Social Responsibility and the Community - Assignment Example

? Social Responsibility and the Community Introduction Corporate social responsibility refers to the organizations commitment to support the development and implementation of a corporate strategy that will boost the lives of employees, create a safer working environment, and improve the living conditions of the general society. Corporate social responsibility involves conservation of the environment, respect of human rights, and respect for workers’ rights, motivating employees, improving the social and economic lives of the immediate society, and adapting ethical behaviors in the business operations of the organization. Notably, corporate social responsibility promotes the reputation of the company and creates a competitive advantage. In the modern world, organizations are under pressure to practice corporate social responsibility while still making profits. Indeed, it has become an expectation for all organizations to be ethically and socially responsible for the benefit of the organization and the society (ISO, 2010). This paper will research and write an analysis of Starbucks social actions in the community. Analysis Starbucks Coffee Company is the leading coffee retailer, roaster, and brand of specialty coffee in the world. Starbucks originated from Seattle, USA, but today it operates in over 60 countries with more than 18,000 stores. Starbucks specializes in premium and sell salads, books, gifts, warm and cold beverages, and other accessories. Due to its wide market network, high quality of its products, and the wide range of products, Starbucks commands a significant market presence where it has the largest customer base in the coffee other blend- drinks industry. As a result, it interacts with many societies and therefore influences their lives. Therefore, there is need for a corporate social responsibility strategy to guide the operations of Starbucks Coffee Company all over the world. Indeed, the organization’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time (Bruhn-Hansen, 2012).” The company incorporates this mission statement into its overall strategy where it seeks to achieve its mission through corporate social responsibility activities. Indeed, it is clear from the organization’s website that Starbucks adopted various corporate social responsibility strategies with a view of achieving its mission statement. Specifically, the corporate social responsibility strategies adopted by Starbucks includes the 2000 partnership with Conservation International aimed at creating ethical coffee-sourcing guidelines (Bruhn-Hansen, 2012) and the formulation of the Starbucks Foundation. Moreover, Starbucks seeks to be accountable to all Starbucks stakeholders and making social investments in origin countries as well as minimizing their environmental impact. Additionally, the organization participates in the Global Month of Service. There are various pros and cons to the application of the respective corporate social responsibility strategies adopted by Starbucks Coffee Company. For example, the 2000 partnership with Conservation International aimed at creating ethical coffee-sourcing guidelines derives notable pros and cons. In this strategy, Starbucks boosts the lives of farmers by purchasing at outright prices, signing long-term contracts, and buying directly from farms and cooperatives (Starbucks Corporation, 2013). This equally ensures sustainable supply of high-quality coffee to the organization. Moreover, through the Ecologic Enterprise Ventures and the CI Foundation, Starbucks avails credit facilities to farmers (Starbucks, 2001). Nevertheless, an outright price and long-term contracts hinders the farmer from enjoying better prices from other companies in the near future. More so, there is a risk to the repayment of the loans given to the farmers. On the other hand, the partnership allows Starbucks to give financial incentives and rewards to coffee suppliers who conserve the environmental and demonstrate positive social, economic, and quality responsibility (Starbucks, 2001). Furthermore, the company adopts another strategy named the Starbucks Foundation whose main goal is to create a better future for the children by supporting the power of literacy to change lives and fostering hope and involving parents in the Starbucks society. Indeed, the foundation offers opportunity grants and provides funding to nonprofit literacy organizations located in areas where Starbucks operates (Starbucks, 2001). This creates a firm foundation for the society and plays a major role in improving the social and economic lives of the society. However, there is a risk of misappropriation of the foundation’s funding by the nonprofit literacy organizations due to lack of monitoring. Moreover, since the foundation and the company are different entities, there is no link of ensuring that the benefits if the literate society streams back to Starbucks company. Another social responsibility strategy is the accountability to all Starbucks stakeholders. Indeed, Starbucks defines corporate social responsibility as the mode of conducting business in a manner that will guarantee environmental, social, and economic benefits to the immediate society (Starbucks, 2001). This strategy ensures that all stakeholders enjoy the services and products of Starbucks thus reducing conflicts, ensuring customer satisfaction, and enhancing quality production. However, this comes at a huge cost and it is usually challenging to satisfy all the stakeholders. More so, it makes the company lose continuity and consistency, as stakeholders will always advocate for changes. In addition, Starbucks adopts another strategy where it makes social investments in origin countries. Specifically, the company in partnership with other like-minded companies like CARE builds schools, coffee processing facilities, and hospitals with an aim of enhancing the social lives of the society where Starbucks