STARBUCKS MISSION: SOCIAL RESPONSABILITY AND BRAND STRENGTH

1. Why do you think Starbucks has been so concerned with social responsibility in its
overall corporate strategy?

The CEO of the company, Howard Schultz, is known as a public advocate for
increased awareness of ethics in business. Since the beginning, 1982, his vision was pointing
the long run. He knew that in short run social responsibility and trying to make right
decisions would not be beneficial but in the long run it would create a culture which present a
home alike environment to its customer.

Its consistency in reducing waste and using renewable was not a short term move but a
profitable one in the long run. They even encouraged their customer to bring their own mug
in order to reduce paper cups, which give the customer to involve in an interactive experience
with Starbucks. On the other hand, by expanding their menu not only they aimed to help to
obesity epidemy but also their benefit increased; almost 20% of the sales is consisting foods,
each of which is specifically limited under 500 calories.

The CEO’s poor childhood was also a milestone for the company which has brough a
sympathetic attitude of him toward the employees, and the company’s benefits granted to its
employees were reputable among the industry. Again, a move which in the long run helped
and will help the company to be differed from others in the same market.

2. Is Starbucks unique in being able to provide a high level of benefits to its

employees?

As mentioned above, CEO of Starbucks was giving a big importance to the employees. The
company has one of the best health packages in the coffee shop industry. Also, the diversity
is an important factor, the company try to boost its women and minority employees. With its
partnership with Arizona State University, it gives chance to its employees to study online
and support the employee’s personal development.

While Starbucks is not unique in being able to provide a high level of benefits, it is surely
one of the unique companies in being able to balance all of its core stakeholders orientation.
Starbucks’s closing shops in order to pay employees’ premiums shows its sincerity to its
stakeholders. It is a reflection of their motto ‘’people first, profit last’’. Besides of giving an
importance to its employees, it did not forget about environment, suppliers, customers and
communities which are stated as core values of the company.

All together give rise to an integrity which is envied and a complete corporate culture. Thus
the company knows what to decide and when to decide, without worrying about the short run
but by appreciating its values in the long run.
3. Do you think Starbucks has grown rapidly because of its ethical and socially
responsible activities or because it provides products and an environment customers
want?

I think that both Starbuck’s ethical and socially responsible activities, and its product
diversity combined by an environment desired by the customers are equally factors in the
company’s rapid growth.

Many people prefer to go to Starbucks because it has a very close shop near to their home or
office, or maybe the comfort of grabbing their computer and enjoying the free wi-fi is
appealing for them. Young people prefer it because of its popularity, while some of the mid-
level costumers choose Starbucks for the Fair-Trade Coffee and organic food. We can even
say that some of Starbuck’s environmental moves and supporting coffee farmers are its
products as well.

In my opinion the company’s balanced stakeholder orientation and its consistency to stick on
to its core values, combines all of these and in the result the customer does not prefer
Starbucks for only one reason, but prefer it because it gathers all the thing a customer might
prefer. Schultz was very innovative in many ways that for customer seeing the company
having a culture which reflecting it hundred percent, Starbucks became more sincere with its
decisions. This sincerity returned to the company as sustainability..