In contemporary business arena, companies are engaging in corporate social responsibilities activities in the effort to increase their market base and create good relationship with customers. Corporate social responsibility (CSR) involves activities that a company engages in for the direct benefit of the community. Despite the focus being on community welfare, CSRs have an indirect benefit to the company especially in sales, brand creation, and marketing. This paper discusses the structure of Starbucks corporate social responsibility program.
Brief History of the company
Starbucks is world’s number one coffee and coffeehouse company; the company has embraced the spirit of corporate social responsibilities in its business. It is situated in 55 countries; the first branch was opened by Jerry Baldwin, Zev Siegl, and Gordon Bowker on March 30, 1971 (Starbucks Corporate website). Starbucks Company has over 666 stores distributed across Europe. The branches have been developed through buyouts and franchising.
Though the branches are operated and managed differently they have a similar code of conduct that they must uphold always (Starbucks Corporate website).
The company is operational in 25 countries in Europe and a pilot survey is ongoing to analyse the chances of expanding to Ukraine and Italy. It is available in the following nations; Portugal, Austria, Belgium, Germany Portugal, Russia, Sweden, Czech Republic, Hungary Ireland, United Kingdom Denmark, Netherlands, Poland, Bulgaria, Greece, Turkey, Cyprus Hungary Ireland France , Jersey, Romania, Switzerland and Spain (Starbucks Corporate website).
Corporate social responsibilities undertaken by the company
As a matter of social corporate responsibilities, the company has a number of charity programs which it finances they are; Water conservation financing, this is done through Ethos® Water policy where when somebody purchases the brand then 5 cent goes to the project.
The company is engaged in youth programs aimed at training youth on entrepreneurial strategies. In 2009 a total of $2.1 million was used to finance 71 grants. The company has also entered into Bono’s (RED) For Charity where it donates money to assist those suffering from HIV.
The company has a system called Shared Plane, where it aims at doing business in a way that is friendly to the environment. The system involves the producers and local community to adopt ethical production method which does not pollute the environment. The company has embarked on recycling of its waste products up to 70%. The move is to ensure that there are minimal disposal to the environment.
The company uses large amounts of water in its productions, however in a move to conserve water; it recycles over 70% of its waste water. In the effort to reduce green house emission, the company has embarked on massive energy efficient methods. This involves the use of electricity to roast coffee beans in place of charcoal (Starbucks Corporation).
Methods and strategy of Starbucks CSRs
The approach taken by Starbucks to manage its corporate social responsibility involves analysing the prevailing situation in the world and coming up with the right intervention. The strategy aims at developing long lasting policies that the community can benefit from even after the withdrawal of the company.
Other projects are aimed at promoting peace among community for better community of communities. The company has one of the world’s respected supply chain system which address corporate social responsibilities from a wider approach, according to the system, the company only buys from farmers who have produced their coffee beans in an environmentally friendly manner.
Starbucks corporate social responsibilities can be ranked among the best in the world; they not only address current issues facing a community but also ensure that the systems they have developed will be sustained for long periods.
Although there are some companies that seems to be doing better than the company, credit should be given on the efforts and programs that the company has engaged in. The company’s sales and marketing team collaborates with the corporate social responsibilities to come up with the right programs for the company.
Corporate social responsibilities programs aims at creating a healthy relationship with customers, it is among the strong points that the company considers in its customer relation management programs. In the event of an in eventuality, the company has set some funds to address such issues with the seriousness they require.
Global issue that Starbucks has not engaged in yet
Although efforts made by the company can be applauded, the company has limited its focus in developed worlds and have played minimal stake in developing countries. One problem facing the developing countries is poverty; there are no programs that aim at reducing or eradicating poverty in developing countries. Some companies which are doing better than the company, for example Toyota Corporation, have micro-financing programs in developing countries as efforts to eradicate poverty in the areas.
The main reason that the company should focus in developing countries is because the nations are potential markets in the future. Developing countries have the potential to industrialize if only they can be given some financial and ideas boosts, the Starbucks has the potential of nurturing developing countries potential.
Starbucks Corporation Official Wesite. Starbucks Corporation. Web. 30 November 2011.