Criticism of Starbucks

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Criticism of Starbucks[edit | edit source]

Starbucks Corporation
Company typePublic
NASDAQSBUX
IndustryCoffeehouse
FoundedMarch 31, 1971
FounderJerry Baldwin, Zev Siegl, Gordon Bowker
Number of locations
31,256 (2020)
RevenueUS$26.7 billion (2020)
US$3.6 billion (2020)
US$928.3 million (2020)
Total assetsUS$29.3 billion (2020)
Total equityUS$3.9 billion (2020)
Number of employees
349,000 (2020)

Starbucks Corporation is a multinational coffeehouse chain based in Seattle, Washington. It was founded on March 31, 1971, by Jerry Baldwin, Zev Siegl, and Gordon Bowker. Starbucks is known for its high-quality coffee and cozy atmosphere, but it has also faced criticism on various fronts.

Labor Practices[edit | edit source]

One of the main criticisms of Starbucks is its labor practices. Critics argue that the company does not provide fair wages and benefits to its employees. There have been allegations of low pay, inadequate healthcare coverage, and limited opportunities for career advancement. Starbucks has faced several lawsuits related to these issues.

Environmental Impact[edit | edit source]

Starbucks has also been criticized for its environmental impact. The company has been accused of contributing to deforestation through its sourcing of coffee beans. Additionally, Starbucks has faced backlash for its excessive use of disposable cups, which contribute to plastic waste. In response, the company has made efforts to improve its sustainability practices, such as introducing reusable cups and implementing recycling programs.

Tax Avoidance[edit | edit source]

Another area of criticism for Starbucks is its tax avoidance practices. The company has been accused of using complex financial arrangements to minimize its tax obligations in various countries. This has led to public outcry and calls for increased transparency and accountability.

Ethical Sourcing[edit | edit source]

Starbucks has faced criticism regarding its ethical sourcing practices. Some activists argue that the company does not do enough to ensure fair trade and support local coffee farmers. There have been concerns about the working conditions and wages of coffee farmers in developing countries.

Response and Initiatives[edit | edit source]

In response to these criticisms, Starbucks has taken steps to address the issues raised. The company has implemented initiatives to improve labor conditions, such as increasing wages and providing better benefits for its employees. Starbucks has also committed to sourcing coffee beans from sustainable and ethical sources, supporting farmer welfare programs, and reducing its environmental footprint.

See Also[edit | edit source]

References[edit | edit source]

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