Describe Corporate Social Responsibility of Starbucks

Corporate Social Responsibility of Starbucks
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Table of Contents TOC \o "1-3" \h \z \u 1.0 Starbucks: Company Overview PAGEREF _Toc473442625 \h 32.0 CSR Initiative at Starbucks PAGEREF _Toc473442626 \h 32.1 The Launch of CSR at Starbucks PAGEREF _Toc473442627 \h 42.2 The Role of CSR Initiative in Starbucks PAGEREF _Toc473442628 \h 43.0 Positive Social Change Impact and the CSR Initiative’s Impact on the Organization PAGEREF _Toc473442629 \h 53.1 Impact on Employees PAGEREF _Toc473442630 \h 53.2 Impact on Leadership PAGEREF _Toc473442631 \h 63.3 Impact on Profits PAGEREF _Toc473442632 \h 74.0 Ethical Considerations Associated with CSR Initiative PAGEREF _Toc473442633 \h 84.1 How to Address the Ethical Considerations PAGEREF _Toc473442634 \h 115.0 Conclusion PAGEREF _Toc473442635 \h 126.0 References: PAGEREF _Toc473442636 \h 13
Corporate Social Responsibility of Starbucks
1.0 Starbucks: Company Overview
Starbucks is a global coffee enterprise comprising of over 20,000 stores in 60 different nations worldwide (Starbucks.com, 2017). The company was founded in 1971, and it is located in Seattle, Washington with several outlets worldwide with the core function of roasting and manufacturing coffee products. The firm has employed over 182,000 employees in its premises to produce and sell High-quality premium products at the groceries, national foodservice centers, and its licensed stores (Starbucks.com, 2017). The mission statement of the organization is to provide coffee with the highest quality in a harmonious working environment and enhance the sustainability of its consumers worldwide. Starbucks Corporation is the leading firm in the coffee industry, and both the firm and Dunkin Brands comprise of 60% of the whole industry. The company has experienced growth in its profits despite the wild nature of the sector as it boosts profits of $4.2 billion in the year ended 2016 (Starbucks.com, 2017).
2.0 CSR Initiative at Starbucks
The organization has strived to stimulate the relationship with the customers and stakeholders by practicing social responsibility in as a core value to its mission. Corporate social responsibility must accompany every operation of the firm, and the employees are encouraged to promote the initiative at any point in and out of the enterprise. The management often makes decisions that relate to the operation while considering ethical issues likely to arise in the implementation phase. Any product that may face public scrutiny and ethical concerns is always brought back to the production process for changes to avoid backlash in the global market (Day, 2014).
2.1 The Launch of CSR at Starbucks
Starbucks Company started its corporate social responsibility in the year 2006, and a report made public in the fiscal year 2007 (Fontaine, 2013). Since then, the firm has conducted its business in an ethical and responsible manner lately guided by the corporate social responsibility to its customers, stakeholders, employees, and the neighborhood. Trust among the major players of the enterprise has been built over the period aided by consistency in implementation of CSR and a positive response has been observed in productivity levels. The developments in the immediate environment of its operations have improved the firm’s ranking in the global market since the public have substantially associated with the brand and purchase the products of the company. This promotes the global trade as the firm receives various investors and well-wishers who are willing to invest or assist the business due to its participation in corporate social responsibility function. The management needs to determine the extent to which the firm is affected by the initiative and identify the possible profits to be encountered (Barnett, 2016).
2.2 The Role of CSR Initiative in Starbucks
CSR initiative has an essential role in the organization since it enhances social and environmental responsibility of the business to its stakeholders. The action enables the company portrays its responsibility and care for the community, environment, and the ethical sourcing to increase customer loyalty and promote the good working environment for its practices. It enables the enterprise to partner with the communities they serve as well as enhance their productivity due to customer demand and loyalty to the products of the firm. CSR is an effective tool for encouraging the public participation regarding the introduction of new products since the consumers will make the necessary changes before the product is launched into the market.
3.0 Positive Social Change Impact and the CSR Initiative’s Impact on the Organization
Starbucks coffee company’s CSR has led to a positive impact on the social change and CSR initiative over the years. Its commitment to ethical issues in the coffee industry has significantly influenced the social change and CSR initiative in a positive way. The continuous integration of social and environmental responsibility to the day to day running of its operations has affected the association of the firm with its stakeholders, employees, partners, and the general public. The company provide services to the public such a free water, scholarships for neighboring students, and constructions of bridges. This enables them prion the business since hostility is often avoided with the locals as they embrace the products of the company. It is the responsibility of the management to access the best event to conduct to promote community wellbeing and togetherness.
3.1 Impact on Employees
Starbucks prioritizes the need for employee motivation and encouragement in the CSR initiative to promote social change. The employees often advocate for better wages, job security, and improved work conditions in the firm. The enterprise has fostered a positive social change to the employees by providing wages higher than the minimum wage. Also, the organization has availed scholarships to its employees in a bid to improve their performances and promote career development process (Day, 2014).
There is a possibility of improvement in the area since the employees represent the core value of the business and the need to make them comfortable and improve productivity in the firm. Job security is stipulated in the CSR, and no employee should be fired or contract terminated without the prior consent of both parties. The enterprise has improved its working environment by providing protective equipment to the workers to avoid injuries that might occur in the production process. Therefore, CSR initiative has impacted positive changes to the employees in the organization.
Employees’ personal concern on the ethical considerations enables positive changes and developments in the company and the industry as a whole. It is the enterprises' responsibility to foster the employee morale by encouraging them to participate in discussions that enable performance of the firm. The management needs to take into account the employee role in the productive process of the firm since they are integral in the development of the ethical issues in the industry. Diverse employee participation from different countries promotes efficiency process as there is an increased involvement and concern on the employee nature and position concerning the company’s welfare.
Employees of the firm encounter a scheme that enables them access the services after retirement. The scheme is based on the employee performance and several employees often receive the payment due to the high standards of the requirements for one in the enterprise. This enables good life after employment for the workers and foster their growth in their social life.
3.2 Impact on Leadership
CSR initiative has stimulated a positive effect on the direction of the organization. The public and the government are interested in the way the firm conducts business based on the laws. Leadership is paramount to the success of the business and growth of efficiency in leaders of Starbucks Corporation is a positive effect in the industry. Leaders in the organization are committed to individuals and the societies they work, and they promote corporate social responsibility.
Positive changes are seen in the environments the firm functions due to their continuous support of the events. This creates a positive effect on the perception of the enterprise to the public given their level of operations. The company is a leader in the beverages and coffee industry, and it acts as a basis for the ethical issues since it approves ethical standards. The initiative has fostered the leadership stand of the firm and made it among the leading companies in the beverage industry and the United States at large.
The developments in the global business revolve around ethical issues and the concern for human rights. Human rights need to be encountered during the operations of the firm and any law that inhibits the implementation of the rights need to be reconsidered. Therefore, leadership should promote ethical issues since the business is concerned with the treatment of the employees, partners, stakeholders, and the neighborhood in an efficient manner (Kanungo, & Con...