8/26/2012 Starbucks a Corporate Citizen | Amen Mukhlis SOUTHER N NEW HAMPSHI RE UNIVERS ITY CORPORATE SOCIAL RESPONSIBILITY REPORT STARBUCKS COFFEE COMPANY
Abstract
The paper takes a closer look at the Social responsibility and corporate citizen definitions illustrating Starbucks Coffee Company as an example and investigating the company and the reaction it receives from the different stakeholders towards their Social responsibility efforts
The choice of Starbucks came from the fact the company is well known for their Social responsibility program and are classified as a corporate citizen too many of their stakeholders.
Introduction
What is social responsibility? In order to be able to understand the role Starbucks plays in the social responsible new corporate world we need to understand the social responsibility first and what does it mean to us
Social responsibility is achieved when people and organizations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organizations and governments have a positive impact on development, business and society with a positive contribution to bottom-line results. (Enevoldson, 2012)
While a corporate citizen is defined as businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. (investopedia.corporatecitizenship, 2012); Which means any organization that is socially responsible is a corporate citizen.
Social responsibility and being a corporate citizen has many benefits to the different stake holders and many to the organization itself among those benefits are (businesslink, 2012):
A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining. Employees are better motivated and more productive. CSR helps ensure you comply with regulatory requirements. Activities such as involvement with the local community are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing business easier. See the page in this guide on how to work with the local community. Understanding the wider impact of your business can help you develop new products and services. CSR can make you more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance you.
Starbucks
Starbucks is the largest coffee house in the world the company whom base is in Seattle WA.
The company grown in the eighties of the last century buying the peats local
brewer and expanding until the company was sold to Howard Schultz how
later became the chairman of the publicly traded Starbucks in 1992 with 136
stores around the states.
The company is known for their socially responsible acts in various parts of their operations;
Starbucks Vision was "to grow and expand with acting like a small company"
While their mission statement focus on the human spirit and focused on
Starbucks being part of the community setting the company and its stores as
a part of every neighborhood
The company has had many stories that show their social responsibility and many quick acts and responses to issues that concerns the community and the company’s stakeholders. (Starbucks.com, 2012) (wikipedia)
The star bucks company is the largest coffee retailer in the world where the
company has about 20,000 locations around the globe in 58 countries 13000
of them in the United States,.
Starbucks has many identified stakeholders some of them are:
Investors: they govern the companies policies through the board of
directors and they are the main stakeholder financially
Customers: Starbucks operates in many countries with around 20,000
stores, Starbucks customers has allowed the company to witness this
grow and the customers have also contributed to the company's
decisions in both the operational level and the financial levels.
Suppliers: they play an important role in Starbucks success as not only
the supplier provide Starbucks but they also represent the company
Socially and their contribution is an add value to Starbucks.
Franchisees': it’s a different type of investors, those who purchased the
franchise from the Seattle company; they represent the company the
company's policies affect them and their policies\social acts affect the
company
Surrounding community: it plays an important rule as it shapes the
company since the company is a smaller component of this community it
also provides Starbucks with the labor.
The Stakeholders Involvement
Starbucks stakeholder's involvement can be seen in the company's decisions
and actions throughout the course of the company's existence, the company
started their business by laying out the foundation for their stakeholder's
involvement throughout their mission statement and guideline principles
(Starbucks, 2006)
To establish Starbucks as the premier purveyor of the finest coffee in the
world while maintaining our uncompromising Principles as we grow. The
following six Guiding Principles will help us measure the appropriateness of
our decisions:
Provide a great work environment and treat each other with
respect and dignity.
Embrace diversity as an essential component in the way we do
business.
Apply the highest standards of excellence to the purchasing,
roasting and fresh delivery of our coffee.
Develop enthusiastically satisfied customers all of the time.
Contribute positively to our communities and our environment.
Recognize that profitability is essential to our future success.
Starbucks defines their approach toward Social responsibility and the
importance to include all of their stakeholders as "For us corporate social
responsibility is not just a program or a donation or a press release. It’s the
way we do business every day." (Starbucks, 2006)
Starbucks Stakeholders and my position and opinion:
Employees: "We believe it matters greatly that they feel Starbucks is a
great place to work, and a company that cares not only about their
well-being but also about the world we live in. Good communication is
a key to all of this and helps to inspire our partners about the company
they work for, the important role they play at Starbucks and the
customers they serve." (Starbucks, 2006)
My experience: I have known some people who works as baristas in
Starbucks, where there feedback was very positive of their employer,
the company communicate to the employees constantly, the company
has a fun working environment, a fun job descriptions that changes the
mentality and the thoughts about the particular job, a clear path for
growth that is not effected by personal biases, and an understanding of
the role employees play in Starbucks business as a whole.
