Starbucks and Fair Trade Coffee
Coffee market is global as a lot of people consume coffee, however, the inhabitants of countries, where coffee growers live in poverty. The most income from such business has resellers. Nongovernmental organization Global Exchange promotes fair trade coffee to provide for small-scale producers possibility for social development, environmentally friendly production and preservation of ecosystem. Starbucks agreed to purchase and promote fair trade coffee, and consequences were positive.
Coffee market has a long supply chain from the growers, often small-scale to the eventual customer. Great number of the mediators decreases the incomes of the small growers and adjudges them to beggary. Fair trade certification assists the growth of the life level of the coffee growers and their access to the global market, social development in the regions where coffee is produced, producing of environmentally friendly production. Starbucks agreed to purchase fair trade coffee, despite of some concerns, such as threat of the national boycott from Global Exchange also promotion of the fair trade coffee comport with the principle of the company’s mission to use high standards in the coffee beans purchasing. This step allowed the company to meet demands for coffee cultivated without chemicals and harm for birds.
The main problem consisted in concern about work with the new suppliers. Starbucks coffee should be of high-quality that is why monitoring of the suppliers and cooperation led to extra costs, as well as marketing company. Reliability in delivery also caused misgivings. Also there were some questions about calculations of the real benefit and its possible increasing of the grower income, also about effectiveness of fair trade as a solution to problems of the coffee growers.
Nevertheless, cooperation with the TransFair USA allowed creating additional ethical motivation for the employees, increasing of the company marketing opportunity. Starbucks received a possibility to accentuate its own social responsibility and care about society.
Possibly, further actions stresses Starbucks’ social responsibility will assist company’s development. So, purchasing of the promoting fair trade coffee beans was a successful decision, despite of some problems, assist in confirming company’s reputation.