Analysis of Starbucks' CSR, Rapid Growth, and Employee Benefits

This report provides an in-depth analysis of Starbucks' corporate social responsibility (CSR) practices, employee benefits, and strategies for rapid growth. It examines Starbucks' commitment to ethical coffee sourcing, stakeholder interests, and its impact on the business's global expansion. The report delves into Starbucks' focus on employee satisfaction, highlighting its investment in employee health insurance and empowerment initiatives. Furthermore, it explores the company's ability to meet consumer demands through product quality, socially responsible activities, and the promotion of a healthy lifestyle. The report also discusses the 'Starbuciksation' concept and its role in shaping consumer behavior and market reputation. The analysis includes references to academic sources and industry reports to support the findings.

BUSINESS RESEARCH
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TABLE OF CONTENTS
SECTION A ....................................................................................................................................1
SECTION B.....................................................................................................................................2
1. Concern of Starbucks for social responsibility and corporate strategy..............................2
2. Uniqueness of Starbucks in accordance with the benefits to its employees.......................2
3. Analysis of rapid growth of Starbucks...............................................................................3
REFERENCES................................................................................................................................4

SECTION A
Digitalisation of enterprises has revolutionised the business world where it is becoming
important for the organisation to improvise their workplace in order to reduce manual workload.
However, Sawicki, 2017, has stated that digitalisation of workplace has established flexible work
environment for the European workers. It has increased the interest of employees in workplace
environment by reducing distance due to geographic boundaries. Further, the tools have enabled
system of online communication which assists in managing direct communication of workers at
all levels (Workplace of the Future: A View from European Youth, 2014). Advanced tools are the
most preferred by European youth because it helps employees in integrated working and in
strengthening business functions. In addition, system reduced the risk of favouritism and biases
at workplace.
Apparently, as per Liu, Li and Gao, 2017, it has been discussed that there are 3 elements
of digital technology which are appealing to European youth that is user friendly systems, easy
communication and sustainability in work environment. Environmental technologies aims at
recycling abilities which helps in managing corporate governance. Economic success of an entity
is based on sustainability of its operations. In accordance with Teece and Linden, 2017, it is the
only thing of advancement which assists organisation in surviving in dynamic market trends.
Nevertheless, as per European youth interest, it has been determined that economic success of
company can only be measured by meeting consumer demands with the changing trends.
Similarly, youth is accepting the technological advancement because it has made innovation
easier and on the other hand, reduced need of training.
Apart from this, education system is also playing an important role in influencing
European youth towards digital enterprise and working environment. The classroom has become
digitalised where all the students have access to internet and smart learning tools. However, as
per Uhl and Gollenia, 2016, classroom learning of youth has established the easiest mode of
extracting reliable information which has promoted the needs of flood of information for
employees in digital enterprise. Thus, from the discussion of three points, it can be outlined that
digitalisation of operations has encouraged the needs of advanced work environment for
European youth.
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SECTION B
1. Concern of Starbucks for social responsibility and corporate strategy
Starbucks is a leading coffee house brand found in the year 1971 and now located across
the globe. The firm purchases premium quality whole bean coffee and sells them with freshly
brewed coffee beverages such as espresso, cold blended coffee, etc. The reason behind
successful management of growth worldwide is consideration of stakeholder’s interests and
compliance with corporate social responsibility. Moreover, in 2006, the coffee bar was on 17th
rank with respect to business ethics. In accordance with CSR practices, it can be said that the
firm is focused on its corporate governance because of global marketing survey from where it
has been discovered that the organisation is intrusive, arrogant and self-centred (Gulen and
