Starbucks - Questions Why Has Starbucks Been

Starbucks - Questions Why has Starbucks been so concerned with social responsibility in its overall corporate strategy? In the Corporate and Social Responsibility section of its website Starbucks promises to return back to society money for schools, roads, health centers and other needs. Why? "Because we've always believed that businesses can -- and should -- have a positive impact on the communities they serve" (Starbucks.com). It has been the Starbucks commitment to "…strike a balance between profitability and social conscience," the website explains.

The "ultimate way to scale the power of a brand is to share the good we do," Starbucks explains. And by letting people know that the company is generous, everyone "we touch" knows the company is different from typical corporate entities that think profit only. In the book Business Ethics: Ethical Decision Making and Cases, the authors explain that Howard Schultz, founder and CEO of Starbucks, had a father that was "…nearly ruined by an unsympathetic employer that did not offer health benefits" (Ferrell, et al., 2012).

It could be that Schultz is making up for what his father didn't have. He is quoted saying: "I wanted to build the kind of company my father never got to work for" (Ferrell, 322). Moreover, Starbucks now is expected to give back and expected to lead the way when it comes to social responsibility, and it is obviously trying hard to live up to that. "…As the company has grown, so has the importance of defending its image," Ferrell explains on page 322.

Hence, the momentum from its earlier socially responsible activities carries through to today and there is pressure to continue showing that part of its brand is to give back and be responsible to the communities in which it operates. TWO: Is Starbucks unique in being able to provide a high level of benefits to its employees? No, Starbucks is not unique in that respect. For example Google (ranked #1 on the CNN Money site) is very generous with their employees.

The full coverage health insurance program costs employees about $100 a month, all employees are given free meals (up to 3 times a day) and there are recreational facilities for employees on break. There is a bowling alley (at the Google corporate headquarters in Mountain View, CA), there is a ping pong table but moreover, according to "bro8724" -- whose husband works for Google -- the company gives employees "paid time off" if they are participating in a charity event or volunteering for a community organization that helps other people.

Google has a van pool service that picks employees up for work to cut down on carbon footprints in the Bay Area. Also, SAS Institute has wonderful benefits: free Montessori child care; unlimited sick time; intramural sports leagues; free health care center (CNN Money). THREE: Did Starbucks grow quickly due to the social responsibility issues and its ethics or because it has great coffee and a comfy atmosphere? I believe it is both.

Word travels fast when a company does things that benefit the community, that benefit coffee growers in remote places of the world, and that benefit employees in ways few other companies can provide. For one thing the turnover rate for Starbucks' employees is very low, because people (even part time people) want to work for a company that shows it really cares about them. Word has gotten out on that aspect of Starbucks and it puts a shine on the Starbucks brand.

Also, the coffee is very good, and even though the lattes are seemingly overpriced, people love the products (and now Starbucks has fresh fruit and sandwiches), and the comfortable stores (featuring overstuffed chairs and couches) are.