Case Study for Starbucks
6. Evaluation of Starbucks social responsibility strategy? Is it sincere?
In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as; * When was the social responsibility strategy adopted? * Did the social responsibility strategy contribute to Starbucks success? * Has the strategy been used to defeat more resourceful competitors? * Are there any faults in the strategy?
One of the main areas of corporate social responsibility (CSR) has been the ability for an organization to better the people and the community in which its business is located. In Starbucks CSR strategy, the focus has not been entirely on the shareholders but has encompassed the contractual stakeholders (employees, suppliers) and non-contractual stakeholders (community). The strategy Starbucks took was to treat all the stakeholders involved with Starbucks equally.
With its employees, Starbucks offered medical-aid for part-time employees, Dental and vision care, Life insurance as well as a 401K retirement saving plan- in which the company matched savings from 25% - 150% based on length of service on employees contribution. It also offered its employees stock options plan, for the employees to invest in Starbucks if they wished to. Starbucks also ranked amongst one of the best companies to work for in the USA.
Starbucks being a high quality coffee brand as mentioned before has motivated coffee producers (Suppliers) to produce good quality coffee by rewarding them generously for producing good quality coffee beans.
In a letter communicating to the Starbucks partners, Howard Schlutz made a remarkable distinction; “Starbucks is in the people business serving coffee, not in the coffee business serving people.” This has always been his objective and an area with which to evaluate his social responsibility
In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as; * When was the social responsibility strategy adopted? * Did the social responsibility strategy contribute to Starbucks success? * Has the strategy been used to defeat more resourceful competitors? * Are there any faults in the strategy?
One of the main areas of corporate social responsibility (CSR) has been the ability for an organization to better the people and the community in which its business is located. In Starbucks CSR strategy, the focus has not been entirely on the shareholders but has encompassed the contractual stakeholders (employees, suppliers) and non-contractual stakeholders (community). The strategy Starbucks took was to treat all the stakeholders involved with Starbucks equally.
With its employees, Starbucks offered medical-aid for part-time employees, Dental and vision care, Life insurance as well as a 401K retirement saving plan- in which the company matched savings from 25% - 150% based on length of service on employees contribution. It also offered its employees stock options plan, for the employees to invest in Starbucks if they wished to. Starbucks also ranked amongst one of the best companies to work for in the USA.
Starbucks being a high quality coffee brand as mentioned before has motivated coffee producers (Suppliers) to produce good quality coffee by rewarding them generously for producing good quality coffee beans.
In a letter communicating to the Starbucks partners, Howard Schlutz made a remarkable distinction; “Starbucks is in the people business serving coffee, not in the coffee business serving people.” This has always been his objective and an area with which to evaluate his social responsibility