Customers: " we want our customers, shareholders, communities and
others to understand how we are working together with farmers and
suppliers to help create a more sustainable approach to high-quality
coffee production. We also want to share what Starbucks is doing to
contribute positively to local communities; minimize our environmental
footprint; be responsive to our customers’ health and wellness needs;
and how Starbucks is serving as a leader in both our industry and
within our global society through our participation in organizations
such as the United Nations Global Compact." (Starbucks, 2006)
My experience as a customer and community member: my
experience with Starbucks has been a positive one, the company
provides their products and services as promised to the highest
standard, and the way they communicate to their employees has
affected their business as you can feel the passion the employees have
for doing the work at the company even with a single cup of coffee, as
a community member I have been following their efforts and
involvement with rebuilding what was destroyed in Hurricane Katrina
and it makes me happy to see companies do for the community, as
well as their involvement in their partners everyday life, for example
their recent political involvement by cutting the donations to
presidential campaigns until there is a real vision to help the nation to
get back on its feet and not only competing for the place just for
wining on the other part.
Another experience is the paper itself, as I can feel the open\
transparent way of communicating that makes you understand clearly
and easily what the company does and what are their ideas On SR
The company has had many initiatives to measure their stakeholder's
satisfaction and get their feedback In 2005 the company reflected on their
2004 Annual SR report by holding meetings with many groups measuring
their understanding for the previous year, recording their feedback and input
to further develop and do what is right
"Starbucks engaged a variety of stakeholder groups for feedback and input
on the previous year's CSR Annual Report. The diverse group of stakeholders
included non-governmental and governmental organizations representing
human rights and environmental concerns, socially responsible investors,
academics, CSR business leaders, Starbucks partners (employees) and
customers. Through this feedback, which incorporated direct concerns and
questions from some of Starbucks toughest critics, this year's CSR Annual
Report provides a more candid and in-depth account of the Company's CSR
successes and challenges especially with regard to its coffee buying
practices, the impacts of its rapid growth on local communities and its
approach to being an environmentally responsible company.
"We are gratified that Starbucks has actively sought our input on their coffee
buying practices," said Raymond C. Offenheiser, President, and Oxfam
America. "We commend Starbucks for disclosing exactly how much Fair
Trade Certified(TM) coffee it has bought and its goal to purchase 10 million
pounds in fiscal 2005, as well as its commitment to small-scale farmers
through its progressive low-interest loan program."" (Starbucks, 2004)
The company has had many discussions with the different stakeholders,
suppliers, customers, environment groups and was successful in creating a
direct communication and responded fast to their stakeholders in order to
maintain their image and model of business
Me and Starbucks
I am as an individual is identified by Starbucks as a stakeholder in two
manners
A customer
Part of the community where the company is one of its components.
The Three Spheres in Starbucks social responsibility efforts
Economics
Starbucks has been identified by many sources as one of the main players of
Social responsibility citizen cooperates, where the company realizes that
being part of the community has great rewards to the economics of the
company and the bottom line of profit
To develop economic sustainability, all companies have to rely on ethnic
businesses that they cannot run businesses without responsible stakeholders
such as their staffs, customers or societies who affect directly to companies
such as losing image, profits of companies and so on. (Sornchai
Harnrungchalotorn).
The company's behavior as a SRC plays an important part min the
economical sphere for both star bucks and the economy as a whole.
