Faculty Board of Economic Sciences, Communication and IT Business Administration

Starbuc s with Corporate Social Responsibility (CSR) How Starbuc s succeeds in a business world with CSR

15 Credits Master Thesis (FEAD 01)

Thesis Advisor: Bo Enquist Co-reviewer Lars Haglund

The Authors: Sornchai Harnrungchalotorn Yaowala Phayonlerd

Karlstads universitet 651 88 Karlstad Tfn 054-700 10 00 Fax 054-700 14 60 Information@ www.






ACKNOWLEDGEMENT Ac nowledgements Our than s go first and foremost to our supervisor, Bo Enquist for his insight s upport and constructive criticisms during our writing of this thesis. Moreover, we would li e to than Samuel Petros S. for recommending the boo s and the way to conduct this thesis. We also want to than the librarian at university for helping us to find the boo s to ru n this thesis.








We would li e to now how the company integrates CSR and what factors have affected the company´s success over the years with special reference to CSR. We decided to choose Starbuc s Company as a case study for this thesis because t his company has a good reputation in terms of social responsibility. There have been increasing numbers of co mpanies engaged in CSR to run their businesses. and environment                 . Star buc s. Nowadays corporate social responsibility (CSR) can drive companies to succeed in business by increasing sales volume and brand awar eness. In the recent past. Ma ny companies have started to engage in CSR as a strategy in order to gain benefits that can g ive them an added advantage over their competitors. the topic of Corporate Social Responsibility (CSR) has grown rapidl y. People are starting to demand that companies ta e their social responsibility seriously. we would li e to investigate how Starbuc successes in the business world are lin ed to CSR strat egy. Thus. Key Words: Corporate Social Responsibility (CSR).ABSTRACT In the today. there are many strategies being used to run busin esses.s business world.

....................................................... ........................................................................... 14 3............... 17 4.......................................................................................................1 Definition of Corporate Social Responsibility (CSR) ...........................................................................3 Competitive Advantage .......................................................................................... ............................................... ................................ ... ............4 Secondary data collection.................................... 5 1........... 11 2.... 15 3...........................1 Selection of research topic .............6 Reliability ....... ........................... 6 1.2 Company..................................................................... ...................... .5 Data Analysis....... 7 2... 14 3..... 8 2.................................s products and Services diversity .2 Research design ............................ .....3 Sample case ............... 17 4.......................................... 14 3................................................ 15 3.................... ..2 Triple bottom line ................................... .......................... 16 CHAPTER 4: EMPIRICAL PART ....................................................       ................................................................................................... ......... ......................... ................................................................................................................ 5 1....................................... 8 2.........3 Purpose .........1 Problem Bac ground ........ ... ...... 12 CHAPTER 3: METHODOLOGY ..........................TABLE OF CONTENTS CHAPTER 1: INTRODUCTION ................ 6 CHAPTER 2: THEORETICAL FRAMEWORK ...................................................4 Five principles for a sustainable values-based service .................................................... ................................................................................................1 Starbuc s Bac ground .......... .................................. 14 3.................. ..2 Problem Definition .....................

...........3 Company Responsibility .............................................................. 25 4............................................................................ 35 REFERENCE ... 20 4............ 24 4......................................... 41 .......... 37 APPENDIX .......................4............................................................. 27 4.4................................. 31 CONCLUSION AND RECOMMENDATION ......... ............... 23 4..................1 Environmental Stewardship ............... ............................ ....................... ........................... .......................................................................................................................................5 Five principles for a sustainable values-based service ....4 Integrating Corporate Social Responsibility (CSR) .... ....................................................................... .................................3 Economic .................2 Community (Social) ...... ............................ .... 18 4............................................................................ 29 CHAPTER 4: ANALYSIS .......4................................................. .......

We wonder how companies run businesses with CSR in an adverse competitive business world. In this study. we intend to investigate how the Starbuc s Company conducts busin ess and                             . environmental and economic perspectives (triple bottom line thin ing). many consumers and employees satisfied with their good sense of CSR. companies have the obligations to do practi ce corporate social responsibility (CSR). It is concerned with how a company tries to be beneficial to all its sta eholder groups. Starbuc s has published many Corporate Social Responsibility (CSR) annual reports that these are all available on the web site of Starbuc s Company. Nowadays.1 Problem bac ground Companies have an important role in the development of a society and environment because there is high demand in the mar eting of products that companies offer product a nd service quality to their customers. CSR is entering a new era where suppliers from deve loping countries have significantly increased in importance. It also has man y organizations that compliment the Starbuc s Company´s efforts towards CSR. We will investigate why Starbuc Company engages in CSR and what defin ition this company gives to CSR. It is almost becoming an o bligation and responsibly many companies. it has many suppliers interested to operate with them. There has been so much news out there about Starbuc s Company. corporate social responsibility (CSR) is an important part of many bus iness organizations. we will present how Starbuc s Company has succeeded in a world of business with CSR. competitors of some businesses already practi cing CSR and beginning to embrace this new philosophy of business. T hey try to involve in activities that will eep both the business and social environment sound. The effects of CSR cannot be overemphasized. Today.CHAPTER 1: INTRODUCTION 1. they range from companies running busin ess well to environmental improvements. In these repo rts Starbuc s Company shows how it is actively involved in a combination of activities lin ed to the social. CSR can also go a long way to improve on product quality and service to customers. In this paper. Many companies today run businesses with CSR especially big companies. However. Moreover. Today.

coffee   .integrates CSR with their business. And also how the company have responsibility with the goals of enhancing the lives of its sta of the company. custo mers.

Despi te the fact that there are some business successes in practicing CSR.shareholders.2 Problem Definition In the business 1. which is: Research Question How Starbuc succeed in business world with CSR 1. we also intend to fin d out how it deals with social responsibilities both in the internal organization and communi             . suppliers and others with whom the comp any wor s (Findarticles 2010). Also.3 Purpose The purpose of this study is to investigate how Starbuc s succeeds in a business world by using CSR as a long term strategy. community members. Thus. We consider CSR strategy in terms of how this company can run business by using innovative technologies to increase the products and r educe costs and no damage to the environment. we intend to study how this company succ eeds in gaining a competitive advantage in its business. The main research question shows what we would li e to now. We thought about why some businesses succeed with it ( with social reference to Starbuc Company) and how they conduct it. Moreover. it occurred to us to investigate an answer to this question. Corporate Social Responsibility (CSR) is important. some organizations hav e argued about the benefits of it.

