2
The moral standards that direct a corporation's operations are referred to as business
ethics. These fundamental beliefs serve as guidelines for acceptable conduct in a business setting,
affecting how an organization runs its operations and makes choices (Alexiadou, 2023). Business
ethics encompass a wide range of topics, including how an organization deals with its
environmental effect and duty to shareholders, as well as how it interacts with its customers and
employees. Fundamentally, business ethics are about identifying appropriate and inappropriate
behaviors and choices in the workplace. This line can be difficult to draw since it depends on
several factors, including the interests of different parties, the law, social conventions, and the
economy. The goal of business ethics is to guarantee that companies behave honorably, fairly,
and responsibly (Alexiadou, 2023).
One cannot exaggerate the significance of ethics in the corporate world. Long-term
profitability, enhanced brand loyalty, and improved company reputation are all possible
outcomes of ethical business practices, which cultivate trust and respect with both customers and
business partners (Alexiadou, 2023). Furthermore, moral conduct might lower the risks and
avoid legal problems that arise from immoral behavior. Corporate ethics play an even more
important part in the contemporary business climate, as investors and customers are becoming
more conscious of and concerned about unethical behavior.
Starbucks, the biggest coffee brand in the world, is being sued by the National
Consumers League for false advertising. The lawsuit claims that Starbucks sources its coffee and
tea from farms that violate labor laws and human rights, despite the company's claims of ethical
sourcing. The lawsuit claims that the large coffee company is deceiving the public by publicly
touting its "100% ethical" sourcing pledge for its coffee and tea goods, although it sources from
vendors who have documented severe human rights and labor abuses (Abou-Sabe & Kaplan,
3
2024). According to the lawsuit, Starbucks has been buying coffee and tea from certain suppliers
in Guatemala, Kenya, and Brazil despite reports of labor infractions and human rights violations
on these farms (Abou-Sabe & Kaplan, 2024). Starbucks is accused of misleading consumers with
its "Committed to 100% Ethical Coffee Sourcing" advertisement (Abou-Sabe & Kaplan, 2024).
The lawsuit attempts to stop the firm from making such claims unless it changes its supply
chain's labor policies.
The issue of false advertising is grave since it can hurt customers and tarnish a business's
image. Starbucks transgressed the ethical norm by engaging in false advertising. The publication,
transmission, or other public dissemination of an advertisement that makes a misleading claim or
assertion is referred to as false advertising (Rao, 2021).The purpose of this careless or deliberate
deception is to encourage the sale of products and services. It entails providing information that
misleads customers' perceptions about a good or service that is being provided.
In fact, false advertising may qualify as a white-collar offense. White-collar crime refers
to a range of lawful, non-violent offenses against society that primarily take place in the business
sector (Kubasek et al., 2024).Distributing fraudulent or misleading advertising is regarded as
illegal, even in cases when no one is genuinely duped or suffers losses. Fines, injunctions, and
potential jail time are among the possible penalties for deceptive advertising, depending on the
specifics of the offense. False and misleading advertising is prohibited by both state and federal
legislation. Federal laws prohibiting deceptive advertising are enforced and offenders are
penalized by the Federal Trade Commission (Xu et al., 2022). For deceptive advertising,
consumers may also file a lawsuit against advertisers. Different states have different rules when
it comes to fraudulent and deceptive advertising, but they all have legal consequences for it.
4
These regulations are enforced by state attorneys general, and customers who have been duped
by misleading advertising may file a claim for damages (Rao, 2021).
Due to their involvement in deceptive advertising, Starbucks broke the rules. Starbucks
disseminated false information about their "100% ethical" suppliers, misleading the public and
breaking the law (Abou-Sabe & Kaplan, 2024). Starbucks procures products from vendors who
actively engage in labor abuse and human rights violations. They do not, despite what they are
claiming to the public, engage in ethical sourcing. They are engaging in false advertising, which
is prohibited when they claim to be 100% ethical sourcing when they are not. To safeguard
customers and uphold confidence in the marketplace, advertising must be truthful and
transparent.
Sustaining ethical standards and preserving customer trust requires preventing deceptive
advertising concerning ethical sourcing. In addition to providing specifics on suppliers, labor
conditions, and the impact on the environment, I would have been transparent about the sourcing
processes. My approach to verifying claims about ethical sourcing would have involved using an
impartial third-party verification method. To help find any differences between claims and
reality, I would conduct routine audits of suppliers and their operations. Ensuring that audits
encompass labor practices, environmental effects, and adherence to ethical standards is
something I would guarantee. Proverbs 11:3(English Standard Version) states, “The integrity of
the upright guides them, but the crookedness of the treacherous destroys them.” The significance
of integrity is emphasized in this verse. It is a guiding principle for individuals who are
honorable and uphold their integrity. But in the end, those who commit crimes or act dishonestly
will be destroyed. Starbucks has to conduct business ethically if it wants to continue being the
biggest coffee brand worldwide.
5
All in all, God demands that people and companies conduct themselves honorably.
Proverbs 11:1(King James Version) declares, “A false balance is abomination to the Lord: but a
just weight is his delight.” In many facets of life, this verse highlights the significance of justice
and morality. I would also take the following steps to guarantee morality. I would analyze our
claims as soon as possible with knowledgeable advertising counsel. Ensure that all advertising
statements are accurate, not deceptive, and well-supported. If accusations of deceptive
advertising surface, respond to them right once by offering proof of your statements' veracity
(Rao, 2021). Looking into Proverbs 11:1, we discover a potent lesson about integrity and
honesty.
6
References
Abou-Sabe, K., & Kaplan, A. (2024, January 10). Starbucks sued for allegedly using coffee from
farms with rights abuses while touting its ‘ethical’ sourcing. NBC News. Retrieved
February 1, 2024, from https://www.nbcnews.com/news/us-news/starbucks-sued-
allegedly-using-coffee-farms-rights-abuses-touting-ethi-rcna130393
Alexiadou, A. S. (2023). Business Ethics and Corporate Social Responsibility: Translating
Theory into Action. In Contributions to management science (pp. 353–377).
https://doi.org/10.1007/978-3-031-43785-4_15
English Standard Version. Bible Gateway, www.biblegateway.com
King James Version. Bible Gateway, www.biblegateway.com.
Kubasek, N., Neil Browne, M., J. Herron, D., J. Dhooge, L., & Barkacs, L. (2024). Biblical
Worldview Edition of Dynamic Business Law (4th ed.). McGraw-Hill.
Rao, A. (2021). Deceptive claims using fake news advertising: The impact on consumers.
Journal of Marketing Research, 59(3), 534–554.
https://doi.org/10.1177/00222437211039804
Xu, Z., Zhu, Y., & Yang, S. (2022). Tackling false advertising and strengthening consumer
protection in emerging economies. Journal of General Management, 030630702211458.
https://doi.org/10.1177/03063070221145859
Powered by TCPDF (www.tcpdf.org)
