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Discuss about the Corporate Social Responsibility of Starbucks. Answer: Introduction Corporate Social Responsibility is the commitment made by a business to act ethically and to make contribution towards dissertation helper 2d economic development and improving the life quality of workforce as well as of their families, of the local community and society as a whole Schwartz, M, dissertation helper 2d.
CSR is the obligation of the company towards its shareholders and those groups or people who have interest in the company. CSR is not concerned only with the shareholders; it also includes customers, suppliers, investors and employees; and the community dissertation helper 2d surrounds the business Anaejionu, R, We know that shareholders have various needs and that has to be fulfilled by the company.
The customers desire for safe products and valuable services from the company whereas, an employee is in need of fair wage policy and working conditions should be safe.
An investor wants to enhance its profit by making investment in the company and the community expects that the business limits its activities that are responsible for causing pollution. CSR aims at maximizing the good causes and reducing the bad effects in the business activities Kotler, P and Lee, N, There are basically four areas that describe the social responsibility of a corporate.
These are — legal, ethical, economic and philanthropic, dissertation helper 2d. Legal: A corporate should always ensure that their business practices are legal and are obeying regulations to protect the consumer needs, because the customers rely on a business that are truthful regarding the products and services that they offer Werther, W dissertation helper 2d Chandler, D, If a company is penalized or ceased to perform its activities due to illegal practices it will ultimately affect the customers of that company Brennan, D, Economic: The economic responsibility of a company is to make profit and to be capable of returning a good amount of interest to their investors.
Creation of job opportunities to the community and the contribution of producing useful products and services is also the responsibility that lies in the hand of a company. Ethical: The ethical responsibility of an organization is to manage waste, dissertation helper 2d, recycle and balance consumption. These areas are often regulated by the government and it is voluntary for a company to go beyond what law requests to bring sustainability for future generation, dissertation helper 2d.
It is the philanthropic responsibility of a company to promote human welfare and to spread goodwill of its own You, J, All these areas are covered under the scope of CSR of an organization.
The name of the company is an inspiration from Moby Dick, that it was an evoke from the romance of high seas with the seafaring tradition of early traders who dealt in coffee. InHoward Schultz showed interest in Starbuck and wanted to be a part of it.
He worked very hard and his ideas had potential to expand the enterprise outside Seattle. Currently, dissertation helper 2d, Starbuck has reached a new height of success in expanding their business worldwide and it also aims at providing excellent customer services to maintain the reputation of the company. Starbucks totally believes in conducting business ethically and to strive to do business in a right manner to bring success.
Business Ethics and Compliance is a process that strongly supports the mission of Starbucks and helps to protect the culture and reputation of the company, dissertation helper 2d. This program aims at developing and distributing awareness and to facilitate legal compliance along with ethical training.
Starbucks takes initiative to investigate into the matter and issues that brings conflicts and disinterest of the partners. All the partners are requested to discuss issues and challenges that the company faces by building good communication channels Simpson, J and Taylor, J, As a result of this program it was developed that most of the issues where related to the employees of the company.
This trend is dissertation helper 2d same in other companies as well, dissertation helper 2d. After this the company made sure that these issues are resolved as soon as possible and the enterprise can maintain its ethical code of conduct in their business activities.
To maintain the standard of Business Conduct, dissertation helper 2d, the company has issued a booklet which is distributed to all its partners so that it becomes helpful at the time of decision making Mullerat, R, The standard of business conduct program helps in accomplishing the mission and objectives of the company by maintaining their core values.
Starbucks aims to commit good governance, dissertation helper 2d code of conduct and social responsibility in the way they perform their business. The employee satisfaction and retention of the company is high because of the good CSR practices Fridell, G, Customers are attracted more to the company because they perform CSR responsibly and this is the driving force for the organization.
The measures company take to reduce its impact on the environment are initially cost consuming but for the longer run they prove to be beneficial in terms of reducing environmental damage dissertation helper 2d cost saving. The company invests in the measures to strengthen their supply chain that ensures them a sustainable growth. The company seeks approval and necessary licenses to operate from the concern regulating authority.
A strong and ethical corporate culture is important for the success of the organization. The company provides guidelines through a program called Starbucks Business Ethics and Compliance.
The way the company manages its dissertation helper 2d social responsibility shows that the company is willing to identify and prioritize the issues that have emerged and is able to address them in a systematic and integrated manner.
Along with a dedicated team dissertation helper 2d take care of the CSR initiatives the company has also formed three cross-functional teams that take care of the specific responsibilities, dissertation helper 2d, the teams are, Emerging Issues Council and CSR Dissertation helper 2d Committee, dissertation helper 2d.
