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Invest in Your People & Community
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Possible Changes Coming To Starbucks
DEDICATED BARISTAS FOR ONLINE ORDERING
BEER AND WINE ARE COMING TO SELECT STARBUCKS RESERVE STORES
The first possible changes coming to Starbucks is a dedicated team of baristas for mobile customers. So Starbucks was one of the first food and beverage company to adopt online ordering. The goal of the app was to reduce the lines at the register. However, that problem has shifted the congestion from the register to the pick up area.
Secondly beer and wine are coming to select Starbucks reserve stores. When I first heard about this I feel like Starbucks is trying too much to reach out to a minimum demographic. Most people come to a coffee shop to sip coffee and hot chocolate and not to be pounding on the beers. Although I am not opposed to this proposal I feel this could result in negative consequences for Starbucks such as decreased in sales.
The ethical implications I see with these two changes is that Starbucks is changing their image drastically and should take a second or even third look to see if this is the right time for the company to make these moves.
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HOW DOES STARBUCKS APPLY CSR
CORPORATE SOCIAL RESPONSIBILITY:
Movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment.
Before we can start talking about some of the ways Starbucks applies CSR we need to define what CSR is. CSR stands for corporate social responsibility. It is the Movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment.
CSR is a concept with many definitions and practices. The way it is understood and implemented differs greatly for each company and country. Moreover, CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. Whatever the definition is, the purpose of CSR is to drive change towards sustainability. Simply put CSR is the concept that a business needs to be concerned with more than just a profit.
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3 WAYS
Starbucks’s social responsibility is divided into three pillars. First being community, Starbuck’s has developed community stores that partner with local nonprofit. The nonprofits these stores work with offer services aimed to meet the needs of the communities they’re located in. Starbucks also established the Starbucks Foundation as a way to show their commitment to strengthen their community. They also extend their community involvement by investing in the farming communities such as their coffee, tea and cocoa suppliers. Starbucks aims to improve the lives of farmers and ensuring they continue to maintain safe agronomy practice. Finally, Starbucks is not only helping local communities in America. They are also helping globally by providing communities in developing countries with access to clean water. This is done through the Ethos water fund. So for every Ethos bottle sold in the U.S 5 cents is going towards that Ethos water fund. Since 2005 $13.8 million has been granted through the Ethos Water Fund, benefitting more than 500,000 people around the world.
2.) Ethical sourcing
dictates the way that Starbucks purchases its products. The company is committed to ensuring that their coffee, tea, cocoa, and manufactured goods are responsibly and ethically produced and purchased. They say their “success is linked to the success of the farmers and suppliers who grow and produce [their] products,” and so they only purchase those products from farms and manufacturers that adhere to a certain standard of ethical treatment.
3,)
Starbucks refers to the planet as their “most important business partner,” and takes a comprehensive approach to reducing their environmental impact. To do this, they build LEED certified stores, are committed to recycling and conserving water and energy, and pursue strategies that address climate change on a global level.
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Community
Ethical Sourcing
Environment
HOW HAS CSR INFLUENCE STARBUCKS
Positive Image
Customer Retention
Positive Image- everything Starbucks has implemented through their CSR programs has given them a great positive image. We all know them to be one of the biggest coffee chains in America. It is mind-boggling to even think that 7 years ago the company was doing bad. However, Starbucks CEO Howard Schultz launched a “Transformation Agenda” targeted at investing in the company’s people and community. As a result the series of initiatives launched under this agenda has helped Starbucks bounce back and exceed revenue each year since 2013. Starbucks was named third most admired company in the world behind Apple and Amazon by Fortune magazine. Starbucks is also ranked number one in the areas of innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, and quality of products and services.
Customer relation-
Goes hand-in-hand with positive image or the reputation of a company. If your company has a good public reputation customers are going to be loyal to you. We are all aware of the good tasting beverages and food they served which has resulted in higher customer satisfaction. However, it is not only through the products Starbucks sells that has propelled them to the top but it is also in their work in the community and environment.
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How does Critical Thinking apply in CSR?
Critical thinking in your CSR programs happens in 3 steps. A company must first think critically in order what its objectives are. It would not make sense for a company to just dive in CSR without prioritizing their objectives. For Starbucks it is the people, community and the environment.
Next, a successful CSR program requires that a company thinks critically about methods. Managing is not easy. Regardless of the issue at hand, managing requires developing a strategy that makes good use of the materials at hand in order to reach your objectives.
Third and last the company needs full employee engagement. After all, a profit-oriented company that suddenly decides that it takes its social responsibilities seriously may well find itself facing a skeptical, or otherwise hesitant, workforce. If you say “we put community first,” but employees secretly believe that the unwritten rule is “profit above all,” they’re going to find all sorts of ways, passive or active, to undermine your CSR activities.
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Objectives
Methods
Employee Enggagement
References
Vanveld, K. (2015). CORPORATE SOCIAL RESPONSIBILITY: HOW STARBUCKS IS MAKING AN IMPACT. Retrieved from http://www.whywhisper.co/the-blog/2015/9/24/corporate-social-responsibility-how-starbucks-is-making-an-impact
MacDonald, C. (2015). Thinking Critically about Social Responsibility. Retrieved from https://businessethicsblog.com/2015/06/05/thinking-critically-about-social-responsibility/