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Legal Responsibility Of Starbucks

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Legal Responsibility Of Starbucks

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Discuss about the Legal Responsibility of Starbucks.

Starbucks Corporation is one of the famous coffee company and coffeehouse chain of America, which serves different types of coffee like espresso, caffe latte etc. It has almost 23,000 branches all over the world. It was first introduced in Seattle in 1971.
When a company starts their business, they must follow the social aspects, corporate social responsibilities and the legal responsibilities too. When a company forms, they not only look for the profits but they also have the responsibilities towards the moral, environment and quality aspects. They have also legal responsibilities towards the employees, shareholders and other related issues (Corbaci, et al, 2014).
A business always establish with various responsibilities like economic, social, environmental, ethical and legal responsibilities. Ethical responsibilities often use as legal responsibilities. A legal responsibility represents the activities and practices, which include the ethical norms and standards toward the consumers, employees, shareholders and the community consideration for the protection of the stakeholders. However, the ethics always forms before the law (Brain, 2013). The ethical responsibilities always consider as legal responsibilities that made the legislations for the establishment of justice and rights of the member of the company.  Therefore, Starbucks is a company, which also deals with such responsibilities towards the consumers, employees, shareholders and the community consideration for the protection of the stakeholders.
For the employees of the Starbucks they must hold some legal responsibilities toward the employees. The company must provide an eco friendly working environments, job securities and higher wages. When company supplies the service to the customers, they have duties to provide quality service and products of coffee and beverages. Starbucks also include customers who are treated as stakeholders by extending their culture (Corbaci, et al, 2014).
A company has several legal responsibilities toward the employees, shareholders and other related issues. Corporate law gives the legal entity to a company to maintain the legal responsibilities for running the business. As per the corporate law, a company can execute its power as per the constitution of the company (Brain, 2013). The directors of the company have the duty to look after the company and their members. They must have good faith and the power to use their positions where they must have all required information related to the company and the obligations (Carroll, 2015).
The issuing the bonus share capitals, partly paid preference and redeemable shares all are belongs to the shareholders. The director of the company or the managing authority of the company must look after such matters of the shareholders (Garthwaite et al., 2017). The company has the responsibility to give the proper wages to the employees and dividend amount to the shareholders of the company (Carroll, 2015). The dividend amount always paid to the shareholders from the profit amount of the company, which will not affect the financial condition of the company (Garthwaite et al., 2017).
The member who buy the share from the company he have rights to claim the proper amount from the share capital from the profits. A company never buys their own share. The directors or the owner of the company can buy the share. The dividend amount is the basic rights of the shareholders. However, if the company runs the business in loss, then it can reduce the dividend amount from the shareholders and can transfer the shares as per the requirement (Corbaci, et al, 2014).
The company must give the proper securities to all the employees. As Starbucks is a coffee company, they have also the legal responsibly to provide the proper fresh productions to the customers in worldwide. The company must control and manage the productions according to proper legal aspects because it not only make profit to the company but also affect socially and environmentally. It helps a company to build a good relation as per the business aspect (Carroll, 2015).
Starbucks a famous coffee company who not only extend their business across the whole world but also they succeed to establish the health relationship in society. When Starbucks apply their legal responsibilities, they establish the public policies also through the global ethical business standards. It establishes the human rights and equal employment opportunities for all the employees of the company where every member or the employees get the equal rights for employment according their skills. The legal statues also protect the employees through the health care as per their requirements (Koehn 2014).
Starbucks run their business with the principles of “how we live that every day” it means they provide the good quality of coffee beans and best service. They also fulfilled the proper requirement to their employees. The stores where they serve their best quality of productions, they make sure each of the stores maintains the best qualities and best service to the customers. It is the duty of the manufactures that they must provide their duty of care with best interest (Koehn 2014).
The shareholders of the company must get their benefits as per their investment in the company. The company must provide the proper profits to them. Starbucks also provide the proper wages to the employees of the company and those works according the working hours. The corporation law protects the employees to get the proper remuneration and wages from the company (Garthwaite et al., 2017). This company also provide the employees a workplace environment to the employees and gives the power to claim justification if any of them face any kind of insulting, bias, unfairness and other things. The corporate law also protects the employee of the Starbucks safety and security (Michelli, 2014). 
When a company follows proper legal responsibilities, they can get proper business value and profits. Starbucks is a company who are successful to establish such values in their business. They always provide the best environment for work to the employees and respect them, which is the basic principle of this company for running a wonderful organization in worldwide. According the business ethics, the company also follows the proper business ethics and maintains the legal responsibilities. In the long-term relationship with the suppliers of the raw materials the importance of the business ethics and strategies are applied by the Starbucks (Michelli, 2014). 
The following discussion successfully investigate the business strategies of the Starbucks coffee company.  According the Corporate Social Responsibility theory the legal responsibilities of the company are briefly analyzed in the above discussion. Starbucks use the Corporate Social Responsibility theory to run their business legally and ethically where they not only maintain the relationship between the members of the company the equity in the employments. The rights of shareholders and their profits always provide the employees according the corporate law and legislature.
Brain, S. (2013). Starbucks company statistics. Statisticsbrain. com.
Carroll, A. B. (2015). Corporate social responsibility. Organizational Dynamics, 44(2), 87-96.
Corbaci, L., Hungaro, F., Wang, S. F., & Lee, J. W. (2014). Corporate Social Responsibility in International Business.
Garthwaite, C., Garthwaite, C., Busse, M., Busse, M., Brown, J., Brown, J., … & Merkley, G. (2017). Starbucks: A Story of Growth. Kellogg School of Management Cases, 1-20.
Koehn, N. F., McNamara, K., Khan, N. N., & Legris, E. (2014). Starbucks Coffee Company: Transformation and Renewal (Watertown, MA.
Michelli, J. (2013). Leading the Starbucks way: 5 principles for connecting with your customers, your products and your people. McGraw Hill Professional.
Okpara, J. O., & Idowu, S. O. (2013). Corporate Social Responsibility. Springer Berlin Heidelberg.
Park, J., Lee, H., & Kim, C. (2014). Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research, 67(3), 295-302.
Pedersen, E. R. G. (Ed.). (2015). Corporate social responsibility. Sage.
Schultz, H. (2012). Pour your heart into it: How Starbucks built a company one cup at a time. Hachette UK.

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