Business ethics has come to the forefront of business concerns today, especially the ethical practice of becoming a more sustainable company. In the news lately, Starbucks has announced their first sustainability bond. There are many benefits to becoming more sustainable as a company that benefit all stakeholders, in turn creating a successful business according to Freeman’s Stakeholder Theory. Starbucks, as an example is satisfying all their stakeholders, by creating a common interest and value return with their new sustainability bond, while doing what is ethical.

The CEO, Howard Shultz, benefits tremendously from this bond. He increases profit through the cost savings associated with more sustainable options, possible tax incentives from the government, increased demand from mindful customers and increased longevity of resources. He creates more motivated workplaces, increasing employee dedication and good publicity for the company.

The Starbucks’ employees become more motivated by working for a greater cause and enjoying what they do, knowing they are helping the environment. They also can become hopeful that with future profit increases there is a potential salary increase, or job opportunities in the sustainability sector.

Loyal Starbucks customers feel satisfied knowing that what they’re buying is aiding the sustainability efforts. Also, many new customers in this ever changing and growing world will come to Starbucks with the desire to be more ethically aware of what they purchase and how it affects the world as a whole.

The communities around the world, not only ones with a local Starbucks, but the ones the coffee beans are being sourced from, feel as though they are being heard and taken into consideration with these corporate decisions.

For the financiers, they are overjoyed by the words, cost savings and profit increase. The possible cost savings from taking more sustainable routes throughout all stages of the company is something all financiers want to hear.  They are also greatly impressed by increased profit and value return to them through the increased customer demand, the longevity added to the company through sustaining resources and the possible tax incentives attached to choosing certain sustainable options.

The suppliers, especially at Starbucks with the new sustainability bond, feel appreciated by the company’s efforts to not only educate them, but to start a more sustainable farming method. They feel safe in their jobs knowing they and their new knowledge are now assets to the company. They also feel they will have many more years to work with new sustainable farming ways.

Freeman’s theory states the way to a successful business is to keep every stakeholder happy and find where all their interests intersect, while still doing what is ethically correct. Starbucks did just that when announcing their new sustainability bond.

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Quick Links:

https://www.greenbiz.com/article/why-starbucks-issued-its-first-sustainability-bond

https://www.youtube.com/watch?v=bIRUaLcvPe8

http://www.ecozine.com/blog-post/funking-up-sustainability-communications

http://www.businessinsider.com/the-top-10-benefits-of-convincing-your-company-to-care-about-sustainability-2012-3