All coffee purchases must include transparency to the level of the farmer so
that contracts clearly reveal what share of the price goes to the farmer and
what share goes to other “middlemen” such as exporters. In 2007, Starbucks
paid an average $1.43 per pound for its coffee, which was 29 cents over the
“C” market price paid on the traditional coffee market. (Think2100.com,
2008)
Starbucks has included independent stakeholders in the development of the
standards and their application in the field. They contracted with Scientific
Certification Systems (SCS), an independent certification and auditing
service for agricultural products. In order to create C.A.F.E. standards, SCS
got input from coffee suppliers, Fair Trade, the Rainforest Alliance, and
Conservation International. However, SCS does not directly verify or inspect
plantations to determine whether they are in compliance with C.A.F.E.
standards. (Think2100.com, 2008) (starbucks.com, 2012)
The company has identified many opportunities that are rewarding
economically and align with their efforts to maintain a socially responsible
company examples where the going green and the recycled cups along with
enhancing the efficiency of their machines which should have less waste,
less energy consumption and cleaner environment which has helped the
company in reducing many of their financial obligations.
The company has employed many Americans helping the economy where
the estimates says that the unemployment rate won't drop from the 8%
making this the longest stretch of such high percentage in over 70 Years the
company plays its role in helping the economy with their program of (lets
create jobs) and the donations the company has made to save lots of jobs
across the nation. (Responsibility, 2012)
Political sphere
Starbucks operates in all states and US territories as well as in many
countries part of their effort to maintain a top SRC status Starbucks has
developed a code of conduct and ethics that aligns with the Law and they
maintain every effort to never brake any rules or the Law, the company has
been subjected to law suits and to proceeding on labor charges, the fight
with craft over the packages coffee unit but the company kept their image of
a leader in social responsibility.
Even though Starbucks is known as a business the company has had
interference with the world of politics as the company as one of the largest
corporations in US and the world their involvement in the political sphere
came from their imitative to build a SRC and to be part of the community,
the company often distant themselves from any conflict that might have a
racial, religion or ideology and focused on their diversity but the company
vouched to be part of the community and to have their political view when it
comes to people's lives
The company has had donated to politicians whenever those politicians
promoted programs and promises that help the economy and the
environment and they have supported politicians who appeared to share
views of social responsibility
But recently the company decided to stop donating to politicians in DC as a
message that they need less campaigns and more doing and to reduce the
deficit for the nation (TODAY, 2011)
Civic sphere
Starbucks plays in important role when it comes to their involvement in the
community
Aside from supporting the local communities with donations, scholarships
and creating jobs, Starbucks helps local communities when they are needed
as the company is one of the largest players in the effort of the
reconstruction in Louisiana after the Katrina tragedy.
The company has many programs to support the civil life when in which they
implanted their transparent buying program along with other programs to
help the environment
The company is often close to the community with the issues that arises as
the company supports some of the proposed rights that the community ask
for as their comments and support for gay marriage, gun position and other
involvements in the civil life of the surrounding community. (Responsibility,
2012)
Starbucks Coffee Mission Statement (Starbucks.com, 2012):
"Our mission: to inspire and nurture the human spirit – one person, one cup
and one neighborhood at a time."
To accomplish its mission, Starbucks has principles that guide all of its
employees as they go about their daily business (Starbucks.com, 2012):
Our Coffee – It has always been, and will always be, about quality.
Our Partners – We always treat each other with respect and dignity.
And we hold each other to that standard.
Our Customers – When we are fully engaged, we connect with, laugh
with, and uplift the lives of our customers – even if just for a few
moments.
Our Stores – It’s about enjoyment at the speed of life – sometimes slow
and savored, sometimes faster. Always full of humanity.
Our Neighborhood – We can be a force for positive action – bringing
together our partners, customers, and the community to contribute
every day.
Our Shareholders - We are fully accountable to get each of these
elements right so that Starbucks – and everyone it touches – can endure
and thrive.
Starbucks and Social responsibility
Starbucks pride itself as a pioneer in Social responsibility efforts and the
company as discussed has many programs and initiatives, the company is
one of few that publishes Social responsibility Report and Have a real
division that work on the company's Social Responsibility and their place as a
Corporate Citizen. (starbucks, 2010)
"I have always felt that we must balance our responsibility to create value for
shareholders with a social conscience. Our fiscal 2010 global responsibility
report reflects our commitment to transparency in these efforts and our
intent is to openly share the challenges we encounter as well as the progress
we are making in our efforts to live up to our responsibilities as a global
corporate citizen and a neighbor next-door." (starbucks, 2010)
"We believe that our strong commitment to CSR helps us to attract and
retain our partners (employees), and it also leads to higher than usual levels
of satisfaction and engagement. This is especially valuable and crucial in our
sector – quick-serve restaurants – typically characterized by high turnover.
