Starbucks: The Art of Social Responsibility According to Business Essentials Tenth Edition, social responsibility is defined as “the attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities” (45). When we start to construct an ideal corporation that transcends the profit margin for the more environmentally and ethically sound choices of a we’d expect of a not-for-profit corporation, only one company comes to mind: Starbucks. Nearing the end of 2008, Starbucks was seeing a vast decline in profit shares and its stocks were plummeting. Stocks that were - a few years before - close to $35, were now struggling to maintain at a …show more content…
Every customer that is served is treated with utmost respect, while an equal care is given to the coffee and other merchandise – providing the recipient with superior quality the first time or they will gladly remake it. When customers enter the establishment they are welcomed with comfy chairs and a cozy, “nestled-at-home” feel – keeping the barren walls and cold atmosphere for other businesses. This environment yearns to be a place of unity – bringing people together, a study room for the burned out college student, or even a place to read the paper before work. Whatsoever the necessities may be, Starbucks provides the answer. For instance, for every bottle of Ethos Water that is sold, five cents is donated to the Ethos Water Fund to provide clean water to children who are unable to access it themselves. This fund has helped more than 500,000 people across the globe obtain clean water, hygiene and sanitation (Ethos Water Fund). Clearly, Starbucks believes in the necessity of humanity. In conclusion, Starbucks has found many aspects of social responsibility and proved they can accommodate to the needs of the environment, the health and welfare of those responsible for every aspect of the business, and the communities that are affected by the Starbucks brand.
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
The basic definition of social responsibility is that all companies should embrace more than just the focus of maximizing profits, and should have as part of their business model the goal to have a positive impact upon the society in which they operate. (Investopedia, 2014) Some businesses believe that social responsibility can only be applied to individuals and not to a corporation or business entity, and that the social responsibility of business is only to maximize the profits of the company for the shareholders of the organization. By maximizing the profits of a business, society as defined by these companies, is benefiting because the business is successful adding value to the entire society in which the company is operating.
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
Starbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and they offer some of the world’s finest fresh-roasted whole bean coffees. Their coffee houses have become a beacon for coffee lovers everywhere. Starbucks believe that they can elevate their customers, partners, suppliers and neighbours to create positive change. They call their corporate offices “a support centre” for some reasons. They try to make everything they do there to support their retail store partners and make an impact on the communities they serve. They have a research and development team of over 200 people which are responsible for the science behind their great products. They are the innovators of delicious beverages and brewing equipments. They drive the innovations, conduct the research and test products. They have a public affairs, communications and community team of over 50 people who promotes and protects the company’s reputation all around the world. They also have a partner resources team of over 500 people that help their partners all around the world become their very best...
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
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.
Moving on, Starbucks Corporation proves that consumers can trust them because one of the main goals of the company is ethical service, their goal is to serve the customers with less than three minutes. The author said, “Starbucks’ “Just Say Yes” policy empowered partners to provide the best service possible, even if it required going beyond company rules” (Moon). Having this policy shows that the company tries to make customers satisfied. Also, it is ethical to have this policy because service is a key that makes the company successful. For example, if the customer spilled a drink, he/she can ask for another one. Additionally, if a customer does not have cash or credit and wants to pay by check, he/she will get a simple drink for
Visit Starbucks.com and you enter a virtual world of delight. Consumers can “sample” over 30 blends of coffee; find Starbucks coffeehouse locations, or learn about Starbucks Hear Music®, where customers can “burn personalized CDs, use listening stations to explore musical recommendations, enjoy a handcrafted Starbucks® beverage, or surf the web at (a) T-Mobile Wi-Fi enabled coffee bar” (Starbucks, 2008). Starbucks uses their website to communicate with their consumers about their company’s mission, social responsibility, business ethnic and compliance, diversity relations and press releases. Consumers can even read about the latest “rumor responses” that Starbucks wants to clarify about misinformation regarding the company. From the “click” of a button you can shop for Starbucks merchandise or check the balance on your Starbucks Card, the Starbucks website has got their customers needs in mind.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
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
How do I view the relationship between corporate and profits and social responsibility? I believe that employers should care for the health and wellbeing of their employees. Company representatives/executives should become actively involved in community activities such as contributing to schools, community centers for seniors and children with disabilities and/or children that are disadvantage. Promoting/encouraging communication amongst citizens and community leaders thus bring about change or betterment for all. As results, the citizens of the community will support the business thus yielding greater profits. Who decides what objectives with respect to people and the planet should be part of an organization’s triple bottom line? These and many more questions must be considered as organizations move through the every changing landscape of social responsibility and its relationship to profitability (Rivoli & Waddock,
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.