Socially Conscious fund dumps Starbucks

"Pax World Funds recently sold 375,000 shares of Starbucks worth about $23.5 million because it disapproves of the coffee chain developing an alcoholic beverage." In February, Starbucks unveiled its first alcoholic beverage, a coffee liqueur, which sells for $23 for a 750 milliliter bottle.

Pax World Funds seek to invest in companies that "improve the quality of life such as health care, technology, housing, food, education ... and that are not engaged in the manufacture of defense or weapons-related products or that derive revenue from the manufacture of tobacco, liquor, or gambling products."

Starbucks announced it was disappointed in the fund's decision, but that action would not cause it to halt the sale of its alcoholic beverage. It is interesting to note that despite Pax World Fund's actions, Starbucks is such a popular company that this will not greatly hurt their image or their profits. Interestingly, however, is that this is one of the few times when Starbucks has faced any sort of opposition at all for its actions. While this will not change Starbucks' stance in any way, it will be fascinating to watch their future decisions to see if they continue to take riskier actions.

While most consumers and investors will more than likely hail Starbucks' newest creation, the fact that it is an alcoholic beverage will cause some groups and individuals to lose favor with the company. While it is not good business practice to try and please everyone, Starbucks is entering a new market, which could prove to be very profitable. The executives at Starbucks will more than likely lose little sleep over this latest occurence.