Practices, one of the coffee industry’s first set of sustainability standards, verified by third-party experts. Starbucks caught up in child labour row as Channel 4’s Dispatches reveals the truth about coffee farms that supply beans to Starbucks and Nespresso. Starbucks. However recent controversy has linked Starbucks with many other socially condemned MNCs, inquiry into the companys ethical sourcing, labour disputes and environmental stewardship programs suggest that Starbucks is not the ethical company it claims to be. It’s the largest coffee chain in the world, with 20,100 stores, and annual sales of $14.9 billion.CEO Howard Schultz is worth $1.6 billion. All this wasn't cheap: "To date, Starbucks has invested more than $70 million in its comprehensive approach to ethical sourcing," says Craig Russell, … Starbucks responded by calling the lawsuit frivolous. The main ethical issues that Starbucks locations faced was environmental and consumer issues which resulted in a significant profit lost for The Starbucks corporation. We believe that conducting business ethically and striving to do the right thing are vital to the success of the company. Starbucks Ethics. Sponsored by the Fair World Project (FWP), the concept of Fair Trade aims to 1) financially support the country’s small-scale farmers and producers and 2) promote the use of a more sustainable method of agriculture.. The cornerstone of Starbucks ethical sourcing approach is Coffee and Farmer Equity (C.A.F.E.) "Reaching our ethical sourcing milestone shows that it can be done," says Craig Russell, executive vice president of global coffee for Starbucks, in a statement. For related articles and more information, please visit OCA's Protest Starbucks page and our All About Organics page, and our Millions Against Monsanto page. "Our customers understand and expect that ice is an essential component of any 'iced' beverage," said a company spokesperson. The cornerstone of our ethical sourcing approach to buying coffee is Coffee and Farmer Equity (C.A.F.E.) Our research highlights several ethical issues with Starbucks, including climate change, environmental reporting, habitats & resources, palm oil, arms & military supply, human rights, workers' rights, supply chain management, irresponsible marketing, animal rights, factory farming, anti-social finance, controversial technologies and political activities. C.A.F.E. Practices, which was one of the coffee industry’s first set of ethical sourcing standards when it launched in 2004. With a multi-million pound advertising campaign in the UK stressing its ethical credentials, you could easily be forgiven for thinking that Starbucks had gone entirely Fairtrade. 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