Corporate Social Responsibility within the strategic management spectrum- A case study of Starbucks in food the beverage sector of Hong-Kong

This study investigates the corporate social responsibilities within the strategic spectrum of Starbucks operating in Hong Kong. It analyzes the importance of CSR in the food and beverage industry and examines how Starbucks applies CSR strategies to fulfill its business requirements.

Running head: STRATEGIC BUSINESS PROJECT
Strategic Business Project
Name of the Student
Name of the University
Author Note

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Contents
CHAPTER 1: INTRODUCTION..............................................................................................4
1. Introduction............................................................................................................................4
1.2 Research Problem.............................................................................................................5
1.3 Research Purpose.............................................................................................................6
1.4 Research Questions..........................................................................................................6
1.5 Research Objectives.........................................................................................................6
1.6 Research Rationale...........................................................................................................6
1.7 Significance of the study..................................................................................................7
1.8 Scope of the study............................................................................................................8
1.9 Definition of terms...........................................................................................................8
1.10 Summary........................................................................................................................9
CHAPTER 2: LITERATURE REVIEW.................................................................................10
2.1 Introduction....................................................................................................................10
2.2 History of Research........................................................................................................10
2.3 Review of the key studies..............................................................................................13
2.4 Summarizing the findings of the studies........................................................................19
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................21
3.1 Research Methodology.......................................................................................................21
3.2 Research Philosophy......................................................................................................22
3.3 Research Design.............................................................................................................23
3.4 Data Collection Method.................................................................................................25

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3.4 Theoretical Framework..................................................................................................26
3.5 Research Approach........................................................................................................27
3.6 Research Subjects...........................................................................................................28
3.5 Questionnaire.....................................................................................................................29
3.7 Administration of the Questionnaire..............................................................................29
3.8 Statistical Methods.........................................................................................................30
3.9 Summary........................................................................................................................30
CHAPTER 4: FINDINGS AND DISCUSSION......................................................................32
4.1 Introduction....................................................................................................................32
4.2 Presentation of Quantitative Data..................................................................................32
4.3 Summary of key findings...............................................................................................50
CHAPTER 5- RECOMMENDATION AND CONCLUSION...............................................51
5.1 Conclusion......................................................................................................................51
5.2 Recommendation............................................................................................................53
5.3 Future work:...................................................................................................................54

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List of Graph
Graph 1: Customers’ preferences of Starbucks........................................................................33
Figure 2: Customers’ knowledge about the context of CSR in business.................................34
Graph 3: How much attention customers pay to CSR policy as customer..............................35
Graph 4: How CSR practices influence brand’s image in customers’ opinion........................36
Graph 5: Corporate Social Responsibility affecting organizational performance...................38
Graph 6: Organizational role in publishing CSR reports on a periodical manner...................39
Graph 7: Alignment of CSR strategy and operational strategy................................................40
Graph 8: Starbucks’s sustainable packaging initiative.............................................................41
Graph 9: Starbucks’ Green Initiative.......................................................................................43
Graph 10: CSR initiatives lead to failure due to financial challenges.....................................44
Graph 11: Age group of respondents.......................................................................................45
Graph 12: Brand image development through sustainable marketing.....................................47

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Project Title- Corporate Social Responsibility within the strategic management
spectrum- A case study of Starbucks in food the beverage sector of Hong-Kong
CHAPTER 1: INTRODUCTION
1. Introduction
This study was intended to investigate the corporate social responsibilities within the strategic
spectrum of Starbucks operating in Hong Kong. It has been identified that business
environment in all sectors has become dynamic in nature and as a result consumers expect
brands to perform responsibly and ethically and on the other hand, government is also stiff
with respect to the corporate responsibility of businesses because government seeks support
from business to address the social and environment concern. Thus, due to market dynamics,
changing consumers’ preferences and government pressure, larger brands in the food and
beverage sector are in the rush of developing corporate social responsibility initiatives.
According to Boumediene (2018) in order to gain success, social reasonability and ethical
practices should be treated as the fundamental business elements. Findings of Cone
Communication Global 2015 indicates that nearly 91% of global customers demand
businesses to run responsibly to address the social and environmental issues (Nielsen, 2019).
Customers in the present days have growingly been aware of the social responsibility,
consequently, customers prefer the brand that follow the ethical norms.
So, thus, it is highly important to investigate and learn how business today is dealing with the
corporate social responsibilities under a dynamic business environment. Furthermore, while
the corporate responsibility is growingly acknowledged as the most significant business issue,
there is a limited practical guidance available to help businesses to respond to the challenges
it presents. As put forward by Preece (2013) tools and approaches that do exist, are often
considered generic in today’s market place. Although, there is an essential need for corporate

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social reasonability in the food and beverage sector, delivering the core needs and
contributing to health development but CSR today have become one of the core elements in
the business sector. The scenario is more accurate for the brand that have customer values
like the Starbucks. In addition to this, particularly in the agricultural studies, food safety and
quality have become two major requirements but there is hardly a number of studies of CSR
on Food and Beverage sector.
1.2 Research Problem
This study address the concern of how Starbucks in the Food and Beverage sector is
dealing with CSR initiatives to enhance its brand image and strengthen its market position by
winning consumers’ trust. Plus, it also investigates the approaches followed to effectively
deal with the CSR challenges today. Developing and implementing Corporate Social
Responsibility has been significant concern of business today. Businesses perform the
operation in a dynamic environment where consumers’ preference is a top most priority.
Consumers’ preferences towards a brand is influenced by how the brand is socially
responsible. Consequently, customers are growingly insisting on the importance of social
responsibility and they are actually seeking brands that are responsible towards the ethical
and social duties. Steps in the CSR shows that the business finds an interest in wider social
issues instead of those affect profit margins and this could further attract consumers who
share similar values. Understanding the stated consumers’ concern, brands deals with the
challenge of developing the public image which is a return impact on sales and profits. This
happens because customers assess brand’s public image when deciding whether to buy from
the brand. Thus, there is a growing competition with respect to implementing corporate social
responsibility in the food and beverage industry.

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1.3 Research Purpose
Purpose of the study is to investigate and analyse how businesses in the food and
beverage industry are dealing with CSR initiatives under a dynamic market environment.
Following research questions have been formed to meet the stated purpose.
1.4 Research Questions
 What is the importance of CSR in Food and Beverage industry?
 How does Starbucks apply CSR strategies to fulfil its business requirements?
1.5 Research Objectives
 To critically analyse the importance of CSR in Food and Beverage sector
 To identify the existing strategic approaches towards CSR in F&B sector
 To evaluate how Starbucks implements the CSR initiatives
1.6 Research Rationale
Corporate Responsibility is relevantly associated with food and beverage sector
because it meets the core human needs and generates significant impact on public health
(Boumediene 2018). CSR activities have become a fundamental element of business today in
food and beverage sector. Moreover, consumers today are highly concerned about health and
personal hygiene, thereby food safety and quality issues can no longer be overlooked
(Boumediene 2018). On the other hand, Nielsen (2019) mentioned that the relation between
the consumers’ push for clean labels as well as the explosion of natural products in the
market place is of no coincidence. F&B producers that are particularly responsive in nature
go on actively seeking out healthy ingredients and formulations that meet the bill for
customers clean label demands. So, according to the author, the area which is somewhat less
obvious in this context is the importance these same consumers place on corporate social
responsibility (Nielsen 2019). However, profitability and sustainability should exist in the

