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Starbucks - - Case Study Example

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Starbuck’s not only offer finest coffee in their shops but also a chance to meet great people, classic music, comfortable meeting place, and professional advice on…
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Starbucks - Case Study
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Star Bucks Case Study Starbuck’s is the world’s number one coffee retailer serving more than 25 million s on weekly basis. Starbuck’s not only offer finest coffee in their shops but also a chance to meet great people, classic music, comfortable meeting place, and professional advice on how to brew finest coffee at home. Starbuck’s embraces corporate social responsibility where it aims to carry out its operations in a manner that promotes social environmental and economic benefits to the immediate society. The paper will seek to answer how the Starbuck’s approach to social responsibility relates to the three concepts of social responsibility described in the text. Additionally, the paper will describe the role of sustainable development in Starbuck’s approach to social responsibility.
The Starbuck 2003 Corporate Social Responsibility Report, Titled “Living Our Values,” defines the coffee retailer’s approach to social responsibility. The approach focuses on partners, diversity, coffee product, customers, community and environment, and profitability. The three concepts of social responsibility are profit responsibility, stakeholder responsibility, and societal responsibility (Kerin et al, 2010). In relation to profit responsibility, a company should maximize profits for the stakeholders without taking advantage of supply shortages to charge very high prices on products. Starbuck’s observes profit responsibility by selling its product via supermarkets, the company’s retail shops, and by extension taking the Starbuck’s coffee experience to the employer’s offices. It uses low profit grocery market segments, retail business cafes, coffee kiosks, high profit margin kiosks, and corporate cafeterias to reinforce and serve its products using high-class experience. It embraces supplier diversity, pays its coffee suppliers well, and conserves their environment. These measures guarantees high and well deserved profits. Where, profits are significant for the growth of Starbuck’s, profitability is placed last as it depends on adherence to partners, diversity, coffee/product, customers, community and environment principles. In relation to stakeholder’s responsibility, a company focuses on stakeholders that can contribute to the achievement of its objectives. Indeed, the coffee retail shop encourages its partners, to stick to the mission statement, comment on deviations from Starbuck 2003 Corporate Social Responsibility Report, participate, and analyze management decisions. In addition, Starbuck’s accords ownership of the company to the employees and shares the benefits of the company with them. The company aims at giving their customers a Starbuck’s experience when they visit the coffee shops. As such, they train their coffee brewers and barristers on how to serve and interact with the customers. Most importantly, Starbuck’s training, recognitions, promotions, healthcare benefits, and career advancement opportunities to their employees. On the other hand, Starbuck’s is also committed to societal responsibility where a company’s objectives and operations should preserve the ecological environment and the immediate community. In responding to this responsibility, Starbuck has purchased a wind power to save energy in its operations. It has also set a goal of reducing its emissions and use renewable sources of energy to carry out its operations. Starbuck’s is in partnership with Conservational International to conserve soil, water, energy, and biological diversity in the world. It has participated in many Earth Day initiatives and other charitable programs.
Starbuck’s has a significant role in sustainable development through its approach to social responsibility. Starbuck’s high payments and direct investments in farming communities that produce its coffee bring forth economic development in those areas and even to the individual farmers. The initiative with Conservation International to conserve soil, water, and energy is a global development strategy, as it will promote better living conditions in the world. Starbuck’s employs more than 74000 people all over the world and accords them better payments, training, career development opportunities, and health benefits. This promotes sustainable economic development in their respective societies. The Starbuck’s experience and training on how to make fine coffee sustains customers at the coffee kiosks and at their homes. The company’s involvement in charitable programs and Earth Day initiatives to conserve the environment are long-term involvements that promote development. In conclusion, I note that Starbuck’s approach to social responsibility relates to the three concepts of social responsibility. The company’s role in sustainable development is very significant.
Kerin, R et al. (2010). Marketing: the Core, 4th edition London: McGraw-Hill Companies, Inc Read More
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