Case 2, Starbucks' Mission: Social Responsibility and Brand Strength
Peggy Heichel
MGT-3315-190
February 10, 2013
Case 2, Starbucks ' Mission: Social Responsibility and Brand Strength
Starbucks mission is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”(Starbucks) These principals are how Starbucks have been socially responsible in their overall corporate strategy. Their strategy is to have the highest quality product, respect and dignity towards their employees, human connection with their customers providing a stress free haven, a positive addition to neighborhoods and to leave no footprint on our environment.
A great part of this strategy came from the director of retail operations and marketing, Howard Schultz, who joined Starbucks in 1982. Schultz saw firsthand his father work for an unsympathetic employer without any health benefits and wanted to change that plight for the working class family. In 1990 Starbuck’s senior executive team created their mission statement and principals which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich, and Ferrell p 321). Howard Schultz continues to be a public advocate for an increased awareness of business ethics. Starbucks strong business ethics has paid off with Ethisphere ranking them in the top 100 ethical businesses or better stated in the title, “Most ethical companies 2012 – 100 co.’s with a conscience”. (InvestorPlace Staff 2012) Starbucks has been rated in the top 100 ethical businesses for the past six years.
Starbucks is unique in being able to provide a high level of benefits to its employees, considering that they provide benefits to part time employees and that their employees are not considered to be highly educated. Most businesses that have a high level of benefits for their
MGT-3315-190
February 10, 2013
Case 2, Starbucks ' Mission: Social Responsibility and Brand Strength
Starbucks mission is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”(Starbucks) These principals are how Starbucks have been socially responsible in their overall corporate strategy. Their strategy is to have the highest quality product, respect and dignity towards their employees, human connection with their customers providing a stress free haven, a positive addition to neighborhoods and to leave no footprint on our environment.
A great part of this strategy came from the director of retail operations and marketing, Howard Schultz, who joined Starbucks in 1982. Schultz saw firsthand his father work for an unsympathetic employer without any health benefits and wanted to change that plight for the working class family. In 1990 Starbuck’s senior executive team created their mission statement and principals which would incorporate Schultz’s principles. In their mission their final statement proclaimed “people first and profits last” with the number one guiding principal of Starbucks was to “provide a great work environment and treat each other with respect and dignity.” (Ferrell, Fraedrich, and Ferrell p 321). Howard Schultz continues to be a public advocate for an increased awareness of business ethics. Starbucks strong business ethics has paid off with Ethisphere ranking them in the top 100 ethical businesses or better stated in the title, “Most ethical companies 2012 – 100 co.’s with a conscience”. (InvestorPlace Staff 2012) Starbucks has been rated in the top 100 ethical businesses for the past six years.
Starbucks is unique in being able to provide a high level of benefits to its employees, considering that they provide benefits to part time employees and that their employees are not considered to be highly educated. Most businesses that have a high level of benefits for their
Cited: Ferrell, O. C., J. Fraedrich, and L. Ferrell. Business ethics. Ninth. Mason, Ohio: South-Western, 2011. Print. InvestorPlace Staff. (2012, March 21). Most ethical companies 2012 – 100 co.’s with a conscience. < http://investorplace.com/2012/03/ethispheremost-ethical-companies-2012-list/> "Starbucks." Our Starbucks Mission Statement. N.p.. Web. 10 Feb 2013. <http://www.starbucks.com/about-us/company-information/mission-statement>.