Ethical Cross Cultural Perspectives at Starbuck’s Coffee
Week 5 Individual Assignment: Ethical Cross Cultural Perspectives at Starbuck’s Coffee
Vita Carnevale December 5, 2012 Dr. Lena Watson / Ethics316
Ethical Cross Cultural Perspectives at Starbuck’s Coffee
Multinational Corporations “MNC” such as Starbucks, are important factors in the processes of globalization. National and local governments often compete against one another to attract the type of company’s facilities, with the hopes of increased tax revenue, employment, social and economic stability. In order to compete, the country’s political powers push toward their goals of developing the economies of developing countries, providing there is a market for the company, and to also provide other employment for companies working as vendors and suppliers.
On the other hand, it has been argued that in countries with comparatively low labor costs and weak environmental and social protection will be taken advantage by the MNC who see a low tax burden or a low labor costs as an advantage. Evidence suggests that MNCs will readily present themselves of lax environmental regulation or poor labor standards, and make profits more easily obtainable. MNC profits are tied to operational efficiency, which includes a high degree of standards and are more likely to adapt production processes in many of their operations to conform to the standards of the either the USA, Japan or the EU which tend to have a more rigorous jurisdiction for doing business. As for labor costs, while it is know that MNCs pay workers in developing countries far below levels in countries where labor productivity is high (and accordingly, will adopt more labor-intensive production processes), they also tend to pay a premium over local labor rates of 10 to 100 percent.
When a company goes global and has grown too many locations throughout the world cultural changes within the organization need to be addressed regarding the cultural
Vita Carnevale December 5, 2012 Dr. Lena Watson / Ethics316
Ethical Cross Cultural Perspectives at Starbuck’s Coffee
Multinational Corporations “MNC” such as Starbucks, are important factors in the processes of globalization. National and local governments often compete against one another to attract the type of company’s facilities, with the hopes of increased tax revenue, employment, social and economic stability. In order to compete, the country’s political powers push toward their goals of developing the economies of developing countries, providing there is a market for the company, and to also provide other employment for companies working as vendors and suppliers.
On the other hand, it has been argued that in countries with comparatively low labor costs and weak environmental and social protection will be taken advantage by the MNC who see a low tax burden or a low labor costs as an advantage. Evidence suggests that MNCs will readily present themselves of lax environmental regulation or poor labor standards, and make profits more easily obtainable. MNC profits are tied to operational efficiency, which includes a high degree of standards and are more likely to adapt production processes in many of their operations to conform to the standards of the either the USA, Japan or the EU which tend to have a more rigorous jurisdiction for doing business. As for labor costs, while it is know that MNCs pay workers in developing countries far below levels in countries where labor productivity is high (and accordingly, will adopt more labor-intensive production processes), they also tend to pay a premium over local labor rates of 10 to 100 percent.
When a company goes global and has grown too many locations throughout the world cultural changes within the organization need to be addressed regarding the cultural
References: Donald, J. (2006). Starbucks CEO on Globalization: Don’t Go Changing. Retrieved from http://www.globalbydesign.com/blog/2006/12/03/starbucks-ceo-on-globalization-dont-go-changing Allison, M. (2012, March 17). More Thoughtful, Still Innovative, Starbucks Back Steaming Hot, SeattleTimes. Retreived from http://seattletimes.com/html/businesstechnology/2017761407_starbucks18