Mission, strategy, and ethics at starbucks v2
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The document provides an overview of Starbucks' mission, strategies, and ethics. It discusses Starbucks' history and leadership, mission to provide quality coffee and an excellent third place experience. It also summarizes Starbucks' strategies around partnerships, international expansion, and creating a ubiquitous brand through aggressive store growth. Finally, it outlines Starbucks' focus on social responsibility and creating a positive community impact.
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Mission, strategy, and ethics at starbucks v2
- 1. Mission, Strategy, and Ethics at Starbucks Presenters: McKeon, Mulzoff, Parisi, Singh January 17, 2007
- 2. History
- 6. Corporate Social Responsibility Report (CSR)
- 16. Keeping It Green
- 17. “ The Sky’s the Limit”
- 18. A Cup’s Story or “A Tale of the Cup”
- 19. The CUP Program
- 45. BUSINESS STRATEGY “ Starbucks unique culture, the intimacy of its brand, and the uniqueness of the customer experience will keep people coming back. The company went to great lengths to make sure the store fixtures, the merchandise displays, the colors, the artwork, the banners the music and the aromas all blended to create a consistent, inviting, stimulating environment that evoke the romance of coffee that signaled the company’s passion for coffee, and that rewarded customers with ceremony, stories and surprise.” Quality of the Starbucks Brand
Notes de l'éditeur
- All of us should be familiar with ethics How many? Corporate scandals – all companies incorporating ethics Starbucks no exception Treat others with dignity, embrace diversity, positive impact on community Even has an Environmental Mission Statement… talk about later They also publish (CLICK)
- They publish a Corporate Social Responsibility Report This encyclopedia Illustrates how ethical and socially responsible they are Pretty impressive even for the cynically inclined As a result, CLICK
- They have received a large number of awards for various reasons from various organizations All notable achievments Starbucks says they back it up and love to tell everyone about it – go look on their website! Now you’ve seen the awards (CLICK)
- Lets talk about how they earn them… These are just four of the major practices or programs they are involved with and Starbucks keeps a close watch over all of them Three of them were created by Starbucks – tell them Meant to provide guidelines for Starbucks and their suppliers to follow and I mean follow very closely or sell your beans to someone else I could discuss several more or the entire CSR – be up here for 2 hours but nobody wants that (CLICK)
- As I mentioned there many coffee farmer programs out there – and I quote, “Starbucks admires the efforts of them all”… BUT CAFÉ is the one! this is the one Starbucks truly endorses and wants everyone else to follow – this is their baby Created as set of guidelines socially and environmentally correct behavior for everyone to follow First – ensure farmers produce a quality bean w/o harming the environment Secondly, set in place methods and ethics for everyone in supply chain to follow to help ensure economic growth in these rural regions Must be followed to be part of Starbucks Preferred Supplier Program Now as said earlier there are other programs out there (CLICK)
- And Starbucks is involved with this one a great deal… Another set of benchmarks similiar to CAFE Starbucks does not entirely endorse this program but does do business And does help promote FTC branded coffee Did purchase 11.5 million pounds … only represents 4% of Starbucks imports They get some heat from other organizations… 11.5 million pounds sounds like a lot but go to a Starbucks and try to purchase some On the other hand.. Starbucks says not the only enterprise out there purchasing coffee, what about Nestle or Proctor and Gamble?? Not ignoring FTC but our standards are higher.. Just look at our (CLICK)
- Delete? … Supplier Code of Conduct. Strict guidelines Discusses in detail ethical behavior, proper work treatment and conditions & environmental resp. In short, screen out and ensure behvior is in line with Starbucks values. Another value (CLICK)
- Near and dear to Starbucks is Supplier Diversity Ensures Starbucks shares the wealth Independent organization ensures supplier meets the criteria Ensures Starbucks provides equal opportunities to wide range of suppliers In 2005 Starbucks received prestigious award from NMBC for its work with diverse organizations With all of this said (CLICK)
- Starbucks finds itself at the boiling point with some various non-profit organizations. Ask for Starbucks to do more! FTC, humane treatment of animals, more support of some African growers OCA’s big beef with Starbucks – stop purch milk from farmers who feed growth hormones However, the FDA has not banned these hormones OCA continues to push, Starbucks no comment Ethiopia revolves around the issue of coffee bean trademarking Oxfam pushing to approve – will help them economically and Starbucks being bully Others including the periodical the Economist argue in Starbucks favor Will only provide revenue stream for the gov’t Starbucks favors tradeark scheme similar to the one in France used to control trademark their wines Less legal issues and prevent roadblocks in the future While debate goes on Starbucks has met with offcials Ethiopia and even Kenya, Rwanda, Even so far to wrtite letter to local newspaper So you see, Starbucks cares. And their caring doesn’t stop there (CLICK)