      . We will focus on five principle areas based on s ustainable values-based service business of Starbuc s Company and the communication of the company in order to now how the company communicates with its sta eholders.ties including how it can protect environment.

companies find the best str ategy for ma ing sure that businesses have responsibility regarding social issues and ma e                     . If the com pany doesn. ethical and sociall y supportive. However.t have responsibility with the society. 2. Porter and Mar R. companies have to be responsible with other sta eho lders and the social environment. According to Carroll (1983). This means that companies should not only be c oncerned with their profit but they need to help socially and environmentally. To be socially responsible then means that profitability and obedience to the law a re foremost conditions when discussing the firm s ethics and the extent to which it supports t he society in which it exists with contributions of money. which will h elp us to answer the purpose and define how it can ma e us to understand how Starbuc s suc ceeds with CSR. Thus.1 Definition of Corporate Social Responsibility (CSR) We introduce corporate social responsibility by concept of Carroll. Kramer (2003). companies can be nefit by engaging in CSR activities. There are different views regarding the relationship between CSR and business. the Strategic Philanthropist. It will focus on the cluster and improve capability of the business but CSR should ma e the profit at the same time.608). corporate social responsibility involves the conduct of a business so that it is economically profitable. According to Michael E.CHAPTER 2: THEORETICAL FRAMEWORK This chapter provides the methods that are applied in this research. time and talent (p. We will de scribe all selected methods in this research. the people or non government organizations (NGOs) will criticize the company. CSR entails that companies should give bac the benef its to the consumers and other sta eholders. From the above definition. nowadays it is difficult at times for some companies to adopt a good se nse of CSR because they often want to engage only in direct profitable ventures. T he concept of CSR is still unclear because there are many institutions that focus only on b usiness to ma e and increase profits while other businesses are interested in adopting a go od sense of CSR. So. law abiding.

.profit at the same time.

jpg Figure 1: Triple bottom line Source: Indstate. 2. cor porate sustainability. Some organizations want to serve only             . business ethic s and corporate social performance (Visser. sta eholder management. economics has influenced our world.2 Triple bottom line: it is very difficult to tal about CSR without loo ing a t triple bottom line thin ing (that is interactive thin ing ta ing into consideration soc ial.indstate. Every company in all sectors has focused on the benefits or profits.2.indstate. So. which includes corporate (2010) 1 2.W 2005). These three indicators of CSR are shown in fig 1 below. http://www1. corporate social responsibilit y (CSR) is one strategy to run the business or sometimes its core business especially in bi g organizations.1 Economic No doubt in previous reees. environmental management.CSR is viewed as an umbrella concept. environmental and economic factors).edu (2010) http://www1.

benefits.shareholders or financial reports.t care about the environment enough.J 1997. Everybody has used a lot of natura l resources in the whole life.J 1997. climate change etc becau se we don. creating good qualities of produ cts and good image of media including building long run relationship with sta eholders too.2. From Eco-efficiency. For instance. Natural resource productions relate to maintaining environment and competitivene ss which limited environment has created innovation of products as an eco-efficiency (El ington . 2. cus tomers or societies who affect directly to companies such as losing image. But nowadays it is difficult to do this if co mpanies thin about merely their own benefits by ignoring social. companies should not only concern about benefits of financial forms but also ethnic firms have to care to people or society and envi ronment as well (El ington . Because it is short term strategies and the firms will face several impacts of o rganizations. products and services to improve the quality of life in order to ma e cu stomer satisfaction. profits of comp anies and so on. p. In order to sustain economic businesses. nowadays our environment is destroyed by peopl e or corporations that might not care about it of which there are many impacts on our planet such as increasing pollution around the world.J 1997. companies have involved in competitive businesses by offeri ng good prices.72).                   . all companies have to rely on ethnic busines ses that they cannot run businesses without responsible sta eholders such as their staffs. In which these processes try to reduce environmental impacts (El i ngton . reducing the cost of productions. On other words. p 109). environment and other sta eh olders.2 Environment All man ind is involved with the environment. the ethic. To develop economic sustainability. p.s company will receive a lot of economic benefits of o rganizations by using innovations to operate their businesses which can increase the companie s. I t might say these are win-win strategies.78). Unfortunately. wastes water.

There are two main things of significant natural capitals reformative or replaci ng natural resources. It mig ht be affected to economics and environment too. there are regulations to companies for their environmental performances (El ington . p 87-88). we have to protect the environ ment by reducing the use of natural resources because some resources can renew again by using technological replacement such as using wind energy to produce electricity or re cycle products and also can reduce companies cost as well. employment. p 85). donating               and outsi place. Social capital is trust of people in society which some parts can measure people ability to wor together in organization. and human right. it should relationships with society by creating activities to support or help society such as money into communication or improving society to become better life etc.J 1997.J 1997. All of the above show that. welfare.J 1997. they have to be responsible communities both inside de because it has impact to developing companies by providing good environmental wor aining s ills. From many countries. 2. p 80). it can renovate or replace natural resources such as solar cells in order to lim it fuels (El ington . For outside organizations. For organizations. These capabilities have importance to develop sus tainability in every status of society (El ington .3 Social social development. education .2. Moreover we have to protect environment at the same time by treating waste processes before sending to the e nvironment (to main our earth). in maintaining the environment it is important that all parties have to realize it. product safety. It. In order to protect the environment or ecosystem. donation and so on (El ington . Social accounting focuses on evaluating people who have impacted to the corporat ion. community relations. Firstly.J 199. 79). it is necessary for the reservation of life and ecosystem ba lance. Secondly. p.s not only you and me but also everybody in our world. is one of the important parts in triple bottom line. The area covers training. tr ma e good   .

these are long term strategies (p 45 7). from communication and all employees     . Because many factors affect the company from the external environment and intern al environment.       These companies will receive good feedbac to corporate sustainable development. The competitive adv antage is concerned with the competition between the company and its competitors.s advantage in the internal and external parts of the company. this affects its relationship between social responsibility and com petitive advantage. welfares and career opportunity while companies and society will get benefits from protecting environment. Moreover. Thus. has value-creating produ ct and service for the consumers which is not similar or copied from the competitors (C ompetitive advantage 2010) According to Michael Porter (2008). wor ing condition. companies have to use wor ers. it is also creating a new mar et. Since the decreasing waste and pollution will help company to reduce natural resources and increase products including generating customer val ues as well. The competitive advantage is an advantage of the company to offer consumers more values and advantages more than its competitors. the companies need to understand the strategy in which the comp any can compete with its competitors.2. nowadays. the competitive advantage is the c omponents of social and environmental points which have to go together because these are m ain factors to run businesses. The comp any has advantage over its competitors. employees have to provide nowledge. that is it. It is the thing that differentiates a business from its competitors.3 The Competitive Advantage In this segment we will define the competitive advantage of the company. capital and natural resources in order to produce high quality products and services. The sustainable competitive advantage.


