Company Social Responsibility

1. Read the Management Minicase 3.1: "Starbucks Gambles That Encouraging Its Coffee Suppliers to Act Socially Responsible Is Good for Business?" on p. 132. Answer the following three discussion questions (5 points):

A. How does Starbucks link its social responsibility goals of being a good corporate citizen with its business goals of aggressive growth?

It is generally held that corporate social responsibility could increase company profits and thus most large companies are actively engaged in it. Starbuck for example took a leap into their social responsibility propaganda which engaged there workers, communities, and environment. Starbucks social initiatives promotes respect for their company in the marketplace which can result in higher sales, enhance employee loyalty and growth for the organization. The ability to address societal issues is integral to aggressive organization should address society's problems to drive new business opportunities and create a source of significant untapped profits.

B. What are the risks that Starbucks takes by attempting to influence how coffee growers treat their employees and use the land where they grow coffee?

In the book it points out that ethics of individualism is a counter to social responsibility, if Starbuck is pressuring their suppliers to act upon the organization interest this can pose a possible dilemma; individuals and companies should be able to pursue their own self-interests as they see fit.

C. Name the categories and some specific stakeholders in those categories for Starbucks. Which strategy for managing stakeholders most closely corresponds to the way Starbucks responded to the criticisms it received from the "fair trade" movement? Be able to justify your choice.

Owners: trusts, board members, management owners, employees pension funds, and individual owners

Employees: New employees, senior employees, female/minority employees, and retirees

Customers: consumers

Community: local schools, and national literacy programs

Competitors: Dunkin Donuts, MacDonald's, and Caribou Coffee

Starbucks used a proactive strategy when dealing with the criticism it received from "fair trade" movement. The organization proactive approach goes beyond stakeholders expectation, Starbucks does not accept the status quo in their business, and proactively embraces innovative products and ideas; they also look for and champion new ways to use their existing assets and resources.

2. Do the Internet Exercise 3.1: "Social Responsibility at Levi Strauss" on p. 135. Visit the Web site: www.levistrauss.com, and answer the three discussion questions. (I think that Levi's has recently updated their website