We are also seeing customer loyalty – studies have revealed that customers
prefer to do business with a company they believe to be socially responsible
when their other key buying criteria are met. We believe customer loyalty
has been a driving force behind Starbucks’ phenomenal growth and long-
term success.
Another way of looking at it is that our commitment to CSR reduces
operating costs – many environmental measures, such as energy-efficient
equipment or lighting, involve initial investments but deliver long-term
environmental and cost-saving benefits. CSR also strengthens our supply
chain – to have a sustainable business, we need a reliable and responsible
supplier base that can keep pace with our growth. Starbucks invests in
measures to ensure our suppliers have the opportunity to do so. A great
example of this is C.A.F.E. Practices, which gives preference to verified
suppliers by paying premium prices and potentially signing long-term
contracts.
And, of course, our commitment to CSR gives us license to operate. Having a
strong reputation as a socially responsible company makes it more likely that
we will be welcomed into a local community." (Taylor, 2009)
Starbucks manages their reputation by their hard work and fair treatment to
all of their stakeholders; the company takes their rule as a corporate Citizen
and an each community as a neighbor
The company defines the reason behind their social responsibility continues
work as
"Social consciousness has always been at the core of our business. In
general, I think the main driving force behind corporate social responsibility
is consumer awareness, which we see as a very positive development. Over
the past few years, the public has become more educated on concepts such
as global warming, poverty alleviation, human rights, and the broader
concept of sustainability. Sustainability is certainly important to agricultural
commodities, such as coffee, tea, cocoa, and water, and permeates every
aspect of our business" (Taylor, 2009)
Starbucks has been a listener, and a quick responder to their consumer s
which has played a significant role in the relationship with the consumers
and helped with the maintaining profit even with the most difficult
economical situation,
The company has been praised in the news, social media and within
consumer circles for their Social responsibility commitment in addition to
their rule as a corporate citizen.
The company does a great job addressing their stakeholder's notes and
concerns examples were mentioned before like the Re-usable cups, the
automatic water faucets and their recycling operations. The company has
been responsive and using new technologies in their benefits as the
company has embraces the social media and internet power, where
consumers and other stakeholders can communicate with the company and
get heard easily which impact the Social responsibility operations derived
from the stakeholders in the first place.
"Regardless of the CSR pressures in newer, emerging markets, Starbucks’
business philosophy stays the same. The bottom line is that we put people
before products". (Taylor, 2009)
What does the company need to do more or different?
The company has been doing great and they are associated with SR as the
first in mind when SR is mentioned and this shows the worth of the work
Starbucks has put in this approach that has proved beneficial, the company
need to work for the day that SR is not driven by a department and
operations but to be imbedded in the company and drives more responsible
acts from within the company and more ideas that gives the company in
addition to add a more attractiveness side.
"Don’t just look to become more active, start to think more holistically on
how your company participates as a global citizen. This doesn’t just come
about through one or two projects – it is a mindset." (Taylor, 2009)
Starbucks is a global company and since their business is not solely in the US
the company works hard on aligning their goals with those for the nations
they operates in, those goals of development are shared between all the
countries through the united nations but their impact and reality depends on
the countries themselves.
As part of the Social responsibility that Starbucks adapted the company
realize the UN multidimensional poverty index (MPI). Which is defined as:
access to good cooking fuel, schooling, electricity, nutrition and sanitation?
(Guardian, 2011)
Millennium Declaration by the UN and its commitment to poverty
eradication, Development and protecting the environment.
The eight MDGs listed below guide the efforts of virtually all organizations
working in development and have been commonly accepted as a framework
for measuring development progress (worldbank):
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a Global Partnership for Development
Starbucks has been a key player in the modern SR where the company
shares their goals with those Of the Globe, those goals are supported by the
organization, as the company supports many educational programs in the US
and outside, in addition to their fair trade act regarding coffee beans where it
was intended to fight poverty and hunger and be fair to the farmers in the
countries Starbucks import from or operate in
The company is an Equal Opportunity employer where gender equality is
empowered
The company has also been engaged in enhancing their environmental
record and help the planet, whether it was through the trash program were
the company started using different methods to dispose trash to be more
environmentally cautions or through the save the water campaign that
helped the company respond to fears from all the wasted water.
