- founded in 1971 in Seattles

renowned open-air Pike Place Market

- a company purchases and roasts

high-quality whole coffee beans

-It also sells coffee and tea products

and licenses its trademark through
other channels and through some of
its partners
 Howard Schultz
- joined the company in 1982
- Director of Retail and Marketing
- founder and chairman
- a public advocate for increased
awareness of ethics in business
- idea of selling beverages
 Starbucks locates its
walk-in stores in high traffic, high-visibility
locations that generally focuses on
locations that provide convenient access
for pedestrian and drivers.
 Provide a great work environment and
treat each other with respect and dignity.

It distributes the mission statement and

comment cards for feedback during orientation
to all new partners.
Starbucks continually relates decisions back to
the guiding principle or principles that they
support.
Company has formed a Mission Review
system so any partner can comment on a
decision or action relative to its consistency .
 Starbucks was active in
using environmental purchasing guidelines,
reducing waste through recycling and energy
conservation, and continually educating partners
through the companys Green Team.
 Understand how vital the
employees are and good work environment as
the Starbucks top priority. The company spent
more on health insurance and double digit
increases for its employees than on raw materials
required to brew its coffee.
 Starbucks provides
technical support and training which is a
companys project for the coffee-growing
communities to ensure high-quality coffee in the
future and also to build positive relationship with
small coffee suppliers.


Starbucks focuses most of

its effort on the quality of the coffee, the
atmosphere of the coffee shops and on the
customers satisfaction, as a way to enhance their
experiences and to build customers loyalty.
 To enhance the local,
community-oriented feel of Starbucks shops, store
managers are encouraged to donate to local causes
to create Starbucks Foundation which provides
opportunity grants specially to those children to
prepare developmentally for school and to other
groups and programs.
Starbucks as the most prominent brand of high-
end coffee in the world and also as one of the
defining brands of our time. Achieved amazing
levels of growth, creating financial success for
shareholders, reputation is build on product
quality and balanced approach to all of its
business activities.
- during 2008-2009 recession
- pull back on expansion and closed
hundred of their stores
- criticism for the companys clustering
strategy for locations and expansion
- issues such as fair-trade coffee and
generically modified milk
- allegedly financial links to Israeli
government
1. Why do you think Starbucks has been so concerned
with social responsibility in its overall corporate
strategy?

2. Is Starbucks unique in being able to provide a high

level of benefits to its employees?

3. Do you think that Starbucks has grown rapidly

because of its ethical and socially responsible
activities or because it provides products and an
environment that customers wants?
 Starbucks has been concerned with its social
responsibility in its overall corporate strategy because being
social responsible also has its financial and nonfinancial
rewards. This is important to the company because ethical
companies do better in the long run. Because of Starbucks
dedication to their employees and their suppliers,
Starbucks has earned their loyalty. Their employees are
proud to work for the company. When the consumers see
happy, long-term employees, it reinforces a reason for them
to return, along with the inviting atmosphere and great
coffee. As consumers see Starbucks continually practicing
social responsibility and following the guidelines of their
mission statement, they will continue as a loyal customer
and promote Starbucks to their family, friends and co-
workers. So in this, Starbucks understand how important its
employees are and that they are the face of the company.
 Yes, Starbuck is unique in being able to provide a
high level of benefit and treatment . First, employees
actually have a very positive view of their company. The
extension of the care benefits to Starbucks employees is
one such area in which the treatment or benefits to there
employees is different to the other companies. Consider
Starbucks commitment to health care for its employees
actually costs more than the purchase of raw materials for
its coffee. The challenge to Starbucks was how to attract,
motivate and reward store employees in a manner that
would make Starbucks a company that people would want
to work for and that would result in higher levels of
performance. The fundamental premise behind how the
Starbucks would approach the relationship with its
employee is unique not because of its position on it, but
that Schultz and the management aggressively pursued it
more than simply leaving it in companys mission
statement.
 Starbucks rapid growth is due to both its ethically
and socially responsible activities and providing products
and an environment that customers wants. Its ethical and
socially responsible activities create a positive image in the
public eye. Customers want to support businesses like this
and employees want to work for a company that makes
them feel like they are a part of something bigger. This help
the company in the long run. Its ethical commitments shine
strongest in the field it knows best: coffee. One can drink a
cup of Starbucks coffee safe in the knowledge that the
coffee was grown responsibly, mostly organically, and that
the workers were paid fairly. Starbucks is not only
concerned with the making the most profits but they are
also concerned about the wellbeing of their stakeholders,
which is makes the company such a success.
 Case Study
December 4, 2013