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Rethinking the social responsibility of the business
The history of the Starbucks corporation
Rethinking the social responsibility of the business
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Founded by three partners in Seattle in 1971 in Seattle’s, renowned open-air Pike Place Market and Starbuck’s was named after the first mate in Herman Melville’s Moby Dick. Howard Schultz joined Starbucks in 1982 as director of retail operations and marketing, he returned to the United States with 1500 coffee bars. Schultz had recognized an opportunity to develop a similar retail coffee bar culture in Seattle. The first coffee house was tested in 1985 serving the first Starbucks café Latte, as well as introducing its Christmas Blend (Ferrell, Fraedrich and Ferrell, 2015).
Starbucks has expanded across America the United States and around the world with more than 25,000 stores in over 75 countries (Starbucks Company Profile, 2012). Starbucks
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As we read in the case Starbucks has made Social Responsibility a big part of its corporate strategy. Social responsibility is very important when it comes to businesses today. Social responsibility represents firm’s discretionary business practices that are intended to improve societal well-being (Mishra & Modi, 2016). I believe that Starbucks has worked hard to strengthen their brand and cater to their consumers. It is important for organizations to behave in a socially responsible way, as well as embrace Social Responsibility as a component of their overall strategy (Mishra & Modi, …show more content…
Starbucks is dedicated to its mission, in which they have created a corporate Social Responsibility Department which is known as the Global Responsibility Department. This department create an annual report on its shared planet website that allows its shareholders to track its performance. Starbucks is very concerned about the environment, its employees, suppliers, customers, and it communities. In 1992, Starbucks developed an environmental mission statement to clearly articulate the company’s environmental priorities and goals. To help with reducing their environmental footprint, they created the Environmental Starbucks Coffee Company Affairs Team. Under this team they began using environmental purchasing guidelines and reduced waste through recycling and energy conservation. They also educated their partners through their “Green Team” initiatives (Ferrell, Fraedrich and Ferrell, 2015).
Further, Howard Schultz’s desire was to create a good work environment. Starbucks has one of the best health care programs in the coffee shop industry. His key to maintain a strong business is to create an environment where everyone believes they play a part of something larger than themselves, and that they have a voice (Ferrell, Fraedrich and Ferrell, 2015). Starbucks supports their employees and
The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson)
“Social responsibility is a business’ obligation to pursue policies, make decisions, and take actions that benefit society” (Williams, 2014, p.78). Not many people are aware of this but one of the leading companies that stand for Corporate Social Responsibility is leading retail store and brand Target. Target Corporation is a retail/food store that was founded February 11, 1902 by Goodfellow Dry Goods and is known today as the second largest discount retailer in the United States. Target’s sole purpose is to fulfill the needs of every single guest that comes in or interacts with Target. Target is a guest friendly retail store that values every single customer, and strives to make sure that every single
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
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
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.
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.
...healthy environment, economy, or political state is left up to those who buy and distribute coffee. While the model that Starbucks follows to come by and sell their coffee may not be perfect it is at least a step in the right direction.
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.
Last year the American chain operated 12,800 stores globally and earned 6.4 billion dollars in revenues. Further, Mr. Donald plans to open a total of 40,000 Starbucks stores, 50 percent of them outside of the United States. "We open six new stores every day", says Donald. "We opened our first in Brazil last week. Cairo opens next week", he continues. Incidentally, Donald was paid $2.7 million last year, a former chief executive of America's Path mark supermarket chain a far cry from the salary he earned at that level.
Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984. With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition, Il Giornale changed its name to Starbucks Corporation and opened locations in Chicago and Vancouver, B.C. (Starbucks timeline and history, 2004).
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.
Expansion of Domestic and International retail markets: With the target of 2000 stores by year 2000, Starbucks is on an expansion mode. They are expanding into the international markets and simultaneously they are diversifying in the domestic markets also. Initiatives like Frappuccino and the Doppio cart are part of this.
Schultz has had a lot of success with Starbucks, not only in revenue but he has continued to expand the brands in their portfolio, increase store locations and reach all new highs. Starbucks is now an international company with more than 21,000 stores in over 65 countries (Starbucks Coffee International, n.d.). Starbucks believes their global success has a lot to do with their international partners. Schultz explained it nicely when he said, “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day” (Starbucks Coffee International, n.d.). Schultz continually sees opportunity and the ability for growth, with an increase in locations across the globe every year and the ability to keep up with the latest in technology (websites, online shopping, a Starbucks application with the ability to pay and reload loyalty cards on your smart phone), etc.
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
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,