Academic Master

Business and Finance, Education

Global Contemporary Business Issues

Introduction

It is evident that today’s competitive business environment change the overall paradigm of the business world. The immense level of competition and globalization demands organisations to adopt the different proactive and effective measures to sustain their position and attain competitive advantage in the market (Hill, 2008). It is notable to mention that business organizations have to deal with the different contemporary issues to lead the market. Organisations adopt different forms of business approaches to attract customers and maximize their form of 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 one of the effective organisational approaches to enhance the overall productivity and the influence of the organizations. It is observed that different organisations 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 the CSR explain the facet of the responsible approach of the business organisation concerning to the particular assessment of the needs and take responsibility for the overall feature of the environment (Matten and Moon, 2004). In other words, the facet of the corporate social responsibility can be simply defined as the different effective social initiatives by the organizations to play their influential role in case of overall environmental and social wellbeing. It can be described as the crucial form of corporate citizenship which align the approach of business organization to the overall welfare of the environment. It is essential to understand that the overall feature of the corporate social responsibility might not provide the immediate form of the financial benefit to the business organization but it can be considered as the effective approach to promote the 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 the corporate social responsibility. Starbucks is known as one of the leading organizations when it comes to the international business world. The organization of Starbucks is selected to effectively explain and assess the paradigm of corporate social responsibility as the effective global strategy.

Introduction to the Organization of Starbucks

The organization of Starbucks is the well-known coffeehouse chain of America. This particular company initiates its business in Seattle, Washington in 1971. The organization of Starbucks immensely expands its business as today’s record shows that organization effectively functioning in 27,339 different locations worldwide. Undoubtedly, the organization of Starbucks is described as the main representative of the feature of the second wave coffee. It leads the business of coffee to the next level through the different strategies of innovation with the consideration of the customers’ need and requirements (“Starbucks,” 2018). The influence of the organization of the 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 the customers. A diverse form of coffee products and snacks are offered by the Starbucks in all over the world. The social role of the Starbucks is also immensely influential as it considers the different needs of the society and the different changing social perspectives (Smith, 2003). It is notable to mention that the organization of Starbucks successfully play its role as the one responsible company which effectively align 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 organisation of the Starbucks. The particular approach related to the paradigm of the CSR in case of Starbucks can be identified with the particular feature of its mission statement. The organisation of Starbuck successfully understand its influential role and responsibility concerning to the particular social aspects as the for-profit, public organisation. The specific social approach of the 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 neighbourhood at a time (Maloni and Brown, 2006). The particular expansion of the company’s business makes it crucial and necessary for the Starbucks to effectively establish the feature of global social impact at different levels. Ethics and sustainability are two crucial social features which are effectively considered by the Starbucks. The particular prospect of corporate social responsibility of the Starbucks comes with the consideration of both the elements of ethics and the sustainability of the whole facet of the 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 the high standard of the quality is the one prime objective of the organization which is successfully achieved by establishing the effective form of ethics and the element of the necessary sustainability. The focus of the Starbucks is to maintain the necessary features related to the ethical sourcing of the products which can be categorized as the products of sustainability (Vogel, 2007). The management of the Starbucks positively 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 which are closely associated with their business. Starbucks takes necessary measures to properly facilitate its suppliers of the raw material who effective grow and supply raw products in the form of coffee beans. The organization of the Starbucks tries its best to ensure the feature of help with the facet of the long-term approach to sustainability.

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

The creation of the Starbucks Foundation is the example of the effective level of commitment of the company with the social needs. This particular initiative of the establishing the paradigm of foundation provide the necessary effective incentives to the community and particularly to the youth. The particular literacy programs initiated by the organization in 1997 is the great example of the organization’s consideration related to the different social paradigms. Starbucks expands its approach to helping the community by expanding its programs to the outside facet of America. A handsome amount of different forms of funds and grants are given by Starbucks in the different forms of social development around the globe. Community service is one of the main aim and the point of consideration of the Starbucks. The organization actively engage 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 the specific Community Service Grants. This type of programs from the company ensures the availability of the matching grants to the different nonprofit organizations for the development of the society.

