Starbucks presence and growth in America

Starbucks

In America, there are those businesses that start with just a dream and become a cultural icon. One such business is Starbucks, who was able to create an entirely new experience for socialization and the way a company would interact with the community. Where, they would create a new standard of doing business. That not only takes into account profit margins, but also understands that as a business in any community, they have a sense of responsibility. To fully understand the overall scope of their strategy requires: examining why Starbucks is so concerned about social responsibility, if their generous benefits package makes them unique and how this helped contribute to the company's bottom line growth. Together, these different elements will provide the greatest insights as to how the company is using social responsibility and ethics, to redefine the relationships businesses have with the community.

Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy?

A part of the reason why Starbucks is so concerned about social responsibility is because of Howard Shultz. He was the Chairman and CEO of the company. What happened was, Shultz grew up in Brooklyn, New York; and saw his father become ill from a work related injury. The family had no benefits and he was forced to watch him suffer, because his employer did not provide any kind of basic benefits. When Shultz went to Starbucks, he believed that the company has a responsibility to provide their employees with benefits. This started the culture of social responsibility, as Schultz believed that each store contributed significant value to the community. (Farrell, 2008)

Is Starbucks unique in being able to provide a high level of benefits to its employees?

Yes. Starbucks is unique in providing their employees with such high levels of benefits. Where, everyone from the full time employee to the part time worker will receive generous health benefits and stock options (commonly called bean stock). (Farrell, 2008)

Do you think that Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want?

Both have contributed to Starbucks rapid growth. The overall environment and the products that it is providing to customers, helps to cement the one on one experience that someone will feel when they visit any location. This is the first step towards creating a positive and socially welcoming type of atmosphere. After the customer associates this with the brand image, the company then uses the different forms ethical / social responsible activities, to create the image that they are a positive member who is contributing to the community in many different ways. Together, these two elements provide the company with a one -- two combination, for creating a lasting positive image. As a result, consumers are willing to pay more for a Starbucks coffee because of these favorable views. (Farrell, 2008)