PR conflict - Ethiopian government vs. Starbucks

Coffee comes originally from Ethiopia, from a province called Kaffa. Coffee is Ethiopia’s most important export product by 60 % (CIA the world factbook and Fortune).

The following PR conflict is not resent, but it is a very interesting case. All began already in March 2005, when Ethiopia filed with the U.S. Patent and Trademark Office to trademark the names of its three most famous coffee-producing regions: Yirgacheffe, Harrar and Sidamo. By this the Ethiopian government tried to obtain to its poor farmers larger shares of the sales of those who sell Ethiopian coffee. However Starbucks, the world's largest coffee shop chain, had already an application concerning trademark Sidamo.

The PR war was at its worst in 2006. This was a hit against Starbucks’ ethical image and their social responsibility policies. Trying to defend their profits against one of the worlds poorest countries. Starbucks clarified its good relationships with Ethiopian coffee farmers at its web page.

According to Spiegel “In June 2006, the giant coffee distributor withdrew its application and took a different approach to get its way. According to Oxfam, Starbucks leaned on the National Coffee Association (NCA) to help block Ethiopia's bid. And it worked.”

At the end silent stakeholders proved their power when Oxfam, a British-based not-for-profit organization, collected more than 96,000 signatures demanding Starbucks to complete a licensing, distribution and marketing agreement with Ethiopia for the three of Ethiopia's specialty coffees.

This case proofs that you cannot build trust based on economical decisions only – you need to consider the ethics of your public relations.


Photos:
1. Ethiopian farmers
2. Ehtiopian coffee

Other sources:
ABS News
Alternet
BBC news
CorpWatch
FPIF
Guardian