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Tasty is a chain of coffee shops that operates 75 outlets in the home country. A number of ethical problems have recently arisen at Tasty, and an emergency meeting of its board has been convened to manage and solve the problem.

Three employees in one shop have been dismissed for thefts of both products and cash. These thefts were only identified because one of the employees was foolish enough to steal, and then sell, the bags of coffee beans on the premises of the Tasty coffee shop in which they worked. A customer reported the incident to the chief executive of Tasty and an investigation of the shop revealed that two other employees had also been involved in theft.

One of the coffee shop managers was reported by a customer, and subsequently arrested, for selling illegal Class A substances in their Tasty coffee shop and allowing drugs to be taken on the site. Police investigations showed that this had been taking place for at least ten months.

A routine advertising campaign promoting Tasty stated, Tasty is aiming to have all its coffee supplied by Fair Trade suppliers. However, a former Tasty Head Office employee recently stated in the national press that only around 60% of Tasty coffee was procured from Fair Trade suppliers. An investigation revealed that the figure was in fact around 80% but the percentage bought from Fair Trade suppliers had fallen by 5% over the past year.

Tastys Chief Executive is very concerned about all these issues. They feel that they demonstrate that Tasty has a poor ethical culture and these could seriously damage the companys reputation. They wish to introduce measures to improve Tastys ethical culture and to use the companys recently appointed internal auditors to ensure that the measures are effective.

Using a case study technique, advise the board of directors of the company on the best course of action to address the issues affecting the company, to ensure the ethical problems will not recur again.

( Total / Jumlah: 20MARKS )

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