A report on general topic

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TITLE OF THE PROJECT
A STUDY ON HOW STARBUCKS SUCCEEDED IN A BUSINESS WORLD WITH CSR
IN PARTIAL FULFILMENT FOR THE AWARD OF THE
DEGREE
MASTERS IN MANAGEMNET STUDIES
TO
THAKUR INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH KANDIVALI
(EAST)
SUBMITTED BY:
JHEEL KHAN
MMS- HUMAN RESOURCE 2019-21
Roll No: M1921041
UNDER THE GUIDANCE OF
DR. REKHA SINGH
Designation
ASSOCIATE PROFESSOR

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DECLARATION
I hereby declare that this project entitled as “A Study on How Starbucks Succeeded in A Business
World with CSR” is the result of my own work, in partial fulfillment of the requirements for the
degree of Master’s in Management Studies.
I declare that the work contained in this project is an original work under the guidance of Prof. Dr.
Rekha Singh and the project is submitted to “Thakur Institute of Management Studies &
Research”
I will not use this project report in future to use as submission to any other university or institute
without written permission of my guide. All the facts and information in this project are true and
relevant to the topic.
PLACE: MUMBAI Project Guide Signature
Date: Dr. Rekha Singh
Student Signature
Ms. JHEEL KHAN
MMS HUMAN RESOURCE Batch
(2019-2021)

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CERTIFICATE
This is to certify that Ms. Jheel Salim khan student for the Masters in Management Studies at Thakur
Institute of Management Studies & Research, Mumbai, has completed a Dissertation project on “A
Study on How Starbucks Succeeded in A Business World with CSR” under my guidance during
academic year 2019-2021.
Her work and output have been found to be satisfactory:
Dr. Pankaj Natu Prof. Dr. Rekha Singh
(Signature of Director) (Signature of Guide)
Date:

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ACKNOWLEDGEMENT
I take the opportunity to express my gratitude to all of them who in some or other way helped
me to accomplish this challenging project. No amount of written expression is sufficient to
show my deepest sense of gratitude to them.
I acknowledge my sincere thanks to Dr. Pankaj Natu, Director, Thakur Institute of Management
Studies and Research, for providing me the required facilities to without which this work would
not have bееn possible.
I am extremely thankful and pay my gratitude to my faculty guide Prof. Dr. Rekha Singh,
Department of Human Resource Development, ‘Thakur Institute of Management Studies &
Research”, for her valuable guidance and support on completion of this project. However, it
would not have been possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.

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EXECUTIVE SUMMARY
Starbucks was first opened in Seattle, by three partners; Jerry Baldwin an English teacher, Zev
Siegl a history teacher, and a writer named Gordon Bowker who all had a passion for fresh
coffee. Their mission was to sell top quality coffee beans to the general public and that they
began selling fresh-roasted whole beans during a shop. Starbucks aim is to supply top quality of
coffee to its consumer and aim to realize product innovation, retail expansion and supply service
quality for future.
The coffee retail market is ever growing than ever in India with the entry of international coffee
brands like Starbucks in 2012 with a venture with the TATA group. The Indian coffee chain
industry features an honest mixture of international also as majority Indian brands surging
upwards within the market.
The Starbucks's objective is to determine itself because the most recognized and revered brand
within the world, conducting business during a socially and environmentally responsible manner
by using Starbucks Mission Statement and Guiding Principles and also integrating Corporate
Social Responsibility (CSR) effectively.
Companies have an important role within the event of a society and environment because there's
high demand within the marketing of products that companies offer product and repair quality to
their customers. However, companies have the obligations to undertake to practice corporate
social responsibility (CSR). CSR is entering a replacement era where suppliers from developing
countries have significantly increased in importance. it's almost becoming a duty and responsibly
of many companies.
In the today’s business world, there are many strategies getting used to run businesses. In the
recent past, the subject of Corporate Social Responsibility (CSR) has grown rapidly. People have
starting demanding that companies should take their social responsibility seriously. Many
companies have begun to engage in CSR as a technique so as to realize benefits which will give
them an added advantage over their competitors. There are increasing numbers of companies
engaged in CSR to run their businesses. Nowadays corporate social responsibility (CSR) can
drive companies to achieve business by increasing sales volume and brand awareness.

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This research report aims at determining how Starbucks succeeding within the business world
using CSR: An analysis of CSR strategies, implementation and outcome. the most objective is to
work out the Starbucks Company´s efforts towards CSR and to research how the Starbucks
Company conducts business and integrates CSR with their business.