operates (Starbucks, 2001). This has been very beneficial to these communities. However, there is a risk of misappropriation of funds. Another strategy involves minimizing the company’s environmental impact. The company adopts an environmental mission statement, which seeks to improve fuel efficiency in the vehicles that Starbucks owns and operates. More so, it creates a Utility Task Force to ensure improved energy and water usage efficiency (Starbucks, 2001). Furthermore, Starbucks offers recycling services in all its stores. It also recognizes the Green Team’s efforts to reduce waste and conserve energy. Notably, the company participates in the Global Month of Service and The Earth Day where it volunteers in improving the environment (Starbucks, 2001). Although this involves huge finances, the results are beneficial to both the company and the society. As such, we can see that Starbucks has been involved in many activities that seek to demonstrate its involvement and responsibility to the community. We can derive from the Starbucks corporate social responsibility strategies that Starbucks improves the lives of farmers in the countries of origin by purchasing coffee from them directly at outright prices and through long-term contracts. More so, the organization adopts a strategy that avails credit facilities to farmers at the countries of origin thus improving their lives (Starbucks, 2001). Indeed, this helps the society to lead better lives. Moreover, the company significantly improves the social and economic lives of the society by supporting the power of literacy to change lives and fostering hope among the children. Similarly, the building of schools, coffee processing facilities, and hospitals significantly boosts the social and economic lives of the society. In addition, the environment mission statement enables the company to improve fuel efficiency, improved energy and water usage efficiency, and devise recycling procedures for purposes of reducing waste and conserving the environment (Starbucks, 2001). Ultimately, we can confirm that Starbucks participates in corporate social responsibility that effectively guarantees environmental, social, and economic benefits to the immediate society and the company. Notably various factors influence the social responsibility strategies adopted by Starbucks. Some of these factors include capital in that the implementation of such strategies requires significant amounts of money. Additionally, federal government requires the company to have a corporate social responsibility strategy and thus Starbucks must comply. Moreover, different laws in the various countries that Starbucks operates influence the design and implementation of the social responsibility strategies. Partnerships with other companies equally influence the scope and mode of engaging in social responsibility strategies. Furthermore, the existence of nonprofit literacy organizations helps Starbucks in implementing the social responsibility strategies. Most importantly, the need to remain competitive and continue making profits influences the commitment of Starbucks towards social responsibility strategies. Indeed, Starbucks has a social initiative where it believes in having a positive impact on the communities it serves with a mission statement that is “One person, one cup and one neighborhood at a time (Starbucks Corporation, 2013).” Most assuredly, the organization’s social initiative has potential ethical or moral effects, which include conservation of the environment, motivating the living standards of both the employees and farmers. More so, the initiative guarantees ethical sourcing and better treatment and pay to Starbucks employees. Conclusion In conclusion, I find that corporate social responsibility is a fundamental aspect in the business operations of any organizations. Indeed, the modern business world requires any organization to adopt a corporate social responsibility strategy and remain profitable in its operations. The corporate social responsibility conserves the environment, improves the lives of the employees and the society as well ensuring ethical standards of doing business. Starbucks being the largest coffee company in the world has a mandate to adopt and implement a social responsibility strategy. Indeed, the organization’s mission is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” where the company seeks to achieve the mission statement through mission through corporate social responsibility activities. The organization adopts various social responsibility strategies that include the 2000 partnership with Conservation International aimed at creating ethical coffee-sourcing guidelines and participation in the Global Month of Service and Earth day. More so, the company adopted the Starbucks Foundation and makes social investments in origin countries. Furthermore, Starbucks has an environmental mission statement, which seeks to conserve the environment and reduce the company’s environmental impact. These strategies significantly led to environmental, social, and economic benefits to the immediate society and the company. However, certain factors like capital, federal government standards, difference in legislations, and partnership with other companies, and the need to remain competitive and continue making profits influenced the social responsibility strategies adopted by Starbucks. Most assuredly, Starbucks has an effective social initiative. References Bruhn-Hansen, S. (2012). Corporate Social Responsibility & Starbucks. Retrieved from: http://pure.au.dk/portal-asb-student/files/45282206/BA_Thesis.pdf ISO. (2010). ISO 26000 - Social responsibility. Retrieved from: http://www.iso.org/iso/home/standards/iso26000.htm Starbucks Corporation. (2013). Being a Responsible Company. Retrieved from: http://www.starbucks.com/responsibility Starbucks. (2001). CSR Fiscal 2001 Report. Retrieved from: http://www.starbucks.com/assets/6ee14301a2364729abe59867fb913520.pdf Read More