Business Ethics & CSR

Anubhav Verma- 22020047

Arpit Kasana- 22020039

Hritik Sawhney-22020040

Pavni Agarwal- 22020057

Case Assignment

"Case24: Starbucks and CI"

1. Analyze the case based on the framework given in the HBSPs Book titled “The Case
Study Handbook” by William Ellet. The PPTs shared in Session 1 contain a
summary of the framework.  

The case of Starbucks and Conservation International can be analysed using the framework
provided in William Ellet’s Case Study Handbook. This framework includes problem
identification and analysis, collecting and analysing relevant data, evaluating alternative
solutions, and making recommendations.

1. Identify and investigate the problem: The key issue in this regard is how Starbucks can
balance its business goals with its social responsibility and sustainability goals.
Companies face criticism for their procurement practices and their impact on the
environment and local communities. Starbucks has partnered with Conservation
International to address these issues and improve research but needs to determine how to
implement this partnership and communicate its efforts to stakeholders.

2. Collecting and Analysing Relevant Data: This case shows information about Starbucks'
procurement practices and the challenges they face in conducting sustainable research. It
also provides information on the partnership with Conservation International and the
steps the two organizations are taking to address these issues. Additional information can
be gathered through stakeholder interviews, environmental impact assessments and
supply chain audits.

3. Evaluation of Alternative Solutions: Some alternative solutions can be considered: -

 Changed Starbucks' procurement process to prioritize sustainability and social
responsibility.
 Improve transparency and communication with stakeholders regarding efforts to
improve company performance.
 Investment in research and development to identify more sustainable research
method.
 Collaborate with other organizations to address environmental and social issues in
the coffee industry.

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4. Make suggestions: Based on the research, Starbucks is recommended to take the
following steps:
 Increase transparency and communication with stakeholders regarding efforts to
improve partnerships and research with Conservation International
 Invest in research and development to identify and implement more sustainable
research methods.
 Collaborate with other organizations in the coffee industry to address common
challenges and share best practices.
 Continue to monitor and assess the impact on the environment and local
communities and adjust if necessary.

In conclusion, using the framework provided in the Case Study Handbook, we can identify
the main problems facing Starbucks and Conservation International, collect and analyse
relevant data, evaluate alternative solutions, and determine whether the company can stabilize
its operations. goals with social responsibility and sustainability goals.

2. What are the challenges and opportunities in dealing with a non-profit organization
for CSR activities? How do you think top Indian companies manage CSR-With or
without a non-profit/Foundation? Does it make sense to work through a non-profit
than on your own for CSR activities?

Challenges and Opportunities in dealing with a non-profit organization for CSR activities:

1. Alignment of values: Ensuring that two parties have same beliefs and objectives is
one of the main obstacles when working with a non-profit organisation for CSR
initiatives. The company and the non-profit organization need to work together to
identify areas where they can collaborate and create meaningful impact.
2. Communication: In every organization, effective communication is crucial.
Establishing clear lines of communication is essential when engaging in CSR
activities with a non-profit organization to prevent misunderstandings and make sure
that everyone is on the same page.
3. Legal and Regulatory Compliance: When working with a non-profit organisation,
businesses must be aware of all applicable laws and regulations. Companies must
make sure they comply with these standards while working with non-profits because
they are frequently subject to severe restrictions.
4. Sustainability: The sustainability of the partnership is another significant
challenge. Companies and non-profit organization must collaborate to develop a long-
term plan for their cooperation that will be advantageous to both sides and have a
significant impact.
5. Goodwill: When choosing a non-profit organization to collaborate with, businesses
need to be cautious. The organization's reputation and compatibility with the
company's values must be checked. The reputation of the business may be damaged
by any unfavourable press regarding the non-profit organisation.

Top Indian Companies and their CSR Practices:

The Companies Act, 2013, mandates Indian companies to spend 2% of their net profits on
CSR activities. While some top Indian businesses choose to collaborate with non-profits,
many have created their own foundations to oversee their CSR initiatives. Top Indian
companies and their CSR initiatives include:

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  Tata Group: The Tata Group founded the Tata Trusts, which prioritize culture,
livelihood, healthcare, and education. To carry out its CSR projects, the corporation
regularly collaborates with charitable institutions.
 Reliance Industries: The Reliance Foundation, focuses on issues including
healthcare, education, and rural development. The Jio Digital Classroom project and
the Reliance Digital Gurukul initiative are just two of the initiatives that the
foundation has put into place.
 HDFC Bank: The HDFC Bank Parivartan project focuses on issues including
healthcare access, environmental sustainability, and education. To carry out its CSR
programmes, the bank collaborates with charitable institutions.
 Infosys: The Infosys Foundation focuses on issues including rural development,
healthcare, and education. The Infosys Science Foundation and the Infosys Prize are
two of the efforts that the foundation has put into place.

