Academic Master

Business and Finance, Education

Global Contemporary Business Issues And Starbucks

Introduction

It is evident that today’s competitive business environment changes the overall paradigm of the business world. The immense level of competition and globalization demands organizations to adopt different proactive and effective measures to sustain their position and attain a competitive advantage in the market (Hill, 2008). It is notable that business organizations have to deal with different contemporary issues in order to lead the market. Organizations adopt different forms of business approaches to attract customers and maximize their profitability. The overall global approach impacts the business strategies and the policies of the organizations to effectively align them with the changing pattern of the world and compete with their competitors in the form of attracting more customers (Noe et al., 2003).

Introduction to Corporate Social Responsibility

Corporate social responsibility (CSR) is known as an effective organizational approach to enhance the overall productivity and influence of organizations. It is observed that different organizations widely adopt this particular approach of CSR to gain a high form of business advantage. This form of business strategy can be considered as the necessary approach for the survival of the organization in today’s competitive global business world. The feature of CSR explains the facet of the responsible approach of the business organization concerning the particular assessment of the needs and taking responsibility for the overall feature of the environment (Matten and Moon, 2004). In other words, the facet of corporate social responsibility can be simply defined as the different effective social initiatives by the organizations that play an influential role in the case of overall environmental and social well-being. It can be described as the crucial form of corporate citizenship that aligns the approach of business organizations to the overall welfare of the environment. It is essential to understand that the overall feature of corporate social responsibility might not provide an immediate form of financial benefit to the business organization, but it can be considered an effective approach to promote positive change in the particular social and environmental paradigm. Here, the focus is to select the specific business organization to assess its particular approach referring to corporate social responsibility. Starbucks is known as one of the leading organizations when it comes to the international business world. The organization of Starbucks was selected to explain and assess the paradigm of corporate social responsibility as an effective global strategy.

Introduction to the Organization of Starbucks

The organization of Starbucks is the well-known coffeehouse chain of America. This particular company initiated its business in Seattle, Washington, in 1971. The organization of Starbucks has immensely expanded its business, and today’s record shows that the organization effectively functions in 27,339 different locations worldwide. Undoubtedly, the organization of Starbucks is described as the main representative of the features of the second wave of coffee. It leads the coffee business to the next level through different innovation strategies that consider the customers’ needs and requirements (“Starbucks,” 2018). The influence of the organization of Starbucks can be determined as it is known as the largest company in the world when it comes to the provision of coffee products to customers. Starbucks offers diverse coffee products and snacks all over the world. The social role of Starbucks is also immensely influential as it considers the different needs of society and the different changing social perspectives (Smith, 2003). It is notable to mention that the organization of Starbucks successfully plays its role as the one responsible company that effectively aligns its approach with the different social and environmental needs and standards. The aim of this particular organization is to positively influence the communities and provide the best services, which can be observed in different forms of welfare.

Corporate Social Responsibility of Starbucks

The particular feature of corporate social responsibility (CSR) is effectively considered by the organization of Starbucks. The particular approach related to the paradigm of CSR in the case of Starbucks can be identified with the particular feature of its mission statement. The organization of Starbucks successfully understands its influential role and responsibility concerning the particular social aspects of being a for-profit, public organization. The specific social approach of Starbucks can be identified with the proper form of determination of the organization to positively influence different communities with the particular features of one person, one cup, and one neighborhood at a time (Maloni and Brown, 2006). The particular expansion of the company’s business makes it crucial and necessary for Starbucks to effectively establish the feature of global social impact at different levels. Ethics and sustainability are two crucial social features that Starbucks effectively considers. The particular prospect of Starbucks’ corporate social responsibility comes with the consideration of both the elements of ethics and the sustainability of the whole facet of society.

The prospect of ethics is effectively considered by the organization in the crucial prospect of purchasing the raw material for the final products. Maintaining a high standard of quality is the one prime objective of the organization, which is successfully achieved by establishing an effective form of ethics and the element of necessary sustainability. The focus of Starbucks is to maintain the necessary features related to the ethical sourcing of the products, which can be categorized as products of sustainability (Vogel, 2007). The management of Starbucks believes that the paradigm of the organization’s success can only be achieved with the proper consideration of the needs and requirements of those farmers who are closely associated with their business. Starbucks takes necessary measures to properly facilitate its suppliers of raw materials, which effectively grow and supply raw products in the form of coffee beans. The organization Starbucks tries its best to ensure the feature helps with the facet of the long-term approach to sustainability.

Another feature of social help, which is effectively considered by the company Starbucks, is to create different and effective forms of opportunities for the community. It is one of the core objectives of the organization to initiate different programs that provide necessary assistance and chances to the people of the communities to move forward and excel in their lives. The particular program of YouthBuild is one effective example of Starbucks’ contribution to the provision of better opportune cities for the people. Undoubtedly, the particular feature of this initiative of the organization can be a life-changing opportunity for some individuals. The Starbucks company creates an effective level of jobs and investment opportunities for the people so they can work together with Starbucks. The organization of Starbucks successfully considers its responsibility as a public organization. The management of the organization considers different social paradigms as their duties and ensures the maintenance of a balanced approach to the facets of profitability and the needs of society. Another crucial feature established by Starbucks to provide an effective form of social support to society can be identified as the specific form of Starbucks’ foundation (Luo and Bhattacharya, 2006). The presence of the Starbucks Foundation is one crucial example of the company’s effective commitment to the services of the community. The facet of this particular foundation adopts different approaches and initiatives to align their performance with the social needs.