Strong values come from the culture of company which develops mers. This sustainable ser vice business strategy will succeed if the companies use it based on CSR. p 110-111). to custo directio obvious (Enquist If we want to evaluate the values generally. The organization has to realize it in this point. corporations have created the service business by clearing vision and mission of the company which normally comes from firm.       . no one cannot deny that customers are very significant in order to ma e their satisfaction in products or services of compa ny. They inc lude: 2. Nowadays it can improve corporation. Edvardsson B.2.s concept is supporting for long run company.s personal values . The main concepts of services are tht customers should have really experiences before buy ing or consumming merchandise or service because they can now what they want or need. CSR is a long term strategies for every company or industry.B.s relationship with employees. p 111). shareholders. 2009. 2009.2 CSR as a strategy for sustainable service business this principle relates to corporate social responsibility.B. values and society. 2009.B. Edvardsson B. Both of them are important. suppliers and media and so on (Enquist. function and so on (Enquist. they come from customers and sta eh olders.s benefits (Enquist. how they feel or how to different with others for ins tance design. Edvardsson B. Such as how about the products. 2. partnership s.3 Values-based service experience for co-creating value Meanwhile competitive business are intensive. It might say CSR is the best solution to maintain the sustainable service business. 2009.4 Five principles for a sustainable values-based service business There are five principles of sustainable values-based service business. p 110). 2.4.1 Strong values drive customer value Actually.4. It r elates to responsibilities to social.B. Moreover developing the sustainable values of a comp any depends on organization.s production or services to build the values . environment.s values including value of organization to drive of n of business improvement. economic which social and environmental CSR. Edvardsson B. p 110).4.

Abso lutely if the products or services of organization are good. E dvardsson B.5 Values-based service leadership for living the values In order to ma e the sustainability of company values organizations want to have good leaderships. 2. Strong values drive customer values CSR as strategy for sustainable service business Values-based service leadership for living the values Values-based service experience               . Leaders have to have many s ills to conduct the company. In order to booth the values-based service brand the company must use CSR strategi es to sustain its business in long run. But if they are not. there will be damage to companies. One of them is communicating s ills.4 Values-based service brand and communication for values resonance For all companies.B. pr oducts or services at the same time (Enquist.4. 2009. Edvardsson B. CSR is the best way to communicat e with all customers and sta eholders efficiently. s strategies to reach to the goal. experience to respond to the need of custo mers which it can create value services between corporation and customers as well. p 111-112). the figure below show s tha five principles of sustainable value based service business. 2009. Currently. brands are very important because they can communicate to cus tomers. they will be supported by cus tomers or sta eholders. As they can touch with values of service brands and the company will receive the good resonances from all sta eholders (Enquist. employees or every sta eholder about images of companies or their products. Practically. 2. p 111-112). images.The company should provide customers.B.4.

for co-creating value Values-based service brand and communication for values resonance Figure 2: Five principles for a sustainable values-based service business (Enqui st B and Edvardsson B) .

The guide by Vaus.3 Sample case The sample case chosen for this study was a single case study based on applicati on level of CSR standard. or case. The case study in this research will choose as the tool address the research que stions and research purpose. It was further motivated by its ability to illustrate relation ships and it also identify the details of interactive processes. An organization needs to be ethical in competitive business activit ies. The reader gets a chance to read up on the research and get an un derstanding for the wor process. We wanted a company that has a good management about the CSR. The case study was conducted over 2 months. 3. Starbuc s Company is the representative case study in this thesis. As we now. The qualitative approach of co nducting the research was carried out using in-depth secondary collected information (Cro nbach L. 3. 3. So. 1971).1 Selection of research topic The research topic began with the interest on the success of companies in the bu siness social environment. We will focus on secondary data base on the information from the company such as announce report. The topic is interesting and popular in now a day. we decided to choose the Starbuc s Company because we thin that the company can he lp us to answer the research questions.D (2001:233) the explanatory account produced by intensive res earch focuses on the particular events.               .CHAPTER 3: METHODOLOGY In this chapter the methodology used in the thesis will be presented. It will pr esent how we are going to gather data in order to find the answers to our stated research que stions.2 Research design In the content and design of this research the study was thoughtful to conduct i n the exploratory manner through a quality case study in which an in-depth examination of the case was conducted. the brand of Starbuc s is worldwide a nd it also a big company. We will explain how to conduct this research and also provide the readers with a motivat ion for the chosen method. and see s to develop complete explana tion of each case.

        . it should be relying on theoretical proposition s or developing a case description. According to this thesis. has two dimensions. articles and journal publications in library of university. Relying on theoretical propositions is sustainabl e amount of previous research in the subject but developing a case description is suitable l imited research has been conducted in the subject (Yin 2003). a within case analysis was performed. we use many theories to support this thesis such as triple bottom line. And the second is secondary a nalysis of data that has been collected by other organizations in the course of their busin ess (Bryman A. The first is secondary an alysis of data that has been collected by other researchers. 2007). in this thesis we use written sources from the electronic literatur e to be able to answer our research question. In addition. & Bell E. competitive advantage and five principles for a sustainable values-based service.We focus on the relying on theoreti cal propositions as base on previous research in the subject of CSR. the definition of secondary data analysis as the opening paragraph suggests. We strongly believe all the data are useful and reach to the objective of this thesis. The information from the webpage of the company can be reliable. In this thesis the data is analyzed on secondary data of organization to compare with the theory. So we inv estigate one company.5 Data Analysis When it comes to analyzing data. As in the chapter 2. its only investigates a company which reaches the research questions. This information is reliable because the informati on is gotten from the organization`s official website. These theories will help us to investigate and answer the research question.3. We also gain the future information an d as complement to written sources in form of Starbuc s webpage and annual report of CSR. We got some strategy from the ses source to investigate and adapt in this thesis.4 Secondary data collection The secondary data offers this ind of opportunity. The purpose of this research wor is for the students to find the help from the boo s. 3.

A measure is co nsidered reliable if it would give us the same result over and over (Vaus.3.D 2001). For the reliability in th is thesis.6 Reliability The term the reliability means "repeatability" or "consistency". we did much examination into obtaining the correct information and data from reliable d atabases such as Karlstad University and office report of the company. This t hesis is based on secondary data and it tries to analyze this data in order to gain an insight of the company for answering the research questions. This thesis tries to gain another view fro m different sources that it concerns about source of organization. .