O'Brien, 2017). The information is extracted from potential customers of Starbucks which state
that quality of coffee services is up to the mark but way of enhancing consumers is arrogant due
to which individual changed their preferences. Therefore, to gain customers, the firm introduced
concept of ethical coffee in 2002 with fair trade coffee of the week. Further, with the success of
concept, Starbucks permanently added the concept into menu.
In addition, to redefine pillars of Starbucks as per corporate governance the company has
started promoting contribution to stakeholders and environmental friendly practices. To attain
advantage over CSR plans, Starbucks has partnered with non-profit organisation that is
Conservation International to promote biodiversity (Dorn, Messner and Wänke, 2016). Further,
the coffee bar launches new programs and schemes in order to gain consumer attention which
denotes focus of organisation of CSR plans and policies in order to gain interest of stakeholders
and serve employee satisfaction.
2. Uniqueness of Starbucks in accordance with the benefits to its employees
The focus of coffee bar is to provide employee’s satisfaction because these are the core
assets of business which represents its image as well as products and services across the globe.
Firm has young and educated workforce which assist the firm in managing successful innovation
in coffee services. The firm believes that being employer comes at high cost and therefore, it is
responsibility of management to serve workers with motivation (Hoffmann and Lutz, 2015).
Uniqueness of Starbucks to employee’s benefits is denoted by its plan of 2005 in which the firm
has spent more on health insurance of staff members in comparison to raw coffee materials. In
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addition, the company provides health coverage to staff members who work more than 20 hours
a week. In US, the organisation operates 8,000 stores, where it spent $200M on health care for its
80,000 US workers.
Thus, the satisfaction to employees and unified schemes for worker management has
assisted Starbucks in managing low employee turnover and increasing productivity. The firm has
proved that while making money, it is important for an organisation to practice fair labour plans
and policies as well as social conscience. Further, the focus of organisation is to give power to
employees where every individual holds the right to share and raise opinion which can be related
to work environment, innovation, strategic plans, etc.
3. Analysis of rapid growth of Starbucks
Growth and success of enterprise are the key elements which represent company’s ability
to meet consumer demands. In accordance with the discussion, it has been identified that
Starbucks has attained financial success and market reputation by improvising product’s quality,
protecting stakeholders interest and making business activities socially responsible (Real and
Percell, 2018). Further, the concept of organisation of free trade coffee has enabled competition
of rivalries and established development opportunity for growth and development.
In addition, to boost the interest of consumers with coffee bar, the management has
focused on promoting pop culture with the concept of managing consumer society which will be
recognised as Starbuciksation. The Starbuciksation concept of firm is based on three elements
that is when we work and play, what we eat and drink and how we spend our time and money.
Thus, as per these corporate governance and socially responsible concepts of Starbucks, the
management aims at serving buyer satisfaction and promoting healthy lifestyle across the globe.
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REFERENCES
Books and Journals
Dorn, M., Messner, C. and Wänke, M., 2016. Partitioning the choice task makes Starbucks
coffee taste better. Journal of Marketing Behavior. 1(3-4). pp.363-384.
Gulen, H. and O'Brien, W.J., 2017. Option repricing, corporate governance, and the effect of
shareholder empowerment. Journal of Financial Economics. 125(2). pp.389-415.
Hoffmann, C.P. and Lutz, C., 2015. The impact of online media on stakeholder engagement and
the governance of corporations. Journal of Public Affairs. 15(2). pp.163-174.
Liu, C., Li, Y. and Gao, J., 2017. Special issue on digital enterprise technologies. International
Journal of Advanced Manufacturing Technology. pp.1-2.
Real, K. and Percell, H., 2018. Starbucks Corporate Social Responsibility Report.
Sawicki, A., 2017. Companies and digital space. World Scientific News. 67(2). pp.113-125.
Teece, D.J. and Linden, G., 2017. Business models, value capture, and the digital
enterprise. Journal of Organization Design. 6(1). p.8.
Uhl, A. and Gollenia, L.A., 2016. Digital enterprise transformation: A business-driven approach
to leveraging innovative IT. Routledge.
Online
Workplace of the Future: A View from European Youth. 2014. [Online]. Available through:
<http://www.corporate-leaders.com/sitescene/custom/userfiles/file/
Workplace_of_the_future.pdf>.
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