Starbucks Mission: Social Responsibility and Brand Strength

Starbucks Mission: Social Responsibility & Brand Strength

Introduction:Starbucks StarbucksCoffee CoffeeCompany Company Introduction: ● It was founded in 1971 in Seattle and has operations in more than 50 countries of the world with more than 16000 stores. ● Retail stores are the backbones of the overall business that are operated by its own self. ● The mission of the company is to inspire as well as nurture the spirit of human with one person, one cup and one neighborhood at a time (Starbucks Company Profile 2012). ● Known for the Coffee and other high-quality products that are available at affordable price with a high coffee drinking experience and varieties of coffees.

Continue... Starbucks Coffee Company Introduction: ● In 2010, the company was voted as one of the most ethical businesses for the 4th consecutive year by the Ethisphere magazine (Ferrell et al 2009). ● Starbucks has attained amazing level of growth since its establishment with creation of financial success for stakeholders. ● The company responds well to changes in the environment by adopting strategies that suits the changing business environment. ● For instance, slowdown of global expansion and operations after economic crisis of 2008-09, and focusing more on quality of coffee with introduction of drinks.

Social Responsibility of Coffee Starbucks Introduction: Starbucks Company ● Starbucks has included social responsibility as a part of its overall corporate strategy and functions accordingly. ● The initiatives of the company such as green team for educating partners of the company, reduction of waste through the process of recycling and having focus on conservations of energy, as can be seen in offering of recyclable tissues in their stores to customers, etc. (Being a Responsible Company 2012). ● The company is concerned about the social responsibility initiatives as part of their overall corporate strategy as they want to defend their image.

Continue... Starbucks Coffee Company Introduction: ● ‘Make your Mark’ is the program launched by Starbucks wherein the company makes a contribution to the non-profit activity if the supplier contributes his bit and volunteers for the activity. ● For every one hour volunteering of suppliers, the company contributes $10 to that non-profit (Starbucks Corporation Serving More Than Coffee 2012). ● The launch of Shared Planet website has the goal of achieving greater involvement of communities, environmental stewardship, and achieving ethical sourcing. ● It keeps customers aware of latest developments and initiatives taken by the company in social responsibility initiatives, thus maintaining its image among customers.

Continue... Starbucks Coffee Company Introduction: ● The company does so as to create an impressive image and positive impact on its customers as it feels that customers are concerned about how a company carries on its operations and what reputation it holds in the market (Peng 2009). ● The employees feel proud to work for the company and it is seen in the low turnover of employees in Starbucks (Fellner 2008). ● The global coffee industry is huge with involvement of 15 billion pounds of coffee every year. In this big industry, Starbucks buys only approximately 1% of the total coffee.

High Level of Benefits to Employees

● The company offers one of the best health care programs in the coffee shop industry. ● The low employee turnover and presence of high productivity in the company shows how important employees are for Starbucks. ● The insurance costs have doubled in digits for some consecutive years for the Starbucks Corporation, reflecting company’s concern to give high level of benefits to its employees (Werther et al 2010). ● Employees working for the company for more than 20 hours a week are entitled to receive stock options, known as Bean Stock.

Reasons for the Fastest Growth of Company

● Strong Brand Image ● Socially and ethically responsible image of company ● Satisfied and highly motivated staff ● Quality of the product ● Great Customer Service ● Affordable rates of Products

Conclusion Starbucks is a successful company in the coffee industry and is running successful business over decades.

It is able to differentiate itself from other competitors in the industry due to the impact it makes on customers and other stakeholders of the company.

The company has integrated social responsibility in its overall corporate strategy for the reason of defending its image and getting financial and non-financial rewards in the form of intangible benefits such as loyal employee and customer base.

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