1 What is CSR? (Literature review) 3
2 Starbucks’ CSR activities 3
3 Starbucks’ CSR failure case 6
4 Starbucks CSR fair trade improvement measure 7
5 Conclusion 8
6 References 9
1 What is CSR? (Literature review)
CSR is the abbreviation for Cooperate Social Responsibility, and it is defined as the compliance of the laws and ethical standards besides pursuing after company profit. Moreover, it is defined as the adequate coping of the public policy and social problems, and meeting the demands of the companies’ interested parties. Likewise, CSR activities are defined as responsible activities that exert positive effect on a society (FREEMAN & VELAMURI, 2006). Companies that pursue merely after company profit may benefit significantly in the short run according to the classic viewpoint for perceiving companies’ social responsibility, but such companies won’t be recognized by the society’s members going forth (LASZLO, 2008). As such, society structure in which such companies lose in the end, competition-wise, is consolidating its position. Thus, companies need to be born again as ethical companies that are recognized by society’s members by fulfilling their social responsibility and mission to the fullest according to the socio-economic viewpoint instead of merely focusing on making extensive money, pursuing merely after their own economic gain. Moreover, today’s era is such that only those kinds of companies can grow in a sustainable manner (RAHMAN & POST, 2012). Thus, numerous companies are engaged in campaigns for public good, environment protection related activities, establishment of shelters for the run-away youths and the homeless, and social volunteer activities such as orphanage room IT support business to return the companies’ benefit to the society, striving to fulfill their social responsibility.
2 Starbucks’ CSR activities
1. Environmental aspect
1.1. Green-house gas reduction
Starbucks reduced green-house gas emitted by the retail shops, during the coffee roasting process, company supervision work and all the networks in accordance to the world resource organization, the World Resources Institute Greenhouse Gas Protocol (Starbucks, 2013). Moreover, it is using electricity produced by wind power generation as an example of using renewable energy. 20% of the energy that is used at the retail shops in the US is renewable energy. It is ranked 6th among the companies that use renewable energy in the US. In 2005, it was conferred with the Green Power Leadership Award (Starbucks, 2015).
1.2. Environmental Affairs
Starbucks is striving to minimize environment effect by utilizing the entire supply chain ranging from coffee bean to one cup of coffee. In particular, it adopted the Environmental Mission Statement in 1992 to contribute actively to the environment protection and established the Environmental Foot print Team to act on the effort to protect the environment (Starbucks, 2013). It provides support and training related to environment for the coffee cultivation farms and environment education for coffee shop partners, and it is acting by developing guideline for the purchase of environment-friendly products, energy and water savings, waste reduction and recycling movement, environment-friendly shop design and operation and so forth (Katrinli, et al., 2011).
1.3. Recycling issue
As a specialty coffee retailer, Starbucks beverages account around 4 billion cups each year (Starbucks, 2013). For the more environmentally friendly development, Starbucks tries to product recycled cups and work hard to expand the recycling program in an effort to reduce the waste. Over seven years, Starbucks has launched several initiatives to decrease the environmental impact of disposable cups. Through three Cup Summits (in 2009, 2010, 2011), Starbucks brought almost all stakeholders together, such as government officials, raw material suppliers, cup manufacturers and