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same market place. F&B manufacturers should consider CSR as one of their core business
function. It is highly important to learn how high valued organization like Starbuck is paying
heed to the initiative of developing a sustainable and profitable market place. Moreover, on
the basis of personal experience, it is worth stating that F&B sector has hardly been
considered in the context of CSR while, retail and supermarkets businesses are often targeted
with CSR Gaps. However, the gap should also include F&B giants towards CSR. Thereby,
the questions developed on the importance of CSR in food and beverage certainly addresses
the stated concerns related to CSR.
1.7 Significance of the study
Significance of the study lies in the fact that growing number of consumers today
expect brands with high value in Food and Beverage sector to perform responsibly and
ethically to address the environmental concern. When it comes to profitability of business, it
should be noted that consumers only prefer the brands that have social contribution. So,
understanding such public concern, it is significant for readers to know how the large brands
in F&B sector are implementing corporate responsibilities with the focus of developing a
sustainable business. The context of CSR in Food & Beverage sector requires urgent attention
because consumers place significant importance on corporate social responsibility and stress
profitability and sustainability. A growing percentage of consumers’ data imply that
customers in the F&B sector tend to shape their expectation across sustainability. When it is
considered from brands’ perspective, it is learnt that very limited guidance available to help
brands to deal with dynamic challenges of CSR. The outcome of the study would reveal how
businesses in the food and beverage sector should address apply the CSR initiatives to create
a balance between sustainability and profitability. This study achieves the objectives of
developing comprehensible insight about CSR in relation to its application, model and

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strategies. Moreover, the primary research methods applied to the study would help to know a
business should apply CSR initiatives aligning with the consumer needs.
1.8 Scope of the study
This study investigates the problems related to importance of CSR in Food and
Beverage industry. Study investigates the lack of focus on natural sources preservation as an
ethical and responsible activity of business in F&B sector. Considering the existing approach
of CSR, this research also investigates the gap in the guidance of corporate social
responsibility. In order to analyse customers’ perspective towards CSR particularly in the
Food and Beverage sector, consumers of Starbucks in Hong Kong has been considered in the
report. In order to and investigate and analyse the stated issue, primary data has been used in
the study. With the help of a survey method, data is directly collected from consumers in
Hong Kong. Three major aspects of CSR are chosen to study –importance of CSR in F&B,
business gap with relation to CSR in F&B and guidance related to CSR. Thus, study is
intended to answer the importance of CSR in Food and Beverage sector and how Starbucks
apply the strategies to meet its CSR requirements.
1.9 Definition of terms
CSR and F&B are two most frequently terms in the entire study. CSR stands as
Corporate Social Responsibility and it is more of an autonomous business model. This enable
business to become ethically and socially accountable. Conversely, the term F&B refers to
Food and Beverage.
The organization – Starbucks
Starbucks produces high quality of whole bean coffee through its long-term purchase terms
with the suppliers. The major mission of Starbucks is to ‘inspire and nurture the human
spirit, one person, one cup and one neighbourhood at a time’. The brand is committed to the

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role of all environmental leadership in all facets of its business. Revenue of Starbucks is
2471 Cr USD in 2018. Starbucks provides a wide series of coffee and soft drink items. In the
context of sustainability, Starbucks applies the initiative of ‘Ethical Sourcing’. Whether its
coffee, tea or Cocoa, Starbucks is committed to providing ethically sourced high quality
products. The brand is known for its comprehensive approach to ethical sourcing with the
inclusion of economic, social as well as environmental standards.
1.10 Summary
This chapter builds the backbone of whole dissertation which has been prepared
considering the context of corporate social responsibility and its importance to F&B business.
Study has been conducted on the issue of how Starbucks in the Food and Beverage sector is
dealing with CSR initiatives to enhance its brand image and strengthen its market position by
winning consumers’ trust. So, to understand how Starbucks deals applies its Corporate
Responsibility, it is necessary to review the existing CSR practices, its importance and
strategies related to CSR. Thus, the following chapter is a base for gaining knowledge about
the current strategies, barriers and approaches to CSR because a detailed review of existing
research papers on CSR have been performed.

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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This chapter is a detailed review of empirical studies performed on CSR activities of Food
and Beverage brands. There is a long history of CSR and its relevance often reviewed by
scholars and marketers in all sectors. Practice of CSR has been changed and altered since
1950, particularly when the classical view of CSR was restricted to philanthropy, not to
mention the contribution that a business provided for addressing the social issues. CSR at the
initial stage of its invention remained doctrine of social responsibility and this further led to
the idea that is significantly expressed that the consideration of a voluntary social
responsibility of business can be an optional mean to resolve economic issues and meet more
greatly economic objectives that people pursue. The major purpose of the review is to gain
an insight about how CSR activities are being implemented by businesses today and why
CSR gains managerial importance in today’s business.
2.2 History of Research
It has been identified that CSR has gone through a quick evolution in last four decades than
the pace observed before. Many authors across the literature sought to analyse the historical
evolution of CSR and theories related to CSR. It is learnt that On the basis of the core
concept of CSR that people across the world are familiar today carries longstanding history.
This is sometimes considered as the core product of twentieth century, particularly during the
initial months of 1950 and this goes on till today. It can be mentioned that even though there
is a level of growth, popularity and concrete evidences revolving around business community
can be tracked. Thus, to find out more and appreciate the context of CSR, studies have
considerably paid attention to Industrial Revolution. When investigating the root of CSR of
mid –to- late of 1800, it was learnt that emerging businesses were more into their employees

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such as making them more productive workers. Thereby, the period of 1800 and now seems
to be difficult to differentiate what the businesses are doing for the reasons for business
causes like making the workers more productive and what organizations in return are doing
for social reasons such as increasing the subjective levels of the society. Simionescu and
Dumitrescu (2018) performed an empirical study on CSR and the scholars have discussed
that organizations are increasingly becoming aware of the fact that they should to conform to
the responsibilities with respect to the impact of business activity on stakeholders.
This means that business should support those stakeholders and community by
implementing voluntary actions and the communities where they perform their business
activity. Nonetheless, hardly a number of companies have been able to play a more active
role in promoting the CSR policies. Authors state the view that most of the studies on CSR
are performed in the developed nations but why there is a very limited number of studies on
CSR in emerging economy or developing nations. Authors have applied a multi-variable
analysis method along with the tests of hypothesis. Authors applied regression analysis to
learn the relationship between the variables Corporate Social Responsibility and Corporate
Financial Performance (Simionescu and Dumitrescu 2018). Burlingame (1994) performed an
empirical research on CSR to learn whether CSR is an effort to answer how CSR contributes
to the corporate bottom line and kind the studies need to be performed on the context.
Authors particularly focussed on the corporate giving as well as the volunteer programs
because they have supposedly immense impact on non-profit industry. This study stated the
fact that global audience have known about the cause based marketing particularly in 1983
and this is happened when American Express published its program to back the restoration of
Statue of Liberty by contributing to the causes –such as their card is being used. Authors of
the paper further explained that there have been many claims related to promotion which is
linked to charitable giving along with the purchase of product came out to be a’ quid pro que’

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between corporate philanthropy and traditional marketing elements. According to the authors,
only handful companies like P&G, Johnson & Johnson, and McDonald’s have reacted to the
pressure came out of the creative marketing. However, there is an additional pressure derived
from it is the pressure on the corporate contribution managers to support the advertising
departments to determine the amount of budget required for a particular project. Authors
presented a series of arguments that there is a trade-off between profits and contribution have
probably been content with the notion that costs incurred by organizations for social as well
as cultural reasons make the companies bear the loss with respect to the businesses that do
not act similarly. Another contradictory view that authors have presented that corporate
contributions are kind of a form of abuse of shareholders’ right –such as they are an
inefficient use of corporate resources. Authors applied a secondary data analysis method to
deduce that research works on CSR is in flux as well as more empirical work remains to be
implemented, particularly on the manageable framework of corporate social performance.
Maqbool and Zameer (2017) performed an empirical study on CSR with the Indian
banks and authors find that there is a lack of conceptual clarity about CSR. Even though there
have been many studies due to the social construction of the definitions, it is difficult to
figure out the definitive pillars of CSR. Authors presented the view that CSR is more on the
agenda of business organization because of the ability of enhancing the competitiveness of an
organization. Authors talk about a dominant perspective in which it is learnt that CSR creates
competitive edge and it eventually helps business to maximize the financial strength of the
business. Authors have presented a primary data analysis in which the data was collected
directly from the organizational members of Indian banks. Authors of this study have
concluded that CSR positively influence the profitability and stock returns.
2.3 Review of the key studies
Journals & Authors Research Methodology Findings