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Table of Contents
Sr.no Contents Page no.
1 Introduction to the topic 8-14
2 Profile of the Organization 15-21
2 Review of Literature 22-23
3 Research Methodology 24-25
4 Secondary Data Analysis 26-32
6 Suggestion 33
7 Conclusion 34
8 References 35
9 Plagiarism Report 36-37

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INTRODUCTION TO THE TOPIC
Introduction to Retail Industry
Retail industry in India is undoubting one of the fastest growing retail industries within the
planet. it's the most important among all industries accounting to 10 per cent of the country GDP
and employs around 8 per cent of the workforce. India has seen a drastic shopping revolution in
terms of format and consumer buying behaviors. From shopping centers to multi-storied malls to
large complexes offering shopping, entertainment and food all under one roof and it's due to this
trend that the retail industry is witnessing a revolution as many new format markets like
hypermarkets, supermarkets, departmental stores have made their way within the market.

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India remains largely an unorganized retail market where maximum retailers operate in but 500
sq. ft. of space. the entire retail industry is estimated at 9 lakh crores of which the organized
sector accounts for a mere 9 per cent indicating a huge potential market opportunity that's lying
within the expecting the consumer-savvy organized retailer. Today, the organized players have
ventured into each and each retail category.
The Indian retail industry has emerged together of the foremost dynamic and fast-paced
industries thanks to the entry of several new players. Total consumption expenditure is predicted
to achieve nearly US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over
10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the use.
India is that the world’s fifth-largest global destination within the retail space.
India is that the world’s fifth largest global destination within the retail space. In FDI Confidence
Index, India ranks 16th (after U.S., Canada, Germany, uk , China, Japan, France, Australia,
Switzerland and Italy).
Market Size
Retail industry reached to US$ 950 billion in 2018 at CAGR of 13 per cent and expected to
succeed in US$ 1.1 trillion by 2020. Online retail sales are forecasted to grow at the speed of 31
per cent year-on-year to succeed in US$ 32.70 billion in 2018. Revenue generated from online
retail is projected to grow to US$ 60 billion by 2020.
Revenue of India’s offline retailers, also referred to as brick and mortar (B&M) retailers, is
predicted to
increase by Rs 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20.
India is predicted to become the world’s fastest growing e-commerce market, driven by robust
investment within the sector and rapid increase within the number of internet users. Various
agencies have high expectations about growth of Indian e-commerce markets.
Luxury market of India is predicted to grow to US$ 30 billion by the top of 2018 from US$ 23.8
billion 2017 supported by growing exposure of international brands amongst Indian youth and
better purchasing power of the upper class in tier 2 and three cities, according to Assocham.

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Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totaling
US$ 1.85 billion during April 2000–June 2019, according to the Department for Promotion of
Industry and Internal Trade (DPIIT).
With the rising need for commodity in several sectors including consumer electronics and
residential appliances, many companies have invested within the Indian retail space within the
past few months.
India’s retail sector investments doubled to succeed in Rs 1,300 crore (US$ 180.18 million) in
2018.
Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million) in Wal-
Mart India Pvt Ltd.
Government Initiatives
The Government of India has taken various initiatives to enhance the retail industry in India.
Some of them are listed below:
The Government of India may change the Foreign Direct Investment (FDI) rules in food
processing, during a bid to allow e-commerce companies and foreign retailers to sell Made in
India consumer products.
Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online retail
of products and services through the automated route, thereby providing clarity on the prevailing
businesses of e- commerce companies operating in India.
Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of
products at rock bottom rates. E-commerce is perhaps creating the most important revolution
within the retail industry, and this trend would continue within the years to return . India's e-
commerce industry is forecasted to succeed in US$ 53 billion by 2018. Retailers should leverage
the digital retail channels (e-commerce), which might enable them to spend less money on land

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while reaching bent more customers in tier-2 and tier- 3 cities. The Union Budget 2019-20 is
predicted to offer boost to the agricultural consumption in India.
It is projected that by 2021 traditional retail will hold a serious share of 75 per cent, organized
retail share will reach 18 per cent and e-commerce retail share will reach 7 per cent of the entire
retail market.
Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes,
favorable demographics, entry of foreign players, and increasing urbanization.
Challenges
Although retail industry in India is on a growing track not everyone has tasted success. Due to
various diversities in the state policies and local influences, it becomes a larger hindrance for the
retail to expand rapidly.
The high cost of land, deep discounting from e-tailers, non-availability of skilled labor in rural
market are a couple of challenges which will hinder the expansion of retail industry. Innovative
concepts and model shall survive the test of your time and investment.
COFFEE RETAIL INDUSTRY:
India retail coffee chains market was valued at USD 128.6 million in 2016 and is predicted to
grow further over the forecast period. Increasing global exposure, Western culture and
penetration of established coffee brands are anticipated to be the key trend driving growth of
India retail coffee chain market. The market is ever growing than ever in India with the entry of
international coffee brands like Starbucks in 2012 with a venture with the TATA group. The
Indian coffee chain industry features a decent mixture of international also as majority Indian
brands surging upwards within the market. The local coffee retail giant Café coffee Day has
1682 out lets in the country and more than 500 kiosks in 2016. The other Indian coffee retail
brand Barista is additionally within the expansion with reference to its outlets and occasional
shops alongside another retailers.

