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Starbucks ethics and social responsibility
Development and history of Starbucks
Starbucks ethics and social responsibility
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Since its founding, Starbucks has become a staple in the United States and a customary sight globally. Besides the association of Starbucks with coffee, the next familiarity is the company’s pride in being efficient in social responsibility. According to the Starbucks Heritage Statement, they still root its actions on CEO Howard Schultz’s visualization for the company, “Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better. It was true when we first opened in 1971, and it’s just as true today.” Today, the three core aspects of social responsibility that Starbucks focuses on as reported by their most recent Global Responsibility Report from 2012, are ethical sourcing, environmental impact and fostering strong communities in the areas they work in. Though many of the company’s stakeholders and consumers praise Starbucks for the undoubtable responsibilities in some areas, they tend to overlook the fallouts in other aspects of the company’s social responsibilities.
Starbucks is the not the worst company currently operating when it comes to responsibility. It remains recognized on multiple lists regarding high corporate social responsibility, however most importantly, Corporate Responsibility Magazine featured Starbucks on the list of 100 Best Corporate Citizens. This ranking is probably due to Starbucks’ work with over thirty NGOs with specialties ranging from community, ethical sourcing, environmental impact, global diversity and inclusion, environmental stewardship, and community involvement.
For their work with ethical sourcing, the major partnership Starbucks has is with Conversation International, an NGO focused on helping Starbucks with C.A.F.E. P...
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No one company can truly be perfect; therefore, it is essential to recognize the mistakes Starbucks has committed. However, in regards to being an ethical company and actively being socially responsible, Starbucks is still a leading competitor in this market. They lack significantly in vital areas of their responsibility, but the reality is that Starbucks has a bountiful of stakeholders that they must please. Unfortunately, the majority of their stakeholders are more concerned with Starbucks’ public relations, so Starbucks stresses their social responsibility work with concerns of the average consumer like the environment and ethical sourcing instead of labor rights. Although I do not personally agree with this way to approach responsibility, it is easy to see the other side and I do not doubt that Starbucks will begin work on their responsibility fallouts soon.
Starbucks selection for CSR parallels that of its menu, extensive yet counterproductive. They brandish programs such as sustainable farming, career opportunities as well as other local community programs; essentially investing money in programs for other people to operate. Even companywide programs such as career advancement and achievement, ultimately only goes as far hiring a diverse group of individuals and offering tuition assistance. Adversely, Dutch Bros. is committed to positively impacting every community they infiltrate; whether it be through community service or simply by being that silver lining in someone’s day. In order to ensure this culture continues, Dutch Bros. only franchises within the company, “Dutch Bros., based in Grant Pass, Ore., only hires and promotes only outgoing optimists committed to customer service. No bad tempers allowed” (Adams). With this model, a college dropout can potentially own their own business as long as they are genuinely, salt of the earth, model citizens. In a world, where big corporations throw money at a problem and call it social responsibility, Dutch Bros. and their ability to impact a community in such a positive manner, is truly a breath of fresh
“For most organizations, particularly for-profit firms, the end game is a change in financial performance… Most company strategies aim for long-term, sustainable financial growth,” (Balestrero & Udo, 2014, p. 251). Being a publically traded company, Starbucks legally must adhere to strict financial reporting regulations. Nevertheless, by tying into their SEE model of organizational sustainability, Starbucks can further sway investors to participate in supporting their business (in big and small ways) in order to continue thriving. Marshal Goldsmith is credited with the phrase: “What got you here, won’t get you there.” This means, in order for Starbucks to truly remain sustainable, hard-nosed economics, measuring their full-range impact will be necessary via triple bottom line definitions.
The main stakeholders of Starbucks include the employees, customers, suppliers, investors, environment and the government (Thompson, 2015). Starbucks gives priority to their staff and ensures that they are happy with the provision of better working conditions, job security, and higher wages. Thus, the company builds the community, facilitating the growth of the employees. The company listens to their customers to improve the quality of service and products. For instance, Starbucks creates a warm and friendly relation with customers to satisfy their social responsibility with this stakeholder. By ensuring their suppliers are properly paid through their Coffee and Farmer Equity (CAFÉ) program, Starbucks fulfills their commitment to the suppliers through awareness. The company creates eco-conscious stores (Starbucks Corporation, 2016) and ensures to follow environmentally sound business practices using their foresight. Starbucks supports the emergency relief services. In 2005, they helped rebuild the Hurricane Katrina struck areas (Adams, 2007). Through their high financial performance in the industry, the company meets the interests of the investors proving the ability to conceptualize. Being an international company, Starbucks remains respectful of the people’s perspectives from the respective governments. Thus, they satisfy their commitment and
If you had the chance to enjoy the Starbucks experience, then you will appreciate their mission statement, which is , According to starbucks.com, it states, that it is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”.
