MNGT 194 - Supervisory Training and Leadership Development
Written Assignment #2
Corporate social responsibility
The first Walmart store opened in 1962 in Rogers, Arkansas. Each week, more than 200 million customers and members visit 10,700 stores under 69 banners in 27 countries and e-commerce websites in 10 countries. With fiscal year 2013 sales of approximately $466 billion, Walmart employs 2.2 million associates worldwide (Walmart.com). Starbucks was established in 1971 in Seattle, WA. The first store was a single store in Seattle’s historic Pike Place Market. Today Starbucks consists of more than 18,000 stores in 62 countries; Starbucks is the premier roaster and retailer of specialty coffee in the world (Starbucks.com). This essay will analyze the mission, values, and core competencies of each organization encompassing sustainability and the Triple Bottom Line. I will address organizational similarities as well as organizational differences. Analysis
Upon review of Starbucks’ and Walmart’s mission statement Walmart’s mission statement focuses on reducing costs for their customers “We save people money so they can live better" (WalMart.com). Starbucks’ mission statement on the other hand focuses on providing a positive experience for their customers, employees and the community. Starbucks’ mission statement is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time" (Starbucks.com). After review of the core values for each organization it is apparent that Starbucks’ adheres to their core values. Starbucks’ core values include: community service, eco-friendliness and Third World aid. Starbucks’ has fulfilled their promise in these areas by becoming one of the world’s most ethical companies.
Walmart has been driven by one core value: everyday low prices. Walmart has managed to offer a variety of products and services for sale at historically low prices. Cost saving initiatives that Walmart utilizes include: innovative inventory technology and outsourced labor. Despite frequent criticism from journalists, academics and politicians, Walmart’s low prices appear to be a net benefit to the overall economy. Walmart has remained true to its core values and continues to turn substantial profits, even during the recession. According to Certo, Samuel C. (2010) corporate social responsibility is the managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization (p.97). In terms of key differences in sustainability and triple bottom Walmart and Starbucks have several initiatives in place that have proven to be successful in corporate social responsibility regarding, people, the planet and profits. Conclusion
In conclusion I believe that Starbucks has the best long-term sustainability model. According to Gunther, M. (2012) Walmart’s CO2 emissions are rising. Scientists estimate that we need to reduce emissions dramatically or face potentially catastrophic climate change. Bottom line: Despite all of its efforts, Walmart’s making the climate crisis worse. This is largely driven by the fact that people are consuming more. In today’s world, that means generating more climate pollution. The reason Walmart hasn’t bought more solar or wind power or fuel cells is that renewable energy, even with government subsidies, costs more than fossil fuels. Walmart simply can’t afford to pay more than its rivals do for energy and still deliver those everyday low prices to their customers. Deep changes in politics and culture need to occur to lower greenhouse gas emissions to work towards a sustainable planet. According to Environmental leader Environment & Energy Management News (2013) Starbucks is expanding its $70 million ethical sourcing program with a new farming research and development center in Costa Rica intended to help coffee farmers around...
References: Certo, Samuel C. (2010), Supervision: concepts and skill-building, (Pierce College Military Program ed.) Boston: McGraw-Hill/Irwin.
Gunther, M. (April 16, 2012). How much of a difference can Walmart really make? Retrieved from: http://www.greenbiz.com/blog/2012/04/16/how-much-difference-can-walmart-make
(2012) . Starbucks Global Responsibility Report. Retrieved from: http://www.starbucks.com/responsibility/global-report
(2012). Walmart’s 2012 Global Responsibility Report. Retrieved from: http://corporate.walmart.com/global-responsibility/environment-sustainability/global-responsibility-report
(March 20, 2013). Starbucks Expands $70m Sourcing Program. Retrieved from: http://www.environmentalleader.com/2013/03/20/starbucks-expands-70m-sourcing-program/
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