- Starbucks very socially concerned enterprise. Social programs and various charities to assist communities economically Consider themselves responsible neighbor and participate in local community affairs wherever… Monitor their progress and ensure they have positive impact… Starbucks involved with a great many (CLICK)
- And here are some of them… Magic – commerical development in needy urban areas Starbucks Foundation – since 1997 donated more than $11 million to approx. 700 diff orgs to support literacy and youth education programs in US and Canada Make Your Mark – encourages employees involvement w/ local community projects $10 for every hour worked The employees or prefer partners have responded – nearly 2,200 of them donating more than 792,000 hours resulting in almost $1.5 million in donations Community-Word – over $45,000 Save the Children – very involved earmarked $1.5 AND ALSO NOTE THAT, Starbucks in sone of the largest contributors in North America Lastly, U.N Compact deciated to humans rights, fair labor laws, environmental safety Starbucks “and I quote, “considers these principle to be a natural extension of Starbucks guiding principles” end quote. Something else.. Another something that Starbucks feels strongly about is the environment (CLICK)
- As I mentioned earlier, they even have a Mission statement Another area that Starbucks closely watches their programs and their impact Programs include grenhouse gas emissions, sore design and constructions recycling, and even develop environmental improvements to their cups Starbucks feels very strongly about the environmental impact and have determined that the Skys the limit (CLICK)
- Each year Starbucks has studies done of its own facilities and their greenhouse gas emissions Limited in scope, has identified ways to lessen their emissions Work with EPA green Power Partnership, The Climate Group, and Global Green USA Very important to them.. Another area so important to them is recycling and their coffee cups (CLICK)
- So important to them in fact they wrote a little story about them… From this little pictorial that Starbucks keeps close eye on recycling and waste reduction Discount coffee to people who use their commuter mugs Coffee grinds Programs go on and on including sponsoring Earth Day events and the Earthwatch institue Partners did not leave them behind after Hurricane Katrina (CLICK)
- thru the CUP Program has gotten involved to help the Victims of Hurricane Katrina Through the Starbucks foundation $1.4 million so far to over 1000 employees Another $5 million earmarked over the next years for the rebuilding effort Not only here that Starbucks works for its employees (CLICK)
- From the beginning Howard Schultz thought of his employees as greatest asset From the beginning committed – more than fair wage and find a way to provide healthcare Fought with board – in 1988 he won and got benefits for all including the part-time workers In 1991, stock option program called Bean Stock In 1995, employee stock purchase plan Mission Review Program – comment on company's guiding principles or environmental issues Strict Business Code of Conduct Corp Compliance Program with Hotline Execs must participate in Exec Diversity Learning series each year With all this said, all may not be so wonderful in Starbuck land (CLICK)
- Unionization or the anti-unionization efforts of the company gets its share of press Company pushed out or had it de-certified Stories pushed Starbucks to write formal statement Some employees say Starbucks unfair – other operations have had union decertified themselves Some employees filed formal complaints National Labor Relations Board agreed – settled out of court fired employees re-employed with back wages post public notice not to harm union Employee lawsuits – labor matters Lawsuits by mom and pop shops – cluster-bombing: i.e. Starbucks on every corner He said/she said; small number of unhappy people in large world over 115,000 employees and over 8,000 locations So its in some ways a Tale of Two Cups (CLICK)
- See there is some conflicting information out there More than one opinion certainly more one instance their integrity can be questioned Noble efforts yes but is it all about the bottom line? All about helping the coffee farmer but also long term effort to help coffee bean harvests Certainly involved in community efforts are they a bully Engage quite a bit of charitable efforts same time harming the little guy Certainly offer their employees a bit even benevolent but is it only if its done “their way” Going to be some unhappy employees in such a large org. Maybe Starbucks vales and Union values don’t match Certainly there may be a lot of reasons to go after Starbucks and their behavior. But are all those arguments really fair? It’s easy to go after the big target and or point a finger at and say “you need to do more”. It certainly looks like Starbucks is thinking about their environment, they are also thinking about the impact it will have to the business. But is that unethical? Is Starbucks an an unethical business? It’s tough to say. But, its Starbucks a smart, tough business? Now that’s an easy question to answer. I know our favorite barista can answer that question.