The creation of the Starbucks Foundation is an example of the effective level of commitment of the company to social needs. This particular initiative of establishing the paradigm of foundation provides the necessary effective incentives to the community and particularly to the youth. The literacy programs initiated by the organization in 1997 are a great example of the organization’s consideration of different social paradigms. Starbucks expands its approach to helping the community by expanding its programs to the outside facet of America. Starbucks provides a large amount of different forms of funds and grants for different forms of social development around the globe. Community service is one of the main aims and points of consideration for Starbucks. The organization actively engages its employees to take necessary measures to provide necessary aid to the local community (Lichtenstein et al., 2004). The company ensures the paradigm of the effective form of Partner Match and specific Community Service Grants. This type of program from the company ensures the availability of matching grants to the different nonprofit organizations for the development of society.

The environment is another feature that is effectively considered by the organization of Starbucks. Starbucks understands the importance of the environment in the form of different sustainability solutions. Starbucks effectively contributes to the overall effectiveness of the environment as a company that believes in the overall paradigm of the environment as the major stakeholder. Agricultural products are the backbone of the organization’s profitability, so Starbucks takes necessary measures to protect the environment. Green is the approach that Starbucks effectively considers (Bénabou and Tirole, 2010). The organization of Starbucks has initiated different strategies to enhance its approach to the green environment. The greener stores of Starbucks are one of the great examples of the company’s concern for the features of the natural environment. The focus of the organization is to establish eco-friendly stores all over the globe. Undoubtedly, Starbucks can be characterized as the leading organization in the effective adoption of LEED (Leadership in Energy and Environmental Design). Starbucks adopts the particular effective features of construction and commercial interiors to consider the basic foundation of the environment. Recycling is another crucial prospect effectively considered and adopted by the company of Starbucks. The Green Cup is one example of the company’s approach to sustaining its position as a cost-effective and environment-friendly organization. The strategy of recycling is adopted by Starbucks to effectively fulfill the expectations set by their customers with the consideration of the business. Starbucks encourages the paradigm of reusable cups to sustain the cost-effective approach concerning its products. The influential forms of collaboration, creativity, and the facet of betterment are applied as the necessary guidelines to sustain the feature of development. The particular aspect of recycling is initiated by Starbucks with the help of different complex and challenging paradigms. Waste reduction is the crucial approach that Starbucks has actively adopted, and it comes with many initiatives to enhance the approach of sustainability of the overall environment and the paradigm of cost-effectiveness (Heal, 2005). Starbucks strongly believes that the community is the backbone of the facet of profitability, and the organization takes necessary measures to align the needs of the community with Starbucks’ broader approach. Different initiatives are opted by the organization to provide the necessary form of strength to the communities. Starbucks provides the necessary and effective approaches to communities to adopt better and necessary forms of conversation and develop the paradigm of social engagement through various programs offered by Starbucks.

Assessment of the Corporate Social Responsibility of Starbucks

When it comes to the evaluation of the particular approach of the corporate social responsibility of Starbucks, it is essential to mention that the company makes an influential impact on the global market. It takes different necessary and positive social steps to help the environment grow further. There is no doubt that Starbucks makes an immense level of difference through its particular approach to corporate social responsibility (CSR). The initiatives of the different social programs of Starbucks indicate that it is not just an attempt at the marketing strategy, but it effectively plays its role in helping the facet of society with better consideration of profitability. The basic criteria of CSR adopted by the Starbucks organization give the necessary insights about the company’s objective to the facet of societal development. The particular prospect of the “transformation Agenda” launched by CEO Howard Schultz of Starbucks makes a real difference in the overall social approach of the organization. The point of focus is to consider the importance of people and consider them an asset. Different forms of initiatives and policies are adopted by the company under this particular agenda to facilitate people, the overall feature of the environment, and the crucial consideration of the community. These particular steps helped the organization to sustain itself in terms of finance, and it became the source of the enhancement of profitability. The revenues of the organization are a good indication of the effectiveness of the different social initiatives presented and implemented by Starbucks.

The particular feature of corporate social responsibility in the case of Starbucks can be better understood by considering the three basic pillars. The approach of corporate social responsibility is adopted by the organization with the necessary consideration of community, ethical sourcing, and the paradigm of the environment. It is crucial to evaluate all these elements to critically understand the fact of corporate social responsibility in the case of Starbucks.