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Questions
1. Jiang, S., Fu, Q. and Liu, X., 2016.
Research on the Impact of CSR on
Firm Performance: An Empirical
Analysis Based on Food and
Beverage Industry in China. Advance
Journal of Food Science and
Technology, 10(7), pp.548-551.
What is the
impact of CSR
on firm
performance?
The study performed in
F&B sector of China.
Authors selected 59 listed
companies from 2009 to
2014. Data was collected
from the WIND database.
In order to perform the
data analysis by using
Excel 2013 and Stata
program. Firm
performance was treated
as the dependent variable,
while corporate social
responsibility was treated
independent variable in
the study.
Descriptive analysis
implies that there is
hardly a difference in
the comparison
between the sample
organizations and
almost 43.54% of
sample food
organizations are
state-owned
enterprise. The results
indicate that
coefficient of earning
based on per share,
income tax and the
ratio of turnover
payable are
considerably positive
especially with return
on net asset. This
remains a
measurement of
performance and
denotes that CSR to
shareholders, in which
government and
suppliers may increase
the profitability.
Nonetheless, few
areas in employee
wages and benefits
considerably have

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influential effect on
return on total asset.
This means CSR to
employees minimizes
business’ profitability.
There is a highlighted
findings of the study
that coefficient ratio
of asset-liability are
not at all significant.
This means CSR to
creditors hardly
influence firm’s
performance. So, the
implication is that
there is a significant
positive correlation
between a greater
range of CSR and
corporate performance
to shareholders.
2. Lin, C.S., Chang, R.Y. and Dang, V.,
2015. An integrated model to explain
how corporate social responsibility
affects corporate financial
performance. Sustainability, 7(7),
pp.8292-8311.
How Corporate
Social
Responsibility
can affect
Financial
performance?
In order to identify the
impact of CSR on
financial performance,
authors have selected 500
largest companies of
American Stock market
and the data was
particularly gathered from
the sources like KLD and
Compustat. Furthermore,
social index was
particularly used in
Findings indicate that
CSR is significantly
and positively related
to Intellectual Capital
(r=0.331, P<0.01)
indicating since the
range of CSR
increases, the value of
the Intellectual Capital
develops. In addition,
intellectual capital is
significantly

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evaluating social
responsibility. Some
major variables used in
the study are intellectual
capital, financial
performance and control
variables.
associated to financial
performance (r=0.072,
P<0.01). This means
the range of
Intellectual Capital
increases, the
financial performance
also increases.
Authors conclude the
fact that CSR
activities can
positively enhance the
intellectual capital and
this consequently
induces positive
impact on financial
performance. In
addition, based on the
stakeholder theory,
organizations may
involve in series of
CSR activities to meet
stakeholders’
demands due to the
CSR issues of
stakeholders
3. SHI, F.L., ZHANG, Y. and Lu,
Z.H.A.O., 2016. An Empirical Study
on Impact Factors of Corporate
Social Responsibility Disclosure for
Listed Companies in China. DEStech
Transactions on Social Science,
Education and Human Science,
What are the
factors of CSR
that influence
firm
performance of
listed
companies in
In order to perform this
empirical study, authors
selected 582 A share
listed companies located
in Shanghai and
Shenzhen. The major
independent variable in
Descriptive statistics
of dependent variable
presented in the study
indicate that among
543 sample
organizations the
maximum score of

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(seme). China the study are financial
performance, ROE,
Financial risk, while the
dependent variable is
Firm performance
through CSR. Correlation
analysis was performed
between firm’s size and
financial risk.
corporate social
responsibility reaches
81.11 but the lowest
score is 15.12.
According to this
result, there is a sharp
comparison between
the bottom and top
score and this further
clarifies that report
related to CSR
activities of such
companies in China
remain inferior.
Furthermore, the
descriptive statistics
of continuous
independent variable
are also presented in
the study and it shows
that organizations that
belong to profoundly
polluting sector is
above 235 ones with
the average score of
37.05 but the rest of
the sector have the
score of 35.4. This
eventually indicates
that organizations that
generate a greater
range of pollutions are
significantly doing
better in corporate

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social reasonability
when they are
compared to other
firms.
4. Heyder, M. and Theuvsen, L.,
2009. Corporate social responsibility
in agribusiness: empirical findings
from Germany (No. 698-2016-
47811).
Is there a
potential
impact of CSR
on the
legitimacy and
reputation of
the brands
2. What is the
level of
perception of
external
pressure and
determinants of
CSR in
agribusiness?
To answer the stated
questions, authors have
selected 170 companies
of all sizes and performed
a survey. The industries
from the companies were
selected are slaughtering
and meat processing,
bakery goods, milk
processing, breweries,
mills, plant protection,
agricultural machinery
Findings and result of
the study indicate the
fact that due to
multiple number of
cases and scandals,
pressure from the
external environment
of the agribusiness is
relatively high. It has
also been identified
that agricultural
businesses generally
perceive a high public
pressure which could
threaten their
legitimacy.
Furthermore, the
results also imply the
fact that business in
the agriculture sector
do not negates the
legitimacy of usual
protest and the claims
about the food
production.
Additionally, some
particular elements
like fair price for
farmers, fair trade to

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guide third world
nations, acceptable
social standards, for
employees, increasing
environmental
standards and moral
animal welfare remain
legitimate by a
majority of
respondents.
Moreover, the
questions whether
protests against the
genetic engineering
are socially and
ethically justified
received a very mixed
support. Precisely,
almost 31.8% believe
that such protests are
legitimate while
almost 36.4% disagree
to this fact. So, such
conflicts lines
genuinely encourages
the management of
agribusiness
organizations to meet
firm’s goals and
strategies for the
societal environment.
Authors state that
CSR has become
increasingly

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significant for
agribusiness
particularly to secure
the level of legitimacy
in the society.
2.4 Summarizing the findings of the studies
Findings of the above studies imply that companies and their shareholders who have
performed CSR activities have significantly produced better financial results. However, the
result of the first article presented in the table indicates that investment on employee wages as
a corporate responsibility does not have much impact on firm’s profitability. Findings is little
contradictory here, authors state that creditors may not be highly profitable through CSR
activities. Overall findings of the study is that if businesses are highly involved in performing
CSR activities, business will achieve a better performance. On the contrary, results of the
second article implies that there is a positive relationship between intellectual capital
corporate social responsibilities. This remains a direct relationship –value of intellectual
capital will increase, if the businesses are highly involved in the implementation of corporate
responsibilities. Thereby, the financial performance may also increases with the increase of
intellectual capital. Moreover, the organizations should also be involved in different variety
of CSR activities to meet the stakeholders and this will eventually create a positive impact on
firm’s overall performance.
The third article presented in the above table implies that level of involvement in CSR
activities in China is relatively low because the score of CSR reports presented in the findings
is low. It has also been identified that large size of businesses tend to disclose a greater
detailed about the CSR information to gain social and public reputation. This findings also
clarify that businesses with high growth capability is most likely to allocate their funds to the

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firms with larger size and expand the market to receive greater profit and they do not wish to
spend the remaining funds to CSR. Moreover, this study did not find any significant
relevance between financial performance as well as CSR disclosure performance. The fourth
article was about the perception of consumers as well as stakeholders’ perception towards the
agribusiness which is growingly becoming critical and risk-conscious. It was studied in the
paper that firms associated with the agribusiness are most likely to deal with the public
pressure which may negatively impact the legitimacy. Thus, CSR has become a crucial and
strategic part of the business as firms with agribusiness are highly concerned about faire
trade, personnel development and environmental protection.