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
In a supply chain, distribution means the steps required to move and store a product from supplier stage to customer stage. It is an important driver for overall profitability of a company because it affects both the supply chain cost and the customer experience directly. (Chopra and Meindl, 2010, p68) A typical distribution network of coffee distribution system is like this (Starbucks Coffee Company, p22):
Most obviously, community is about people. Starbucks not only connects consumers with their company, but addresses the lifecycle of community from start to finish, starting with the farmers that grow their coffee, to the customers that drink it in their stores. In my opinion, one reason for their immense success has been their ability to communicate their mission to their customers, and allow their customers to feel like they are part of the mission. For example, for every bottle of Ethos water purchased, Starbucks will donate $0.05. According to Starbucks’ website, “$12.3 million has been granted to help support water, sanitation and hygiene education programs in water-stressed countries – benefiting more than 500,000 people around the world.” In addition to developing programs to supporting communities around the world, Starbucks also engages in philanthropic community efforts locally. A variety of projects currently exist, and Starbucks encourages their customers and employees to volunteer in these programs, which includes veterans and military support, creating jobs, diversity & inclusion, and opportunity for
McDonalds’ corporation is a leader in the fast food industry. Nonetheless, the corporation website has some drawbacks I terms of detailing the company’s social responsibility statements. As opposed to Starbucks, which delineates in a more precise manner its social responsibility statements, McDonald’s does not show its commitment in a clear way. Here are some of the aspects that were impressive when analyzing Starbucks business ethics and compliance standards of business conduct booklet.
Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.
The corporate social responsibility is a commitment by a business to contribute to economic development while improving the quality of life for employees and their families’ as-well as contributing to the society. Walmart is a well-known company that offers customers the items they want and need at a low cost, with nearly 4,000 stores in the United States. According to the Fortune 500, Walmart was ranked number 1 in 2015. Just like any other superstore Walmart needs to continue the use of social responsibility by recreating a relationship between business and the community especially if they want to dominate the competition in 2016. The use of sustainability, strategic philanthropy, causing market, shared values, stakeholders and global perspective will help readers understand the purpose of social responsibilities in the corporate world.
Every thriving company must embrace some sort of code of ethics ground rules which will guarantee its success. In this case, Starbucks wants to promote high standards of practice; by selling the richest and aromatic coffees in the world to the ...
Coffee has been around the market and homes for a very long time now. The first coffee shop in the United States opened in 1697 in New York. Today, nearly two-thirds of americans drink coffee. Coffee is usually associated with 'waking up' or 'staying awake' due to your high caffeine level, and it's invevitable to these two coffee chains be overcrowded during the rush hours in the morning. Coffee shops are always trying to innovate with different coffee flavor or mixtures to make them standout more than the other competitors. Starbucks and Dunkin' Donuts are the two coffee chains most popular in the United States. Starbucks was founded in 1971 in Seattle, Washington. While Dunkin' Donuts has been a bit longer around the market, being founded in 1950 in Quincy, Massachusetts. Dunkin' Donuts is famous for your convencience and for your coffee accompainments as donuts and sandwiches. On the other hand, Starbucks gets the customer's attention with its stress-free athmosphere and the extensive options of coffee mixed drinks.
Business was good, but it was not without its problems. There was the political upheaval in the Middle East, followed by further tension after then CEO Howard Schultz commented on growing anti-Semitism in the region. Their integrity came under fire when certain Non-Governmental Organizations (NGO's) accused them of purchasing coffee beans under questionable social and economic conditions. These situations, together with difficult economic times globally, meant that Starbucks was likely going to take a hit somewhere. Eventually, they shut down their Israeli operations altogether.
Introduction This paper will provide an argument for diversification to be presented to the board of directors for Starbucks. A strategy for diversification indicating the products and industries for diversification and how synergies may be gained. The identification and the discussion of the foreign market Starbucks should enter will be presented, along with the strategy it should use to enter the market. Challenges Starbucks may face in the foreign market will be discussed, as well as how it might respond strategically to minimize the impact of these challenges. Also, this paper will encompass a scenario when it would not make sense for Starbucks to diversify or expand into a foreign market, and how the company will create a business environment conducive to ethical behavior will be assessed.