when Howard learnt of this. In the late 1985. the figure 3 shows the information of the company. The company name was inspired by Moby Dic th at it was evo ed the romance of the high seas and the seafaring tradition of the early cof fee traders (Starbuc s 2010a). president and CEO until now a day. Howard went to Italy and he became enchan ted with Italian coffee bars and romance of the coffee experience. After acquisition of Starbuc in 1987. later and the Frappuccino. So he beca me Starbuc s. the owners decided to sel l Starbuc in Seattle. he started his own company. he immediately decided to buy S tarbuc s and finally his acquisition was completed in August 1987(MHHE 2010a). Schultz got the idea t o change the shops li e a style of Italian coffee but he has adapted in case of American styl e (Starbuc s 2010a). 20 in 1989. and 53 in 1992-produc ing a total of 161 stores. The Starbuc s management wanted to focus on traditional core business of selling only coffee b eans and equipment. stores and became profitabl e in 1990.1 Starbuc Bac ground                             . His plan was to open espresso bars in high-traffic downtown location (MHHE 2010a). In 1981. After that Starbuc agreed and hired Howard Schultz. He had to wor hard with Starbuc and his ideas was about the tremendous potential of expanding the Starbuc s enterprise o utside Seattle and exposing people all over America to Starbuc s coffee (MHHE 2010a). Howard Schultz came to Starbuc and he would li e to be a part of Starb uc . The name of h is company was II Giornale Coffee Company. 15 ne w stores opened in fiscal 1988.s objective expanded Starbuc stores of 125 in 1987. the owners have against in his ideas that it made him despondent.CHAPTER 4: EMPIRICAL PART Starbuc Coffee Company was founded in 1971. Howard Schultz left Starbuc s. 30 in 1990. It was exceeded for expansion Starbuc s. profits had increased every year thereafter (MHHE 2010b). Howard wor ed hard on popularizing coffee such as the café latte. Meanwhile. Howard has integrated between II Gil and Starbuc s together. In March 1987.s Pi e Place Mar et in the United States.                               4. During 1983. 32 in 1991. But Howard still remained important on this part and finally the owne rs rethin and believe in his ideas. His plan. the first retail store opened in Se attle.


Licensed Stores 6. The main value have effort to build a company with soul was that the company will never stop pursuing the perfect cup of coffee (MHHE 2010c).011 (2007) . Starbuc s Annual R             .506 In addition.000 (2007) Number of retail stores 15.Starbuc s (2010).Figures 3: Starbuc s Corporation Headquarter Seattle. Company operated 8.8 Million USD(2009) Employees 172. They still find the best things to their customers.505 . News. Nowadays. Source: Fiscal 2007 CSR Annual Report.4 Billion USD (2009) Net Earning $ 390. Washington (US) Industry Restaurants Net Revenues $ 2. the Starbuc s Company still continuously expands the store around the world. Howard instills some ey values and guiding principles into the Starbuc culture.

the ba ery. It is not only good food but it is better for the customers` health. etc (Starbuc s 2010d). Then bringing them into the process to give the great flavor in which the company gives customers the perfect drin . Pump in Scone. For instance.                                         . Food and Nutrition. Moreover Starbuc s has provided Frappuccino Blended Beverages (Starbuc s 2010d). Drin : The organization has slogan a perfect cup of coffee the reason why it selec ts the best beans throughout the world. etc. It is not only the perfect cup of c offee but also Starbuc s has provided other drin s li e Chocolate Beverages. Food: The Company provides many inds of foods for customers to enjoy the foods in the Starbuc s shops which are naturally scrumptious. It. There are many inds of coffee both bottled drin s and cold drin Brewed Coffee.2 Company s products and Services diversity There are three products in Starbuc s shops: Drin .eport 2009 4.s also incl uding salads such as Deluxe Fruit Blend. Sandwiches. Chocolate croissant. there are many inds of ba erie s such as Chocolate bloom cupca e.

feel free to connect right in the stores (Starbuc 2010i). the com pany has provided variety of things. the company loves to find the best things to offer the coffee. Card of Starbuc : Starbuc card is main one strategy of the company. So the company provi des this card to customer in many ways. The reason is that it wants the cust omers to feel at home. download files for next meeting. Thus.s interesting. The company has created the unique shops t o ma e customers percept in the brand and feeling of the flavored coffee. Wireless Internet: This option is one strategy of Starbuc Company of attracting the customers to come stores. The company would li e to ma e the customers feeling good that they are a part of company. or just surf the web. They also have online communities for people who love to drin coffee and the people can exchange the experience to tal ing. It ma es their customers to enjoy with coffee. The card will give variety reward to the customer s such as                                                                             . they are su ccessful with this strategy that they can increase high sale volume. the company can ma e the customers thin ing about the Starbuc s so special store and special coffee (Star buc s 2010j).Starbuc has service diversities for respond to customers that they would li e to ma e its customers for percept on its brand and the flavored of coffee. artwor and culture to motivate the feeling of customers when customers come to sit and drin coffee in the stores. They focus on music. Mobile Application: The Company offered the Starbuc card on iPhone to ma e cust omers life easier. They provide wireless internet to customers when they come and sit in the coffee shop to drin coffee. coffeehouse warm and welcoming places to gather. Thus. The company li es to help customers have fun. The Starbuc Company would love to find ways to serve customers bet ter and ma e them enjoy the coffee more (Starbuc s 2010 ). Entertainment: The Starbuc s Company would li e to entertain the customers when they come to stores. Thus. Community online: The Starbuc s Company would li e to ma e the customers thin in g about the Starbuc s shops as being special. dream big and connect to each other and ideas that it. Starbuc Company ta es competitive advantag e for competing with their competitors. The company would li e the customers enjoin the great coffee with the Wi-Fi internet . Because the company believes marvelous th ings happen when you put great coffee and great people together. The customers can chec email.


it also believes supporting the good wor place for partners or staffs encouraging ethical busines s practices and maintaining legal compliance . Our partners: Our employees are called partners. It has a variety of cards to ma e customers enjo in with the coffee. In this way. since every individual is offered stoc options. Starbuc s provides funds for farmers to access credit. Starbuc s has collaborated with coffee producers in Costa Rica that it offers farmers with training about the high quality coffee and technical support. purchasing conservation and certified coffee that includes organic and F air Trade Certified and also investing in social development project in coffee producing c ountries. We see to seamlessly interweave variables that ensure quality for the customer with literal ownership in the company. Starbuc s has created a policy that they call C.s operation . Moreover. We want to be th e employer                                     . it calls shared planet that means Starbuc s emphasize on ethical sourcing.E (C offee and Farmer Equity) to show responsibility towards the moral. environmental stewards hip and community involvement. The world mar et of coffee has historically been sensitive to price flexibility in which is lin ed to global demand and supply. Starbuc s has paid premium price to help farmers to ma e more profit and support their families. and this is literally true. live who grow the coffee bean. Mission statement The Starbursts Company has the principles of running business every day ve that every day as following (Starbuc s 2010b).3 Company responsibility Starbuc s run business by responsibility and conducting its self in the methods which are giving trust and respect from its customers and neighbors. Starb uc s focus more on this sta eholder because they are sustainable to the company (Fiscal 200 7 CSR Annual Report). environmental and quali ty aspects of processing and selling coffee. how we li Our Coffee: The Company focuses on the quality of coffee bean and also enhancing farmers.F. Moreover under and collect the point. corporate governance and also publi c policy (Starbuc s 2010c). The last thing.A. It has been af fecting to coffee farmers so Starbuc s helps them to buy coffee and has adopted a more inte grated and sustainable model. 4.


