Business Ethics Case 2 Starbucks

1. Social responsibility is the obligation of an organization's management towards the welfare and interests of the society in which it operates. Starbucks has been concerned with social responsibility in its overall corporate strategy basically since it was founded. Their strategy is largely due to Howard Shultz, one of Starbucks' founder who has held job titles such as director of retail operations and marketing, chairman, and CEO. He once said, "We are not in the coffee business serving people, but in the people business serving coffee." Shultz and Starbucks realize that social responsibility cannot be reactive and that it must be built in to their business strategy in order to achieve increased profits, increased employee commitment, and a greater customer loyalty. There are countless examples of how Starbucks is concerned with the wellbeing of its customers, employees, suppliers, the environment and the communities in which its stores are located. In 1992, Starbucks developed an environment mission statement to more clearly define the company's environmental goals which led to the creation of the Environmental Starbucks Coffee Affairs team, with the sole purpose of minimizing the company's "footprint." Starbucks also takes on the role of a great employer, offering incredible health insurance benefits. In 2005, Starbucks spent more money on health insurance for its employees than on the raw materials required to brew its coffee. Starbucks also collaborates directly with some of its coffee growers through Farmer Support Centers, located in Costa Rica and Rwanda, which provide technical support and training to ensure high quality coffee in the future. Starbucks does not only support its foreign stakeholders, but it also supports local charities, such as the Starbucks foundation and the Jumpstart program, in the communities of Starbucks stores and offers free wireless internet for its customers in all U.S. locations so they can have a more enjoyable