The Emerging Issues Council was established in the year to identify and map the external key trends and issues that may impacts the business of the company, dissertation helper 2d. The council may involve external stakeholders to gain input once the issues are identified. CSR Executive Committee was established to strengthen the overall CSR governance of the company.
The aim of this committee is to set strategies and policies, to monitor the progress the company has made against its objectives, to oversee the CSR structure of organization at the local, dissertation helper 2d, dissertation helper 2d and global level, to ensure that the integration and implementation is done throughout the company and to approve and review the social investment activity Wolf and Ruth, Starbucks manages its CSR policies in such a way that the emerging challenges can be easily evolved.
It has a shared accountability for CSR, so the company is relying on a dedicated CSR group Niahkaew, dissertation helper 2d, P, In Starbucks the top executives are reported on day to day basis if there is any CSR related issues.
This group aims at managing CSR at different levels; at the business level, department or division level. Beside this group there are other groups that ensure that the company is successful in matching the legal formalities prescribed by the Government in this regard.
Starbucks social responsibility is considered to be the best CSR strategy which focuses on the three pillars which are Community, Following Ethical Sourcing, dissertation helper 2d, and Taking Care of the Environment. It is observed that Starbucks is working for the development of the society. Its prime focus is to give back to the society what they have actually utilized.
To create a positive impact on the society it has developed many community stores associating with the local nonprofit organizations. It has focused all its resources in developing the community resources by incorporating various social service schemes Environmental They have integrated social responsibility as a part of their corporate strategy.
Howard Schultz has emphasized on Corporate Social Responsibility while focusing on its structure. Their prime focus is development of community and environment as they are the dissertation helper 2d essential for any country. Social responsibility is a pattern used by the organizations to support the natural resources throughout the world.
Starbucks is a pioneer leader of promoting social responsibility in its daily working Wolf, Ruth, dissertation helper 2d, Starbucks has more than 24, stores which are operating in 34 countries and serving the best coffee to its customers. Their mission is to provide their customers the best coffee experience by supporting the environment and their farmers.
They are focused on promoting their brand as the ethical brand throughout the world. There multiple programs for the society are considered one of the best schemes.
Many organizations are focusing on developing their CSR plan as per the Starbucks. The employees are asked to promote the organizational interest in the favor of the company. For accomplishing the purpose Starbucks has developed various plans to accommodate the environmental balance in their daily practice Ottman, Starbucks understands that most of the carbon emission is created through their stores; therefore they are focusing on developing eco-friendly projects.
Starbucks is focusing on utilizing the renewable source of energy as this will cause a lesser harm to the society, dissertation helper 2d. Several investments are made in developing energy efficient plants.
The stores are utilizing a lot of water in the daily routine job which is dissertation helper 2d matter of concern for the company. Starbucks is utilizing a technique which makes less water wastage. All their stores follow strong instructions which are helping in managing the renewable resources Water Conservation, Non-renewable resources are causing harm to the environment, dissertation helper 2d. Starbucks work with the local community for recycling the resources which it is putting into use.
They have introduced various rewards points in reducing the garbage which is created by them. It offers a ten cent reduction rewards to its customers which own a reusable cup Recycling and Reducing Waste, They are always finding new ways to design their stores which are putting lesser impact over environment, dissertation helper 2d.
They are utilizing responsible business materials and energy efficient material to create a difference to the society. They are using LEED Certification programs to protect the environment which was created by United States Building Council. The materials they are using for the construction are energy efficient. The green Starbucks building signify environment friendly measures Building Greener Stores, They advocate on utilizing the energy efficient resources.
They have collaborated with various communities to improve the coffee production, and restoration of the natural habitat. They are promoting the interest of their farmers while implementing the energy friendly resources.
Starbucks knows that they are utilizing dissertation helper 2d huge amount of resources from the environment which makes it necessary to focus on the eco-friendly use of resources Tackling Climate Change, It has partnered with various organizations to promote the interest of their farmers.
They have issued certain guidelines for managing the ethical sourcing of coffee. The project is called as CAFÉ Coffee and Farmer Equity practices. They emphasize on growing the coffee in a way which is beneficial for people as well as the environment.
This program is focuses on managing the natural resources with the needs. The program is focused on sustainable utilization of environment by combining the goals in meeting the requirements Starbucks C, dissertation helper 2d. Practices, There initiatives are made on fair pricing, precision, responsible buying and an environmental friendly purchase.
They have combined the efforts with the third party to monitor the interest of the farmers. They are working with the local government and ensuring that their farmers are not deprived of utility. The cocoa farming is also given much priority same as the CAFÉ program. Starbucks ensures that the cocoa they are using is based on high standards.
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