Working through a non-profit vs. on your own for CSR activities:

Working through a non-profit organization can have several benefits, including:

 Expertise: Businesses can leverage non-profit organizations' years of expertise in a

variety of fields to carry out their CSR projects.
 Resources: Non-profit organizations can access resources like volunteers and local
networks that may not be available to companies.
 Credibility: Non-profit organizations frequently have a positive reputation in their
fields, which may enhance the credibility of a company's CSR operations.
 Impact: Non-profit organizations are frequently more prepared to put sustainable
projects into action that have a significant effect.

However, working on your own for CSR activities also has its benefits, including:

 Flexibility: Independent businesses have more freedom to undertake their CSR

efforts.
 Control: Businesses have total control over their CSR efforts and can make sure that
they are in line with their beliefs and objectives.
 Cost: Since businesses do not have to cover the overhead costs involved with working
with a non-profit organisation, functioning independently can be more cost-effective.

The demands and objectives of the company ultimately determine whether to do CSR
operations through a non-profit or independently. Companies should carefully consider their
alternatives and select the strategy that most closely reflects.

3. Based on the Chiapas project, what, according to you, is better- searching for a CSR
activity based on societal needs where the company’s /businesses’ interest may not
be there or searching for a project which is near/inside the value chain/business
model of the organization and then working on it for mutual benefit? 

Both corporate social responsibility (CSR) approaches have strengths and weaknesses. The
best approach depends on the organization's specific circumstances and goals.Pursuing CSR
activities based on social needs where there is no corporate/business interest can have some
benefits. First, it shows a sincere commitment to social responsibility and can improve the

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company's reputation and goodwill among stakeholders. Second, it allows the company to
contribute to solving social needs and have a positive impact on society, which can lead to
long-term benefits for the business. However, this approach may not match the company's
core competencies or business model, which may limit the effectiveness of CSR activities.

On the other hand, finding projects that are close to/in the organization's value chain/business
model and then work for mutual benefit can also have some advantages. This approach
ensures alignment with the company's core competencies and business model, which can
improve efficiency and contribute to the bottom line. In addition, CSR activities can create
synergy between business operations, which will be mutually beneficial for both. However,
this approach may not meet broad social needs and may be considered as self-serving rather
than sincere in its commitment to social responsibility.

In the case of the Chiapas project, Starbucks chose the second approach and focused on
projects that could benefit farmers and companies along the value chain. This approach
allows Starbucks to use its core competencies and business model to positively impact
society and contribute to sustainable development in the region. However, it should be noted
that this approach may not be appropriate for all organizations or CSR initiatives. Companies
should consider their options and goals before deciding on the best approach to CSR.

4. Had you been the decision maker/CEO at Starbucks, how would you have attended
to the several issues (mentioned on page 16) the business is facing?  

If I were a decision maker/CEO at Starbucks, I would solve some of the problems facing the
business by implementing the following strategies:

1. Purchase Procedure: I will focus on increasing transparency and accountability in the

supply chain to address issues related to the procurement process. This could include
conducting regular inspections of suppliers, enforcing stricter environmental and social
impact standards, and trading directly with farmers. In this way, we can improve the
sustainability of our research operations while improving the well-being of the local
community.
2. Sustainability: Invest in research and development to identify safer research methods and
promote more efficient use of resources to improve sustainability. We can also set
specific sustainability goals and measure our progress towards them. In this way, we can
reduce the impact on the environment and promote long-term sustainability.
3. General Responsibilities: I will focus on creating a more inclusive and diverse workplace
and supporting local communities to increase social responsibility. This can include
initiatives that promote diversity, equality, and inclusion in the company, as well as
initiatives to support local communities and address social issues such as poverty and
inequality.
4. Marketing and Branding: I will improve our communication and engagement with
stakeholders to address brand and marketing issues. This may include increasing
transparency about our research practices, demonstrating our sustainability and social
responsibility efforts, and our positive impact on local communities.
5. Stakeholder Involvement: To improve stakeholder engagement, I will focus on building
strong relationships with key stakeholders, including customers, employees, suppliers and
local communities. This can include regular communication, collaboration, and
engagement to ensure we are meeting their needs and solving their problems.

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Collectively, these strategies will help Starbucks address key challenges and develop long-
term sustainability, social responsibility, and stakeholder engagement. In this way, we can
strengthen the company's brand and reputation and have a positive impact on society and
the environment.