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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Methodology
This project work will not be complete without presenting a detailed overview of how
research methods and techniques have been selected and applied to context of the study
which is corporate social responsibility under strategic management framework. In general,
defining research method is defining a broad and unexplored term and this is always the same
because even though data collection and analysis represents the fundamental elements of
research methodology, there are many elements significantly usable for scholarly studies. As
the research aims to identify corporate social responsibility initiatives within strategic
management spectrum, it is effective to select methods that provide realistic outcomes. Thus,
this study emphasizes on primary research methods to perform analysis with real world facts
and findings. So, primary data collection is one of the core elements of research methods
discussed in the following.
In order to gather the primary data, two different set of questionnaires have been
developed, which includes both close-ended and open-ended questionnaire. Close ended
questions were developed to collect quantitative data, while the open-ended questions are
developed to gather the qualitative data. However, to collect quantitative data, a survey
method has been applied. Survey method is applied to the study because survey method is
easy to implement because survey method can be applied online which takes less time and
hazard-free. In addition, survey method allows researcher to apply large sample population.
On the contrary, interview method has been used to gather qualitative data because besides
making the general assumptions about the CSR activities performed by Starbucks, it is
important to learn how organizational executives take initiatives to fulfil the CSR needs,

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therefore, interview method would help to collect descriptive views about corporate social
responsibility under the strategic framework.
Technical aspects of the study
The analysis in the study is conducted with statistical tools. For example, to identify
the relationship between dependent variable such as firm’s performance, firm’s profits,
revenue streams, while the independent variable is corporate social responsibility. To find
the relationship a correlation and coefficient analysis has been performed through SPSS
statistics tool. In addition to this a regression analysis is conducted in the study.
3.2 Research Philosophy
Research philosophy is linked to the clarification of assumption regarding the nature as well
as the source of knowledge. Precisely, it can be stated that research philosophy is often
treated as set of beliefs about the Beliefs about the world actually works but no static sense is
found among the philosophers with respect to understanding the world in a comprehensive
way. Thus, it can be stated that research philosophy should be chosen on the context of
research problems. As put forward by Bresler and Stake (2017), there are three different
categories of research philosophies namely positivism, interpretivism and realism. As put
forward by McCusker and Gunaydin (2015), positivism holds a particular view that only a
‘factual knowledge’ which should be gained through the observation.
Particularly, in positivism research philosophy, data collection and interpretations are
done in an objective way. The core element of positivism research philosophy is the
quantifiable observation which creates scope for statistical analysis. On the contrary,
interpretivists philosophers believe that besides social reality, human interest also need to
incorporated when judging or analysing any particular issue. The core element of this
philosophy is that access to reality is only through social construction and shared meaning.

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For example, corporate social responsibility should be analysed within a strategic
management perspective, human observation also need to be considered besides the social
reality and observation. On the other side, it can also be mentioned that realism philosophy is
significantly relies on the concept of independence of reality that comes from human mind.
However, considering the need of identifying corporate social responsibility initiatives within
strategic management framework, positivism is an effective choice for the study.
Justifying the positivism research philosophy
Positivism have been selected in the study as positivism research philosophy allows
researcher to analyse the research context from both human perspective and social reality. So,
this philosophy would allow the researcher to learn the social observation about corporate
social responsibility initiatives –such as applied by businesses. Moreover, positivism research
philosophy has been selected in the study because positivism philosophy enables the
researcher to apply statistical method to create measure for determining the outcome. Thus,
positivism philosophy remains here a medium for researcher to measure the extent to which
corporate social duties are strategically done by Starbucks.
3.3 Research Design
As stated by Rudnick (2014), research design is usually known as the framework of
techniques that are applied by the researcher to amalgamate several elements of study in the
most logical manner; thereby, the core issue of the study can be addressed significantly. This
means research design creates significant insight with respect to implementation of the study
with the help of specific research methodology. Research design is divided into several
categories but the major three are explanatory, exploratory and conclusive research design.
As put forward by Savin-Baden and Major (2013), exploratory research design includes ideas
and thoughts that are fundamentally depended upon the personal inclinations regarding a

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particular context which is linked to the study. Under such research design, research
questions usually takes the form of how, why and what. For example, the research question
can be about how ‘why corporate social responsibility should fall under strategic
management spectrum’?
On the contrary, Descriptive or conclusive research design is fundamentally based in
the description of the situations or a case which remains within the scope of the study.
Humphries (2017) mentioned that descriptive design fundamentally based on theories and
models, therefore, the real world case and incidents are sometimes difficult to relate to the
context of the study. For example, the selection of descriptive research design can help the
study to find suitable theoretical ideas about the CSR and its benefits –such as how CSR can
generate revenue stream from the external business environment but how in reality how the
business is dealing with the same can be challenging to know.
On the contrary, Flick (2015) mentioned that the study is supposed to develop a
relation between cause and effect of the context or situation, experimental research design is
required. Thereby, experimental research design remains causal design in which the
independent variables create the effect and effect is observed on dependent variable. The
effect of independent variable, for example Corporate Social Responsibility on dependent
variable like organizational performance like Starbucks.
However, in the study, explanatory research design has been selected because
explanatory research design allows researcher to explore more about the context with the
purpose of discovering the unexplored areas of the subject. Thus, the forms of why, how and
what can help to know how corporate social responsibility falls under strategic management
perspective.

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3.4 Data Collection Method
As put forward by Antwi and Hamza (2015), data collection method is a comprehensive
technique to gather data from relevant sources to develop answers to research questions.
Universally, there are two categories of data collection and they stand as primary and
secondary data collection technique.
Secondary Data Collection:
It has been identified that Secondary data are already published and they are available in the
open data sources like books, journals, blogs and other online sources. It has been identified
that when it comes to secondary data, there is an abundance of data available in the stated
sources (Walliman 2017). Nonetheless, when selecting the secondary data, certain criteria is
followed like the published year, edition of the books and journals and authors’
acknowledgment about the same. In the present study, secondary data has been selected for
the review of existing papers and for developing the analysis with the primary data.
Primary data collection method:
Primary data is rich and fresh in nature. Primary data is not available in the public sources as
such kind of such data is collected directly from the respondents of the study and this means
the people take part in the data gathering technique. However, the data is collected through
two major sub-category such as quantitative and qualitative collection of data.
Quantitative Data collection: Quantitative data collection is solely based on
mathematical calculations that are done in different formats. This means that the methods of
quantitative data collection as well as the analysis are done through a questionnaire
(McCusker and Gunaydin 2015). In the present study, a questionnaire has been developed
which includes 14 close-ended questions.

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Qualitative Data Collection: Qualitative data do not involve numerical digits or any
sort of mathematical calculations as the data is more descriptive in nature. In order to collect
qualitative data, an interview has been performed involving the organizational members of
Starbucks.
Data analysis
The data analysis in the study has been performed by linking the data secondary data
with the primary data. First the data has been converted to numerical digits and numbers. The
data has been represented with the help of graph and table. SPPS tools have been used to
stand a correlation between corporate social responsibility and strategic management.
3.4 Theoretical Framework
In order to conduct the primary analysis in the study both dependent and independent
variables have been studied in the study. As there is a significant lack in the clarity of CSR
under the strategic framework, study effectively seeks to bridge the gap between CSR and its
associated variables. For example, the CSR is treated as an independent variable and the
firm’s performance is a dependent variable. Considering the independent variable and its
relation with others, a number of variables is used in the study and they are presented in the
study along with the hypothesis given in the following:
H0- Corporate Social Responsibility has no impact on firm’s performance
H1- Corporate Social Responsibility has impact on firm’s performance
H2: If Corporate Social Responsibility is applied to workforce management, employee
productivity will increase
H3: If Corporate Social Responsibility is implemented properly, revenue streams of business
will expand.

