Starbucks' corporate social responsibility strategies and stakeholder impacts

CSR at Starbucks

Starbucks is a well-known coffee chain, which is also diversifying into populated items sold through retail outlets. The organization is controversial, occupying an interesting juxtaposition, where they can currently advocate positive corporate social responsibility (CSR) strategies, at the same time being criticised for engaging in detrimental corporate strategies which impact negatively on many stakeholders. The Corporation\'s website the high level of commitment ability and behaviour, including care for the environment. Indeed, although it is not mandatory, the organisation publishes an annual global responsibility report (Starbucks, 2016). The company says \"since we opened our first store in 1971, we\'ve known it was our responsibility to be an ethical company and earn the trust and respect of our customers, partners (employees) and neighbours. How? By making sure Starbucks as a company has strong ethics, and does things that are good for the planet and each other\" (Starbucks, 2016).

When examining evidence to support the presence of a good CSR policy, CEO Howard Schultz the organization to obtain a balance between profitability and social consciousness, with the belief that good CSR supports the bottom line (Solomon, 2016). There are many examples programs in the firm to support this rhetoric. In 2005 Starbucks acquired Ethos for $7.7 million, a water bottling company that which was set up as a non-profit making organization to provide funds to aid with the provision of safe drinking water in developing nations (Starbucks, 2016). Following acquisition by Starbucks, it was stated the firm sought to use to support donations of $10 million a year to the safe water projects (FSB, 2007). This is not an isolated incidence.

In 2004, Starbucks set up the Starbucks Coffee Agronomy Company S.R.L as a subsidiary company operating in Costa Rica (Starbucks, 2016). This is an organization providing support for coffee farmers in Costa Rica, showing how CSR and commercial interests may be aligned. The organization has a canter that provides advice and support for framers in issues such as sustainability and how to increase quality of the output, planting advice and how to avoid soil erosion, as well as other factors associated with sustainability (Starbucks, 2016). Concurrently, this initiative helps to support the upstream supply chain of coffee beans for Starbucks. In 2005 in Costa Rica the form also worked with Earthwatch, planting trees in Agua Buena for rainforest restoration (Starbucks, 2016). Between 2004 and 2007 Starbucks invested in excess of £1.1 million in Costa Rica (Starbucks, 2016).

Starbucks also supported the African Wildlife Fund when it launched of the \'Coffee for Conservation\', a medal which gave the firm a Gold Medal for International Corporate Achievement in Sustainable Development in the 21st Annual World Environment Centre awards (CSR Wire, 2005).

With reference to CSR the firm also supports alternate aspects with the way suppliers and employees are treated. Employees are referred to as partners rather than workers, and have a wide range of benefits that exceed the mandated minimum requirements, with a \'total pay package\' (Starbucks, 2016). This includes stock options with a 15% discount on the share price, enhanced holiday allowances, aid for addition as well as maternity and paternity leave, support for education with a grant of up to $1,000 per annum, with the allowances extending well beyond the statutory minimums.