The paper "Impact and Implications of Starbucks’ Actions on Society " is a great example of a business case study. Multinational Corporations (MNCs) such as Starbucks have in the present day penetrated into people lives, and their actions have a positive and negative impact (Zhao et al. , 2014, 844). Even though Starbucks bring optimism, comfort and opportunities to people lives, it also spells gloom, threat, misery, and despair for others. Consequently, there is an escalating pressure on Multinational Corporations including Starbucks to clear out their unsustainable actions and act more responsibly towards the society and stakeholders.
As mentioned by Baxi and Prasad (2005, p. 343), Corporate Social Responsibility (CSR) is the only feasible means through which international companies would consider operating more carefully and as a result, impacting people, societies as well as the environment. Companies like Starbucks are progressively more acknowledging the value of giving back to the society, considering that such efforts positively reflect on the company’ s values and may eventually assist establish the profitability and customer base of the company (Tonello 2011). These days, corporate social responsibility (CSR) is a crucial part of a range of corporations, and it is based on how an organisation makes an effort to be of assistance to all its stakeholder groups.
Numerous companies nowadays operate with CSR, and so Starbucks always make certain that it involves actions that will keep both the social and business environment sound (Semeniuk 2012, 17). This critical essay seeks to analyse the impact and implications of Starbucks’ actions on society as well as stakeholders. Starbucks Performance In view Of Fulfilling Expectations of the Society Starbucks has grown by bounds and leaps, and currently, they have over 17,000 stores in more than 55 countries, so they utilize their resources and influence to give back to the community.
Their objective is to become a socially responsible company, and this has made them embark on various initiatives that do well to local communities, which includes job creation that assists in sustaining and developing jobs in small business as well as empowering people to get employment. Besides that, Starbucks Foundation offers monetary support to raise youthful leaders, promote education worldwide, and develop clean water that can be accessed sustainably (FundsforNGOS 2011).
Besides that, Starbucks through its Community Stores, that contributes a percentage of all transactions in Starbucks stores to community organizations that are committed to revitalizing the neighbourhood, has managed to improve the living standard of people within the society (Lopez 2013). Besides concentrating on communities, Starbucks has adopted a responsibility in its worldwide community approach, mainly through sourcing their products ethically, which promotes long-standing sustainability as well as assists farmers to sustain their way of life. As it will be evidenced later in the essay, Starbucks is dedicated to environmental preservation, and they show this stance through efforts to recycle their plastic waste, water reduction, energy conservation and efficiency, as well as by constructing green stores.
Starbucks’ effort in reducing waste is evidenced by the 2013 introduction of $1 plastic cups that could be reused. So, consumers reusing such have been receiving a 10 cent discount on every cup of coffee (Tice 2013). Besides that, always support the community interests; that is its customer base by providing menu selections intended for promoting wellness and health, which includes low sodium, low-fat, as well as low-calorie.
Starbucks as well promotes the idea of broad diversity in store settings, based on suppliers, hiring practices, as well as in conversation over the company’ s future, as evidenced by the website ‘ My Starbucks Idea’ (Lopez 2013). Starbucks has not just developed a masterful empire of coffee because of its fulfilling drinks, satisfying environment, as well as widespread ease of access, but the company’ s community and charitable efforts resonate much with its consumer base and offer still an additional reason for supporting this coffee specialist.
Baxi, C. V., and Ajit Prasad. 2005. Corporate Social Responsibility: Concepts and Cases : the Indian Experience. New delhi: Excel Books India.
FundsforNGOS. October 24, 2011. Starbucks Foundation Funding Opportunity for Youth Focused Organizations. http://www.fundsforngos.org/latest-funds-for-ngos/starbucks-foundation-funding-opportunity-youth-focused-organizations/ (accessed December 5, 2014).
Lopez, Jennifer L. January 22, 2013. Companies Giving Back in 2013: Spotlight on Starbucks. http://blog.freeshipping.com/2013/01/22/companies-giving-back-in-2013-spotlight-on-starbucks/ (accessed December 5, 2014).
Lozanova, Sarah. June 10, 2009. Starbucks Coffee: Green or Greenwashed? http://www.greenbiz.com/blog/2009/06/10/starbucks-coffee-green-or-greenwashed (accessed December 5, 2014).
Semeniuk, Joanna. 2012. The Alignment of Morality and Profitability in Corporate Social Responsibility. Erasmus Student Journal of Philosophy : 17-26.
Slideshare. December 11, 2012. StarBucks. http://www.slideshare.net/ljoymacairan13/starbucksjoy (accessed December 5, 2014).
Starbucks. 2012. Ethos® Water Fund. http://www.starbucks.com/responsibility/community/ethos-water-fund (accessed December 5, 2014).
Starbucks. 2013. Recycling & Reducing Waste. http://www.starbucks.com/responsibility/environment/recycling (accessed Decemeber 5, 2014).
Starbucks Youth Action. 2013. Starbucks Youth Action. http://www.starbucks.co.uk/responsibility/community/youth-action (accessed December 5, 2014).
Tice, Carol. January 17, 2013. How Starbucks Will Make Millions Off Its New, Reusable Cup. http://www.forbes.com/sites/caroltice/2013/01/17/how-starbucks-will-make-millions-off-its-new-reusable-cup/ (accessed December 5, 2014).
Tonello, Matteo. August 20, 2011. Making the Business Case for Corporate Philanthropy. http://blogs.law.harvard.edu/corpgov/2011/08/20/making-the-business-case-for-corporate-philanthropy/ (accessed December 5, 2014).
Zhao, Meng, Seung Ho Park, and Nan Zhou. 2014. MNC strategy and social adaptation in emerging markets. Journal of International Business Studies 45: 842–861.