Introduction
Corporate social responsibility (CSR) may be thought of as a form of control of businesses, an alternative to the control by markets. CSR is by nature Voluntary wherein it is perceived as self-regulation or self-control in the social interest (Lewis & Warner, 1994). According to the CSR doctrine, corporations are social institutions, creatures of society that in effect have been chartered by society to perform certain purposes. These corporations must adopt policies and actions that are in conformity to the norms and goals of society. If not, the society that granted the charter can revoke it. In this view, businesses have a moral obligation to use their resources for the common good as well as obligations to particular groups such as stockholders, consumers, employees and creditors (Lewis & Warner, 1994). CSR makes sure that the business would monitor and ensure its adherence to law, ethical standards, and international norms. It has been deemed as a built-in, self-regulating mechanism for the company. This paper intends to Analyze Starbucks Coffee Canada and its use of Corporate social responsibility.
Starbucks Coffee
As a result of its brand, customers know exactly what to expect from Starbucks, see their self-image reflected in its products, and become committed adherents and advocates for the company's products. Starbucks is able to increase its share of the market, and, through extensions, its share of each customer's income. It does this through extensions that give its best customers more reasons to spend money at Starbucks (LePla & Parker, 1999). Starbucks is an international coffee and coffeehouse chain. From Starbucks' founding as a local coffee bean roaster and retailer, the company has grown rapidly and has markets not only in the US but in most parts of the world. Most of the time Starbucks has been a target of protests on issues such as fair-trade issues labor relations, environmental impact and anti-competitive practices. One of the markets for Starbucks is Canada. This market has won an ethics in action award. It won under the category overall leadership for a large company.
Starbucks Coffee Canada and CSR
Ethical sourcing
One of the difficulties associated with global sourcing is that the distance away from the supply source makes it more difficult for buyers to assess suppliers. A buyer may be placing orders with a sourcing agent or with a trading company that uses a network of manufacturing units, and so it is often difficult to establish exactly how and where the products are actually manufactured. Buyers may be unaware that their products are being made in factories where the working conditions fall short of what would be considered satisfactory. Of course, different countries have different laws and regulations concerning working hours, age limitations and working conditions, but the international trading community have a collective social responsibility to ensure that international trade does not result in the exploitation and abuse of humankind (Gillooley & Varley, 2001). For Starbucks Canada Ethical sourcing means buying coffees that are of highest quality and are responsibly grown. The sources must be responsible and be the best sources possible. Ethical sourcing also means that Starbucks would serve ethically traded coffee. Ethical sourcing would create a better future for farmers/suppliers and a more stable climate.
Environmental Stewardship
Environmentalists understand the need to work within the nation-state system. At the same time, they consistently applaud the globalization of environmental stewardship, even when this globalization erodes national sovereignty (Thiele, 2002). For Starbucks Canada environmental stewardship means leading the industry into thinking about minimizing the impact of their production or operations to the environment, discussing the issue of climate change, and inspiring other industries to do the same. The company has used its leadership skills to influence others to discuss the need to minimize the impact of their operations to the environment and discuss the issue of climate change. Starbucks’ environmental stewardship influences other industries to imitate what they did.
Community Involvement
Social capital theorists maintain that communities with high social capital will find it easier to recruit volunteers, secure donations, and implement effective programs because participation is commonplace. These communities have evolved mechanisms to communicate their shared expectations to new residents, to monitor participation, and to reward and sanction appropriately. The social capital dynamics that foster community involvement by residents, whether used positively or negatively, should also impact business operators (Besser, 2002). For Starbucks having community involvement means that the firm will take part in the activities of the community. For Starbucks their community includes the places where their stores are located and the places where the coffee is grown. Starbucks volunteered huge hours of service in their community.
Starbucks’ CSR and four elements of CSR
Rule of law
The CSR strategies of Starbucks Canada don’t break any law and it doesn’t try to ignore the rule of laws. Starbucks’ CSR strategies of ethical sourcing, environmental stewardship and community involvement are still within the boundaries of law and follows rules of the environment.
Internal governance structures and policies
The CSR strategies of Starbucks Canada promote internal governance. Environmental stewardship makes sure that firms within the same industry can govern themselves and act according to examples set by Starbucks Canada. Environmental stewardship also helps in drafting policies and structures that are within the examples set by Starbucks Canada.
Complimentary governance institutions, regulations and competition
The CSR strategies of Starbucks Canada help in creating governing bodies with high standards. Community involvement not only helps in making the environment better but it helps in determining the things that a governing body can do to make sure that high standards of leading is experienced.
Standards
The CSR strategies of Starbucks Canada lifted the standards of CSR of other organizations. Starbucks’ CSR strategies of ethical sourcing, environmental stewardship and community involvement set an example that other companies follow and emulate. Starbucks’ CSR strategies paved the way for changes in the CSR strategies of other companies and made sure that most CSR strategies would be based on care for the environment.
Summarial Conclusion
The CSR strategies that helped Starbucks Canada gain an ethics in action award include ethical sourcing, environmental stewardship and community involvement. Such strategies helped the firm gain further growth and it endeared them to their local and foreign environment.
References
Besser, T.L. (2002). The conscience of capitalism: Business
social responsibility to communities. Westport, CT:
Praeger.
Gillooley, D. & Varley, R. (2001). Retail product management:
Buying and merchandising. London: Routledge.
Kruger, S., Rayner, P. & Wall, P. (2004). The essential
resource. New York: Routledge.
LePla, J. & Parker, L.M. (1999). Integrated branding: Becoming
brand-driven through companywide action. Westport, CT:
Quorum Books.
Lewis, A. & Warner, K. (1994). Ethics and economic affairs.
London: Routledge.
Thiele, L. (2002). Environmentalism for a new millennium: The
challenge of coevolution. New York: Oxford University
Press.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment