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8/26/2012 Starbucks a Corporate Citizen | Amen Mukhlis SOUTHER N NEW HAMPSHI RE UNIVERS ITY CORPORATE SOCIAL RESPONSIBILITY REPORT STARBUCKS COFFEE COMPANY
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Starbucks Social Responsibility

Oct 28, 2014

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Page 1: Starbucks Social Responsibility

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Southern New Hampshire University

corporate social responsibility report starbucks coffee company

Page 2: Starbucks Social Responsibility

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.

Page 3: Starbucks Social Responsibility

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

Page 4: Starbucks Social Responsibility

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

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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

Page 6: Starbucks Social Responsibility

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

Page 7: Starbucks Social Responsibility

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

Page 8: Starbucks Social Responsibility

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

Page 9: Starbucks Social Responsibility

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

Page 10: Starbucks Social Responsibility

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

Page 11: Starbucks Social Responsibility

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

Page 12: Starbucks Social Responsibility

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

Page 13: Starbucks Social Responsibility

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

Page 14: Starbucks Social Responsibility

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)

Page 15: Starbucks Social Responsibility

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.

Page 16: Starbucks Social Responsibility

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.

Page 17: Starbucks Social Responsibility

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)

Page 18: Starbucks Social Responsibility

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

Page 19: Starbucks Social Responsibility

"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.

Page 20: Starbucks Social Responsibility

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.

Page 21: Starbucks Social Responsibility

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)

Page 22: Starbucks Social Responsibility

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