Starbucks Ratios - Assess Roles of Ethics and Compliance

Ethics and Compliance

Team B chose to complete an analysis of data for Starbucks Coffee Company for this assignment. Included in the information given throughout the paper, Team B will be assessing the roles of ethics and compliance, describing procedures Starbucks has in place to ensure ethical behavior, Identifying processes Starbucks uses to comply with SEC regulations, evaluating Starbucks financial performance by calculating ratios for 2009 and 2010, and finally discussing the trend for each ratio and what that tells the team about Starbucks financial health.

Assess roles of ethics and compliance

Ethics and compliance is an integral part of Starbucks financial environment. This company takes their role in corporate governance as important and sets a strong code of ethics and principles for all of the finance leaders to follow. Under the Investor relations section of Starbuck’s website, the ethics policy for financial managers is published. The policy points out specifically that the stakeholder’s interests play a major role in corporate policies. Additionally, financial managers who sign this document state they will comply with all laws and governing agencies.

Starbucks stands on avoiding conflicts of interest by using honesty and integrity in their business dealings. Starbucks complies with all laws, rules and regulations with the government and any other public or private financial agency. The code of ethics and compliance agrees to not misrepresent financial materials and confidential information is not to be used for any personal gain. Any partners are to behave ethically and they are required to exercise responsible stewardship over the company’s assets. Internal controls are required to be maintained appropriately

Starbucks also established an internal audit and compliance committee to oversee adherence to the ethics policy. Starbucks presents ethics and compliance at the forefront of the organization (Starbucks Coffee Company, 2004). Starbucks is a well known brand, so the company cannot risk any unethical financial behaviors to be tolerated, whether by employees, partners or CEO’s.

Procedures to ensure ethical behavior

Ethical Behavior is very important in any business, especially a large corporation such as Starbucks that is known world-wide for their coffee. According to Starbucks standards of business conduct that supports their Global Business Ethics Policy, “Starbucks core values and guiding principles require compliance with the law, as well as ethical conduct” (Starbucks Coffee Company, 2004). Starbucks