Starbucks : Social Responsibility And Ethical Practices

* The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks is committed to a role of environmental leadership in all facets of our business.'

“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time ("Starbucks", 2012).” Starbucks mission is to not only provide the highest quality of coffee but also make a positive impact on the world. Ethisphere Institute over the last six years has selected the World’s Most Ethical Companies and Starbucks has made the list every year. What are the key components that make Starbucks one of the most ethical companies in the world? Starbucks has developed the Standard of Business Conduct guide for their financial environment, as well as the behavior of their employees. Starbucks uses strict regulations and a variety of audits to ensure their

Starbucks has an advantage over its competitors because of their strong, distinctive competencies. According to the article on NASDAQ "Starbucks targets a more affluent demographic of coffee drinkers that typically exhibit strong brand loyalty (Trifis Team, 2014)." This distinctive competency derives from the company 's philosophy to have a "commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly (Starbucks, 2016)." The organization is committed to an excellent training program that reinforces staff competencies and engagement to the company culture. Starbucks CEO Howards Schultz, states in his book, Onward, "[Employees] are the true

Two reasons Starbucks has been so concerned with social responsibility are the negative impact on the company if they aren’t and the financial and nonfinancial rewards because they are. According to our textbook, Starbucks has been engaged in responsible business practices almost from day one of operation.

In today’s business world, companies have changed. Companies are looking to adjust to their business and community expectations by making changes in the technological machinery and devices they use to reduce the company’s negative environmental impact. In order to sustain economic businesses, companies should not only concern about the financial benefits, but also ethic firms have to care about people, society, and the environment as well (Elkington 72). A portion of their profits goes to programs in charge of reducing any negative effects and promoting sustainable and social development. This social responsibility has been implemented with the purpose of satisfying the company’s and the community’s necessities in order to create a good and long-term win-win relationship. Corporate Social Responsibility (CSR) is becoming essential for today’s company’s success. Corporations have the obligation of developing strategies that will benefit employees, customers, and the community. Today we will focus on how Starbucks has made use of its corporate social responsibility to succeed in the business world and how Dunkin Donuts is still trying to stay in the market. After oil, coffee is the second most valuable commodity in the world. More than 50 percent of Americans drink coffee everyday — three to fourcups each, more than 330 million cups a day and counting (Neal).

The employees of Starbucks--Howard Schultz refers to them as the most important asset--are trained to open a new world of coffee for customers. Howard Schultz wants customers to perceive Starbucks as a friendly environment. He treats his employees exceptionally well too. Starbucks offers full health benefits and stock options to its workforce (Bollier 167). The employees are treated with great appreciation; they have no other reason why they shouldn’t treat the customers with respect in a Starbucks restaurant.

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Howard Schultz, ranked by Business Insider as one of the top CEO’s of the past twenty years, shaped the consumption of coffee into an experience and developed a strong brand, Starbucks, that is recognized internationally. Eight years later after resigning in 2000, Schultz saw the company going downhill and decided to take control again, as CEO. The Starbucks creator had a vision for his company and shaped the culture by putting an emphasis on quality product and implementing the motto “employees first”. From early on, Starbucks was ahead of its time. Schultz offered healthcare for part-time and fulltime employees, extending this to domestic partnerships as well. Additionally, he makes an outstanding effort to employee minority workers, reimburse partial tuition and distribute employee stock options to baristas. After returning in 2008, Schultz made a controversial move of electing to send 10,000 managers to a leadership conference, which totaled over $30 million. He claims that this move was saving point for Starbucks and without it, the company surely would have failed.

The key elements of its organizational culture has derived from the managerial approach and concepts of Howard Schultz in making the company appeal as a global entity, while holding true to its values and mission statement. The Starbucks Mission statement is “to inspire and nurture the human spirit- one person one cup, and one neighborhood at a time. The company’s approach is to provide quality coffee, embrace diversity, connect with customers, improve their stores, be good neighbors, and reward their shareholders.” (Starbucks Coffee Company, 2013)

Starbucks is renowned for its morality due to their innovative sustainability and environmental policies and operations. They strive to go beyond mandated regulations by implementing ethics as part of their core practices. However, no matter how flawless their code of ethics is; they, too, face ethical issues and commit unethical acts. First, they are responsible for putting small, local coffee shops out of business which creates a uniform retail culture throughout cities. Second, they advertise to provide 100% fair trade coffee when it is not truly 100% fairly traded. Third, they use hormone added milk that is detrimental to the human body as well as the environment. Fourth, they set unrealistic, unattainable recycling goals, so they were unachievable; in turn, their trustworthiness is hindered and their reputation is tarnished. Lastly, it was revealed that Starbucks discovered ways to avoid paying taxes in the UK. To this day, Starbucks continues to be recognized as an ethical company. Although sometimes controversial, they are innovatively striving to positively change the ways of society and business operations.

Starbucks and Wal-Mart are leaders in their respective industries. Their business models are different and these differences are in part responsible for their contrasting approaches towards sustainability. One of the best methods to understand the divergent approaches to sustainability and the triple bottom line adopted by Starbucks and Wal-Mart is by analyzing and comparing the differences in their mission statements, values, core competencies, and corporate social responsibility systems.

Starbucks is one of the top leading coffee sellers in the world. With more than 17,000 stores in more than 55 countries, Starbucks has created the ultimate brand and coffee shop (Ferrell, Fraedrich, & Ferrell, 2015). Building Starbuck’s name was a process performed by the founder Howard Shultz that focused on quality ethics and good coffee. One of the main aspects of Starbuck’s culture is its mission. Starbucks brand has been ranked number 16 in the Fortune’s one hundred companies to work for because of its honorable, ethical back-round (Lemus, von Feigenblatt, Orta, & Rivero, 2015). However, like all businesses, Starbucks has encountered some ethical issues along the way of their success.

It offered flexibility in working hours for the workers and 'one-size fits all' benefit for the employees, this benefit was adopted by different service provider companies. Company introduced 'Bean stock' program for the employees. Starbucks applies different strategies to hire and attain their employees.

Starbucks is committed to being social responsible. They have created a strategy based upon three pillars: Community, Ethical sourcing, and the Environment. Star bucks begin their business in 1971, since beginning their business the company has focused on responsibility and ethically change.

Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767).