CSR Analysis: Starbucks, BMW, Shell, Coca-Cola, McDonald's, Primark

This essay provides a detailed analysis of corporate social responsibility (CSR) initiatives implemented by several prominent companies including Starbucks, BMW, Shell, Coca-Cola, McDonald's, Primark, and Tommy Hilfiger. It explores the advantages and challenges associated with these programs, focusing on stakeholder engagement, sustainability, and overall business impact. The analysis covers various aspects such as community service, employee development, environmental concerns, and ethical labor practices. Specific examples, like Starbucks' farmer network, BMW's diversity initiatives, Shell's social investment programs, Coca-Cola's sustainability efforts, McDonald's stakeholder focus, Primark's HER project, and Tommy Hilfiger's labor and environmental management, are examined to illustrate the diverse approaches to CSR and their effects on corporate reputation and societal well-being. The essay highlights the importance of CSR in achieving sustainable growth and meeting societal objectives, while also addressing the financial and logistical challenges involved in implementing and maintaining effective CSR programs.

CORPORATE SOCIAL RESPONSIBILITY 1
Corporate Social Responsibility
Student's name:
Code +course name
Professor's name
University name
City, state
Date

CORPORATE SOCIAL RESPONSIBILITY 2
Corporate Social Responsibility
Corporate social responsibility is a model that helps companies to be socially
responsible to both the public and stakeholders (Cohen, 2012). Companies are termed as
socially responsible when they impact the social environmental and economic condition
of the society positively. Corporate social responsibility initiatives can take any form
depending on the industry in which the company is operating. CSR is important to both
the company and the community (Cohen, 2012). CSR activities help an organization to
have good relationships with the employees and the community at large. These activities
are also said to boost the morale of employers and employee. For a company to be
socially responsible, it must prove to be responsible to the stakeholders first. (Cohen,
2012 ). Most of the companies that come up with CSR programs are well-established
companies who can give back to society. Thus this can be termed as an approach for the
big corporations. The corporate environment plays a major role when it comes to the
development of a country. Because of globalization, many companies find it difficult to
handle their stakeholders' demand. Thus CSR needs to be implemented in companies to
achieve sustainable growth and various societal objectives.
Starbucks
Before the initial public offering in 1992, Starbucks was popular because of its
corporate social responsibility and commitment (Schultz, & Yang, 2017 pp.77).
Starbucks has achieved various milestones such as coming up with a global network for
farmers and green building across all its stores. Starbucks has greatly invested in

CORPORATE SOCIAL RESPONSIBILITY 3
community service activities. It has also come up with groundbreaking college programs
meant for its employees.
One major advantage of corporate social responsibility in this company is that it
helped Starbucks to grow its brand globally and ensure good relationships with its
stakeholders (Schultz, & Yang, 2017 pp.79). However the major challenge for CSR
program for this company is that it requires huge amounts of capital investments.
BMW
For BMW manufacturing, corporate social responsibility acts as a catalyst for
change. The company is based in California and it has good relationships with the
surrounding community (Kofler, 2010 pp.135).One major advantages of CSR for this
company is that it has helped in promoting diversity through their environment,
philanthropic efforts and initiatives. However, these initiatives are very much costly to
the organization while only a few members of the society are said to participate in the
CSR programs.
CSR has helped in finding and keeping talented employees it ensures that BMW
is sustainable as well as responsible (Kofler, 2010 pp.130). Through CSR programs
employees are retained in the business thus reducing the cost of recruiting new
employees. One major challenge of CSR program for this company is that its reputation
takes hit. Based on BMW CSR policies, they must disclose the shortcomings of their
products. For example, BMW have to recall back their vehicles if issues are detected in
the model.

CORPORATE SOCIAL RESPONSIBILITY 4
Shell
Shells happen to be a multinational company whose headquarters are located in
Nearthlands. The company is mainly involved in the production and marketing of oil and
gas. The company has its operations in more than a hundred countries (O'Donnell, 2011
pp.146). Shell aims at protecting shareholders investments and ensuring long-term
returns. Thus shareholders are recognized as the most important stakeholders of the shell.
On the other hand, dormant stakeholders are thought to be host governments. In 1995
shell gained a bad name after it decided to sink the Brent Spar in Atlantic Ocean. Many
NGO started a campaign against shell because of its decisions. This made very many
customers in the European countries to stop buying products from the shell (O'Donnell,
2011 pp.112). The organization also aims at providing good working conditions for
employees and employers. The manufacturing refineries have major effects on the
environment in which they operate. Thus the companies have come up with performance
loans and reviews. Through working with the local stakeholders, plans are executed to
reduce disputes and also improve benefits .The companies hire local employees and local
contractors for it to have a good relationship with the surrounding community. The
company has also come up with various social investment programs for the community.it
supports the community through social initiatives in the area of education, health and
development. The company has also partnered with NGO such as the living earth
foundation to ensure community development. The CSR initiatives for shell are achieved
by coming up with social investment programs. The company has an initiative named as
“the live shell wire” which encourages the youth to start their own businesses. This
program is available in 24 countries across the globe. Shell also gives scholarships to

