CSR AND VALUE CHANGE OF STARBUCKS CSR and Value Change of Starbucks

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CSR and Value Change of Starbucks
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Table of Contents
CSR of Starbucks.......................................................................................................................3
1. Introduction.........................................................................................................................3
2. Definition............................................................................................................................3
3. Arguments for and against CSR.........................................................................................3
3.1. Advantages and disadvantages of CSR.......................................................................4
3.2. Theories on CSR.............................................................................................................4
4. CSR of Starbucks Stakeholders..........................................................................................5
5. Attitude of Starbucks towards CSR activities.....................................................................5
6. Different views on CSR......................................................................................................6
7. Recommendations..................................................................................................................6
8. Conclusion..............................................................................................................................6
References:.................................................................................................................................7
Value Change of Starbucks........................................................................................................8
1. Introduction............................................................................................................................8
2. Definition...............................................................................................................................9
3. Value Change of Starbucks................................................................................................9
3.1. Critic and recommendations.........................................................................................10
4. Conclusion............................................................................................................................11
References:...............................................................................................................................12

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CSR of Starbucks
1. Introduction
CSR (Corporate Social Responsibility) is referred to as the ethical role of the company in
society (Huda et al. 2018). Its main aim is to increase the trust of the shareholder and the
long-term profits. This report is going to elaborate on shedding light on the advantages and
disadvantage of CSR activities for a corporation and the attitude of Starbucks towards CSR.
It shall also present recommendations for Starbucks in terms of CSR in its business.
2. Definition
There are several corporate bodies who have satisfied the interest of their stakeholders
through exercising effective CSR activities. Some of them are Microsoft, Lego, Google etc.
Lego behaves ethically, operates transparently and conducts fair business. It builds the
change and sustainable materials centre initiatives (Aagaard 2016). It has also went into
partnership with the WWF (World Wildlife Fund). Similarly, Microsoft operates as an open
source platform which fosters the perceptions of good governance and citizenship. It also
works with Bill & Melinda Gates Foundation. Furthermore, the CEO of Google, Sundar
Pichai publicly speaks his heart out for what he believes in like countering the comments
regarding the Muslims that was made by Donald Trump.
3. Arguments for and against CSR
Arguments for CSR
 CSR protects the stakeholders’ interests
 Ensures long term survival
 Helps in promoting self-enlightenment
 Avoids the government regulations that negatively influence the business of the firms

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 Ethics of profession helps in binding the organisational managers for social values
and grows concern for the society and environment. It increases awareness of social
responsibility (Malik 2015).
Arguments against CSR
 CSR is focused on the business enterprises and not on the government
 Shortage of skills and competencies of the professionally qualifies managers might
result in poor aptitude for solving the social issues (Paul 2018).
3.1. Advantages and disadvantages of CSR
Advantages
 Improves the image of the company
 Increases the rate of retention of employees
 Increases candidate attractiveness towards the business
 Positive and productive publicity
 Generates clean and renewable energy from the Environmental CSR.
Disadvantages
 Resistance from the parts of the shareholders
 Customer conviction
 Leads to a shift from the objective of profit making
 Increases the production cost
3.2. Theories on CSR
According to Edward Freeman’s Stakeholder theory, the stakeholders of a company can
be anyone who is affected by the company and its way of conducting the business as well as
its business output. They are the ones without whose support the company would have not

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survived. They include employees, suppliers, politicians, customers, local communities,
governmental groups etc. Moreover, one of the other significant theories on CSR is the
Carrolls CSR Pyramid. According to the theory, there are four responsibilities of business in
terms of economic, legal, ethical and philanthropic. In terms of economic, businesses are
responsible to be profitable. In terms of legal, business are responsible to obey the laws and
regulations. In terms of ethical, businesses are responsible to act ethically and morally. In
terms of philanthropic, businesses are responsible to give back to the society.
4. CSR of Starbucks Stakeholders
Starbucks is a stakeholder oriented organisation. It provide a great working environment
for its staffs and treat one another with dignity and respect. It maintains social growth and
development programs which build health clinics and schools etc. in the coffee-growing
communities. It has also went in partnership with the Jumpstart for helping the Headstart
children and sponsors the programs of young writers. It has also donated about 5 lakh dollars
to the Zion Preparatory Academy for the African American children. With the same, it has
also grant to charities and went in partnership with the Conservation International that
promotes biodiversity in the regions that grow coffee and supports the producers of the shade
grown coffee. It has a “Green Team” that educate the employees. Starbucks also reduce waste
by means of recycling and conserving energy.
5. Attitude of Starbucks towards CSR activities
The mission statement of Starbucks itself reflects the values and principles of the
corporate social responsibility (CSR). It is committed towards offering ethically purchased,
responsibly produced and high quality products to its customers. It keeps on investing in the
paths towards opportunities through training, employment and education. Furthermore,
Starbucks is also committed towards minimising the environmental footprints and

