Csr; Study on Starbucks

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CONTENTS

Chapter 1 Introduction2
1.1 General introduction2
1.2 Structure2
Chapter 2 Literature review3
2.1 Theories of CSR3
2.2 Relationship between company and stakeholder4
2.3 Business benefit from CSR5
2.4 Current global issue6
Chapter 3 Research method7
Chapter 4 Discuss and Analysis8
4.1 social performances8
4.2 Environment performance9
Chapter 5 Benefits for Starbucks10
5.1 business image10
5.2 Financial performances11
5.3 Summary13
Chapter 6 conclusion14
Reference:15
Bibliography:16

Chapter One Introduction
1.1 General introduction

Nowadays, the business ethics is a critical issue for business organization, especially, multinational companies. International companies not only care about the profitability, but also sustainable development, because ‘sustainability’ may more comprehensively enable business to fulfil its wider responsibilities to society and environment. A numbers of successful operation example shows that corporate social responsibility (CSR) is increasingly necessary for companies’ development. This essay will talk about CSR through a successful international firm, Starbucks, and analyse how it makes a difference with global issue in such complicated environment. 1.2 Structure

This paper is structure as follows. Related literature review of CSR theories will mention the development and change of business responsibility, the link between business and stakeholder, and benefits company gains from CSR implement. In this section, it also makes a general review of current global issue, aimed to rise how decision-makers should deal with these problems. The next section talks about the method of related information and data selection, and John Elkington’s Triple bottom line framework will be quoted to following analysis. The Starbucks implement on CSR will be discussed as two aspects: social performance refers to how Starbucks deal with poverty and unequal trading in coffee industry; environment performance consist the duty on ownership and usage of scarce resources and global climate change. And then, the research on result of Starbucks’ CSR will be make from side of business image and financial performance. The influence or benefit for business will be proved in this section. In conclusion, this paper explores the question, do international firms implement CSR initiatives mainly to enhance their global image and reputation or do the initiatives also reflect a deeper managerial commitment to the following pressing global issues?

Chapter Two Literature review
2.1 Theories of CSR

Milton Friedman held that meeting the needs of stakeholders would be a dereliction of business managers’ duties towards shareholders, so that creating stakeholder value would inevitably destroy shareholder value. In the Friedman thesis, there is only one responsibility for business, which is aiming to maximize profit. Any expenditure on social and environment activities will reduce profit; therefore, business’s only social responsibility is to maximize profits by meeting consumers’ demands. However, It is argued that businesses can still legitimately aim at adding economic (shareholder) value, but should acknowledge that such benefits may potentially be, at least partially, offset by negative social and environmental (stakeholder) cost (John, 1994). In practice, many recent studies have emphasised a wider perspective on business responsibility, in which the strategy of managers must be evaluated in relation, not only to the shareholders, but also to a wider range of stakeholders and environment. In general, the concept of CSR is built on the premise that positive engagement with stakeholders will enhance shareholder value, so that the interests of stakeholder, other than the company’s shareholders, are taken into account, in terms of the social and environmental impact that result from its business operations (Freeman, 2006). Thus, CSR is defined as companies,...
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