(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...

(Farrell, 2008)
Clearly, Starbucks is using the atmosphere of its locations and the large variety of products to create an initial positive experience in the minds of consumers. They then, will use their policy on social responsibility to build upon this image. Where, the public is no longer seeing the company as just another business that is selling coffee in their neighborhood. Instead, they are seen as responsible member of the community, who will support and work with the public through various programs / initiatives. This is important, because once such perceptions begin to take shape, is when the company is able to show that they are a vital part of the community. As a result, the public is willing to pay more for coffee because of this favorable perception.

Bibliography

Farrell, O. (2008). Business Ethics: Ethical Decision Making and Cases. Boston, MA: Houghton Mifflin.