Starbucks has adapted the SR and is aligning their operations with their
goals to be a corporate citizen and to be recognized as a pioneer in Social
responsibility where the company does not miss any chance to prove they
are part of the community through many programs in the US and outside the
North American continent
Examples are the efforts and donations to rebuild what was destroyed in
Hurricane Katrina and their multi educational programs around the worlds as
well as their commitment to their employees.
While Starbucks strives to be part of the community the company works hard
to satisfy all of its stakeholders, the Coffee giant has had mixed reactions but
the general reaction was good towards the Seattle based company.
The company has had many programs that has lots of affect on the
communities they operate within, those programs has made Starbucks a
more attractive company and the company gained the trust in many
communities as well as many more participating in Starbucks many
initiatives (Starbucks, 2012)
Investments and Assessments
Starbucks Company invest heavily in their Social Responsibility track where
the company as mentioned before have many programs and initiatives that
focuses on serving the communities and providing the company with the
image they need as a corporate citizen,
Starbucks has a partnership with Adam Moss Company that identifies and
verifies Starbuck's SR and help the company monitor and control their work
in addition to help preparing the Social Responsibility report annually
Some of Starbucks investments in the community programs are (starbucks\
responsibility, 2012) (starbucks\comcommunity-involvemen, 2012):
Engagement of partners (employees) with organizations they
feel passionate about.
Starbucks encourages partners to get involved in organizations they
have an interest in and feel passionate about. Partners can submit
Community Service and Partner Match requests to the Starbucks
Foundation to match their volunteer hours and personal contributions
they make to nonprofit organizations.
Collaborating on projects that support social investments in
coffee-, tea- and cocoa-producing communities.
Starbucks supports sustainable programs that meet these communities’
specific needs. Projects have included improving access to education and
agricultural training, microfinance and microcredit services, improving
biodiversity conservation, and increasing levels of health, nutrition and
water sanitation. The Starbucks Foundation also makes contributions
from the Ethos Water Fund to water projects in coffee, tea and cocoa
communities.
Supporting our retail communities through Youth Action Grants.
Starbucks Youth Action Grants are dedicated to supporting young people
to make change in their local communities.
Support Centers
Starbucks has established Farmer Support Centers in Costa Rica and Rwanda
to provide local farmers with the resources and expertise that help lower the
cost of production, reduce fungus infections, improve coffee quality and
increase the yield of premium coffees
Loan Programs
During the growing and harvest cycles, many coffee farmers dip into their
modest reserves to cover expenses until they can sell their crops. Some
farmers may even experience a cash shortage, prompting them to sell their
crops early – and for less – to local buyers.
The Starbucks Farmer Loans program is an alternative for co-ops that cannot
access traditional funding channels. It aims to provide financial resources to
cooperatives to fulfill their cash flow needs during harvest time, and to make
infrastructure investments that result in better competitiveness.
In 2011 Starbucks Corporation gave $30.5 million in cash, including $25
million to the Starbucks Foundation. Corporate giving also included $17.3
million in in-kind contributions toward community-building programs –
including the Global Fund through our partnership with (RED) ™ and
other efforts.
Starbucks have had a lot of success in their social responsibility efforts and
achievements, since 2009 the company has been known for their social
responsibility and the term SR almost branded as Starbucks where most
people will think Starbucks when Social responsibility is mentioned.
Reading through reviews, books and reports can indicate the general feeling
from many stakeholders towards the company and can give an indication of
where the company stands on the Social responsibility issues.
Assessing the company's position and the effectiveness of their efforts and
work is little bit difficult since Social responsibility is yet to have a well
defined measure and a reference that can measure companies' work against,
the company itself is almost branded as a reference and an example that
others should gauge against.
Stakeholders are many they include the partners, customers, surrounding
communities, farmers, suppliers, investors and even the media.
The company works hard to satisfy all stakeholders and put equal emphasis
on the importance of its stakeholders, in addition to developing quick
responses to any concern by the stakeholders
Some of the Media quotes those asses Starbucks work on SR:
" Whether one likes or dislikes Starbucks or its philanthropy, the Starbucks
CSR model looks like a recipe that many corporations recognize as a solid
formula for social responsibility—a mix of environmental sensitivity, global
development, disaster relief, employee community service, and small grants
through retail outlets" (Cohen, 2011)
"Time was when companies that face the consumer could pick one of the
three and have a perfectly defensible position. But since 2008, give or take
consumer expectations of what constitutes meaningful corporate social
responsibility have changed. By which I mean, they’ve gotten a good deal
stiffer.
