Abstract
This paper explores Starbuck’s Corporate Social Responsibility (CSR). Today’s businesses must act like decent social citizens while still being profitable. As such, being socially and ethically responsible is expected for Starbucks rather than being used as a differentiator to gain organizational legitimacy or only focusing on profitability. In order to better understand how Starbucks adopts CSR, a highly successful worldwide coffee corporation, its CSR initiatives will be analyzed. Also, this paper leads off by briefly presenting the company’s scope, strategy, CSR approach and external environment, such as stakeholders. Generally, the motives behind CSR activities are presented as being too philanthropic, which can cause the stakeholders to suspect ulterior hidden motives. This potential issue could be addressed by providing information illustrating how the different initiatives benefit Starbucks by creating value, such as profit or shareholder value. On the contrary, it can be argued that Starbucks is addressing this aspect by emphasizing its long-term commitment to the various projects, as well as it stresses an integrated approach to CSR, which indirectly indicates that there are economic motives behind, seeing as the CSR initiatives are part of the overall strategy. But drawing upon the theoretical framework, it is evident that Starbucks should emphasize the economic motives more clearly, by providing additional contextual cues, which will support stakeholders’ interpretation of the hereof and diminish possible scepticism.
Starbucks Case Study
Starbucks Case Study explains how Starbucks is involved in a wide range of CSR initiatives, including philanthropic community service projects, programs for ethical sourcing, measures to protect the environment, and programs that welcome and promote diversity. In order to maintain its long list of business ties with numerous NGOs and CSR groups, Starbucks must adhere to several sets of moral, social, and environmental norms along its whole value chain. Starbucks is also mindful of how to frame its CSR communication to meet the requirements and expectations of various stakeholders. It embraces the opportunities of online communication, such as two-way communication and multimedia elements.
Methods
This case study analyzes Starbucks’ CSR strategies in order to respond to Starbuck’s CSR strategies. To conduct this study, part of the analysis focuses on Starbucks’ message content and the various communication channels the company employs to explain its CSR initiatives to its various stakeholders in order to satisfy the needs of particular stakeholders as well as the attention paid to how the communication is framed including what is highlighted and made salient (Crawford, 2020). Starbucks’ CSR report will be examined using the standards established by online market research firm MORI regarding what various stakeholder groups look for in CSR reports. This is because the key target audience for the CSR reports has very different needs and expectations than the primary target audience. Also, the research will be conducted to determine Starbucks’ CSR effectiveness and recommend the most effective CSR that Starbucks can adopt.
Results
Starbucks can take several actions, such as strictly adhering to recycling laws, conserving energy and water, and starting programs that address global climatic changes to ensure CSR since the business is dedicated to being environmentally friendly in all its operations.
According to the case study, Starbucks has adopted crucial strategies for its CSR programs. The three fundamental pillars of ethics, community, and the environment form the foundation of the company’s CSR. The business is very supportive of coffee farmers. “The organization offers farmer assistance centers and bridge loans to help farmers get through the growing season till they can earn money at harvest” (Crawford, 2020). In order to address locals’ needs, Starbucks successfully collaborates with farmers. Additionally, the business is devoted to ensuring that its goods are produced and distributed ethically and responsibly; thus, by doing its business in an environmentally sustainable manner, the corporation is making great strides in reducing its negative environmental effects.
Starbucks is particularly effective because it strongly emphasizes investing in the people and communities it works with to impact the areas it serves positively. For instance, decreased turnover is a key factor in the success of investments in social support and environmental challenges. Moreover, a good platform for bringing organizations closer to the local people for their social and economic growth is provided by increasing employee advocacy towards the organizations. Similarly, Starbucks’ CSR program promoted societal change, increased awareness, and helped to establish trust.
Some relevant CSR actions include giving to charities, participating in fair trade, making investments with social and environmental considerations, improving labor practices, lowering carbon footprints, and implementing ecologically friendly laws (Liang & Renneboog, 2020). Starbucks and other large businesses must demonstrate corporate social responsibility in how they run their operations, treat their employees, manage their impact on the environment, support their employees and the community, and prepare for eradicating poverty and promoting equality in their business practices. The businesses must also commit to conserving the environment, create a well-defined business code of ethics, closely follow their workplace safety and health programs, ensure their suppliers fulfill their standards, and exercise caution when donating money to charitable causes.
Discussion
Based on the analysis of Starbucks’ CSR, it is clear that the company is actively involved in several CSR initiatives, including support for coffee farmers, commitment to local communities, concern for the environment, adherence to official CSR standards, and diversity acceptance (Valuiskaya, 2019). Due to potential accusations of opaque CSR communication, this could be problematic for Starbucks. Starbucks’ long-term commitment to various CSR initiatives is constantly underlined, and its integrated approach clearly demonstrates economic motivations given that its CSR strategy is a component of its broader business plan.
Starbucks should emphasize a combination of its current motives, such as containing both financial and moral and legal motives because all initiatives have strong ethical motivations, which also include charitable ones. Through a comprehensive and holistic approach, as well as in conjunction with the success of its suppliers, Starbucks’ CSR are primarily conveyed in an indirect manner. Contrarily, it could be argued that Starbucks is addressing this issue by highlighting its long-term commitment to the various projects and an integrated approach to CSR, which inadvertently hints at the existence of financial motivations given that the CSR initiatives are a component of the overall business strategy. However, using the theoretical framework as a guide, it is clear that Starbucks should emphasize the economic motivations more strongly by offering more contextual signals, which will reinforce stakeholders’ assessment of the situation and reduce any potential CSR doubt.
References
Crawford, C. M. (2020). New Products Management (12th ed.). McGraw-Hill Higher
Education (US). https://online.vitalsource.com/books/9781260512014
Liang, H., & Renneboog, L. (2020). Corporate social responsibility and sustainable finance: A review of the literature. European Corporate Governance Institute–Finance Working Paper, (701).
Valuiskaya, E. (2019). Corporate Social Responsibility in Business-to-Business and Business-to-Consumer Companies: Nucor Corporation and Starbucks Corporation Case Studies (Doctoral dissertation, University Honors College Middle Tennessee State University).
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