Social Resposibility - Starbucks - Assessment Answer

January 10, 2019
Author : Ashley Simons

Solution Code: 1AEBC

Question:Social Resposibility

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Social Resposibility Assignment

Assignment Task

STARBUCKS

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Solution:

Introduction

The history of Starbucks suggests that the company has seen many failures and losses in the past. The major reason behind losses is the company’s practices. The practices of the company were not focussed on environment and society. The objectives of the company were totally focussed on quality and operations and there was no mention about the social responsibility or ethics. The company claimed itself as an ethically strong company that has so much concern for the environment but its customers did not believe that. The customers of Starbucks have a very different opinion about its image. There are many people who have questioned about the sustainability of the Starbucks. Many researches showed that Starbucks has been accused of violating ethics and at the same time it has not followed social responsibility norms. The customers also alleged that Starbucks is self-centred, arrogant and intrusive company. Due to all these allegation it has become very important for the company to make it clear to the stakeholders that it has its core values and ethical norms (Wible, 2011).

After its initial years of operations and allegations about unethical practices and being self-centred the company realised the importance of social responsibility. This made it very important for the company to be very concerned about the social responsibility in its overall corporate strategy. If the company would not have been so much concerned about the social responsibility then its image would kept on deteriorating and this impacts the brand image of the company to a very great extent(Karna & Hansen, 2003). The need to become socially responsible aroused from the fact that, for long term strategic operations it is very important for a company to follow these norms. The company has now included social responsibility in its overall corporate strategy to make its positive brand image and also to make a loyal customer base. This is also important for the company to depict that it is not self-centred rather it is concerned about the society as well as the environment. After making this image of being socially responsible the company is able to achieve competitive advantage as well. In this manner there are a number of reasons why Starbucks is very concerned about the social responsibility and it is an integral part of the business activities of the company.

Starbucks is unique in providing high level benefits to its employees and this is clear with the employees’ policies that the company follows. The employees working with Starbucks get a number of benefits such as medical, dental, health and vision. The company also has a provision of bean stock. The company provides the employees who work for than 20 hours in a week with an option of receiving bean stocks. The company also believes that a strong business can only be built if there is support and participation from the employees. This is the major reason why company motivated employees to participate in various business aspects. This enables employees to feel that are important as well as valued in the organisation. Along with that it also makes business practices strong and this is the reason why company has special policies for its employees. Not every organisation has a policy of employees’ participation in decision making(Vaaland et al., 2008).This is why Starbucks is unique in its policies for employees. This is said to be unique because not many organisations are able to do that for their employees and their wellbeing.

The company follows a very strong stance for employees and it suggests that “we are not in the coffee business serving people, but in the people business serving coffee”. This is something that the company has a very unique policy for the betterment of its employees. It’s not only about fringe benefits but also about recognition and work life balance of the employees. The company makes sure that there is friendly environment in the company so that the productivity of the employees does not get affected. The employees of the company are very happy and satisfied with the policies of the company and this also suggests that Starbucks has unique policies for its employees. The turnover rate of the company is very low besides that fact that employees belong to diversified portfolio and this is only because of the high level benefits provided to the employees. The human resource policies of the company are such that employees are provided opportunities for the advancement and pursue their career further. The employees are also asked for their suggestions and feedback and all these features of human resource management makes the company unique in providing high level benefits to its workforce(Stella, 2010).

Yes it is true that Starbucks has been able to achieve success rapidly because of its socially and ethically responsible activities. It is not true that its success is attributed to the delivery of the products as per the requirements of the customers. This is because of the fact that initially the company was delivering products as per the needs of the customers but it was not successful. The company was questioned for its ethical stance and due to that it also suffered losses. The major reason behind losses is the company’s practices. The practices of the company were not focussed on environment and society. The objectives of the company were totally focussed on quality and operations and there was no mention about the social responsibility or ethics. The company was delivering products as per customers demand but then many customers alleged the company by saying that it is self-centred. After this the company changed its policies and took many decisions in favour of environmental and society. The company decided to give back to the society and with that the company decided to give various benefits to the regions from where it is acquiring its Coffee beans. This helped the company to make a very good image among stakeholders. The company is now focussed to serve the community well and by doing that the goodwill of the company enhances. For all its investment in social causes and community causes the company is able to deliver value to the stakeholders and in return this is adding to the value chain of the company. This value is the reason why company has achieved huge success in limited time(Morgeson et al., 2013).

It is also said that the most significant pillars of the Starbucks is treating well to the partners and contributing to the communities and environment. The company also contributes to CARE relief fund and it has partnered with a number of non-profit and international organisations so that it can give back to the society. The company is also helping farmers by giving them extra share and this has been proved to be beneficial for both the company as well as the farmers. These are only a few aspects that suggest that Starbucks has been able to achieve success because of its socially and ethically responsible activities. The company would not have been able to achieve rapid success if its corporate social responsibility would not have been in place.

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