized coffee shop logos in the world. The company started in 1971 in Seattle’s historic Pike Market. Starbucks did not expand to the world market until 1990 after becoming a publicly traded company. The company’s website allows people to view the company’s history, financial information, and the awards that the company won throughout the years. By exploring the company’s financial environment, procedures which ensure ethical behavior, processes used to comply with Securities and Exchange Commission (SEC) regulations, and financial performance indicators, we can illustrate how humble beginnings have expanded into one of the most loved coffee shops.
According to the Starbucks Corporation (2012), “Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company” (para. 1). Starbucks requires their employees to comply with all laws of the countries in which they operate (Starbucks Corporation, 2012). It is obvious from their website and literature that Starbucks’ commitment to ethics and compliance is evident in every aspect of their business. “Starbucks will be accurate and truthful in representing business transactions to government agencies” (pg. 12).
Starbucks has multiple educational resources that provide employees with instructions on how to report unlawful practices, conflicts of interest, inappropriate releases of confidential information, and other unethical situations. Starbucks encourages employees to report any concerns, regardless of whether they result in an illegal or unethical situation. The Business Ethics and Compliance program within Starbucks facilitates legal compliance and ethics training (Starbucks Corporation, 2012).
The financial market is any type of financial arrangement promoting growth in business and helping investors make money. The financial market is a place where investors invest money by buying stocks or investing in stocks, mutual funds, and bonds. Investors make a portion of the profit because the company or organization takes the invested money and uses it to make more money. Instead of an organization going to a bank to borrow money, this alternative gives the organization and the investors opportunities or advantages they may not otherwise have.
The major parties that contribute to the function of the financial market are the borrowers, the investors, and the financial institutions (Titman, Martin, Keown, 2011). The borrowers are businesses or corporations needing to finance and fund their investments. Corporations attempt to make their groups larger and create functions and roles that require more funding. The investors are people or firms with money available to contribute to an organization or fund. Lending money to organizations to fund their operations is an opportunity to make more money.