. Moreover.. design construction in teams of a new safer and colorful playground for the Duang Prateep Foundation Day Care center is one exam ple of their involvement and effort in ma ing a positive impact in neighboring communit ies (Starbuc s Coffee Thailand 2010). We are responsible in every comm unity that we are going to operate business. Our neighborhood: We are the part of community. Starbuc s has conducted 16 community connections in 8 countries around Middle East during Holy month of Ramadan such as Neighborhood Girgean Celebration in Ku wait. It.s well being. Starbuc s tries to create a wor place that both values and recognizes e ach person. provide benefits to all whether part-time or full-time. For instance in Guiding principle that the company doing to: care for partner. Starbuc s has donated and done activities for social project. The employees were called partners because they accept diversities of people to be together. Starbuc s Coffee Thailand launches new noncoffee beverage Strawberries & Cream Frappuccino with team activity in support o f neighborhood community. they has celebration of the local tradition of Girgean by partner distributed Gi rgean pac s to children during Ramadan month.s attractive and preserves the capability of employees (partners) that drive the company success.of choice in each mar et in which we do business. the partner of Starbuc s visi ted to children cancer hospital 57357 that they spent time to ta e care children and do nated a                                         . For instance. good environment. and encourage individual ity and open communication (Starbuc smelody 2010). provide opp ortunities for training and career growth and etc (Fiscal 2007 CSR Annual Report). Moreover. Starbuc s has a project call Partner Engagement. From the message of Howard Schultz. Starbuc s treats employees as partners. Starbuc partners. warm condition w hich they can meet and enjoy with friends in rhythm of life (can see from services diversi ty). In order to achieve this goal we pay fairly. this project partner will participate in CSR activities. Our stores: Customers feel li e their places. in Egypt. Starbuc s has fulfilled their commitment to partner by following Guiding principles. promote respectful wor place culture.s contribution. this has ma e them feel val ued and treat them with respect and dignity. its employees (partners) are eys of success in business.

painting board to the playroom (Starbuc s Report 2010).   .

. Source: (Starbuc s 2010b) Goals & Progress Starbuc s has run its own business for a long time which it operates by carrying social. . Using environment products including selling and using them. live by buying coffee fairly and help them how to grow coffee bean efficiently including responsible environment as well (Starbuc 2010f). Sharing environmental information with our partners to understand clearly. environmental economical responsibility. Starbuc s has often to meet its shareholder.As the company runs business by agricultural goods . Voting on proposals described in the 2010 Proxy Statement.Our shareholders: We are responsibility of shareholder rights. All partners involve to company. . Improving innovative and flexible solutions.s mission. (Starbuc 2010e) Ethical Sourcing The company has operated business by bringing the best coffee in the world. For instance. It                       . environmental stewardship and community involv ement as well. Environmental stewardship Starbuc s has emphasized to care for the world environment and support others or sta eholders to do the same thing . w hich can be viewed along with Starbuc s Fiscal Year 2009 Annual Report to Shareholders on the Investor Relations homepage of our website and Question and Answer Session (Star buc s 2010o). . We realize every success and benefits of shareholders that can trust in our business. So i t supports the farmers.s recent performance. Moreover the company s goal is that caring for the wo rld s impact such as ethical sourcing . . The company focuses to do the right thi ng in partners (staffs) . customers and business that it tries to create the innovatio n for business and learn from its mista e. Environmental Mission Statement . Encouraging responsible environment as corporate value Following process and measure every project. 2010 Starbuc s annual meeting of shareholders at Mari on Oliver McCaw Hall at Seattle Center in USA that it has discussion about a review of the company.

the comm unity service.s the procedure of Starbuc for running the business in the organization. all of those it. and Peppermint Mocha Twist . Ethos water fund. and Canada.s sta eholders and including shareholders.4 Integrating Corporate Social Responsibility (CSR) In terms of CSR Starbuc s has good governance. Community involvement The organizations believe different people need to be a part of good community b y supporting various communities. It.Espresso Truffle. Starbuc s has driven to create and increa se shareholder value. Gingersnap Latte. Starbuc s RED and etc (Starbuc 2010h). In the figure 5 in appendix. customer loyalty. For example. environment and economic benefit for the communities.s a few of real benefit of the company(Fiscal 2007 CSR Annual Report). s trengthening our supply chain and license to operate. ethical conduct and social respon sibility is core to their way of running business. Starbuc s has operated for the company. every purchase of a (STARBUCKS) RED EXCLUSIVE beverage . The definition of CSR in term of Starbuc s Company is conducting the bu siness in ways that produce social.S. Starbuc s foundation. we will present the corporate social responsibility governance. 1. youth action. For instance.                                       . 4. Starbuc s also focuses on maintaining the relationship between sta eholde rs and their company. green bui lding and so on (Starbuc 2010g).believes in company mission to maintain environment such as recycling. on all participating sto res in the U. And to honor the 20th anniversary of World AIDS Day. Starbuc s will contribute five cents directly to the Global Fun d. Starbuc s will contribu te five cents to the Global Fund for every handcrafted beverage purchased at a participa ting Starbuc s as a continued way to show support for this important issue (Mystarbuc sidea 2010). reducing operating cost. Moreover the Starbuc s ma es its approach to CSR a competitive differentiator fo r Starbuc s (Fiscal 2007 CSR Annual Report). activities in many areas. Attracti ng and retaining our partners (employees).

which it has impacted to climate change. which develops LED lighting to replace halogen ligh ting. Starbuc s offer s 10% discount to customers who bring in their own commuter mugs that they want to dec rease environmental impact of cup. In the past.7% from 2008 to 2009 (Examiner 2010). Starbuc s focuses on protect ing the environment and urges others to the same in order to ma e a great business for m an ind. Water water is a very important natural resource in the company. Energy Conservation Starbuc s has emphasized two issues that are preserving and developing energy ef ficiently.S.s business because it uses the water to ma e coffee and tea beverages. The LED lighting was installed 1. Examples include: Recycling & Reducing Waste The aim of Starbuc s has plans to recycling all materials that needs to be recyc led in the stores and control waste collection including useable cups 25% in 2015. Starbuc s can save the water about 150 gallons per store per day.S.J (1997). people have used a lot of natural resources so organizations try to reduce using natural resource.4. Moreover. Starbuc s continue to u se technology to save the water such as dishwasher use water less than one gallon o f water per cycle(Fiscal 2009 CSR annual report).4 mill ion more than 2008 (Fiscal 2009 CSR annual report). Moreover.A.A where could reduce energy o nly 1. the goal of Starbuc s wants to reduc e the energy 25% to use within 2010 and also they still loo ing forward to other innov ative choices to decrease the energy (Fiscal 2009 CSR annual report). They have launched many projects to encourage the environment.4. In 2009. Starbuc s tries to reduce its energy by cooperating with GE Company. Approxim ately 70% of Starbuc s stores in North America can recycle at least one ind of waste wher e has commercial recycling services around Starbuc s stores.000 stores in U. In this part.1 Environmental Stewardship According to El ington . By 2009 reusable cups had been served over 4. Other example the company has trained part ners (employees) to eep coil in ice machines clean in order to reduce heat from mach ines to ma e                                       . Starbuc s has started this proj ect by installing the manually operated hand-meter faucet all stores in U. However.