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In the recent past, Indian coffee chain witness tremendous growth as outlets are gaining
popularity of hangout zones with friends, family, colleagues, and business associate, among
others. The increased acceptance of coffee is attributed to the emergence of premium stores from
companies like Coffee Day Enterprises Ltd, Starbucks Corporation, and Barista Coffee Co Ltd.,
among others thereby fueling the market growth. Moreover, these outlets have ushered within
the experiential proposition to coffee drinking, with an ambiance that’s attractive and relaxing.
The coffee retail shops in India are a primary hang around place for the Indian youth basically
between the age bracket of 16 to 45 years. Reading, working, or simply casual discussion within
the coffee shops may be a usual sight. The complementary services provided by the coffee shops
like free WIFI, music, et al. have succeeded to retain customer footfall within the shops.
The Indian people have an incline towards enjoying the coffee sitting within the shops instead of
take a deduct the beverage on the go. Although there's a rise within the trend of deduct within the
labor, but the eat in coffee retail market maintains substantial majority during this market.
Increasing income and influence of Western culture amid youth and other population witnessed
shift due to the worldwide exposure of foreign brands within the Indian market. The increasing
acceptance of coffee/premium coffee as a beverage, across states, has encouraged the prominent

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participated within the industry to launch retail coffee chains offering exotic range products to
the urban population.
The increasing industrialization and exponentially growing IT hubs within the western corridor
of the country has caused greater improvement within the lifestyle of the residents. The youth is
developed greater inclination towards coffee which previously favored tea. Due to such factors
the coffee retail industry is projected to experience the fastest growth during the forecast period.
The market leaders like CCD and Starbucks also are trying to expand their operations within the
western region through fixing shops in major cities.
The global exposure and rapid urbanization alongside increasing disposable incomes have paved
modern coffee shops offering premium coffee and variants charged at higher pricing. Moreover,
lifestyle preference influenced by the western world has created opportunities for the key players
to witness tremendous growth. Thus, foreign investment in India’s coffee retail sector has
increased in recent years.
Companies dominating Indian coffee chain market share include Café Coffee Day, Barista,
Starbucks, Costa Café, and others. the main players try to succeed in each and each major city

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within the country. While CCD features an outsized presence in major Indian cities, Starbucks is
trying to aggressively expand its business within the western region also as within the whole
country getting to quite 80 outlets in 2016 from just 2 in 2012. On the opposite hand, CCD has
added quite 200 outlets under its belt between 2014 and 2016. Thus, the key players are adopting
an aggressive expansion strategy to understand greater market share within the India Coffee
chain market.

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PROFILE OF THE ORGANIZATION
INTRODUCTION TO STARBUCKS
On 31 March 1971, the primary Starbucks opened in Seattle, by three partners; Jerry Baldwin an
English teacher, Zev Siegl a history teacher, and a writer named Gordon Bowker who all had a
passion for fresh coffee. Their mission was to sell high quality coffee beans to the public and
they began selling fresh- roasted whole beans in a specialty store. Schultz brings up the idea of
coffeehouse culture to Seattle after he travels to Italy in 1983.
By 1986 the company operated six stores in Seattle and had only just begun to sell espresso
coffee, and therefore the next following years the first owners sold the Starbucks chain to
Howard Schultz, who rebranded his Il Giornale coffee outlets as Starbucks Corporation and
quickly began to expand its store in Chicago and Vancouver, Canada.
By 1995, Starbucks had 667 stores opened and continuing to expand its store by choosing
Tokyo, Japan because the first location outside North America in 1996 followed by Singapore
and therefore the Philippines. Starbucks operates in two sorts of stores: company- operated and
licensed. within the early 2000s, Starbucks expanded into other important key markets, covering
most Asian countries and also getting into the ecu, Australian, and Latin-American market.
Today, Starbucks is that the leading roaster and retailer of specialty coffee in North America
with quite 24,000 retail stores in 72 international markets.
Starbucks aim is to supply top quality of coffee to its consumer and aim to realize product
innovation, retail expansion and supply service quality for future.
Starbucks Mission Statement
“To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
Starbucks Vision statement
“To treat people like family and that they are going to be loyal and provides their all.”

