Starbucks's CSR (CORPORATE SOCIAL RESONSIBILITY) - Essay Example

There is so much more to Starbucks than the Seattle reputation that is often synonymous with the logo, there is a legitimate series of changes being made both domestically and internationally that improves Starbucks’ reputation and therefore gives the business more clout with stakeholders who, today, are demanding much more responsible behavior for the contemporary corporate organization. Corporate social responsibility is the method by which Starbucks engages consumers and non-business stakeholders, the branding strategy that identifies Starbucks as a significant contributor to the social condition.

Regardless of whether Starbucks is actually attempting to improve its reputation or whether the charity it provides is legitimate, such efforts gives the business the appropriate competitive edge that it desires in order to compete with other, localized coffee houses that attempt to build a mom and pop shop mentality for consumers that are interested in fine coffee experiences with knowledgeable staff members. What, though, does Starbucks actually do in order to ensure that its quality reputation for responsible business behavior brings value to the entire business model?

Primarily, Starbucks establishes the agricultural supply chain utilizing foreign coffee producers that continues to bring extended value to citizens of the United States. The United States, currently, imposes zero or limited tariffs on coffee products that are procured from foreign nations in order to ensure that the American population maintains the volume desired for their consuming needs. This has many advantages for foreign coffee producers, as the product cannot be procured domestically due to climate and, thus, Starbucks is able to exploit opportunities for cheap importation.

By giving more buying power to the producers along the supply chain, and then effectively utilizing promotion to, essentially, deceive the regulatory forces that attempt to drive compliance, they are able to build a positive brand reputation and negate the attitudes and regulatory powers of many domestic government entities. Giving buyers more power along the supply chain has considerable advantages to the Starbucks company, as they can control pricing and make the individuals working on foreign soils believe they are being done a favor by being expertly exploited for their resources, trust, and willingness to role model these corporate behaviors.

Though much of this is simply subjective, there is evidence that such exploitations are known and applauded by the internal governance systems at Starbucks. The business makes considerable loans and grants to foreign coffee growers, which makes it favorable to delay sales of product until the pricing on the market for commodities is complimentary (Starbucks 26). Total commitment in loan guarantees for Starbucks exceeds $6 million, thus giving farmers and Starbucks the competitive advantages required to sustain a positive image in corporate social responsibility.

Furthermore, Starbucks, having established that much of its competitive advantage comes from maintaining a positive CSR image, has established a supplier network code of conduct which ensures that product suppliers are keeping up with the corporate image that is so necessary for Starbucks to maintain its position in the market. The code of conduct ensures that Starbucks maintains some level of control over the procurement process and