The environment is another feature which is effectively considered by the organization of Starbucks. Starbucks understands the importance of the environment in the form of different solutions of the sustainability. Starbucks effectively contribute to the overall effectiveness of the environment as a company believes the overall paradigm of the environment as the major stakeholder. Agricultural products are the backbone of the organization’s profitability so Starbucks take necessary measures to protect the environment. Green is the approach which is effectively considered by Starbucks (Bénabou and Tirole, 2010). The organization of Starbucks initiates different strategies to enhance the approach of the green environment. Greener stores of Starbucks is one of the great examples of the company’s concern to the feature 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 with the effective adoption of the LEED (Leadership in Energy and Environmental Design). Starbucks adopts the particular effective features of construction and commercial interior to consider the basic foundation of the environment. Recycling is another crucial prospect effectively consider and adopted by the company of Starbucks. Greener cup is the one example of the company’s approach to sustaining its position as the cost-effective and environment-friendly organization. The strategy of recycling is adopted by Starbucks to effectively fulfill the expectations set of their customers with the consideration of the business. Starbucks encourages the paradigm of reusable cups to sustain the cost-effective approach concerning to its products. The influential forms of collaboration, creativity, and the facet of the betterment are applied as the necessary guidelines to sustain the feature of development. The particular aspect of recycling is initiated by the Starbucks with the help of different complex and challenging paradigms. Waste reduction is the one crucial approach which is effectively adopted by the Starbucks. The company comes with many initiatives to enhance the approach of sustainability of the overall environment and the paradigm of cost-effectiveness (Heal, 2005). Starbucks strongly believe that community is the backbone of the facet of profitability and organization take necessary measures to align the need of the community with the broader approach of the Starbucks. 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 the communities to adopt the better and necessary form 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 the Starbucks than it is essential to mention that company makes it 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 the attempt of the marketing strategy but it effectively plays its role to help the facet of the society with the better consideration of the profitability. The basic criteria of CSR adopted by the organization of Starbucks give the necessary insights about the company’s objective to the facet of the societal development. The particular prospect of “transformation Agenda” launched by the CEO Howard Schultz of Starbucks makes the real difference in the overall social approach of the organization. The point of focus is to consider the importance of people and consider hem as an asset. Different forms of initiatives and policies adopted by the company under this particular agenda to facilitate people, the overall feature of the environment, and the crucial consideration of community. These particular steps help the organization to sustain itself in terms of finance and it became the source of the enhancement of the profitability. The revenues of the organization are the good indication of the effectiveness of the different social initiatives presented and implemented by the Starbucks.

The particular feature of the corporate social responsibility in case of Starbucks can be better understood with the necessary consideration of 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 case of Starbucks.

The paradigm of communities is immensely considered the organization. Starbucks takes different initiatives to provide necessary support in the overall prospect of welfare in case of society. The particular idea of community stores from the 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 the effective approaches for the people. A huge amount of grants presented by the Starbucks to their nonprofit partners. Recruitment of the number of veterans is the one example of the Starbucks’ approach to effectively align it with the facet of the community. Different types of training programs offered by the organization for the youngsters is another example of company’s commitment and concern for the community.

The second crucial feature which 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 immensely focus and concern about the particular prospect that their coffee, tea, cocoa, and other manufactured goods are ethically produced. The company considers the necessary feature of ethics in the overall process of production and the purchasing of the raw material for the final products. The organization comes up with the approach to only purchase those products which come up with some basic standard of ethical features. There is the systematic approach to the process to ensure the specific standard of the products presented by the Starbucks. The organization of Starbucks effectively and actively align with the farmers to avoid any form of hazard in case of the overall production process.

The environment is one of the crucial points of consideration in case of Starbucks. It always remains the focus of the organization to take different necessary and effective measures to help the planet to intact its facet of the natural form of environment. The company of Starbucks considers the planet as the necessary stakeholder in the business. Different forms of initiatives adopted by the organization to facilitate the overall approach of the environment. Starbucks ensures to never influence the natural form of the environment in negative terms. The role of Starbucks is immense and influential in the particular approach of effective conservation of water and energy. Different initiatives are adopted by the organization in the developing countries to ensure the access of the pure water to the local people. Climate change is the one crucial feature which is considered by Starbucks and the organization takes different measures to positively address the issue of change in the overall paradigm of the environment. Starbucks develop different forms of collaboration with the farmers to efficiently deal with the issue of change in climate. It is notable to mention that the organization of Starbucks take necessary and timely measures in form of its operations to provide necessary assistance to the paradigm of the environment.

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

Conclusion

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