1% . Furthermore it. irritation and so on . 4. From 2008 to 2009 Starbuc s can decrease the water 4. unfairness. Starbuc s has incentive programs relating to coffee farmers to reduce carbon emissions from bu rning and clearing forests in 29 coffee communities in Sumatra Indonesia. Climate Starbuc s believes that high quality products come from good agriculture systems . Moreover. Wor place Environment: All partners (employees) have been treated with esteem an d honor without insulting. water resource map and indicating biodiversity in order to share nowledge with coffee farmers (Fiscal 2009 CSR annual report).2 Community (Social) Internal Wage and Hour Rules: Starbuc s has paid the salary and compensation for partners (employees) based on hours laws and regulations that mean Starbuc s offers the b enefits fairly (Business Ethics and Compliance 2009).In 2015.4. Wor place Health. which are sensitive environments in the pilot programs. For instance. practices and tra ining in order to prevent themselves from accidents or injuries (Business Ethics and Compliance 2009).s also cares about climate change. the goal of Starbuc s has to reduce the water consumption 25% in coffee shops (Businessgreen 2010). bias.On the other ha nd. The company tries to reduce th e environmental impacts by developing initiative solutions. Starbuc s has collaborated with Earthwatch Institute which renews rainfall. Safety and Security: Officers and partners (employees) have cooperated to each other for following the safety melt. they are wor ing in the company under friendly wor ing environment (Business Ethics and Compliance 2009).                         . Chiapas and Mexi co region.

External The company believes that good business has to involve and support communities a s well. training and financial or credit services to enhance product quality and develop farmers life. Nurturing young leaders: this program has contributed young people. fund was found by Starbuc s and Starbuc s foundation to revive Gulf Coast communities ruined by hurricanes Rita and Katrin a. So far. Starbuc s Foundation: This project was established to support communities in man y ways all over the world. Ethos water fund has offered 6 million US dollars to help 420. .O. tea and cocoa for company by offering nowledge. Nowadays Starbuc s has created several projects to engage communities as followi ng: Youth Action: The aim of this project is to support 50. . The goals of Starbuc s has supported its partners (employees) and customers faci litate communities over 1 million throughout the world in 2015(Fiscal 2009 CSR annual r eport). In 2009. Starbuc s gave award more than 2 million US dollars and en gage more than 20.A. Tea and Cocoa Communities: this program has provided farmer communities where have grown coffee. Access to get clean water: Ethos water is funding that support people in devel oping countries to enter the clean water.S.T. There are several programs of Starbuc s foundation as follow ing: . Rebuilding the Gulf Coast: C. . Fostering Education in China: organization subsidized 5 million us dollars to educational programs in China by 2005.000 young generations to created and participate their communities within 2015 in order to solve problems and develop communities.000 people throughout the world to reach the clean water (Starbuc s 2010m).                     .000 young generations or 42% of target in 2015 (Fiscal 2009 CSR ann ual report).s chances t o develop their communities . Supporting Coffee. Source: (Starbuc s 2010l) Ethos Water Fund: The objective of Ethos water fund is help the children who can not reach the clean water by supporting 5 cents every bottle of Ethos Water.

offer financial credits. All of these are long term strategies which ma e Starbuc s successful. health and safety are significant for business. All of these are transparent which customers can prove them (Business Ethics and Compliance 2009).4. Moreover. In order to ensu e.R. Supplier: Starbuc s has made long term relationships with suppliers and sellers as well as wor closely together with them. all people and following the laws of each country. (Business Ethics and Compliance 2009).4. r ules or regulations of every country where organization run businesses.     Fair competition: Starbuc mar et.s policy is that running ethnic business and doing the right thi ng are eys of Starbuc s. Also. Sales practices and advertising: Organization focuses on truth and honesty to cu stomers. the company operates ethnic business and follows officially permitted standards (Bus iness Ethics and Compliance 2009). products or mar ets with competitors or custome                               . it endeavo rs to provide quality of products and service as well as good relationships to both suppliers and customers. business. Compliance with laws and regulations: Starbuc s Company has followed the laws. In order to understand deeply. Starbuc s has to ulations such as not tal ing about rs do not try to control the mar et etc s relies on fair competition laws and supports in free have agreement with competitors or suppliers under reg price. However. education and e ven housing. the company operates business in many aspects by engaging environment.3 Economic Starbuc s Company is one of world class organizations that are successful in bus iness today. In order to get high quality products and control prices as well as protesting envi ronment where coffee bean is grown and also rising farmer revenue as well (Gulati . The corporation. The company has supported coffee formers every aspects such as Fair trade by guarantee prices. Huffman . we present Starbuc s business conduct as follows: Starbuc s quality and Customer Protection: Starbuc s focuses on quality of produ cts because customers. Company ensur e ever process that is clean and hygienic including good service and facility in the sh ops (Business Ethics and Compliance 2009).S and Neilson. Not only the products and service but also advertising as well.G 2002).


8 million increase 23. it can be seen that economic company has grown up from 2 006 to 2007 and dropped in 2008 and grown up again in 2009.63 million increase from 2006 19. Figure4. 2009). technologies.Confidential information: During wor ing with Starbuc s. Net earnings of Starbuc s Company Source: (Starbuc s Annual Report 2007 .                 .86 % from 2008 (Starbuc s Annual Report 2007.25 million increase from 2005 14. 2008. existing partners (empl oyees) do not disclose all non public information of company to anybody outside of organiz ation. Thus. that information has to use company purpose only such as nowled ge.5 million decrease 53.0%. 2009). we realized that in 2006 net earnings $564. in 2008 net earnings $315. Financial report: Considering the financial reports of company from 2006 to 2009 . 2008.09% from 2007 and in 2009 net earnings $390. From financial reports. the one of the course s of net earnings in 2008 slow down because economic crisis in USA and international mar ets had affected customers who has made them to lose purchasing power. It made financial impacts to Starbuc s Company as well. in 2007 net earnings $672. On the other hand. business plans and so on (Business Ethics and Compliance 2009).20%.

