ETHICS AND CSR AT STARBUCKS 3
Ethicsand CSR at Starbucks
Founded in Seattle, Washington in the year 1971, Starbucks is anAmerican coffee firm. Currently, the company operates up to 23768locations globally. Approximately 13000 of these are found within theUnited States whereas nearly 2204 are in China (Schultz& Yang, 2012). The rest of the branches are located inCanada, South Korea and London among other locations. These openingsprovide hot and cold drinks, ‘microground’ instant coffee alsoreferred to as VIA and other coffee related products. As a foodcompany, ethics and corporate social responsibility is a criticalfactor that the management has to invest in. Ethics and CSR have hada positive impact on the company through increased market share,higher competitive advantage and community acceptance, among others.
Starbucks is known to be one of the world’s top companies thatoperates within the ethical limits of its scope. This is displayedthrough its employee sourcing criteria. By ensuring that allemployees are recruited in a fair and competitive basis, thecompany’s recruitment and selection process is a completesatisfaction to the employees. As part of the company’s stakeholdermotivation, therefore, Starbucks’ employment plan takes intoaccount matters of diversity. This engages the labor force and allowsfor interactive communication and task accomplishment among theemployees (Harnrungchalotorn & Phayonlerd,2013).
The company’s mission and statement of objectives is centered onethical values of quality and efficiency. For example, the companybelieves in full customer satisfaction with product quality andperceived value. By providing the customers with high qualityservices and products, it is easier to compete favorably across theglobe. A higher competitive advantage attracts high profits andrevenue for Starbucks. This ensures that its operations remainsustainable. Customer service in the company also delights thebuyers. Occasionally, the company provides sales discounts and otheroffers as a means of ensuring that the employees become part of thebusiness. This further develops Starbucks’ brand reputation.
Corporate Social Responsibility (CSR) is practiced by Starbucks indifferent approaches. First, throughout its locations, employees aresourced from the locality. This is a way of empowering the economy ofthe natives. The employment strategy is beneficial to the companysince it wins the communities’ trust in the services. The Chinese,for example, believe in transacting business with the people they arefamiliar with. Therefore, Starbucks ensures that most of theemployees are sourced from the immediate communities to empower thesociety as well as the company’s brand image.
Starbucks has participated in many activities as a way of supportingthe society. For example, in the year 2012, it joined forces withSeattle Theatre Group and KEXP 90.3 FM to conduct the Little Big Show(Starbucks, 2016). This was a concert conducted with a view tosupporting arts organizations for youths. Through the company’ssupport, the show currently continues to raise substantial revenuefor the young people involved in arts. Corporate SocialResponsibility programs enable Starbucks to attract more customers,motivate its employees, widen its competitive scope and sustain itsbusiness operations (Harnrungchalotorn &Phayonlerd, 2013).
Ethics and CSR are critical strategies that have to be applied inorder to remain competitive in any industry. The case of Starbucksprovides a clear indication of different approaches that can beimplemented to benefit from these practices. In spite of the factthat its reputation and goodwill is already strongly founded, thecompany continues to invest in CSR to maintain its profitabilitylevels as it also strives to maintain its competitive strength.
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Harnrungchalotorn, S. & Phayonlerd, Y.(2013). Starbucks with CorporateSocial Responsibility (CSR). Karlstad:Karlstands University. Retrieved fromhttp://www.diva-portal.org/smash/get/diva2:353800/fulltext02
Schultz, H., & Yang, D. J. (2012). Pouryour heart into it: How Starbucks built a company one cup at a time.New York, NY: Hyperion.
Starbucks (2016). What is the role and responsibility of afor-profit, public company? Retrieved fromhttps://www.starbucks.com/responsibility