Reference no: EM132299400

GreenBean Coffee, Inc.—Is It Our responsibility?

Laura Quinn, Ph.D.,

GreenBean Coffee, Inc., currently holds the number one position in the U.S. coffee mar- ket; they have surpassed their industry competitors with the growth of their neighborhood coffee shops, grocery store retailing, and online marketing and sales. No one ever thought GreenBean could pull this off, but with a reputation for quality and value, employer-of-choice practices, and progressive environmental policies, many customers traded in their loyalties to other coffee retailers and committed to GreenBean’s products and business practices. Indeed, GreenBean’s mission and values emphasize their commitment to being “good global citizens,” treating people fairly, and not harming the environment while running a profitable business. As of today, GreenBean has retail shops in all fifty states, with a handful of international loca- tions. They are planning to grow internationally.

Recently, an international environmental organization, Groovy Planet, came to GreenBean to address the issue of beans growing in South America. Groovy Planet’s studies have confirmed the use of toxic pesticides in the coffee-farming practices in South America. Residues from these pesticides are contaminating the water supply in South America; in addition, the employees of the South American coffee growers are experiencing increased asthma, and other respira- tory and dermatological health issues as a direct result of contact with these pesticides. Groovy Planet has not gone to the press with this information but indicates it will in order to get the U.S. coffee industry to take action. Groovy Planet has contacted GreenBean Coffee first because of its role as industry leader, as well as its company values. South American coffee farmers sup- ply GreenBean, Inc., with 100 percent of their raw beans.

As GreenBean’s senior staff gets together to address this issue, the product development team presents the following facts: GreenBean’s coffee bean supplier, not GreenBean, is the pur- chaser/user of the toxic pesticides; GreenBean purchases the beans with the stipulation that the beans will be washed prior to shipment to the United States of America so the pesticides will not affect GreenBean’s customers; the employees with health issues are not employees of GreenBean. GreenBean has found an organic pesticide with the same protective qualities of the toxic pesticide, but the coffee growers require GreenBean to pay the additional costs for the use of this product. Using the new organic product would result in a need for a reduction in profit margin or an increase in price.

(NOTE: Because of GreenBean’s quality and reputation, it is already the price leader in the coffee market.)

Questions For Discussion

Is dealing with the toxic pesticides GreenBean’s responsibility?

Is GreenBean violating any company values? If so, which ones?

How should GreenBean communicate with its coffee suppliers? With Groovy Planet?

What should this communication entail?

Is GreenBean’s reputation at stake?

What should GreenBean do?