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Starbucks' Mission: Social Responsibility and Brand Strength

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by

Ashley Wilson

on 26 March 2014

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Transcript of Starbucks' Mission: Social Responsibility and Brand Strength

Starbucks' Mission: Social Responsibility and Brand Strength
Starbucks' Mission Statement
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Ethical Issues
What are the main ethical issues that Starbucks faces?
How has Starbucks been an example of how to avoid unethical behavior?
Questions
Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy?
Is Starbucks unique in being able to provide a high level of benefits to its employees?
YES!
Do you think Starbucks has grown rapidly because of its ethical and socially responsible activities or because it provides products and an environment that customers want?
Monopoly
Smaller shops out of business
Can adapt into any location
Clustering Strategy
Drive-thrus
Meeting place with amenities such as WiFi unlike other shops
Environmental Issues
Growth
17,000 stores in 55 countries
Growth of 3 stores a day
Millions of customers a week
Net revenues of $11 billion
3rd largest chain restaurant in the US
Location
High-traffic, high-visibility locations
Flexible regarding size and format
Background Information
1971 in Seattle
Howard Schultz came back from Milan and saw an opportunity to develop his idea
1st shop was tested in 1985 in Seattle
Team 3: Ashley Wilson, Dallas Herzberg, Patrick Garvin
Starbucks Culture
Mission
People first, profits last

Provide a great work environment and treat each other with respect and dignity
A Decentralized Structure with Centralized Values
Values are known and strictly followed
Employees are "partners"
Given more control and empowerment
Managers have power to make decisions
Integrative Culture
High concern for people
High concern for performance
Looking to expand and improve
Yet care about employees and community
Social Mission
Environment
Minimize company's "footprint" through environmental purchasing guidelines and reducing waste
Employees
Best healthcare program and a focus on personal interactions
Suppliers
Preferential buying status for those who have high scores in best practices
Customers
Customer satisfaction, experience and strengthening the brand and loyalty
Communities
Donate to local causes and encourage community involvement
Will advertise coffee as fair trade even if it is not
Use hormone-added milk which counter's the mission they portray
How Starbucks counters these criticisms:
Fair Trade Certified coffee permanently on menu
Working on getting 100% Fair Trade Certified Espresso in US market
3 billion cups are thrown into landfills each year
Only 5% of the stores recycle the cups
Working on eco-friendly cups
Sell reusable cups that consumers bring in a receive a small discount
Charity's and Programs
Partnership with Kuerig
Howard Schultz
Ethical companies do better in the long run
Short-term loss than losing core values
Father was blue-collar worker
Wanted to build a company that cared
So he came up with this:
Health Care
Life Insurance
401k Plans
Tuition Reimbursement
Brings all social concerns together
Work environment was top priority
"100 Best Companies To Work For"
Health Care for 20+ hours
Benefits package with stocks, medical, dental and vision
Continued throughout recession
As an employee at Starbucks you don't just work there, you are a partner
Being a Starbucks partner means having the opportunity to be something more than an employee (#tobeapartner). Gigantic possibilities lie ahead—to grow as a person, in your career and in your community. To live the Starbucks mission and to be a leader. It’s the opportunity to become your personal best. To be connected to something bigger. To be meaningful to the world. And to be recognized for all of it. It’s all here for you.
BOTH!
Meeting place and a great cup of coffee
Consistency between locations
Brand loyalty was created
Product and environment are important, but why doesn't every one with a cozy atmosphere and a great cup of coffee have the success that Starbucks does?
Mission and Values Behind the Logo
Confronts challenges
Advertises to the consumer exactly what they are getting
Helps consumers realize the ethical efforts Starbucks makes
Transparency
Come back for the product, life-long customer for the values and heart of the company
Sources
Business Ethics: Ethical Decision Making and Cases
www.Starbucks.com
Counteract
did not want to compete with kuerig
became partners with Green Mountain Coffee Roasters
Beneficial for both companies
(1) Bonos product RED- effort to raise
money for aids

(2) African Wildlife Foundation

(3)Social development Programs, Schools
and health clinics, for Coffee growing communities

(4) CARE World Wide Relief and development program

(5)Starbucks Foundation, “opportunity
Grants” for Non-profit literacy groups

(6) donate to local causes in communities
Opportunity Financial Network
by 2011, closed 700 stores, wanted to help Americans without work
added a tip jar for "New Jobs Fund"
Helps small business' receive loans
Launched going green act 1992
Value Based Culture
Rely on Mission statement
focus on ethics and values
integrity is critical
Stakeholders
Employees
Community
Special Interest Groups
Suppliers
Full transcript