The paradigm of communities is immensely considered the organization. Starbucks takes different initiatives to provide the necessary support for the overall prospect of welfare in society. The particular idea of community stores from Starbucks is the one successful effort to engage its perspective with the different local nonprofit organizations. The main purpose is to effectively understand the needs of the communities and take necessary measures to ensure effective approaches for the people. Starbucks has presented a huge number of grants to its nonprofit partners. Recruitment of the number of veterans is one example of Starbucks’ approach to effectively align it with the facet of the community. Different types of training programs offered by the organization for youngsters are another example of the company’s commitment and concern for the community.

The second crucial feature that is effectively considered by the company is known as the paradigm of ethical sourcing. It provides the necessary indication of the buying process of the raw material or products. Starbucks is immensely focused and concerned about the particular prospect of their coffee, tea, cocoa, and other manufactured goods being ethically produced. The company considers the necessary feature of ethics in the overall process of production and the purchasing of the raw materials for the final products. The organization comes up with the approach to only purchase those products that come up with some basic standard of ethical features. There is a systematic approach to the process to ensure the specific standard of the products presented by Starbucks. The organization of Starbucks effectively and actively aligns with the farmers to avoid any form of hazard in the overall production process.

The environment is one of the crucial points of consideration in the case of Starbucks. The focus of the organization always remains on taking different necessary and effective measures to help the planet keep its facet of the natural environment intact. Starbucks considers the planet to be a necessary stakeholder in the business. Different forms of initiatives are adopted by the organization to facilitate the overall approach to the environment. Starbucks ensures that it never influences the natural form of the environment in negative terms. The role of Starbucks is immense and influential in the effective conservation of water and energy. Different initiatives are adopted by organizations in developing countries to ensure access to pure water for the local people. Climate change is one crucial feature that Starbucks considers, and the organization takes different measures to positively address the issue of change in the overall paradigm of the environment. Starbucks develops different collaborations with farmers to deal efficiently with climate change. It is notable to mention that the organization of Starbucks takes necessary and timely measures in the form of its operations to provide necessary assistance to the paradigm of the environment.

The overall prospect of corporate social responsibility, in the case of Starbucks, is effective and worthy of mention because it considers the needs of the people. Starbucks prefers people over the feature of abnormal profit. The focus of the company is to positively change the lives of the people who belong to the communities without the consideration of the waste of money or other resources. The organization of Starbucks effectively aligns people with its operations to create a positive change in the overall paradigm of the community. The provision of better services to its customers is the main aim of the organization, and it is effectively aligned with the profitability approach in the case of Starbucks. The positive and effective approach to the corporate social responsibility of Starbucks positively influences its customers. Customers become able to align themselves with the particular approach to social betterment proposed by the organization. There are clear indications that the effective adaptability of the specific approach of corporate social responsibility by the organization attracts its consumers as they consider the positive measures taken by the organization. This particular prospect can be a witness in the case of Starbucks as its customers consider it a positive approach adopted by the organization in the form of a social approach. Consumers effectively understand and acknowledge the facet of the social paradigm adopted by the organization of Starbucks. The social initiatives adopted by Starbucks are a clear indication that the facet of corporate social responsibility, in the case of Starbucks, is not just the enhancement of investment and profitability by attracting clients. Instead, it is the necessary approach of social responsibility that comes up with the consideration of the specific needs of the communities related to the business of Starbucks.

Conclusion

To conclude the discussion of corporate social responsibility in the case of Starbucks, it is essential to mention that the company’s particular approach to CSR is immensely effective. The particular approach of CSR is feasible and effective in the case of Starbucks because it effectively considers the basic needs of the communities. The successful approach of Starbucks’ CSR ultimately positively impacts the perception of customers of the business paradigm of the organization. The particular consideration of the organization positively influences the performance of its workers as it positively advocates for the interest of the whole community.

References

Bénabou, R., Tirole, J., 2010. Individual and corporate social responsibility. Economica 77, 1–19.

Heal, G., 2005. Corporate social responsibility: An economic and financial framework. Geneva Pap. Risk Insur.-Issues Pract. 30, 387–409.

Hill, C., 2008. International Business: Competing in the global marketplace. Strategy. Dir. 24.

Lichtenstein, D.R., Drumwright, M.E., Braig, B.M., 2004. The effect of corporate social responsibility on customer donations to corporate-supported nonprofits. J. Mark. 68, 16–32.

Luo, X., Bhattacharya, C.B., 2006. Corporate social responsibility, customer satisfaction, and market value. J. Mark. 70, 1–18.

Maloni, M.J., Brown, M.E., 2006. Corporate social responsibility in the supply chain: an application in the food industry. J. Bus. Ethics 68, 35–52.

Matten, D., Moon, J., 2004. Corporate social responsibility. J. Bus. Ethics 54, 323–337.

Noe, R.A., Hollenbeck, J.R., Gerhart, B., Wright, P.M., 2003. Gaining a competitive advantage. Irwin: McGraw-Hill.

Smith, N.C., 2003. Corporate social responsibility: whether or how? Calif. Manage. Rev. 45, 52–76.

Starbucks [WWW Document], 2018. . Starbucks.com. URL https://www.starbucks.com/

Vogel, D., 2007. The market for virtue: The potential and limits of corporate social responsibility. Brookings Institution Press.

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