Part of this is due to outstanding examples of corporate social responsibility
like Starbucks, which has had the effect of altering consumer expectations
and redefining terms. Starbucks pays its employees fairly and offers full
health care benefits, even to part-timers. It sells fair-trade coffee to benefit
its farmer-suppliers. It works to lessen its environmental footprint. And it
does smart cause marketing and corporate philanthropy.
Like no other large company, Starbucks practices what I call the “holy
trinity” of corporate social responsibility.
Starbucks, along with Coke, Amazon, FedEx, Apple, Target, Ford, Nike,
Southwest and Nordstrom all made the April 2012 cover of Entrepreneur
magazine as the “10 most trusted brands” today." (Jones, 2012)
Starbucks and sustainability domestically and globally
Governments push toward healthy eating in western countries due to concerns regarding obesity might influence companies such as Starbucks to update its menu in terms of introducing new lines and healthy alternatives to be sold together with coffee. This in other words means that Social Influences is favorable and can provide an opportunity for Starbucks.(School, 2011)
Starbucks Coffee embraces sustainability as a strategy in the form of Corporate Social Responsibility (CSR). Sustainability is a framework for ecological, economic, and social policies and programs that continues to grow in importance and is finding application in an ever wider range of circumstances. (Charles J. Kibert)
They have thoroughly examined their supply chain to ensure that throughout the entire process, the farmers, workers, and communities with whom they deal are treated fairly and justly and that the environmental responsibility is a key aspect of their approach. Companies engaged in the CSR framework accrue significant benefits such as a better brand identity, lower levels of regulatory scrutiny, reduced liability, a better reputation among prospective employees, and a far greater probability of gaining a ‘license to operate’ in communities where they propose to establish operations. (Charles J. Kibert)
Starbucks talks about their sustainability in their yearly reports whether it was the SR report or even the annual report or their year in review which is an article that highlights the year for Starbucks
"When it comes to environmental sustainability, our experience has proven the power of collaboration. By working with non-governmental organizations, policymakers, competitors and others, we can tackle common challenges. Together we are advancing a number of meaningful initiatives and taking bold actions that we believe are having a significant impact on the entire foodservice industry." (Inc, 2011)
The company that operates in many countries has had many issues prior to
2005 when the company started their fair trading program that the company
addresses in their annual reports; this program was one of the first steps
towards a global Starbucks with global sustainability
Some of the programs Starbucks does from within the fair trade program is
listed in the below paragraph from the company which featured in their
annual report
"Our commitment to communities extends beyond our retail footprint to
include the regions that supplies us with our coffee, tea and cocoa. Starbucks
invests in programs designed to strengthen local economic and social
development, Working collaboratively with nongovernmental organizations
that have the experience and expertise to work with farming communities. In
addition to our social investments, we also support communities through
farmer loans and ethical sourcing programs with Conservation International
and Fair trade, among others.
Since fiscal 2005, Starbucks has supported the Guatemala Education
Initiative, an effort with Save the Children to bring education programs to
remote coffee-producing villages in the highlands of Guatemala. Indigenous
Mayan communities like these are frequently marginalized from the
Guatemalan economy and typically suffer the highest rates of poverty and
the lowest levels of education attainment in the nation. In 2011 Starbucks
launched a three-year project with a $1 million contribution to Save the
Children to improve education, health and nutrition for coffee-farming
families in Guatemala’s Huehuetenango region.
In Indonesia’s Aceh province, Starbucks has teamed with Save the Children
to improve children’s health and education in coffee-growing communities
through BLEND (Better Living, Education, Nutrition, and Development).
Since 2009 the three-year, $1.5 million effort has garnered significant and
measurable improvements in the health and education of more than 2,200
young children in 41 communities. The initiative has improved vaccination
rates, health worker capacity, health behaviors among caretakers, preschool
teacher and facilitator capacity, and primary school readiness for 5- and 6-
year-old children.
In tea-growing regions of India and Guatemala, Starbucks has supported
health and economic development programs through Tazo’s Community
Health and Advancement Initiative (CHAI) project, a joint partnership
with Mercy Corps. Since 2003 Starbucks and Tazo suppliers have contributed
$2.6 million for CHAI. Over the next three years we hope to directly impact
more than 11,000 people with water and sanitation improvements, youth
engagement, education and income generation.
