JJT2 SOCIAL RESPONSIBILITY
Starbucks Coffee Corporation is a world renowned Fortune 500 company headquarter in Seattle, Washington USA. It was founded in 1971 with the sole mission to bring the unique Italian coffee experience to the masses. Its CEO Howard Shultz has successfully created a company brand where customers identify its coffee to a distinctive and premium experience. Starbucks Coffee currently has over 18,000 stores worldwide across 60 countries on six continents, and with a market capitalization of over $USD 50 billion. Ranked in American Express/SAP survey as 49 of the Top 100 global retailers, and consistently on the list as one of the best global corporations to work in Forbes magazine, the Starbucks brand is synonymous with success (Starbucks: Global Coffee Giant Has New Growth Plans. 2013). Starbucks Coffee Corporation’s Stewardship in how it conduct Business Starbucks leadership knew that its frontline workforce, or its retail store workers such as baristas, shift managers, and store managers are at the heart to success for the company. Treating the frontline workers well will ensure happy employees who will in turn safeguard the image and values that the company stand for, which keep customers loyal to the brand. Working in the retail sector typically comprise of poor benefits, non-existent or poor healthcare, and low pay. However, Starbucks is one of the very few retail companies that provide health benefits to all its employees referred to ‘partners’ at the full time and part time level. Its partners are offered competitive base pay, equity in the company in the form of Bean Stock, 401(K) saving plan with employer matching, tuition reimbursement, paid vacation, short-term disability, and product discounts. In the current sluggish economy, companies that used to offer benefits to part time employees have pared back such as Walmart (7 Companies Offering Health Care to Part-Time Workers. 2011), while Starbucks remain committed to its employees and continue to provide benefits to all its workers.
Taking care of its employees or partners isn’t its only practice of stewardship. It exist across the entire corporation from business practices, supply chain, and investments. Starbucks’ company mission statement explain what it is all about: Our mission: to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time.
Social responsibility is at the core of its mission statement and touches:
1. Environmental considerations and recommendations (planet) 2. Ethical leadership considerations and recommendations (people) 3. Organizational viability considerations and recommendations (profitability) Starbucks Corporation already has a well-executed strategy for social responsibility, in this paper I will discuss its current strategy and introduce a new direction, and to make it better through transformation.
Starbuck’s current social responsibility strategy is based on the following themes: 1) Community
2) Ethical Sourcing
In this section I will explain how each of the three focus are associated to the three social responsibilities of a) planet b) people c) profitability.
What Starbucks is Currently Doing
Starbucks has a close involvement with the communities that its retail coffee stores are located. Starbucks leadership is committed to helping out the communities that its stores are located. It established an initiative to get its employees involved with making their communities better. A month out of every year it conducts a program called the Global Month of Service initiative, where Starbucks employees lead community service projects focus on the individual needs of the neighborhood where they live and work. Since the program’s inception in 2011, volunteer hours have increased...
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