CORPORATE SOCIAL RESPONSIBILITY 5
students. Shell has also come up with an initiative to fight HIV\AIDS. Many of the shell
foundations focus on environmental effects and community welfare. Shell is said to use
$4.5 million annually in community development. Shell also helps employees and
employers to live healthy lives. Most importantly the company creates awareness on
HIV/AIDS. This has greatly assisted in the fight against HIV/ AIDS. It has also ensured
development in the society.
On the other hand reducing emissions, waste, and resources used helps in saving
money and maintaining a clean environment (O'Donnell, 2011 pp.110). However, the
CSR program for this company increases the cost of production. The increased cost of
production normally manifest as the increased cost of products
Coca-Cola Company
A company cannot be run as an economic entity performing its duties in a remote
society. The Coca-Cola Company is thought to have implemented the variables of CSR.
In recent years corporate social responsibility is being tailored together with global
business agenda. However to move from theory to actions a company has to beat many
challenges. Many businesses like the Coca-Cola Company are torn between two poles;
satisfying their shareholders by earning profits, and coming up with CSR initiatives
(Isdell & Beasley, 2011 pp.154). However, it has been proved that CSR is able to
improve profitability in the long-term because it is capable of reducing risk. Based on the
Coca-Cola company corporate social responsibility the major objective of the CSR
programs is sustainability. This is usually demonstrated by how the company acts in
some departments such as employee development, packaging, recycling, and consumer

CORPORATE SOCIAL RESPONSIBILITY 6
health. Based on consumer health, Coca-Cola Company is always working to meet the
modern life trends of its consumers. Because of this, the company is seen to have reduced
the number of calories in its beverages. Based on recycling and packaging the Coca-Cola
company has come up with what is termed as "plant bottle” which is recyclable. The
company has also managed to achieve a high rate of recycling bottles. The company has
also tried to improve efficiency on water consumption. It has managed to improve the use
of water by 3.5 percent from 2008.developing employees is another objective of the CSR
in the Coca-Cola Company. This company depends on its employees for its success.
In its CSR programs, the company has come up with programs to attract, retain
and improve the skills of its employees. This gives employees a chance to be able to
exploit their potential while still growing their talents and skills .Thus promoting
sustainability in the company (Isdell & Beasley, 2011 pp.145). However, some major
challenges facing the company is that employees are from diverse cultures. It is also
difficult to come up with a CSR program that suits their audience since they are from
diverse backgrounds.
Mc Donald's corporate social responsibility
Mc Donald's corporate social responsibility addresses the needs of the
stakeholders. Stakeholders usually affect the firm especially when it comes to consumer
perception. The company has come up with many programs to help address the
stakeholder's interest. Stakeholders are normally affected by the business as they also
affect the business (Lee & Kotler, 2013 pp.306 ). This brings out the importance of
MacDonald's corporate social responsibility. The major stakeholders of the McDonalds
are the customers and the employees. However, they also get to be affected by other

CORPORATE SOCIAL RESPONSIBILITY 7
stakeholders such as the investors and the community. McDonald's sees employees as the
top stakeholder's group. Their interests are normally career development and good
compensation. McDonald's helps to meet the demands of its employees by coming up
with initiatives and programs. The company owns Hamburger University as a training
center for its employees. Customers are the number two stakeholders of the
MacDonald’s, the interests of its customers are normally healthy and affordable food
choices. Macdonald corporate social responsibilities can be thought to be considerable.
The company is much effective when addressing the interests of the stakeholders.
The primary advantage of corporate social responsibility in this organization is
that this company’s assets are inform of reputation, human capita and goodwill thus CSR
approaches are essential for legitimization and organizational success (Lee & Kotler,
2013 pp.316). Corporate social responsibility has helped in building a reputation for this
organization which has made the organization to have a competitive advantage. The
major challenge of CSR programs for this organization is taking a good gauge of the
audience to come up with a good CSR program that suits them. CSR programs are also
associated with huge amounts of capital. MacDonald's is thought to partially satisfy the
interests of customers and employees (Haski-Leventhal, 2018 pp.313). Thus the company
needs to improve its corporate social responsibility efforts.
Primark
Being an international business and having a global supply chain, Primark’s
believes that businesses needs to act and also trade ethically. Primark has about 700000
employees across the globe. Thus the company has to ensure that their rights are

CORPORATE SOCIAL RESPONSIBILITY 8
protected. Primark's does not own companies that produce its goods, but it has the
responsibility of the workers working in the given factories (Wolf, Issa, & Thiel, 2015
pp.25) .it also has a responsibility on shareholders and customers to make sure that
products are made accordingly. For example in it’s HER project in Bangladesh; most of
the manufacturing workforce is made up of women. This job helps women to become
independent and also to reduce their poverty levels (Kofler, 2010 pp.398). However,
these women are usually not well educated because they dropped out of school in order to
help their families. These women also lack good health, nutrition, and hygiene. Childbirth
among these women is usually hazardous, and it also brings out post-birth complications.
HER projects educate these women on the various issues facing them. Through these
projects, women are usually given tools to take care of their personal lives while working.
The CSR program for this company creates positive publicity. This helps in
separating the activities of the company with its competitors. However, the major
challenge of the CSR programs for this organization is convincing customers of the
outcomes of CSR programs (Wolf, Issa, & Thiel, 2015 pp.35). Due to little or no
education to these women most of them are usually unable to grasp what is taught in
these programs.