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H4: Corporate Social Responsibility is conducted considering environmental challenges,
customer base of will grow.
Existing findings centred on corporate social responsibility and strategic framework is
little contradictory. Existing findings indicate that investment on employee wages as the part
of corporate duties responsibility may not positively influence firm’s profitability, while the
finding of another study state the fact that investors or creditors of CSR activities may not be
highly profitable through CSR activities. Finding of another study state the fact that there is a
positive relationship between intellectual capital corporate social responsibilities. This means
that financial performance may increase with the increase of intellectual capital. As there
have been a number of discrepancies in the findings in relation to corporate social
responsibilities and its implementation under the strategic framework. Thus, to understand
the context comprehensively and bridge the stated gap in understanding, the current study
emphasised on primary data analysis which ensures the validity of the findings and avoids the
contradiction in understanding of CSR.
3.5 Research Approach
As put forward by Choy (2014), the technique that includes a broad range of assumption
about collection of data and their implementation in the study is called research approach.
Thus, selection of research approach fundamentally depends upon research problems which
are supposed to be resolved. There are fundamental element of research approach such as the
collection of data and analysis of data Antwi and Hamza 2015). Particularly when applying
the approach to data collection, inductive and deductive approaches are usually selected,
while for data collection qualitative and quantitative approaches are applied.

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Figure: Research Approach
(Source: Singh 2015)
According to Hughes and Sharrock (2016), if the study is required to use qualitative
data for the analysis, the inductive reach approach is the best choice, while for using the
quantitative data in the analysis, deductive research approach is usually selected.
Nonetheless, if the study uses a mixed research method, the best approach would be a mixed
approach where both inductive and deductive approach. In order to identify and know how
corporate social responsibilities are taken seriously and applied by the organization, depth
knowledge about the same is highly required. Moreover, the chosen organization Starbucks is
large food and beverage provider, therefore applying one single approach would not be an
effective selection because descriptive knowledge about the same remains unexplored. Thus,
to explore the importance, application and future dynamics of corporate social responsibility,
this study chose a mixed approach in which both inductive and deductive approaches are
applied.
3.6 Research Subjects
Population and Sample used:

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As stated above, in order to perform primary data analysis, survey and interview have
been performed. To choose the respondents for survey and interview, a suitable sample
method has been applied. However, before coming into sampling, target population of the
study has been determined. Target population includes the regular customers of Starbucks,
Hong Kong. To specify the population of the study, researcher targets the population of
Dundas Street, Hong Kong. There have been two universal format of sampling method for
business studies and they are such as probability sampling method and non-probability
sampling. Considering the criteria of both methods, non-probability sampling method is
applied to choose respondents. In order to further filter the respondents from the target
population, a judgment sampling method has been applied to the study. Judgment sampling
method allows the researcher to select members using own skills and experiences. The
selected population members are salaried individuals. Both male and females have been
engaged into the survey.
3.5 Questionnaire
In the study, both close-ended and open-ended questionnaire. Close ended questions
were developed to collect quantitative data through survey, while the open-ended questions
are developed to gather the qualitative data through interview method. Close ended
questionnaire includes 14 close ended questions. Close ended questions include three basic
elements, such as demographic questions, CSR and customer awareness. On the other side,
open ended questions were based on the strategic management and CSR.
3.7 Administration of the Questionnaire
When developing the questionnaire for survey for data collection, questionnaire was
divided into two different sections such as close-ended and open-ended questions. Close
ended questions were developed focusing on two different areas, demographic and

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managerial areas. Close-ended questions were designed giving four to five options to choose,
while open-ended questions are broad and descriptive.
However, as researcher selected judgment sampling method on the basis of
researcher’s own experience and skills, some respondents seemed to be little manipulative
which was also pre-determined. This is because demand characteristics is the most possible
challenge and to avoid the issue of demand characteristics, researcher used a blind
administrator, who didn’t know the context of the study.
Before engaging the respondents to data collection methods, consent of each respondent has
been taken through an ethical checklist form. An ethical check-list form has been submitted
to all respondents group to take their consent. Researcher ensured that no participant has been
forcefully engaged into data collection event. It was clearly ensured that respondents always
the right to phase out their participation at any moment during the data collection event.
3.8 Statistical Methods
In order to perform the quantitative data analysis in the paper, statistical tools such as
SPSS and regression analysis methods are applied to find the relationship between the stated
variables. Two different set of variables were chosen to perform the correlation and
coefficient analysis. Dependent variables are organizational’ performance, review stream,
workforce management, employee productivity, while the independent variable is Corporate
Social Responsibility. It is expected that workforce management and corporate social
responsibility hold a correlation and thereby, the variables are tested through statistical tools.
3.9 Summary
In order to perform the primary research, two different set of questionnaires have been
developed, which includes both close-ended and open-ended questionnaire. Close ended
questions were developed to collect quantitative data, while the open-ended questions are

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developed to gather the qualitative data. As there is a significant lack in the clarity of CSR
under the strategic framework, study effectively seeks to bridge the gap between CSR and its
associated variables. Considering the criteria of both methods, non-probability sampling
method is applied to choose respondents. In order to further filter the respondents from the
target population, a judgment sampling method has been applied to the study. Before
engaging the respondents to data collection methods, consent of each respondent has been
taken through an ethical checklist form. An ethical check-list form has been submitted to all
respondents group to take their consent. In order to perform the quantitative data analysis in
the paper, statistical tools such as SPSS and regression analysis methods are applied to find
the relationship between the stated variables.

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CHAPTER 4: FINDINGS AND DISCUSSION
4.1 Introduction
This research chapter of the dissertation provide a detailed analysis of data which has
been collected by carrying out a customer survey among the customers of Starbucks in Hong
Kong. To collect data from survey, customers that are usually regular are chosen. To stand a
critical viewpoint, some respondents have been engaged into the survey who also visit other
coffee shops in Hong Kong. However, selection of respondents is entirely based on the
sampling criteria. A non-probability sampling method has been to ensure the availability of
the candidates. A close-ended questionnaire has been developed which fundamentally
focusses on corporate social responsibility as the strategic approach. Sampling size includes
50 individuals. The following section of the chapter provides the converted data which are
presented with the help of graph and table.
4.2 Presentation of Quantitative Data
It has been identified that as Starbucks is relatively a global brand it has global
reputation due to its longstanding product quality and social image. Therefore, a large
percentage of chosen audiences are quite familiar about the brand. This means that the survey
data indicates that almost 42% of respondents out of 50 customers have stated the fact that
they prefer the brand because Starbucks maintains a high quality standard in product.
1. I prefer Starbucks because

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Graph 1: Customers’ preferences of Starbucks
However, when it comes to brand preferences, existing research papers state the fact
that customers usually prefer the brand that has longstanding market reputation due to social
image, product quality. So, even though, there is an emerging awareness in relation to
corporate social responsibility, when considered from a global perspective, it is worth stating
that CSR is an emerging concept to people across the globe. This means that percentage of
people who are conscious about the brand is relatively less. Nonetheless, when it comes to
CSR in management, existing studies state the fact that there is a significant relationship
between corporate social responsibility and Corporate Financial performance. A regression
analysis performed by Simionescu and Dumitrescu (2018), indicates that to learn the
relationship between the variables Corporate Social Responsibility and Corporate Financial
Performance (Simionescu and Dumitrescu 2018).
Another significant question in the survey implies that the fact that customers today are not
entirely blunt about the presence of CSR in business in today’s dynamic business
environment. As the question 2 in survey implies that almost 24% of customers are aware of
corporate social responsibility in business.

