Complete the Assurance of Learning Exercise 10A on page 326

Complete the Assurance of Learning Exercise 10A on page 326 of the textbook. You will be asked to analyze and to compare and contrast the code of ethics of both Starbuck’s and McDonald’s. Summarize your analysis and findings in a two-page APA formatted paper. The links shown in the textbook are no longer active; however, these documents can still be located by using your favorite search engine to search for “Standards of Business Conduct for Starbucks” and “Standards of Business Conduct for McDonald’s.”

Solution

Learning exercise 10A:

Standards of Business Conducts for Starbucks - http://globalassets.starbucks.com/assets/eecd184d6d2141d58966319744393d1f.pdf

3 aspects that i like most about the Starbucks statement are: (i) there is an ethical decision making framework for all the partners which helps them identify the ethical problems and determine the best approach (ii) the statement is clear and comprehensive about the treatment being given to customers, the importance of customer service and the need to treat customers with respect and dignity. (iii) The statement also covers business practices and the need to comply with laws and regulations

3 aspects that i like least about Starbucks statement are: (i) the section on wage and hour rules should be more comprehensive (ii) the definition of harassment should be eloborated beyond the stated 4 points (iii) need for ethical sales practices should be elaborated

Standards of Business Conducts for McDonalds: http://www.mcdonalds.com/content/dam/AboutMcDonalds/Investors/9497_SBC_International_EN-US%20v2%20final%20061311.pdf

3 aspects that i like most about the McDonalds statement are: (i) the company\'s values is clearly outlined and explained (ii) the statement clearly mentions the additional responsibilities of supervisory employees (iii) The statement also covers topic on how to act for the long term benefit of McDonald\'s, and this interest should be always above personal interests

3 aspects that i like least about McDonalds statement are: (i) a detailed framework is not provided, unlike Starbucks (ii) more emphasis should be on the goal of QSC&V for each and every customer (iii) the statement needs to elaborate how interests will be balanced between owners, suppliers and employees.

I like Starbuck\'s statement better because it serves as a guide by providing a proper framework - identification of problem, listing of possible solutions, seeking of input and then determining the best approach. This makes Starbuck\'s statement a better guide for its partners.

Step 3: Having a code of business ethics is not sufficient for ensuring ethical behavior. There should be proper rewards system that promotes ethical behavior and there should be potential punishments for unethical behavior. There should be privacy for whistleblowers. Lastly, employees and partners should be trained regularly.

An example of breach of ethical conduct: I work in a bank and the personal details of our customers are confidential. One of the employees leaked information about few high net worth customers for furthering his own personal interest.