Scenario-based question: Introduction Coffee giant Starbucks faced the animosity of anti-globalization rioters this described How the Starbucks’ UK stores could generate operating profits but legally report no taxable income in the UK. And avoid paying UK government corporate tax from 2009 to 2014. This story received a lot of media attention, and Starbucks made some attempts to respond to the criticism it received for its tax avoidance efforts. These responses seemed to only fuel the criticism from the media & its customers also Starbucks, the coffee chain giant which boasts of its green credentials, has come under fire from environmental groups for wasting more than 23m litres of water a day by due to a policy of keeping a tap running non-stop. An investigation by the Sun revealed that over 23.4m litres of water are poured down the drains of 10,000 outlets worldwide. Some workers at Starbucks have described understaffing at stores, intense workloads. It has been accused of mistreating its staff. Case Overview Some of the issues identified in case: • Starbucks has faced the animosity of anti-globalization rioters. • Avoiding corporate tax, • Wasting water. • It has been accused of mistreating its staff • Forty-two percent of North American consumers reported having punished socially irresponsible companies by not buying their products. • The coffee company has been forced to react to increasing consumer pressure • There was hug impact on Starbucks sales & profits Questions: A. Based on your understanding. What solution can be provided for the situation. B. Does Starbucks approach to CSR influence your purchasing decisions of their products? Why or why not?