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STARBUCKS MODEL
The Starbucks's objective is to determine itself because the most recognized and revered brand
within the world, conducting business during a socially and environmentally responsible manner
by using Starbucks Mission Statement and Guiding Principles and also integrating Corporate
Social Responsibility (CSR) because the prevailing attitude and defines the thanks to approach
its relationships with stakeholders (customers, partners, suppliers, shareholders, communities and
etc.). the subsequent six Guiding Principles present the company’s mission statement and
guiding principles to live the appropriateness of firm ‘s decisions.
STARBUCKS SWOT ANALYSIS
Strengths:
• Strong Market Position and Global Brand Recognition: Starbucks features a significant
geographical presence across the world and maintain a 36.7% market share within the us and has
operations in over 60 countries. Starbucks effectively leverages its rich brand equity by
merchandizing products, licensing its brand logo out. Such strong market position and brand
recognition allows the corporate to realize significant competitive advantage in further
expanding into international markets and also help register higher growth in both domestic and
international markets.
• Products of the very best Quality: they provide the very best importance to the standard of their
products and avoid standardization of their quality even for higher production output.
• Location and Aesthetic appeal of its Stores: Starbucks has stores in a number of the foremost
prime and strategic location across the world. they aim premium, high-traffic, high-visibility
locations near a spread of settings, including downtown and suburban retail centers, office
buildings, university campuses, and in select rural and off-highway locations across the planet.
Their stores are visually appealing and have a ‘cool’ factor attached thereto with being designed
to reflect the unique character of the neighborhood they serve in and environmentally friendly.
they supply free Wi-Fi, great music, great service, warm atmosphere and supply an environment
of

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community meeting spot, which forms a wider a part of the ‘Starbucks Experience’. the most
aim for the firm is to form their stores a ‘third place’ besides home and work.
• Human Resource Management: Starbucks is known for its highly knowledge domain
employees. they're the most assets of the corporate and that they are given great benefits like
option, retirement accounts and a healthy culture. This effective human capital management
translates into great customer services. it had been rated 91st within the 100 best places to figure
for by Fortune Magazine.
• Goodwill among consumers thanks to Social Responsibly Initiatives: Their stores are
community friendly, focused on recycling and reducing waste. They build goodwill among
communities where they operate.
• Diverse Product Mix: Starbuck portfolio of products given in Appendix 8, that caters to all or
any or any age groups demographic factors.
• Use of Technology and Mobile Outlets: Starbucks efficiently leverages technology with its
mobile application “Starbucks App’ in both apple and android software’s. they create significant
investments in technology to support their growth per annum.
• Customer base loyalty: Starbucks has cult following status among consumers and that they
have also implemented loyalty-based programs to drive loyalty with the Starbucks Rewards
programs and Starbucks Card. The Starbucks Card may be a value card program that gives
convenience, support gifting, and increases the frequency of store visits by cardholders and
integrated with their mobile application.
Weaknesses:
• Expensive Products: While Starbucks does differentiate their products with being highly
quality couple with the entire ‘Starbucks Experience’, in times of economic sluggishness,
consumers to possess so switching costs to competitor’s products with lower prices and forgo
paying a premium. These premium prices could also pose some weakness for it to realize
developing countries.

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• Self-Cannibalization through overcrowding: By aggressive expansion and high saturation
thanks to overcrowding within the market results in self cannibalization and diminishes future
growth targets of Starbucks.
• Overdependence within the us market: In line with self-cannibalization of the US market with
8078 stores, Starbucks generates an enormous percentage of their total revenue from the US and
this makes it very sensitive to prospects of the US economy and growth.
• Negative large corporation image: like all large corporation, Starbucks does come under
increased scrutiny and need to invest in corporate social responsibility activates and maintain
tight control over labor practices.
Opportunities:
• Expansion into Emerging Markets: the rise saturation and self-cannibalization of the US market
makes its international strategy even more important. Starbucks has made good inroad into many
countries, with India recently joining the list with a venture entry.
• Expanding Product mix and offerings: Starbucks recently began to expand their product mix by
venturing into the Tea and fresh juice product offerings with a sensible acquisition strategy.
• Expansion of retail operations: Starbucks currently sell its packed coffee products, iced
beverages and merchandizes through large box retailers. This market’s potential is yet to be fully
realized and this provides Starbucks great opportunities for the longer term to future monetizes
their brand.
• Technological advances: Starbucks has leveraged the utilization of mobile applications and has
an investment partnership with Square, a mobile payments app that's integrated with its
Starbucks app. This creates an simple use process for patrons, aligns customer loyalty through
reward programs. Starbucks has already set the bar within the industry with this advancement
and about 10% of its transactions within the US are made using mobile applications.

