Starbucks: corporate social responsibility - Essay Example

Starbucks: Corporate Social Responsibility CSR (Corporate social responsibility)is when companies conduct business activities and consequently care for their internal and external environments. CSR is a practice that corporations use to organize and integrate the business model of a company while following ethical values, morals, and norms. These actions enable the corporation in conducting business activities while positively impacting the environment, stakeholders, employees, consumers, and society. Starbucks adopts Corporate Responsibility Programs in their business by engaging in business activities that positively impact society, environment, as well as considering ethical sourcing to produce high quality products. Starbucks believes CSR aspects and having a feasible Corporate Social Program will help the company gain full support to expand business from their employees by applying ethical labor practices, portraying good social image, helping the needy philanthropically, and generating long term sales. This can be done through value creation by working through an environment friendly business model. Employees who work at Starbucks feel that their company is conducting business responsibly, and they support Starbucks to fulfill their companies’ mission. Workers feel proud that they are working in a big company that cares about CSR. Starbucks applies ethical labor practices in the working environment, and workers respond to this positively by giving full contribution to develop Starbucks’ business. Starbucks succeeded in applying the Civil Right act of 1964which “was enacted as part of the landmark Civil Rights Act of 1964. It prohibits discrimination on the basis of gender, color, race and national origin in programs and activities that deal with receiving federal financial assistance” (United States Department of Justice. (n.d.). Title VI of the Civil Rights Act of 1964.). Starbucks believes that Corporate Social Responsibility through promoting diversity, equality, giving employees benefits, and paying minimum wages will show that they are responsible for their workers. As a result, Starbucks gains the best employees effort to develop Starbucks’ business due to the motivation they derive from a good working relationship. It is because of CSR that employees feel that Starbucks’ ethical business conduct gives them an opportunity to have a better life. Starbucks has several diverse networks that help them in recruiting e.g. Starbucks black partner Network, Starbucks China & Asia Pacific Network, and Starbucks Women’s Development Network. This action opens jobs for any culture, any race, any community, and any gender thus promotes team diversity. Starbucks gains the best working effort of employees because Starbucks makes employees feel that they can have “healthy competition” because of equality and diversity as well as equal rights to give personal aspirations. Furthermore, Sandra Taylor, Starbucks former VP of CSR said in 2008 that the company is responsible with employees’ needs by providing healthcare benefits, and paying farmers their premium so that in return, employees are responsible with company property, and concerned with business development. Besides applying CSR on employees, Starbucks engages in philanthropic Corporate Responsibility Programs that help society and at the same time, give a good public image of the company. Starbucks believes that there exist many people in need aid in education and health today. Starbucks feels the need to help them, and this improves their public image while at the same time, giving back to the community that promotes their business. Great public view is one of the most crucial aspects in the business world since society’s perception of the company determines the direction in which the company will head. The company can grow even bigger if the community has a positive perception of Starbucks. It is a long-term investment to build public image, so by having a good rapport with society, the people continue to trust the quality of the company’s products, and continue to consume Starbucks’ products as their most preferred products thus giving the company a competitive advantage. This mutual relationship works to help both the company and the customers. Starbucks promotes several non-profit programs and activities to help people in need. Furthermore, Starbucks also forms foundation that positively impact society. For example, Starbucks built the first two community stores in Harlem on 2012, and in Houston’s east. These community stores have generated $800,000 for which has been invested in programs relating to education, safety, and housing. These community stories inspire the youth by creating a positive learning environments, job skills development, and health issues concern. Starbucks provides developing countries with clean water by taking 5 cent from each of their Ethos water, and now they have fundraised $6 million to give people in need of clean water. These corporate responsibility programs definitely translate to positive public perspective, and Starbucks will therefore, continue to reap the profits from the efforts that they input in improving standards of living. Starbucks also engages CSR in their eco-friendly production and operation activities thus increasing their long-term sales. Starbucks knows that in future people will care more about the environment and will do activities that can positively impact people’s lives. People value companies that can do business and still protect and care about the condition of the environment. Currently, Starbucks invests in producing their products using recycled tools and plastic, promoting energy conservation in their business operations, and promoting eco-friendly activities. For example, they provide front-of-store recycling program to collect trash, which they recycle and offer it to the customer as a cup. Right now they can use 10% of recycled material to produce one cup. Additionally Starbucks uses ENERGY STAR to design their stores to conserve energy. This program reduces 25% of electricity usage and increases the efficiency with which the energy is used. This is a long-term investment; Starbucks thinks that besides portraying a good image, they help people in conserving their own environment. People will tend to purchase their products because by purchasing the coffee, society will be actively participating in helping Starbucks save the world. In my perspective, Starbucks needs to implement and initiate ethical business activities since they are a big company, and have a lot of employees. This corporation has a big impact on society, so they need to perform CSR in their business activities so as to impact their environment positively. I believe that many of the small companies will follow Starbucks’ role by adopting CSR in their business activities. It will help other companies to start investing in CSR which will mean they will conduct their businesses while at the same time considering the ethical expectations of society. I believe Starbucks CSR action is very crucial, and the world needs that mindset in order to conserve the environment that we live in. Finally, Starbucks CSR in ethical labor practices can mutually benefit the companies’ business development, and the employees’ morale. Their CSR foundations will help Starbucks gain a positive public image, and at the same time help society where appropriate. Furthermore, Starbucks’ eco-friendly business model will increase sales revenue and performance in the stock market because more people will tend to purchase Starbucks product and stocks. People will think that Starbucks is a responsible company, and having this trust from customers will boost Starbucks’ popularity. People will tend to purchase their products because people believe by buying coffee from Starbucks; they will help to sustain a better environment. Starbucks are a role model that every company should emulate while conducting business. It is necessary for other companies to invest in CSR as it is a two way traffic, caring for the employees improves the morale and productivity of the business which means quality production and increased revenue. Caring for the environment and responding well to social pressures creates a good public image thus attracting potential customers and maintaining customer loyalty. Besides profits, companies can positively impact society by conserving energy, create ethical working environment for employees, responding well to social pressures and operating an eco-friendly model that works towards increasing sales and protecting the environment References United States Department of Justice. (n.d.). Title VI of the Civil Rights Act of 1964. Title VI of the Civil Rights Act of 1964. Retrieved November 4, 2013, from http://www.justice.gov/crt/about/cor/coord/titlevi.php Read More