R . the company h as offered a good music and great environment in the Starbuc s houses.Sebhatu S. Starbuc s focuses on social and environmental points where coffee bean grows and support farmers by providing education. engaging communities and environment.S and Neilson.S and Neilson.Huffman . wh y customers come to visit Starbuc s to meet their friends. Strong values drive customer value Starbuc s mission is that of providing a good environmental wor place and treati ng partners with respect. water etc and community with firm support several on activities to improve communities . highest standard of delivery coffee. which they wor together with suppliers and discuss strategic busine ss to improve and develop products.                                 . p. CSR as a strategy for sustainable service business Starbuc s company engages the business ethics.R . communities to preserve environment.4. the environmental stewardship which shows the company ways to protect environment such as recyclin g. Values-based service experience for co-creating Customers have a good taste of premium beverage such as Tazo tea.5).5 Five principles for a sustainable values-based service 1.G p.s policy both social and environmental. Starbuc s code of conduct focuses on joining with farmers in order to produce hi gh quality coffee and engaging relationships with farmers. The company has made a long run relationship with suppliers and sellers more tha n need low prices because it wants to high quality products and service (Gulati . finance and fair trade to o (Gulati .p 5). relaxing ever wor ing b ecause Starbuc s it offers customers more than beverages (Starbuc s 2010n). which it can see Starbuc s missio n or Starbuc s code of conduct (from the part of Strong values drive customer value) including company.Huffman . wor ers. active to ma e customer satisfaction and having pro fitable business (Enquist B.61). 2. No doubt. various elements of business. Starbuc s has the long term relationships with suppliers to control th e qualities and prices. 3. Moreover.Edvardsson B.G. For instance.


To create one. 2008) .s all about the brand experience. artwor and music. Values-based service brand and communication for values resonance Starbuc s has succeeded in mar eting and has good resonance because it has stron g relationships with its customers. and who do we want to be as a group of people? (Geller L. Starbuc s has collaborated with social responsibilities and also communicate com pany activities with its sta eholders to promote an accountable environment (Enquist B. fixtures. the local communities that create trust to eac h other. Starbuc s has designed the s tores as the bridge between the wor place and home for the customers. Moreover Starbuc s was not much spending on brand advertising.G.Starbuc s has supported employees with touchable incentives li e wor ing conditions.Moreover. The company empowers by decent ralizing. In con trast ways.Edvardsson B and Samuel. Values-based service leadership for living the values Howard Schultz has a vision. W. e-mail. Furth ermore engages in empowerment.Huffman . the customers can communicate with those routes as well. They obsessed over everything from the quality of the cups to the quality of the toilet paper (Startup-mar eting 2010). In order to share the information between company and customers. corporation and communication of culture and value. At Starbuc s it.S p.R . Brand of Starbuc s has succeeded by improving the environment of the stores thro ugh attractive furnishing. 5. 4. customers will touch with Baris tas who always ta e care and communicate with customers as well as suggest various inds of flavor coffee as well (Gulati . p 4). Besides of Starbuc s Company has provided many channels to communicate with cust omers such as the company website.R . Starbuc s has given to create a warm and comfortable environment for the customers who would always feel differe nt when they would come to a Starbuc s store to consume coffee (Scribd 2010). taste of coffee and great environment.S and Neilson. Starbuc s card member and telephone.G                                           . where partners corporate with the teams in each area (Gulati .S and Neilson. All staff is called partners without any regards to positions. management has to as itself.Huffman .62). do we have vitality in the organization? Do we have spirit? What s missing? What do we want to be as a n organization.

3).p. .

social and economic. The Company has used innovations and technologies to reduce cost. Because Starbuc s believes in fair benefits that can motivate its partners w or ing well. Then we will analyze on the sustainable values-based service and also the competitive advantage from CSR. Moreover. in order to decrease the wasting cups. Starbuc s therefore runs its business with special care to the environment and planet. Besides. company has provided th e benefits fairly to partners (employees) by following the laws of the respective places wh ere it operates in. Social: Every company nows that employees are important resources because all organizations cannot succeed in businesses without employees. they a lso affect corporation.s image and business as well.ANALYSIS PART In this part we will analyze from collected data then we will follow the structu re in theoretical framewor s. Since. Environment: Starbuc s operates business ta ing the environment into considerati on. Starbuc is still reducing cost process t oo. reducing waste. In Starbuc s shops. Starbuc s has realized these issues. the c ompany can increase profits including protecting environment simultaneously as follows: Starbuc s can reduce the waste about 70% in North America where it recycles serv ices. nowadays it is not only employees but its good companies have to involve communities. Moreover Starbuc s tried to reduce the energy by installing LED l ighting to save its energy including reserving water natural resource by changing faucet an d using new dishwasher machine to save company.                           .s water. the company has launched reusab le cub campaign to decrease using cups by discounting the prices for the customers who used reusable cubs. On the other hand. It uses several ways to reserve environmental impact and reduce natural resources by usi ng technologies such as recycling. However. We will try to integrate the theory and attempt to ultimately answer the research question. reducing wa ter and protecting climate. energy conservation. Starbuc s has roles to protect climate change by supporting programs to help coffee farmers to diminish carbon emissions from burning in many areas around the world . In contrast. Firstly we will analyze on triple bottom line that consists of environ ment.

since .Moreover the company has treated partners with esteem without partiality.

Economic: Starbuc s is a well nown coffee company which succeeds in business wo rld. it has helped chil dren all over the world to access clean water including recovering Gulf Coast by founding C. This shows the high standard of the company.everybody in Starbuc s company is not seen as an employee but as a partner. In terms of competition.s satisfaction. Starbuc s has encouraged communities as well. net earnings of the compan y in 2006 to 2007 Starbuc s had grown up except 2008 when it slowed down because of the econo mic crisis and also competitors such as McDonald. Starbuc s has always collaborated with farmers who are one of suppliers by contributing education.O. From financial reports as we showed in the chapter 4. It can therefore be seen that Starbuc s has concern for communities together wi th running business. Because Starbuc s believes that the company and communities have to run together.A. Starbuc s has created many programs to support communities which Starbuc was established to encourage these activities such as Young Action program. Starbuc s treats its partners as good as company treats its customers. n owledge and training to improve the quality of products for customers and company has never overstated with customer.S. moreover Starbuc s has supported its coffee farmers by providing education. Moreover . T fund to rescue the people at gulf coast and contributing education programs in china. system and finance in order to improv e the quality of coffee and farmers. Starbuc s has provided safety training programs for partners who wor with compa ny in order to protect themselves from accident. In terms of business. Also . life to be better. All advertising of company has to be truthful and accurate commun ication on public. since entry the coffee in their st                                               . For other projects. The main strategy that Starbuc s conducts business is being Ethic Company. Because the company has realized that communities are a part of succes sful businesses. Starbuc s has operated businesses by emphasizing high quality of products and se rvices in order to ma e customer. Starbuc s believes in fair mar ets by agreement with co mpetitors do not control the mar ets in order to be free competition and tal about produc ts and prices too under following laws of each countries where Starbuc s has run business. For high quality products. the comp any has supported young generation to improve their communities.

ores as lower .

