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Institutions in Crisis

Teaching Notes

Starbucks vs. Ethiopia Corporate Strategy and Ethical Sourcing in the Coffee Industry

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Ln March 2005, Ethiopia filed with the U.S. Patent and Trademark Office to trademark the names of Yirgacheffe, Harrar and Sidamo, three coffee producing regions within the country. In doing so, the Ethiopian government hoped to force coffee buyers into potentially lucrative licensing agreements. However, Starbucks had already applied a year earlier to trademark Shirkina SunDried Sidamo. Until a decision was made on Starbucks’ application, Ethiopia’s claim could not be processed. Ethiopia requested that Starbucks drop its claim, but Starbucks was reluctant to do so, and suggested that Ethiopia apply for a different type of certification. This led to public criticism of Starbucks and questions regarding its supposed dedication to selling ethically grown and traded coffee. This case highlights the complexity surrounding global certification programs, the difficulty inherent in balancing corporate and shareholder interests with responsible corporate citizenship, and the challenge to preserving economic value for the producers of consumer goods grown in developing nations. The case text and teaching notes for this case were completed under the direction of Dr. Rebecca Dunning, the Kenan Institute for Ethics.

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Case Studies in Ethics: Teaching Notes

dukeethics.org

Teaching Notes

Target Audience Courses in:  Organizational Studies  Organizational Ethics  International Comparative Studies  Sociology  Public Policy  International...