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2. What is level of your knowledge regarding Corporate Social Responsibility
(CSR)?
Figure 2: Customers’ knowledge about the context of CSR in business
The above presented graph helps to identify the fact that almost 46% of the respondents have
mentioned the fact that they are quite familiar with the concept of corporate social
responsibility. This means environmental issues are taking its toll on business environment
driven by customers’ awareness, brands today intend to engage itself in CSR activities. In the
literature, it was found that in spite of the growth and popularity, centuries’ evidence about
the concern of business community in relation to society can be traced. In order to appreciate
the context in which corporate social responsibility (CSR) evolved and flourished, studies
have considerably paid attention to Industrial Revolution (Simionescu and Dumitrescu 2018).
3. How much attention do you pay to CSR policy of a company as a customer?

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Graph 3: How much attention customers pay to CSR policy as customer
The above presented graph helps to state the fact that almost 50% of the respondents
mentioned that they prefer the brand that are socially responsible, ethical. This means that
promotional activities are usually done picking up the social issues. Almost 24% of the
respondents have stated the fact that CSR is relatively important to customers and they pay
attention to company’s CSR policy. This data facts make it easy to understand that customers
today are significantly conscious about the brand that are going forward to address and social
and ethical issues. According to Jiang, Fu and Liu (2016), business should support those
stakeholders and community by implementing voluntary actions and the communities where
they perform their business activity. Nonetheless, there is a reasonable claim by authors that
even through external market environment such as customers or global audiences are quite
aware of the issues but research fields paid least attention to such field. It was found that

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hardly a number of companies have been able to play a more active role in promoting the
CSR policies. Authors state the view that most of the studies on CSR are performed in the
developed nations but why there is a very limited number of studies on CSR in emerging
economy or developing nations. This means that the brands that are performing in under-
developing nations or under an emerging economies hardly perform CSR activities.
Nonetheless, given the environmental concern, strategic benefits derived out of CSR, there
has to be a rise in the level of global awareness.
However, when it comes to CSR as a strategic managerial approach, it is wise for
brands to consider the external market environment. For example, the brand should consider
customers’ voice.
4. How CSR practices influence company’s image in your opinion?
Graph 4: How CSR practices influence brand’s image in customers’ opinion
The above presented graph helps to observe almost 42% of the respondents have
stated the fact that CSR practices undoubtedly favourable for the brand and it does influence
the brand in a positive manner, while almost 28% of customers have stated that CSR can

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favourably like the brand. Furthermore, it has also been identified that almost 10% of the
respondents out of 50 respondents remain neutral about the context. However, it is identified
that the percentage of negative opinion about CSR effect on brand is relatively less. Existing
studies indicate the fact that there is a direct relationship between corporate social
responsibility and corporate financial capital. This indicates that a direct relationship –value
of intellectual capital will increase, if the businesses are highly involved in the
implementation of corporate responsibilities. Nonetheless, when it comes to deriving positive
gain from CSR, organisation must have to think of its stakeholders. The organizations should
also be involved in different variety of CSR activities to meet the stakeholders and this will
eventually create a positive impact on firm’s overall performance.
Nevertheless, it is certain that there is a direct relationship between CSR impact and
organizational performance. This means effective or high level of engagement in CSR can
significantly affect organizational performance in a positive manner. The survey data does
not hold much discrepancy with respect to the outcome out of CSR.
5. How far do you agree that Corporate Social Responsibility affects organizational
performance?

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Graph 5: Corporate Social Responsibility affecting organizational performance
Above presented graph helps to identify the fact that there have been almost 44% of the
respondents out of 50 have mentioned the fact that implementation of CSR activities can
generate positive outcome for the organization, while almost 20% of 50 respondents have
stated that they do not agree to the context that CSR can affect organizational performance.
So, if the customers’ opinion are considered in relation to deriving positive outcome of CSR,
it is worth stating there is a level of discrepancies in the opinion of customers. It can be
mentioned that positive or effective outcome does not usually come from definitive CSR
goals; this means that organizations must have to consider the relevant activities or approach
for a positive CSR outcome like how the brand or the organization is actually spending or
funding the money for the implementation of the activities.
Appropriate investment can be one of the significant reasons which can lead to
positive outcome. According to Heyder and Theuvsen (2009) businesses with high growth
capability is most likely to allocate their funds to the firms with larger size and expand the
market to receive greater profit and they do not wish to spend the remaining funds to CSR.
On the basis of both primary and secondary outcome, it can be mentioned that both

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implementation of CSR activities may become easy for large organisation with better
financial capabilities. However, when CSR is argued generally, it is often seen that small and
medium size organisations often use CSR activities as their strategic approach to reach the
target market. This means when the market is competitive in nature and surrounded large
investors, small business can easily survive in the market, its strategic focus revolve around
social and environmental issues. As stated above environmental issues have become critical
standpoint across the global markets, it is always effective for the brands irrespective of
financial capability and market exposure, think from environmental and ethical perspective.
Maqbool and Zameer (2017) mentioned about the percentage of social and environmental
literacy, which can be a potential reason for customers’ social and environmental demands.
Customers in any business sector now days tend to look for the brand that have potential
social contribution. Therefore, Starbucks in this context is a step ahead because Starbucks has
always been engrossed in green initiatives.
However, organization also needs to be significantly engaged in the implementation of CSR
activities on a regular or periodical manner. This means CSR programs should not be
showcase items associated with the brand. The brand has to be practically involved in CSR
operation.
6. How far do you agree that organization needs to publish and evaluate its CSR
report periodically?

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Graph 6: Organizational role in publishing CSR reports on a periodical manner
The above presented graph helps to identify the fact that almost 54% of the respondents have
mentioned the fact that when it comes to organizational involvement in CSR, evaluation
becomes a significant part of it. This means organization must have to publish and evaluate
its CSR reports periodically. Likewise, another 26% of the respondents hold the similar
opinion that businesses today need to publish and evaluate the reports periodically. This
means it is noted that evaluation of CSR work ensure that how effective the initiatives have
become after the implementation. However, there is a no denying that there CSR in the recent
time has significantly been treated and applied frequently. Especially, the large organization
like Starbucks have clear notions such as contribution to the environment for the
consumption of natural resource and their sustainability, while establish potential social
image. In addition to this, the organization Starbucks publishes a Global Responsibility
Report that shares the data highlighting the impact which they had over the past years. This
means the organization uses the data to inform the coming year’s strategy in order to make
sure that their programs are as effective as possible. Instead of just simply presenting a CSR

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strategy and blindly sticking to it, the brand takes time to particularly measure as well as
evaluate the CSR programs.
However, in order to make such contribution to the society and environment, it is
always necessary for the brand to link or align its CSR strategies with the operational
strategies.
7. How far do you agree that CSR strategies need to be linked to operational
strategies?
Graph 7: Alignment of CSR strategy and operational strategy
The above presented graph helps to observe the fact that almost 34% of the
respondents stated that CSR activities have to be aligned with the operational strategies.
Almost 20% of the respondents out of 50 respondents have stated the fact that in order to
receive positive outcome from the CSR activities should not be treated as just CSR but it
should be treated as the strategic approach. In the literature, it was found that there is
something called ‘creative marketing’ which is a significant part of CSR. This means CSR

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approaches should be treated in a creative way where brands must have to leverage the CSR
effort to fulfil its marketing goals. For example, if the beverage giant Starbucks finds that
Hong Kong faces the issue of drinking water, Starbucks should focus on such environmental
issue. The organization can create social awareness through digital environment about the
water crisis. Consequently, audience can see the organizational effort into the issue and end
up creating a perception that brand is socially active. Eventually, they make the purchase
decision. When it comes to considering scholars’ view about how CSR can help brands to
gain competitive advantages, it is found that dominant perspective in which it is learnt that
CSR creates competitive edge and it eventually helps business to maximize the financial
strength of the business and Starbucks stand as a learning example to the context.
8. How far do you agree that Starbucks has sustainable packaging initiatives?
Graph 8: Starbucks’s sustainable packaging initiative
The above presented graph indicates that almost 44% of the respondents agreed to the
context that Starbucks effectively has sustainable packaging initiative, while only 12% of the

