A dimension of CSR that I wish to further analyze is the avid use of social responsibility by US multi-billion dollar industries. Often, because of their growing and almost parasitic presence in nearly every major city, these multi-billion dollar companies have been viewed as a nuisance that mutilate the business hopes of mom and pop counterparts.
Yesterday, while performing my morning ritual of adding milk and sugar to my coffee at one of 10 local Starbucks, I noticed a collection of pamphlets behind the sugar. One of them very clearly read "Social Responsibility: How is my Starbucks doing its part?" Inside the pamphlet, the reader is warmly greeted with; "Dear valued customers and neighbors,"it then states, "We are often asked how Starbucks went from a single coffee shop in 1971 to one of the most recognizable and respected global brands today. Delivering great coffee, exceptional service, and an uplifting customer experience have all contributed to Starbuck's success. Equally important has been our commitment to conducting business in a socially and environmentally responsible manner, a commitment that stems from Starbucks Mission statement and guiding principles."
Starbucks operates over 8,000 shops in 34 countries, each week serving 28 million customers.
Three new Starbucks branches open every day - its target is 30,000 stores, with sights set firmly on growth markets such as China. Not coincidentally, a survey carried out last month by Global Marketing Incite found that even Starbucks customers perceive the company as 'arrogant, intrusive and self-centred'. It is then, no surprise then that Starbucks has invested significantly in CSR activity.
Starbucks is very concerned with conducting business responsibly and makes this notion clear to all of its consumers and stakeholders. In fact, one can find a great dea; of information about the good that Starbucks does in articles, databases, websites, journals, and reference texts. Simply searching for "Starbucks csr" on the Internet, I was barraged by information about what Starbucks is doing here and abroad to make a difference in our world. Also noticeably available is the Starbucks annual fiscal Corporate Responsibility Report which is clearly presented on their website for consumers and stakeholders to view at any time. When reading this, I learned that Starbucks engages in free trade practices, paying fair prices to "coffee communities" (small countries like El Salvador and Guatemala). In 2006 they also invested 36.1 dollars to local communities, committed 5 million dollars to disaster relief in the aftermath of hurricane Katrina; Starbucks employees have volunteered over 383,000 hours in local community efforts; recycle and use cups with 10% post consumer fiber, etc.
Bottom line, despite their eventual arrival to every block, Starbucks is good at what they do. From delicious Caramel Macchiatos to conducting business responsibly- Starbucks gets it right.
Tuesday, January 29, 2008
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