The fourth issue is values-based service brand and communication for values reso nance:                                     . joining with farmers to produce high quality coffee and also ma ing long term relationships with them and training its partners (employees) as a strategy for ma ing customers satisfaction on its services.price coffee that it has different price from brand premium around 15-25% so it made them competed with brand premium as Starbuc s. in 2009 net earning had grown up again. it ma es sure that the company has strong values for its business including accepta nce of all sta eholders who have affect the company. The second is CSR as a strategy for sustainable service business in which Starbu c s has engaged CSR into every part of the company. firstly. the customers receive new experiences when they come into the Starbuc s houses such as good environmental places. we will see the strong values drive customers value that we described in chapter 4. All are geared towards creating value to customers and ma ing sure that they get high quality products that will to respo nd their needs and satisfaction. Moreover. The third issue is values-based service experience for co-creating: Starbuc s ha s built their stores as second home. Starbuc s has done a lot of things such as focusing on the highest standard of d elivering coffee. These facilities are the experiences which the comp any offers to customers that ma e them to have an edge over its competitors. We can see Starbu c s uses innovative technologies to protect environment and reduce its cost. Starbuc s focuses on values of dev elopment and managing services of their company to drive the company to run business smoo thly. However.s areas. Starbuc s is committed to run busine ss by CSR strategy and have realized high benefits for all sta eholders. It is doing business fairly wit h their suppliers to ma e long term relationships. warmly welcome by all partne rs (employees) and high quality coffee and also they can wor or meet their friends to communicate with each other. St arbuc s still supports local societies around company. From its company s mission and code of con duct. In terms of sustainable values-based service.

Starbuc s Company has provided many channels to communicate with its customers a nd other sta eholders such as website. Starbuc s card and etc which all sta eholders can access gain access to Starbuc s in order to share information between compan y and           . telephone.

sta eholders. CSR has built the competitive advantage to Starbuc s ma ing them to have an advantage over its com petitors. can collaborate with the team. can commu nicate with all level of partners and customers in order to now their problems such as what they need or what they want and so on.s culture deeply. Starbuc s gets benefits by engaging in CSR. It means that Starbuc s still has a good resonances or feedbac from customers. In addition. as we described in prev ious chapter that CSR practice in this company is more of a business strategy. Ever since its creation. These are necessary not only for leadership purposes b ut also all Starbuc s. Starbuc s has reputation in its brand as it has operated CSR business which it has focused on high quality of products and services. support their partners. partners. The last but not the least is values-based service leadership for living the val ues: Starbuc . More over Starbuc s has strong relationships with its customers and collaborates with soci al responsibilities as well as communicates company activities with its sta eholder s to promote responsible environment.s leaderships does not only control subordinates but they have to understand corpo ration.                         . However If we have considered financial reports from 2006 to 2009 except 2008 we will see net earnings showed a continuous increase over the years.

CONCLUSION and RECOMMENDATION The objective of this thesis was to investigate how Starbuc s Company succeeds i n business by CSR. It is very interesting to see how Starbuc s has operated its business et hics. Especially the mission statement which is tal ing about how Starbuc s runs its b usiness by using several components to create a good relationship with its suppliers, partn ers (employees), customers, communities, the sta eholders, and also how they are car ing for the environment. The other interesting things about Starbuc s are its code of conducts, which sho w that Starbuc s has collaborated with farmers in orders to gain a high quality of coff ee bean at the same time that it improves the famers life and environment. Starbuc s has ran its business by driving Corporate Social Responsibility (CSR) as a tool that covers the company in every sector of their business. Let.s ta e the environment , for example. Starbuc s is really concerned about affecting the environment. By utili zing innovative technologies to improve the effectiveness in its processes, they redu ce costs and at the same time they are preserving the environment. In terms of social strategies , Starbuc s has splendid strategies to cooperate with its partners and sta eholders. Starbuc s has created a lot of activities to encourage communities and to create long term relationshi ps with them, which reflects on their brand. In terms of economics, Starbuc s is not only thin ing about its benefits but also for all parties related with their business, by following the laws of each country. Starbuc s has managed to create fair trade with its suppliers, customer s, and even for their competitors. It has made Starbuc s very successful in its economic sit uation. Moreover, CSR can build competitive advantage over competitors that Starbuc s ga in more competitive advantage by engaging in CSR into every part the company. Specially, the company focuses on their suppliers (coffee farmers) and partners (employees) whi ch they have run business as sustainable together. We thin that the company has come to correct the way to run business by fully practicing CSR and eeping their mar et position. From what we investigated, a company.s CSR practice relates to numerous differen t behavioral aspects within a company. Many organizations argue that companies eng aged in CSR can obtain increased sales and mar et share, reduce costs and increased inte rest from investors, improved employees motivation, improved brand awareness and image of





















the company. However, we thin mpany.s

that the company.s CSR investments will affect the co

performance positively as customers value CSR activities. It is the reason why t he company has succeeded in business world by CSR. As presented in this study, CSR has been growing in recent years and many compan ies are starting to participate in CSR to run business in which they see the benefit fro m CSR. Moreover, nowadays customers are starting to demand that companies ta e their so cial responsibility. We will suggest that the most important aspects to consider conc erning CSR are: The first, in the future CSR is possible belonging with the law to run business so we recommend that companies should participate now as same as Starbuc s participati ng in CSR. The second is that CSR can increase sales volume and improve finance perfor mance however, so it.s a good time to invest in CSR. In this thesis we have provide some nowledge within the term CSR. But we thin that there are many other interesting areas to study regarding this subject. However, we wi ll recommend that future research such as what is the perspective of customers to CS R , why are suppliers interested in operating with a company which participates in CSR an d what are the setbac s of companies which do not participate in . However, there are man y other topics interesting in this term. For Starbuc s, it provides premium coffee which the prices are quite high compar ing with other brands, though it has good environmental concerns, partners, facilities an d a good image. But nowadays not only Starbuc s has provided those things but also there are competitors providing all facilities the same such as Mc Donald and Dun in Donut . Because both of them provide cheap prices of coffee which everybody can reach th em . Although their facilities are not as good as Starbuc s but they have the price s trategy to attract customers. Especially today the way of human life has changed and most p eople have to hurry for cheaper things. This is an aspect that starbuc can improve upon. I f this is not done, there is a tendency that some customers will switch to drin others brands which are cheaper. In this case, Starbuc s may provide some price promotion to motivate it s customers. Therefore, although Starbuc s does not have discount policy this poin t calls for flexibility in business strategy.














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APPENDIX Figure 5: Corporate Social Responsibility Governance   Source: Starbuc Report 2005 .

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