The Starbucks Corporation, a Seattle, WA based coffee house, follows some fairly standard practices for meeting today's ethics and compliance. For businesses to remain competitive and hold respect from both the business world and its customers, a business must strive to meet and even exceed the legal and ethical standards that have become the expectation today. Starbucks meets those obligations by following its own code of ethics along with meeting the legal requirements and the expectations of its customers and investors.
Role of Ethics and ComplianceThe role of ethics and compliance in Starbucks financial organization is up front and woven into the backbone of the company. All partners must ensure the accuracy and integrity of Starbucks corporate records (Starbucks 2009).Most importantly this includes reliability and accuracy of books and records, as well as honesty in disclosures and in providing information. Financial records, books of accounts, financial statements and records of Starbucks are maintained in accordance with the requirements of law and generally accepted accounting principles.
All of Starbucks assets and liabilities are properly recorded in its financial record books. Costs and revenues are recorded in the right time periods. The sale has not officially been completed until there is evidence of a sales agreement, the title has passed, and the sales price can be determined and is reasonably collectible (Starbucks 2009). According to Starbucks principals recording a sale until then, would be a misrepresentation of records. Starbucks believes that conducting business ethically and striving to do the right thing is vital to the success of the company (Starbucks 2009).
For the third year in a row, Ethisphere Magazine has named Starbucks as one of the World's Most Ethical Companies. Ethisphere conducted data analyses on hundreds of companies based on their responses to several surveys, as well as documents and information...