Corporate Social Responsibility of Starbucks

Starbucks Corporation has invested significantly in corporate social responsibility (CSR) since it can bring a lot of tangible and intangible effects to Starbucks.

CSR will indirectly increase the customers’ loyalty towards Starbucks. When a company become popular and possesses good reputation, consumers may stick on it and new consumers will look for it as well. They might think that they also involved in social responsibility by visiting Starbucks.

Moreover, CSR could help to maintain the quality of supply resources. Starbucks is concerned about improving the lives of coffee farmers and protect the environment where the beans are grown in order to meet the highest-quality coffee standards. Starbucks has built relationships with the farmers who supply the coffee while working with governments in the various countries in which it operates. Besides, Starbucks also pays coffee farmers premium prices for their families support.

Additionally, CSR would increase employee satisfaction. Starbucks provided a lot of benefits to its employee such as health benefits which including health, medical, dental and vision benefits and stock options for individual who works more than twenty hours a week. All these will constitute employee loyalty and satisfaction to continue working in Starbucks.

In addition, CSR will help in improving financial performance and increasing productivity. Starbucks has an employee turnover rate of 60 percent compared to the restaurant industry average of 200 percent. This has proved the successful management of the Starbucks. Through concern with social responsibility, Starbucks’ revenues and profits have increased due to higher productivity, lower absenteeism and labor turnover rate.

Finally, CSR will create reputation and image enhancement. As the company grown, it is important in defending and protecting its image. CSR activities initiatives not only benefit employees and local communities, but can also improve corporate reputations and help companies enter new markets by building valuable infrastructure and expanding contacts. Its reputation is built on product quality, stakeholder concern, and a balanced approach to its business activities.