CSR as a Competitive Strategy
In the present business world, businesses are investing more in maintaining a healthy relationship among all the stakeholders. An example of such efforts is through the increasing embracement of corporate social responsibility (CSR). CSR refers to the efforts and commitment by a company to act ethically and make sure that all the efforts are geared towards economic development and improving the workforce’s quality of life (Hongdiyanto, 2016). Starbucks company is known as a global coffee company with stores distributed across more than 60 states. A working CSR strategy has allowed the company to navigate through uncertain economic times by offering it a necessary competitive advantage over other industry companies.
Since the foundation of Starbucks in 1971, the company has always conducted business ethically and believes in the right means justifying the ends. A solid process of business ethics and compliance supports Starbucks’ mission by helping protect the core values and the reputation of the company. One strategy tailored to uphold social responsibility is employees’ empowerment to partnership status (Enquist & Haglund, 2011). Starbucks invests heavily in employee satisfaction, which in turn has increased employee retention rates. On the other hand, employees take the initiative by extending a warm treatment to the customers and dealers. This strategy promotes customer loyalty and trust, which is crucial in increasing its competitive power (Hongdiyanto, 2016). Furthermore, Starbucks has a clear communication channel aimed at the prompt address of the issues raised by various stakeholders. As a result, the company can identify any areas of disagreement or fiction among various stakeholders and thus solve them without interfering with stakeholders’ relationships.
Starbucks bases its social responsibility initiatives on three pillars; ethics, the environment, and community integration. The company develops community stores by partnering with local nonprofits organizations, which help meet the needs of the immediate community (Enquist & Haglund, 2011). Moreover, the company provides training for the youths in an attempt to strengthen the immediate community. On the same note, the purchasing of coffee is guided by transparency and ethics. Starbucks attributes its success to the overall success of the farmers and producers who manufactures their raw products. Notably, Starbucks considers the planet the ‘most important business partner’ (Enquist & Haglund, 2011). The company, therefore, is committed to recycling, conservation of water, and energy, which is meant to reduce the impact on the environment. Other initiatives, such as the use of LEED certification programs to protect the environment, are attractive to the public eye, giving them a competitive edge in the industry, especially presently where environmental conservation is highly stressed upon.
The Starbucks strategy of investing in ethics, social responsibility, and CSR has paid off as evident in its increasing popularity. For instance, the company has invested significantly to empower the surrounding communities and positively impact the lives of all the stakeholders. There is sufficient evidence that when a community upholds social responsibility and embraces environmentally sustainable practices, more people view the company positively (Hongdiyanto, 2016). What’s more, Starbucks publishes a Global Responsibility Report which tracks its annual impact and uses this to inform the coming years strategy. The empowerment of employees to be partners and nonprofits pulls Starbucks closer to the community, a strategy that has increased its overall success.
In conclusion, Starbucks enterprise takes its CSR as the chief determinant of its success. The company, therefore, strives to maintain a healthy, working relationship between the customers, investors, and shareholders. Besides, Starbucks embraces sustainable environmental practices that have enabled it to maintain its global market position. By fulfilling the requirements for an effective CSR, Starbucks has garnered global support and given the company an edge over its competitors in the beverage industry.
References
Hongdiyanto, C. (2016). THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY OF STARBUCKS COMPANY.
Enquist, B., & Haglund, L. (2011). Starbucks with Corporate Social Responsibility (CSR). How Starbucks succeeds in a business world with CSR. Faculty Board of Economic Sciences, Communication and IT. Karlstads Universitet. Recuperado de http://www. diva-portal. org/smash/get/diva2, 353800.