Stakeholder exercise for socially responsible companies Research Paper

Stakeholder exercise for socially responsible companies - Research Paper Example It is socially responsible to its stockholders because these are the group of people who trusted Starbucks to report to them the true financial standing of the company and to provide decent return on their investments. Finally, Starbucks is socially responsible to the future generation by ensuring that their farming practices of coffee is environmentally sound that will not deprive the future generation of coffee. 2. Then, look for information that is not so favorable about this company from a reputable news source. What does the information say about the company? What do you think about the information you found? This is about a Reuters news in Britain that Starbucks has been telling its investors that they are profitable even as it consistently reported losses. This contradiction stems from the Starbucks avoidance of tax as it tells government one thing and its investors another (Reuters, 2012). The news is basically telling that Starbucks is lying both to its investors and to the government tax agency. It says that it profitable to its investors so as not to scare them away and then reporting losses to avoid tax. This is a very disappointing news considering that Starbucks is considered as one of the most ethical and profitable companies in the world. It is hard to believe that Starbucks is doing this but since the news is carried out by a reputable business news agency Reuters, there must be some credibility to it. Starbucks may not be used to losses because it has been profitable around the world. Thus it follows that it is used to telling its investors that the company is profitable in most franchise except in Britain. I would suggest that Starbucks to be honest in its financial reporting in Britain even if it does not look good. This is necessary because the continuous giving of false financial information could hurt the good reputation of