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respondents stated the fact that they do not share the same opinion regarding the context. It
has been identified that Starbucks has engaged itself into the initiative of decreasing the waste
related to its business, increasing as well as promoting reusability. This means that the
organization has taken the initiative of making substantial growth to reduce the influence of
waste generated in store with the help of cup innovation as well as enhanced packaging
design, advocacy for local recycling infrastructure and manufacturing reusable cups.
Environmental contribution of Starbucks does not cease to recycling of paper cups, as the
organization has continually worked to minimize the environmental effect of its cusps and
lids. Particularly, in 1997, the organization Starbucks launched a hot cup sleeve to reduce the
most significant practice of double-cupping. Furthermore, in 2006, Starbucks developed
paper cup which is manufactured with 10% of percentage post and consumer cycled fibre.
Furthermore, it has also been identified that particularly in 2018, the organization Starbucks
partnering with Closed Loop partners, significantly launched global effort to integrate
entrepreneurs as well as the recyclers to identify as well as commercialize the coming
generation of recyclable cup solution through next generation Cup and Challenge. Thus, it
can be mentioned there are several reasons based on which customers build a positive mind-
set that Starbucks is socially responsible and thereby, it is worth mentioning that Starbucks
social and environmentally responsible. Particularly, the context of reusability was a
significant imitative in the field of Corporate Social Responsibility. According to Ottman
(2017) reusable cups remain as the most significant element of Starbucks’ overall waste
reduction strategy. Therefore, it can be mentioned that such green initiatives can generate
positive financial outcome for Starbucks.
9. How far do you agree that green initiative taken by Starbucks would generate
positive environmental outcomes?

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Graph 9: Starbucks’ Green Initiative
The above presented graph implies that almost 22% of the respondents have stated
they strongly agree to context that the coffee and beverage giant Starbucks generate profits
out of its green initiative implemented environmental sustainability. Likewise, almost 26% of
the respondents agree to this this fact, while almost 20% of the respondents do not agree to
the stated fact. It has been identified Recycling and Waste Reduction Initiative. At the first
quarter of 2009, Starbucks worked with local communities to make recycling easier (Ottman
2017). According to Chen, and Lee (2015), Starbucks started providing recycling at the front
of their house in some potential markets in Canada. Likewise, when it comes to green
initiative, the brand is well aware of the fact that it stores create 80% carbon footprint of
organization and it is significant to conserve energy regarding energy efficiency to minimize
contribution to climate change. Yan and Yazdanifard (2014) mentioned that almost 600
billion paper and plastic cups are significantly distributed across the globe and Starbucks is
accountable for 1% of the overall. Moreover, when it comes to profits, Starbucks was the first
coffee chain in UK to provide a 0.1£ discount for its reusable cups before significantly
increasing to 0.25£ in 2008 and 0.5£ in 2016. Furthermore, it has also been identified that in

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2014 Starbucks launched a £1 reusable cups and in spite of such efforts only 1.8% of
customers use reusable cups. This fact is quite similar the secondary findings, where Crane
and Glozer (2016) mentioned Starbucks observe that its business model is significantly
associated to the single use cups and thereby Levy could become a huge financial revenue
stream for Starbucks.
However, such possible revenue stream are not achievable for start-up or small size
organization because several brand that come ahead with bigger CSR initiatives usually fail
to gain outcome.
10. How far do you agree that CSR initiatives of the organization is usually failed
due to financial challenges?
Graph 10: CSR initiatives lead to failure due to financial challenges
Graph 10 representing the primary data indicates the fact that almost 28% of
respondents strongly agree to the fact that CSR initiatives are usually failed because of the
financial challenges. Almost 32% of respondents agree to the fact that implementation of
CSR initiatives can fail due to lack of funds or financial difficulties. However, this primary

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data set is significantly dissimilar to the secondary findings. Especially, Graafland and Zhang
(2014) mentioned that in order to have a generate positive impact on the communities it
works, Starbucks developed community stores in several places and such community stores
tend to partner with the regional non-profits organisations. It is significantly noted that such
stores can work together with the services to effectively need the communities they belong to.
In return, the organization donated $0.05 to $0.15 per transaction to the non-profit partner.
For Starbucks, the CSR initiative significantly worked because the brand significantly
decided to invest in its people and the communities they work with. According to Wang et
al. (2016), when the organization puts its people first and pay attention to making positive
changes for the communities they work and serve the consumer notice. Sharma and Kiran
(2013) mentioned when the organisation tend to support the social environmental issue,
almost 93% of customers carry a positive image about the company. This means that the
resultant outcome and strategy of Starbucks are kind of an evidence that to gain positive
outcome out of CSR initiatives, approach should be real-world and achievable. However, it is
worth stating that customers’ opinion could differ on the basis of their age and background.
11. Which age group do you belong to?

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Graph 11: Age group of respondents
The above presented graph helps to observe the fact that almost 58% of the
respondents belong to the age category of 26 to 30 years and almost 14% of the respondents
belong to the age group of 22 to 25 years. Thus, it can be stated that a large percentage of
young population in Hong Kong are coffee lovers and they often pay visit to Starbucks.
Rexhepi, Kurtishi and Bexheti (2013) argued that young population may lack experience in
relation to corporate social responsibility. However, it is identified that Corporate Social
Responsibility is more of an issue that organizations can do longer afford to ignore as CSR is
mostly treated as the rapid growth and increased scrutiny. It is noted that studies significantly
agree that when organizations do engage properly with CSR policies, the eventual rewards
are most likely to become huge for both the society as well as organization’s reputation.
Thereby, it is not entirely a true fact that only young customers despite frequent visit to
coffee outlets lack experience about CSR. Corporate Social Responsibility now days have
become a global phenomenon through the penetration of social media. According to Wang et
al. (2016), positive CSR is considered as kind of a contribution to a customers’ positive self-
image. Although there have been a series of argument about young customers’ experience
CSR, the increase of sustainable consumption is kind of a middle class phenomenon which is
definitely used to declare social status.
12. How far do you believe that brand image can be developed through sustainable
marketing strategies?

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Graph 12: Brand image development through sustainable marketing
The above presented graph helps to observe the fact that almost 34% of the
respondents state the fact that organization can develop its brand through sustainable
marketing strategies. Almost, 30% of the respondents agreed to this context that brand image
can be developed with the help of sustainable marketing strategies. Context of sustainability
have always been preoccupying the attention of policy makers for many years and
particularly in today’s marketing environment, sustainability has become a mainstream issue.
As put forward by Andrews (2016), sustainability strategy often demand holistic
transformation of business framework as well as synergetic approach. However, it is found
that with the evolution of marketing, particularly the green marketing, each element of
marketing mix has been enhanced. As put forward by Crane, Matten and Spence (2013),
green marketing can encompass all marketing combine all marketing activities with the aim
of stimulating and sustaining environmentally- friendly behaviour of customers. This means
with such branding strategies, organizations achieve a greater level of interaction with
customers as well as core element of excellent proposition has enhanced as the most effective
part of sustainable marketing strategy. This means that the loyal customers can drive the

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force of brand as an asset and thereby, customers remain the trigger which further influence
another group of customers. When it comes to sustainable marketing strategy, Khojastehpour
and Johns (2014) mentioned that sustainability does not cover all of the marketing effort,
rather it is more about collaborating, learning, creating, assessing, implementing as well as
constantly evolving. On the contrary, brand is kind of a unique blend of mixture of functional
as well as emotional characteristics. Brand management emerge remains and remains a more
dynamic business process with the sustainability.