CORPORATE SOCIAL RESPONSIBILITY 9
Tommy Hilfiger corporate social responsibility
In Tommy Hilfiger corporate social responsibility covers a variety of issues which
include suitable business operations, responsible employment of labor, management of
the environment and ensuring a safety and a healthy workplace (Sanford, 2011 pp.67).
Since apparel manufacturing usually needs a lot of labor, it is clear that production takes
place, where there is the low cost of labor (Kofler, 2010 pp.34) .The Company, takes
responsibility of educating its workers.
CSR has helped in attracting capital inflows from different sources. The image of
a company helps in attracting investors (Sanford, 2011 p.66). People have invested in this
company considerably because of its reputation. However, one major challenge for CSR
activities in this company is that it means greater scrutiny. A failed CSR plan for a
company can bring a lot of scrutiny to the company from the customers and the public.
Nike
Nike is one of the popular brands globally. The company is thought to have more
than 50000 workers and mainly produces shoes though subcontractors (Brettman, 2012).
Many of the factories belonging to Nike are mostly located in Asia because of the low
cost of labor and high unemployment rates. Since 2005 Nike started talking of its CSR
activities after many years of not talking about it. It first stated that many of its
employees in oversee countries work in impoverished environments with very low pay.
Nike started taking new strategies to correct these issues (Brettman, 2012). One of the
significant initiatives Nike put in place is abolishing child labor and increasing pay for its

CORPORATE SOCIAL RESPONSIBILITY 10
employees who work overseas. This has greatly assisted in correcting the image of the
company as well as understanding the different needs of their employees.
Corporate social responsibility has helped in improving the brand image of this
company. It helps people to buy the product the company is selling, while other
enterprises also want to be associated with the Nike. However, one major challenge of
corporate social responsibility to this company is that projects are not always cheap.
Conclusion
In conclusion, corporate social responsibility is essential for every organization.
It is just more than a business trend. Businesses aiming to stay relevant in this new era,
while still increasing their revenues and efficiency are likely to benefit more by
embracing CSR.

CORPORATE SOCIAL RESPONSIBILITY 11
References
Brettman, A. (2012). Nike issues latest corporate responsibility report tweaks
manufacturing benchmarks. The Oregonian/OregonLive. Retrieved from
http://www.oregonlive.com/playbooks-
profits/index.ssf/2012/05/nike_issues_latest_corporate_r.html (Accessed 18th November
2018)
Cohen, E. (2012). The Best CSR Report of 2012?. Sustainable business transformation in
the 21st century. Retrieved from
http://sustainablebusinessforum.com/elainecohen1/74896/best-csr-report-2012 (Accessed
18th November 2018)
Haski-Leventhal, D. (2018). Strategic Corporate Social Responsibility: Tools and
Theories for Responsible Management. London: SAGE Publications Retrieved from
http://www.worldcat.org/title/strategic-corporate-social-responsibility-tools-and-theories-
for-responsible-management/oclc/1028769724 (Accessed 18th November 2018)
Isdell, E. N., & Beasley, D. (2011). Inside Coca-Cola: A CEO's life story of building the
world's most popular brand. New York: St. Martin's Press.

CORPORATE SOCIAL RESPONSIBILITY 12
Kofler, M. (2010). BMW - Overview of Corporate Communication, Corporate Identity,
Corporate Image, and CSR. München: GRIN Verlag GmbH. Hyperion. Star
Lee, N., & Kotler, P. (2013). Corporate social responsibility: Doing the most good for
your company and your cause. Hoboken, N.J: Wiley Retrieved From:
http://rbdigital.oneclickdigital.com. (Accessed 18th November 2018)
O'Donnell, F. (2011). Corporate social responsibility and Shell in Ireland: A thin veneer.
Newcastle: Cambridge Scholars.
Schultz, H., & Yang, D. J. (2017). Pour your heart into it: How Starbucks built a
company one cup at a time. New York, NY:
Sanford, C. (2011). The responsible business: Reimagining sustainability and success.
San Francisco: Jossey-Bass Retrieved From: http://www.books24x7.com/marc.asp?
bookid=41027. (Accessed 18th November 2018)
Wolf, R., Issa, T., & Thiel, M. (2015). Empowering organizations through corporate
social responsibility Hershey Business Science Reference, Retrieved From:
http://site.ebrary.com/id/11004287 (Accessed 18th November 2018)