Starbucks - Csr

1476 Words6 Pages
Corporate Citizens of the World

There is currently a robust and ongoing debate about whether a companies, especially a publicly traded companies, only goal should be profit. Making money for the shareholders used to be what business was about. Now, more and more people are starting to believe that companies should pay more attention to social and environmental concerns that effect not just the shareholders, but the stakeholders and even society as a whole. The practice of Corporate Social Responsibility, or CSR, believes that everything cannot be left up to the market. The market exists to make profits at all costs. So, there needs to be a mechanism in place where social causes and the environment are taken care
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Starbucks recognizes this and as a result has supply chains and distribution networks of "fair trade" products. Fair trade is an attempt to fix some of the problems associated with regulating factory and workplace conditions of companies that produce goods and services in foreign countries and import their products into their home countries (Bilson). Fair Trade standards are meant to ensure that employees have safe working conditions, work reasonable hours and are paid a fair amount for their work. According to the Starbucks website, in order to purchase Fair Trade certified coffee as part of its supply chain, Starbucks pays a, "...minimum of $1.26 (U.S.) per pound for Fair Trade certified ingredients such as non-organic green Arabica coffee and $1.41 per pound for organic green Arabica coffee." (Starbucks). This is substantially over and above the prevailing commodity-grade coffee price.
On top of that, an even broader concept of CSR has emerged in recent years. "Societal responsibility". Societal responsibility refers to obligations that organizations have to the preservation of the ecological environment and to the general public. (Kerin 87). Starbucks has shown itself as a leader in societal responsibility. They have strived to help the communities in which they operate. One example is the Community Stores Program. These are Starbucks stores that share a portion of their profits with the local community. Currently, Starbucks
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