Starbucks also supports water, sanitation and hygiene education programs in water-stressed countries through the Starbucks Foundation’s Ethos Water Fund. For each bottle of Ethos® water purchased, a contribution of US $.05 ($.10 in Canada) is made to to the Ethos Water Fund. Since 2005 $6 million has been granted, benefitting more than 420,000 people around the world." (Inc, 2011)
In my experience the company has done a wonderful job with potential to do
more
The company has addressed and worked with many issues concerning
sustainability and operated a fully supported program through the world,
were they supported all the communities they operates in.
In addition to the fact that the company has been trying to address
sustainability from different views, an example is the strict policies of
Starbucks in Jordan a country where they have problems with drinking water
being without rivers and no source of water, Starbucks has authorized their
partners in Jordan to address the problem and come up with a solution
The company also addresses any concerns about obesity where they provide
healthier food to their customers here in the US and around the world.
My experience
My experience with Starbucks has been a positive one as the company has
lived to their promises with community commitments and Social responsible
acts,
I applaud the company for their water saving change that has cost the
company a large amount of money to install the changes\faucets as a
traveler I have seen so many countries where water is a hard thing to get,
and they need every drop, the company not only changed their operations to
save water, but started a campaign ETHO where every bottle of water sold
will have a 5 cents donated towards a clean water projects for areas where
no clean water is accessible.
The company as an employer has had praise from friends who worked for the
coffee maker and praised their flexibility, the benefits and their transparent
growth system.
I also have been involved through friends in the rebuilding phase in New
Orleans where the company has been a great supporter, friends has praised
them over and over for their Social responsibility commitment.
My experience and opinion regarding sustainability
The company has done a wonderful job with potential to do more
The company has addressed and worked with many issues concerning
sustainability and operated a fully supported program through the world,
were they supported all the communities they operates in.
In addition to the fact that the company has been trying to address
sustainability from different views, an example is the strict policies of
Starbucks in Jordan a country where they have problems with drinking water
being without rivers and no source of water, Starbucks has authorized their
partners in Jordan to address the problem and come up with a solution
The company also addresses any concerns about obesity where they provide
healthier food to their customers here in the US and around the world.
What does the company need to do more or different?
The company has been doing great and they are associated with SR as the
first in mind when SR is mentioned and this shows the worth of the work
Starbucks has put in this approach that has proved beneficial, the company
need to work for the day that SR is not driven by a department and
operations but to be imbedded in the company and drives more responsible
acts from within the company and more ideas that gives the company in
addition to add a more attractiveness side.
"Don’t just look to become more active, start to think more holistically on
how your company participates as a global citizen. This doesn’t just come
about through one or two projects – it is a mindset." (Taylor, 2009)
References
http://en.wikipedia.org/wiki/Starbucks. (2012). wikipedia.org. Retrieved from http://en.wikipedia.org/wiki/Starbucks
Starbucks.com. (2012). Starbucks.com. Retrieved from Starbucks.com: www.starbucks.com
responsibility, .. (2012).
http://www.starbucks.com/responsibility/community/create-jobs-for-usa-
program. Retrieved 2012, from
http://www.starbucks.com/responsibility/community/create-jobs-for-usa-
program
Sornchai Harnrungchalotorn, Y. P. (n.d.). Starbucks with Corporate Social
Responsibility (CSR). Retrieved 6 30, 2012, from
www.marcgunther.com/2012/05/.../behavioral-economics-at-starbuc...
starbucks.com. (2012). http://www.starbucks.com/responsibility. Retrieved
2012, from http://www.starbucks.com/responsibility
Think2100.com. (2008, 6 14). Retrieved 6 30, 2012, from
http://www.think2100.com/index.php?
option=com_content&view=article&id=60:starbucks-cafe-
practices&catid=36:fairtrade
TODAY, U. (2011).
http://www.usatoday.com/money/industries/food/story/2011-09-08/Starbucks
-CEO-ask-peers-to-withhold-polticial-contributions/50326932/1. Retrieved
from
http://www.usatoday.com/money/industries/food/story/2011-09-08/Starbucks
-CEO-ask-peers-to-withhold-polticial-contributions/50326932/1:
http://www.usatoday.com/money/industries/food/story/2011-09-08/Starbucks
-CEO-ask-peers-to-withhold-polticial-contributions/50326932/1
Starbucks.com. (2012). Starbucks.com. Retrieved from
http://www.starbucks.com/about-us/our-heritage
wikipedia.org. (2012). Retrieved from
http://en.wikipedia.org/wiki/Transfair_USA:
http://en.wikipedia.org/wiki/Transfair_USA
Starbucks. (2006). Corporate SoCial reSponSibility / FiSCal 2006 annUal
report.
