In the recent business world, various strategies re being employed by companies with various aims including that of increasing its competitiveness, increasing the profits as well as increasing its working environment among others. Most companies have engaged in the employment of corporate social responsibility (CSR) as a strategy of increasing their benefits which in return are expected to give the company using it a competitive advantage. Corporate social responsibility is a business practice that comprises of initiatives aimed at benefiting the society and can include various tactics including those of implementing business operations that are greener as well as giving away a portion of the proceedings held by a company to charity. This social …show more content…
This paper engages in the presentation of a new viewpoint in relation to the corporate social responsibility and strategic management in an organization. The research question being posed is that on how to successfully integrate corporate social responsibility in an organization’s strategic management. The paper uses an exploratory case study on the Starbucks to further illustrate how the integration of in the strategic management impacts an organization since it is a well-known firm that has been using the CBR in its business undertakings and has attained a good reputation with regards to the social responsibility’s terms. Through the Starbuck’s case study, the paper highlights on the development and implementation plans of integrating the CBS in its strategic management. Starbuck is a coffee company founded in 1971 with its first store opened in the United States. The company has however expanded in the recent years with more stores continuing to be opened all over the world. …show more content…
I propose to review all necessary appropriate literature of the Starbucks Company as well as on strategic management and CSR. In my review I will achieve the ensuing goals; 1. Investigating and getting to understand how the Starbucks company’s use of the corporate social responsibility strategy resulted in the succeeding its business undertakings. 2. Consideration of the CSR strategy in evaluating how the company’s innovative technology can result in an increase of its products and the reduction of its damage to its environment as well as the costs. 3. Investigating the manner in which the organization achieves a competitive advantage for its business while using the CSR. 4. Investigating to find out how the company deals with the social responsibilities. 5. Investigating on the principle areas founded on the sustainable business that is value-based as well the communication ways that hold together the organization’s
6.4 Ethical Sourcing Howard Schultz to take a comprehensive approach to ethical sourcing, using responsible purchasing practices; farmer support; economic, social and environmental standards; industry collaboration and community development programs. The cornerstone of his approach is Coffee and Farmer Equity (C.A.F.E.) Practices, one of the coffee industry’s first sustainability standards of coffee.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
Discussion Nestlé’s Corporate Social Responsibility consists of looking further then the own company needs or profits and pay more attention to other stakeholders. Everyone concerned or connected to the company business will get a closer look on their situation and will be treated right. They divide the stakeholders in two categories; the first being the internal stakeholders such as employees and shareholders. The second category is external stakeholders where we find the suppliers, customers, environment and so on.
On the contrary, the practice of CSR is an important consideration for long-term investment as it can help generate more profit in the future. In this report, Nestlé would be one of the good examples to illustrate those concepts. Nestlé is one of the world’s largest food and beverage companies. The company believes that by creating value for the shareholder and the public, it will have long-term sustainability.
How would the platforms interact with the different stakeholders? Accordin to Freeman (1984), stakeholders are anyone that can influence or be influenced by the company’s actions. And there are two types of stakeholders, including the primary and seconday stakeholders ( Clarkson, 1995). For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders. Starbucks’ performances and business strategies could also affect the general public and the society.
Annotated Bibliography Lack of customer satisfaction and barriers to communication in Starbucks. Ang, L., & Buttle, F. (2012). Complaints-handling processes and organizational benefits: An ISO 10002-based investigation. Journal of Marketing Management, 28(9/10), 1021-1042.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
In the recent years more and more companies in the retail and food industry are concerned about the environmental consequences of their action and also the social ethics for the people involved in the production process. This is a shift from the philanthropic actions companies used to take in 1970’s and by following basic international standards to a ‘business case’ perspective of CSR (Customer Social Responsibility). According to the World Business Council for Sustainability Develpoment ( WBCSD) CSR is: ‘’ the commitment of business to contribute to sustainable economic development, working with employees, theirfamilies, the local community and society at large to improve their quality of life’’ (World Bank, 2002)
Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
Through continued expansion and diversification, the company’s products now include not just online retail, but also a variety of other products that address market needs: Retail
This essay is an analysis of corporate social responsibility of Starbucks Coffee company. Starbucks company, which operates retail shops to offer coffee and cups, was founded in 1971 in Seattle, United States. Nowadays, Corporate Social responsibility (CSR) can increase sales volume and brand awareness and image to lead companies to succeed in business. Therefore, CSR is important for many organizations and public. Starbucks has success to operate in CSR.
They are now focusing on their expansion United States of America. They plan on expanding to other parts of the world as well. Their business strategy so far has been very clear. Some of the points below highlight their business strategy: • Developing products of exceptional quality: -They have modified their business model in such a way that they take care of the entire business process, right from the planning and research till the final sales. This enables them to produce goods of exceptional quality thus enduring consumer satisfaction.