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encouraging others for doing the same. Lastly, Starbucks is also committed towards offering
the employees and the customers a place for public conversations and elevating the civic
engagement by means of service and promotion of the voter registration.
6. Different views on CSR
Azheri (2016) have claimed that CSR “is the continuing commitment by business to
behave ethically and contribute to economic development while improving the quality of life
of the workforce and their families as well as of the local community and society at large.
According to Wu et al. (2015), CSR is a model that helps in incorporating the ethical business
regulations into the business model. It helps the organisations with a framework for
embracing a responsibility towards environment, employees, service users and community.
Furthermore, Jamali and Jain (2017) in this regard has stated that CSR recognises the
responsibilities that the companies should take into consideration of those impacts. It helps
the company to make necessary decisions in terms of business ethics and working within the
law.
7. Recommendations
 Being transparent regarding the tax planning
 Having clear set of rules and laws
 Restoring public and trust and brining more certainty for the businesses.
8. Conclusion
Hence, it is to note from the above analysis that CSR is one of the key business issues
that is rapidly developing in the present business world. It is very important, especially for
the multinational firms to develop their brand image world-wide. It has a very close link with
the international development of a company. It represents the formal and the informal ways

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in which the multinational businesses aid for improving the ethical, environmental and social
conditions of the developing nations in which they conduct their business.
References:
Aagaard, A., 2016. Sustainable business: Integrating CSR in business and functions. Stylus
Publishing, LLC.

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Azheri, B., 2016. Corporate Social Responsibility in the Rule of Law and Welfare State
Concept. Hasanuddin Law Review, 1(2), pp.277-288.
Huda, M., Mulyadi, D., Hananto, A.L., Nor Muhamad, N.H., Mat Teh, K.S. and Don, A.G.,
2018. Empowering corporate social responsibility (CSR): insights from service
learning. Social Responsibility Journal, 14(4), pp.875-894.
Jamali, D. and Jain, T., 2017. Strategic approaches to corporate social responsibility: A
comparative study of India and the Arab world. In Development-Oriented Corporate Social
Responsibility: Volume 2 (pp. 85-104).
Malik, M., 2015. Value-enhancing capabilities of CSR: A brief review of contemporary
literature. Journal of Business Ethics, 127(2), pp.419-438.
Paul, S., 2018. An Analysis of the Skill Shortage Problems in Indian IT Companies. Social
Sciences, 7(9), p.159.
Wu, L.Z., Kwan, H.K., Yim, F.H.K., Chiu, R.K. and He, X., 2015. CEO ethical leadership
and corporate social responsibility: A moderated mediation model. Journal of Business
Ethics, 130(4), pp.819-831.

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Value Change of Starbucks
1. Introduction
In contemporary world of business, firms makes use of different strategies for running
business. Most of the large companies have started engaging in the CSR activities as a
significant strategy for gaining benefits which give them some added advantage over their
other potential competitors (Azheri 2018). This report shall elaborate on discussing about the
value change and its significance in context to businesses today. The main company that shall
be assessed in this scenario is that of the Starbucks. It shall shed light on the value change of
Starbucks on the basis of the case study provided.
2. Definition
The change in value or value change of a company refers to the change in the values
or standards or qualities of the company that governs the behaviour of the people working in
the company (Hammer, 2015). It is very necessary for every business to conduct its business
related operations and practices with integrity, openness, honesty as well as with due respect
for the rights of the human beings and the interests of the employees. Every company has its
own set of values that governs its business operations and the way it does business in the
market.
3. Value Change of Starbucks
Starbucks has been very notable within various social media platforms at present.
However, most of the discussions related to Starbucks revolve around the failed attempts of
its to start the conversations related to race in most of their stores. In the year 2015, Starbucks
had launched a controversial campaign called the #RaceTogether with an aim of initiating
conversations in regard to the issue of racism. For starting the process, it had encourages its
employees to write phrases “Race Together” on the coffee cups of the customers with an

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hope that it would spark out the thoughtful conversations regarding issues in terms of race.
With the same, the staffs and the customers, both were encourages for continuing these
conversations online with an hashtag #RaceTogether.
It was a really impressive initiative taken by Starbucks. However, after some of the
customer backlash in social media, Starbucks pulled the plug on campaign only after few
days and hence, media regarded this as a big failure.
It is to note that Starbucks listed a total of six principles of its business that revolve
around its customers, partners, shareholders, neighbourhood, stores and coffee. Starbucks
mission is to nurture and inspire the spirit of human beings and keeping this as its motive, it
has incorporated five value statements and they are:
a) Delivering best in all it does, holding itself accountable for the results
b) Being present and connected with transparency, respect and dignity
c) Creating a warm and belonging culture where everyone is welcome
d) Taking actions with utmost courage and challenging the quo
e) Challenging the status quo as well as finding out new ways for growing the company
and one another in the firm.
3.1. Critic and recommendations
According to some critics, the values of Starbuck are a reflection of its CEO- Howard
Schultz. As long as he is the CEO, Starbucks could turn them as long as they are supporting
the present cause (Hutt 2016). However, the following are the recommendations are made for
the part of Starbucks to improve its value:
a) It should show Fair Trade Products- the entrance and the counters
b) It should educate the link in between fair trade coffee and helping poverty

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c) It should restore public and trust and brining more certainty for the businesses
4. Conclusion
As presented in the given case study, the CSR of Starbucks has been growing in the
recent years. It has ran its business by driving CSR and value change as a tool which cover
the company in each and every sector of the business. It is concerned about influencing and
affecting the environment. It has created many activities for encouraging its employees to
conduct ethical and moral practices as well. It is also to note that Starbuck has changed its
value after its major failure of the #RaceTogether.

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References:
Azheri, B., 2016. Corporate Social Responsibility in the Rule of Law and Welfare State
Concept. Hasanuddin Law Review, 1(2), pp.277-288.
Hammer, M., 2015. What is business process management?. In Handbook on business
process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Hutt, R.W., 2016. Reputation on the line: the Starbucks cases. Journal of Business
Strategy, 37(1), pp.19-26.