Corporate Responsibility - Starbucks

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How does Starbucks’ policy of corporate social responsibility impact the company’s bottom line?

According to Porter and Kramer (2006), “Proponents of Corporate Social Responsibility (CSR), use four arguments, moral obligation, sustainability, license to operate, and reputation as justification for implementing CSR programs and practices (p.3). Moral obligation is the duty to be a good citizen and do the right (socially responsible) thing. Sustainability requires responsibility managing both environmental and community needs, by meeting the needs of today without compromising the ability of future generations to meet their needs. License to operate, every company needs permission from governments, communities and stakeholders to do business and reputation, to ones improve image, strength in brand, increase morale, and raise the value of stock (Porter, 2006). Based on the video “Starbucks Corporation: Serving more than coffee”, (McGraw Hill, 2011), Starbucks follows the four Porter points quite closely, and these efforts have had a positive impact on the financial standing and public perception of the company. Starbucks spokesperson, Sue Mecklenberg states “Social responsibility is a boost to financial well being” (2011). Through the implementation of “Eco-efficiency”, the company is able to reduce waste and utility costs for water and gas. Additionally, Starbucks offers their employees, referred to as partners, good benefits that include health plans and stock options. These, in turn help to create partner loyalty to the company, leading to low turnover, which helps Starbucks to lower recruiting and training cost. Additionally, the Starbucks customer base appears to be motivated to frequent Starbucks based on their CSR, and also helps to attract socially conscious investors. Corporate social responsibility is also a valuable tool to report and communicate back to company stake holders, what the company is doing, and provides accountability by which metrics...
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