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4.3 Summary of key findings
In order to learn about how corporate strategy can fall under the strategic framework
or to learn how it can be incorporated into strategic framework, analysis started from brand
recognition. Findings significantly implies the fact that almost 42% of the customers have
mentioned the fact that product quality is one such element of Starbucks that influences most
of the customers to pay revisit. This indicates that Starbucks is relatively popular and thereby,
there is a significant demand for CSR activities from customers. Moreover, a large
percentage of Starbucks’s customers are aware of the corporate social responsibility and
thereby, customers demand the brand to perform socially and ethically. It is also learnt that
almost 50% of customers insisted on the fact that customers usually choose the brands that
are being responsible in social campaign and advertisement. This findings is also similar with
the secondary findings, in which the scholars have stated the fact that business should the
stakeholders and community by implementing voluntary actions and communities where the
business can perform the business can perform the CSR activities. Findings of the study also
indicate that there is a direct relationship between CSR implementation and brand’s
performance. If the businesses are highly involved in the implementation of corporate
responsibilities, the financial capital of the business is often increased. The organizations
should also be involved in different variety of CSR activities to meet the stakeholders and
this will eventually create a positive impact on firm’s overall performance. Moreover,
according to the primary findings, organization Starbucks publishes a Global Responsibility
Report that shares the data highlighting the impact which they had over the past years.
Further, it has also been derived from the finding that scholars hold the view about how CSR
can help brands to gain competitive advantages, it is found that dominant perspective in
which it is learnt that CSR creates competitive edge and it eventually helps business to

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maximize the financial strength of the business and Starbucks stand as a learning example to
the context.
CHAPTER 5- RECOMMENDATION AND CONCLUSION
5.1 Conclusion
Importance of CSR in contemporary businesses
The above presented data findings is significantly favourable towards the benefits that can be
gained out of the CSR strategies. Even though CSR is a longstanding concept and made its
presence in old business practices but popularity and importance of CSR have only been
found in the modern days. Even though CSR is of high relevance for food and beverage
sector as it delivers human basic needs and holds a strong impact on public health, CSR has
become a fundamental element of business activities in the food and beverage sector. In the
introductory chapter of the dissertation, it was found that due to market dynamics, changing
consumers’ preferences and government pressure, larger brands in the food and beverage
sector are in the rush of developing corporate social responsibility initiatives. An increasing
number of studies on corporate social responsibility state the fact that social responsibility
and ethical practices are fundamental to success. Findings of the study is also similar to this
introductory overview about CSR because the findings state the fact that the an increasing
number of organizations today are shifting their attention from traditional business practices
to contemporary CSR approach because consumers across the globe today prefer the brands
that are socially and ethically responsible and the brands that take environmental
sustainability initiatives.
Aligning purpose of the study, literature and research findings
Importance of CSR and its relevance as strategic marketing comes into action as
global customer awareness about corporate responsibility. The major purpose of the study

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was to find out how corporate social responsibility can fall under the strategic management
framework. In order to investigate the same, a detailed review of literature on corporate social
responsibility has been performed. Review of existing studies state the fact that organizations
are increasingly becoming aware of the fact that they should to conform to the responsibilities
with respect to the impact of business activity on stakeholders. On the basis of existing
findings, the common insight that came out is that business needs to support the stakeholders
and community by significantly performing voluntary actions and communities where the
business activities can be performed. Even though there have been a broad discussion on
corporate social responsibility. In addition, there has been a significant gap in the literature in
relation to application of CSR in business, because existing studied paid attention to
corporate responsibility and corporate financial performance. There have been a series of
arguments that there is a trade-off between profits and contribution have probably been
content with the notion that costs incurred by organizations for social as well as cultural
reasons make the companies bear the loss with respect to the businesses that do not act
similarly. Likewise, there have been a different set of arguments in the studies which state
that there is a positive relationship between intellectual capital corporate social
responsibilities. This remains a direct relationship –value of intellectual capital will increase,
if the businesses are highly involved in the implementation of corporate responsibilities.
Thus, to fulfil the gap and find out how corporate social responsibility falls under the
strategic framework, this study used a primary research method in which quantitative
research approach was used.
5.2 Recommendation
Adequate attention to environmental and social concern
When applying or developing CSR initiative, the organization needs to pick the
ongoing environmental issue that has created toll on the people or the community. Thereby,

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the strategy needs to highlight the environmental gaps and solution against the same. For
example, Starbucks runs in its operation in a geographical location where people face the
challenge of drinking water. Thus, considering the issue, the brand needs to market its
beverage product in a way that it has to show that how beverage items are being made. The
process needs to be disclosed in its media channels. Thereby, the marketing approach needs
to be aligned with the ongoing environmental and social issues.
Short-term CSR goals:
It has been identified that environmental issues are ongoing affair and to resolve such
issues, businesses must have to make large investment. However, environmental issue carries
a long-term effect. Investing on long-term issue can be of large investment; thereby, the
investment can be a big financial challenge. Thus, the organisation needs to develop short-
term goals incorporating the environmental issues and thereby, short-term goals would be
easy to implement and it requires limited investment. The organisation needs to demonstrate
the process in relation to how it is actually addressing the issues. In addition, the CSR goals
and approach needs to be incorporated in its marketing approach. For example, packaging
and papers cups may carry the message ‘don’t spill, Save water’. Promotion and such
marketing helps the brand to create social awareness.
Responding to environmental and social concern
With respect to environmental standards, Starbucks has to make considerable progress
by helping the suppliers to obtain ISO14001 certification. On the basis of the social
perspective, the brand needs to encourage the producer and suppliers to set up Hygiene,
Security and Environment Department which must be committed to respecting hygiene and
food security standards and the workplace ergonomics where food and safety have to be
ensured adequately.

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Transparency and traceability to ensure ethical and sustainable practices
The organization Starbucks need to work with the farmers to minimize resource
consumption on farms, optimise pesticide as well as use of fertiliser and also significantly
invest on agricultural innovation. The organization should also focus on building suitable
mechanism for the transparency and traceability to make sure ethical as well as the
sustainable practices with the whole supply chain. When it comes to ensuring the
transparency, the organization needs to review its commitment to minimise the greenhouse
gas emission, use of water and the water to landfill and food waste generation in the
operation. To implement this, the organization needs to build commitment and trust with the
stakeholders through the transparency.
Educating the consumers
It is certain that the big firms like Starbucks have the power to influence the real
change. In order to implement this initiative the organisation Starbucks needs to host a set of
interactive web series, along with stories and videos and it should be active on the social
media. This campaign should definitely feature on some spoke candidates as this may help to
increase awareness across the renewable energy. It is expected that when more customers
tend to engage in dialogue in relation to addressing the climate change issues, there can be a
global or unanimous pressure regarding the change in business practices. This is certain that
one business alone cannot instruct other businesses to follow the same path but the same can
be done when a mass crowd raise the voice about changing the business practice.
The above recommendations are entirely based on supports towards the environmental
sustainability. Suggestions derived from the context of CSR are centred on the fact that
organisations that embrace sustainability and make use of relevant sustainable initiative
across the brand portfolio where most applicable could be positioned better to fulfil customer

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demands for a greater level of corporate social responsibility. This means at times, it can be
challenging to measure the return on these initiatives. Protection of planet, people and
environment can only have the positive return.
5.3 Future work:
In order to find out how corporate social works are being treated as the strategic approach in
business, scholars of future studies need to perform comparative study in which two different
organizations from different industries have to be chosen to identify how CSR activities are
being carried out by the organization. Furthermore, the review needs to be more detailed in a
chronological order; so that the progress of businesses in CSR can actually be measured.

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