Starbucks of Hong Kong
CGE25101 Globalization and Business
Individual Assignment
(Topic 2 Sustainable development- Starbucks)
Introduction
In these days, instead of merely focusing on economic interests, multinational corporations (MNC) have engaged a number of sustainability initiatives in an effort to satisfy the needs of the present while preserving the ability to future generation by contributing on the three main elements: economic, environmental and social development. As a company becomes popular and possesses good reputation, consumers will put their eyes on how it gives back to communities and focus on the sustainable development thus has gradually become an essential strategy for global companies to strengthen the consumer loyalty. This report is going to discuss how a powerful and recognizable international coffeehouse, Starbucks, has made sustainability a part of the company responsibility.
Enhance the economic sustainability
Provide loans for farmers
In order to steadfastly reach small-scale farmers, a three-year program named Small Farmer Sustainability Initiative (SFSI) is launched with Fair Trade USA and Fair trade International. Under this program, fair-trade farmers can receive loans from the funds supported by Starbucks to increase the living condition, reduce farming risk and enhance their business. In 2010, nearly 56,000 farmers who grow Starbucks’ coffee are benefit from fair loans. Recently, Starbucks has also worked with EcoLogic to develop the financial skills of them by providing $2.5 million to the loan fund at a 2% interest rate.
Fair Trade to improve the life of farmers
Starbucks’ creates a long-term supply of the high-quality beans to better the future of farmer, the root of the supply chain. To reach the commitment, it sets up Coffee and Farmer Equity (C.A.F.E.) for small farmers as well as all suppliers under the movement of fair trade which helps to engage in long-term relationships and deal directly with producers. Since 2000,
Individual Assignment
(Topic 2 Sustainable development- Starbucks)
Introduction
In these days, instead of merely focusing on economic interests, multinational corporations (MNC) have engaged a number of sustainability initiatives in an effort to satisfy the needs of the present while preserving the ability to future generation by contributing on the three main elements: economic, environmental and social development. As a company becomes popular and possesses good reputation, consumers will put their eyes on how it gives back to communities and focus on the sustainable development thus has gradually become an essential strategy for global companies to strengthen the consumer loyalty. This report is going to discuss how a powerful and recognizable international coffeehouse, Starbucks, has made sustainability a part of the company responsibility.
Enhance the economic sustainability
Provide loans for farmers
In order to steadfastly reach small-scale farmers, a three-year program named Small Farmer Sustainability Initiative (SFSI) is launched with Fair Trade USA and Fair trade International. Under this program, fair-trade farmers can receive loans from the funds supported by Starbucks to increase the living condition, reduce farming risk and enhance their business. In 2010, nearly 56,000 farmers who grow Starbucks’ coffee are benefit from fair loans. Recently, Starbucks has also worked with EcoLogic to develop the financial skills of them by providing $2.5 million to the loan fund at a 2% interest rate.
Fair Trade to improve the life of farmers
Starbucks’ creates a long-term supply of the high-quality beans to better the future of farmer, the root of the supply chain. To reach the commitment, it sets up Coffee and Farmer Equity (C.A.F.E.) for small farmers as well as all suppliers under the movement of fair trade which helps to engage in long-term relationships and deal directly with producers. Since 2000,