Starbucks. (2004). Starbucks Demonstrates Commitment to Stakeholder
Engagement in Fiscal 2004 Corporate Social Responsibility Annual Report.
wikipedia. (2012). http://en.wikipedia.org/wiki/Starbucks. Retrieved from
en.wikipedia.org: http://en.wikipedia.org/wiki/Starbucks
cctrends. (2009, 08 09). cctrends.net/?p=153. Retrieved 2012, from
http://www.cctrends.net/?p=153: http://www.cctrends.net/?p=153
starbucks. (2010).
http://assets.starbucks.com/assets/2660085bf62e4246a91a8024f500cb37.pd
f. Retrieved from
http://assets.starbucks.com/assets/2660085bf62e4246a91a8024f500cb37.pd
f:
http://assets.starbucks.com/assets/2660085bf62e4246a91a8024f500cb37.pd
f
Taylor, S. E. (2009). The former Senior Vice President of Corporate Social
Responsibility. (CCtrends.net, Interviewer)
Guardian, T. (2011, 05 24).
http://www.guardian.co.uk/global-development/poverty-matters/2011/may/
24/talkpoint-measuring-development-progress. Retrieved from
http://www.guardian.co.uk/global-development/poverty-matters/2011/may/
24/talkpoint-measuring-development-progress:
http://www.guardian.co.uk/global-development/poverty-matters/2011/may/
24/talkpoint-measuring-development-progress
Starbucks. (2012). http://community.starbucks.com/index.jspa. Retrieved
from http://community.starbucks.com/index.jspa:
http://community.starbucks.com/index.jspa
worldbank. (n.d.). http://data.worldbank.org/about/millennium-development-
goals. Retrieved from http://data.worldbank.org/about/millennium-
development-goals: http://data.worldbank.org/about/millennium-
development-goals
Charles J. Kibert, L. T. The Ethics of Sustainability.
Inc, S. (2011). Starbucks Global Responsibility Report. SR. Starbucks.
School, B. (2011). International Business Strategy. Middlesex Univerity.
Cohen, R. (2011, April 20). http://www.nonprofitquarterly.org/index.php?
option=com_content&view=article&id=11466. Retrieved from
http://www.nonprofitquarterly.org:
http://www.nonprofitquarterly.org/index.php?
option=com_content&view=article&id=11466
Jones, P. (2012, April 2nd).
http://www.mediapost.com/publications/article/171275/corporate-social-
responsibility-comes-in-threes.html. Retrieved from
http://www.mediapost.com:
http://www.mediapost.com/publications/article/171275/corporate-social-
responsibility-comes-in-threes.html
starbucks\comcommunity-involvemen. (2012).
http://www.starbucks.com/responsibility/global-report/community-
involvement/community-service. Retrieved from
http://www.starbucks.com/responsibility/global-report/community-
involvement/community-service:
http://www.starbucks.com/responsibility/global-report/community-
involvement/community-service
starbucks\responsibility. (2012). http://www.starbucks.com/customer-
service/faqs/responsibility. Retrieved from
http://www.starbucks.com/customer-service/faqs/responsibility:
http://www.starbucks.com/customer-service/faqs/responsibility
businesslink. (2012). http://www.businesslink.gov.uk/bdot. Retrieved 08 26, 2012, from http://www.businesslink.gov.uk: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1075408491&type=RESOURCES
Enevoldson, N. (2012). http://www.imasocialentrepreneur.com/social-responsibility/. Retrieved from http://www.imasocialentrepreneur.com/social-responsibility/: http://www.imasocialentrepreneur.com/social-responsibility/
investopedia.corporatecitizenship. (2012). http://www.investopedia.com/terms/c/corporatecitizenship. Retrieved 08 2012, from investopedia.com: http://www.investopedia.com/terms/c/corporatecitizenship.asp#axzz24fz6JUeb