social responsibility

2139 words 9 pages


Starbucks Coffee Corporation is a world renowned Fortune 500 company headquarter in
Seattle, Washington USA. It was founded in 1971 with the sole mission to bring the unique
Italian coffee experience to the masses. Its CEO Howard Shultz has successfully created a company brand where customers identify its coffee to a distinctive and premium experience.
Starbucks Coffee currently has over 18,000 stores worldwide across 60 countries on six continents, and with a market capitalization of over $USD 50 billion. Ranked in American
Express/SAP survey as 49 of the Top 100 global retailers, and consistently on the
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The sourcing of its product has a direct impact to Starbucks’ bottom line and profits.
However profit margins does not take precedence over social responsibility, compromised or side stepped in the constant pursuits for corporate profits.
Case in Point: In 2012 Starbucks assessed 128 factories and found that 36 of them failed its zero-tolerance standards. Even though its approach was to work with suppliers to correct the issues, it halted business until adequate resolution were implemented. While it was able to implement improvement plans with almost half of these factories, it stopped working with
15 factories that didn’t rectify the issues. Since the program started in 2006, it engaged with more than 500 factory assessments and worked with more than 70 factories on programs to improve standards.

Aside from internal practices, Starbucks is a member of the Global Social Compliance
Program, and promoting externally the social responsibility of ethical sourcing best practices to other corporations. To lead and facilitate business-driven efforts to improve environmental and working conditions in the global supply chain of companies. To set itself has a model for other corporations to follow.
What It Should Do Next
Starbucks has implemented the practice of ethical sourcing. It is showing to other corporations the morality of how to be responsible, however the Global


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