Hardeep Singh (Student ID: 5411453)

Assignment on Critical Thinking

1. How do Starbucks’ new plans for its stores reflect its sense of social responsibility?
Answer: In the new plan of Starbucks tries to do some contributing efforts to reduce the
green house effect by adopting some environment friendly techniques like using the
renewable source of energy at their outlets, recycling of their cups to manufacture the
napkins or the proper disposal of the waste through establishment of waste control centres.
I think, it is a kind of social responsibility which is Starbucks doing to protect the
environment because it is moral and ethical responsibility of every business to take of the
environment and it is a great and appreciable initiative by the company which shows how
Starbucks is concerned about the its social responsibility. the efforts of Starbucks in
preserving water, energy and other natural resources are instrumental indeed to contribute
in social responsibility by providing safeguard to environment.
Apart from this, Starbucks provide emergency medical care, protective equipment at no cost
and other better working condition for the worker health and safety. Starbucks comply with
the law of government by making transparency in the activities. They also consider the
rights of the worker by solving the issue of the workers in very frequent response and they
do not employ the person under 15 age. They also contribute in providing better response
to the complaints of the customer with no delay under a proper designed system.
Starbucks set very strict standards regarding their social responsibility towards the social,
cultural, economic and environmental issues to conduct their business in ethical and moral
way.

2. How has Starbucks reached out to customers and the community in order to reach
its sustainability goals? Why is this an important step for the business?
Answer: (a) The Starbucks reached to their customer by organising a contest called cup
contest in which number of customers participated and provide the design of cups to the
company which helped to get many innovative ideas from the customers to make
environment friendly cup.
(b) It works with environment friendly approaches. The Starbucks also demanded for used
cups for their recycling and reuse on their stores that resulted into great rush out on their
shops to give back the used cups by the customers because company provide some rewards
or awards on the back of the cups.
(c) The Starbucks provide quality of service and products by ensuring the safety standards
and by disclosing their policies in the customer which build a good relation and trust with
the customers for long time.
(d) Starbucks offer reward program to the customers by providing various benefits of refills,
birthday rewards and many more. They provide free internet connectivity on their outlets.
(e) Starbucks comply with the human rights laws.
-- These steps are important because it will increase the goodwill and good social image in
the world which can directly pose a positive effect over the turnover or sales of the
Starbucks. These steps will also increase the demand of shares in the stock exchanges that
will improve the liquidity of the company.

3. What are the recent actions that Starbucks is taking because of COVID-19 pandemic?
Answer: The starbucks give a good response in the time of pandemic by implementing
various measures in their shops as follow: -
a. Only take away: during the covid the starbucks only made sales for home deliveries,
they did not take orders of seatings in their cafes. Only some shops were open with
strict social distancing.

b. Social distancing: Starbucks is very strict about the social distancing they made
special arrangement for social distancing for customer as well as for the employees
to ensure the safety at cafes with proper protocols and responsibility.

c. Following sanitization process: The sanitization and proper cleaning of the counters,
door and any thing which come in contact with the hands of people is sanitized
properly after short period to prevent the infections in the public.

d. Offer discount on personal cups: Starbucks provide 10 percent discount to customers

who bring their own cup for coffee and it is very innovative approach by the
company.

e. Electronic transfer of payment: Starbucks prefer to accept non cash payments even
contact less payment mode. They developed an app to make payment through
which customer get rewards on each payment to assist discount on their next
purchase.

f. Wear mask: In the starbucks, it is mandatory to wear the mask when you are not
drinking or while making order. Worker can reject the order of the customer in case
of not wearing mask.

g. Financial support to the partners: Starbucks allotted $10 million to their partners for
extraordinary needs to face the pandemic for needs.

h. Donated to global relief fund: Starbuck donated more than $3 million to support the
covid-19 relief funds in USA and Canada.
 i. Help the coffee producers: Starbucks make financial contribution to the farmers of
the coffee during the covid-19. So, they cannot be affected by the crises due to
pandemic.

Refences: stories.starbucks.com