A Study of Corporate Social Responsibility Starbucks Introduction Business is a part of the total society in which it operates. As a major element of society, businesses affect people in multiple ways. Society, In turn, influences the conduct of business. Company History The story of Starbucks begins in Seattle in the year 1971, the first store opened its doors in the Pike Place Market. In 1982 Howard Schultz joins Starbucks ans the director of marketing and retail. He develops a plan to develop coffeehouses in Seattle like in Italy. In 1988 Starbucks no has 33 stores and offers full time health benefits to all employees.
Starbucks eventually goes public under the call name SBUX in 1992. Starbucks once again makes the availability of their coffee better by opening up the first drive-thru in 1994 and owns 425 stores. Frappuccino products begin to be served in 1995 along with ice cream. Not long after in 1996 Starbucks begins selling bottled Frappuccino products. The Starbucks foundation is founded a year later. In 2004 Starbucks has 8,569 stores. Starbucks caters a large amount of people, holding about 33% of the coffee market (smallbusiness. chron. com).
Starbucks primarily targets men and women ages 25-40 and account for 49% of sales (smallbusiness. chron. com). This is why Starbucks’ environment is also targeted to young adults which make up 40% of all sales (smallbusiness. chron. com). Starbucks uses its contemporary design, technology and products to attract both groups. Starbucks offers 30 blends of coffee, Handcrafted beverages,fresh food, merchandise, and consumer products such as K cups. The company headquarters is located in Seattle, Washington. Starbucks operates in all 50 states including the district of Columbia and 43 other countries outside the United States.
Starbucks hit an outstanding 11. 7 billion dollars in revenue in 2011with an 8% sales growth. The Starbucks stock is at $45. 30 and has been dropping since it opened its first store in India. The company has over 170,000 employees globally. Starbucks has proven itself a sustainable company and should be around for many more years. Acts of Social Responsibility In Today’s world it is important for businesses to be socially responsible to create a good image for them. A company can be socially responsible in three major areas, the community, the environment and its employees.
Starbucks Coffee Company has been dedicated to being socially responsible since they opened their first establishment in 1971. “We continue to believe that the ultimate way to scale the power of brand is to share the good we do so that Starbucks and everyone we touch – can endure and thrive. ”(www. starbucks. com). Starbucks is dedicated to community involvement environmental stewardship and Ethical sourcing. By helping the community the community they serve Starbucks is able to leave a positive impact an create a positive image for their community.
By the year,2015 They hope to have contributed one million service hours each year to their communities. In April ,Starbucks Partnered up with non-profit organizations around the word for the global month of service. When it comes to the environment Starbucks starts with its products. Starbucks has been changing their cups to be reusable and or recyclable. Their goal is that 100% of their cups will be this way. Starbucks strives to reduce their carbon footprint. They plan on doing this with energy and water conservation and green construction. By changing light bulbs to led lighting they are reducing energy consumption by 80%.
They also have implemented Havoc heating and cooling systems which once again reduces energy consumption by 20%. Starbucks is also committed to Ethical sourcing. They purchase high quality beans from Local farmers. and supporting local forest conservation programs. Conclusion Starbucks wants to be a good neighbor, they strive to achieve both profitability and a healthy social conscience. They are always looking for new ways to help their neighbors and invite the community to join them. Being a socially responsible company has made Starbucks great and will continue to do so for many more years.