Starbucks dates back to the first small single store in Seattle in 1971. Starbucks image to the world is serving the best coffee possible, using the highest standards of quality coffee beans from Latin America, Asia, and Africa. Today as Starbucks grows to more than 18,000 stores worldwide, its corporate image is a business imperative. Starbucks follows one value to improve its corporation. It inspires different people and the human spirit and states, “one person, one cup and one neighbourhood at a time”.
Starbucks page profile.
OVERVIEW OF SUSTAINABILITY
In 2012, Starbucks, the biggest company in the coffee chain industry, had to suffer damage to its image. The reason behind this was tax liability, but a very questionable method. Starbucks avoid relative high company taxes in the UK by having its European headquarters in the Netherlands where it has to pay extensively less taxes. In public Starbucks tried to defend the critics. The CEO states that Starbucks was unprofitable in the UK n the last years and therefore has not to pay taxes. Oppositional, Starbucks mentioned a profit to its stakeholders.
Due to the fact that Starbucks defence was inconsistent and high public critics against its behaviour, Starbucks starts to apologise. Starbucks states that they will change their practices in 2013 and 2013 and will pay a sum of $ 15.4 million. In 2014, Starbucks will pay the amount to the U.K corporation of tax, which affected the response of British business money loss. According to the British tax corporation, 5 million pounds were already delivered, which was leaked through an e-mail statement. Throughout the following year, Starbucks will pay the rest of the 10 million pounds.
Starbucks, has always built an important image to their loyal customers and always believed in a great company. In December 2012, practices were made that led to a very controversial issue. Despite the loyal customers which wear loud and clear that it was the right thing to do, to have a mere compliance with the law, Starbucks did not point out the controversial practices in its sustainability report.
3rd paragraph in the case
Criticisms affected the company through many levels of taxable earnings, which led the UK operations to make a royal payment to many Starbucks groups. According to BBC, Starbucks ‘did not do anything underhand at all’. The question of judgement, according to Sir Martin Sorrel, was a shock which led the controversy of the payments being made by companies that where multinational public purses. Donﾴt understand this sentence. Who is Sir Martin Sorrel?