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• New distribution channels: Starbucks introduced a beta version of a delivery system called
Mobile Pour. This presents an excellent opportunity for the longer term by expanding their
outcome distribution systems and will drive more revenue if the implementation is successful.
• Brand extension: Starbucks carries a strong brand image and it can leverage it to increase into
horizontal lines of its business and also venture into product diversification with keeping brand
dilution risk in check.
Threats:
• Increased Competition: this is often far and away the most important threat that Starbucks faces
with the market being at a mature stage, there's increased pressure on Starbucks from its
competitors like Dunkin Brands, McDonalds, Costa Coffee, Pete’s Coffee, mom and pop
specialty coffee stores. Dunkin Brands had at its main threat within the US market by trailing
Starbucks with a 24.6% share.
• Price Volatility within the Global Coffee Market: There are significant fluctuations within the
market prices of top-quality coffee beans, which Starbucks can’t control.
• Developed Countries Market Saturation: Starbucks derives a big amount of its revenue from
the event markets and there's increased market saturation currently.
• Developed Countries Economy: In an increasingly economically integrated world, an
depression just like the one in 2008 could have a trickledown effect from the developed markets
to the developing markets. This threat would hurt revenues for Starbucks as consumers shift
faraway from premium product mix to remain in limited budgets during economic hardships.
• Changing Consumer tastes and lifestyle choices: The shift of consumers toward more healthy
products and therefore the risk of coffee culture being just a fad represent a threat for Starbucks
going into the future.

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CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility is about how companies manage the business processes to supply
an overall positive impact on the society. Carroll (1991) presented the CSR pyramid with
emphasis on four different types of social responsibilities namely: Economic, legal, ethical and
philanthropic, hence, combining CSR with the stakeholder perspective. CSR has originally been
associated with “profitability, compliance and philanthropy”, nevertheless, after the 1970‘s, the
imperative shifted to corporate social responsiveness.
Sometimes ago corporate responsibility wasn't difficult to know as we all know that the talk on
―organizations pollute is an old one. In the past companies are practicing CSR but most of the
time it's been viewed as something to fill annual reports and company PR statements. In fact, it's
never been taken seriously enough so on make it a part of corporate business strategy. At the
same time, it is undeniable that companies have responsibilities towards the communities that
surround them the under lying theme of corporate social responsibility is that business and
society are interwoven rather that distinct entities.
Corporate social responsibility is fast gaining importance as more and more firms realize its
value. For the primary time brand owners everywhere, the planet has started thinking in terms of
integrating its activities into their core business strategy and began assessing its impact on brand
seriously. It is eminent that CSR has got to be co-related with economics of business.
Company is a component of society from where it takes its most prominent input like human
skills alongside factors of production. Economic cycle impacts process which successively
impacts social development process it either slows it down or speeds it up this may successively
impact. The concept of giving it back to the society isn't new; shedding far away from the normal
concept of profit maximization it's now being said that companies must plough back some a part
of their profits into social development work.
Traditionally, CSR is made on the idea of the classical thought which entails ―business of
business is business‖. It explains that, businesses have the only responsibility of creating
adequate provisions regarding goods and services to the society at a profit under authoritarian
framework. This theory only emphasizes the value which businesses incur for social
involvement; therefore, it doesn't highlight or maybe fail to bring into attention the advantages of

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CSR. These benefits and advantages are often within the sort of resource productivity, cost
savings, and merchandise differentiation. Another modern and contemporary
theory of CSR is the stakeholder theory; this theory states the concept of the social contract,
which holds that CSR is a function of terms of general agreement between business and society.
These terms have undergone basic changes in recently, involving a wider corporate commitment
to the encompassing community.
There is one debate about justification of the existence of CSR and its being essential component
in firm ‘s core business strategy. As pointed out by that the justification of CSR is based on four
primary assumptions. First is duty which comprises that companies should be an honest citizen
and its actions shouldn't harm any element of the society. Second assumption is license to work
which states that firm ‘s must have permission from Governments and public to try to to its
commercial activities. Third assumption relates to Sustainability which essentially means
companies should plan their business actives keeping in mind future perspective. Fourth
assumption for the justification CSR associated with reputation which states that CSR helps
company to make an honest reputation among communities.
CSR activities of the firm must be aimed to make an extended term impact on communities
which can ultimately translate into customer loyalty and profitability. In other words, the pay
back for investment on CSR should be seen in future instead of short term. Investment made on
CSR has been matter of debate among management and company stakeholders. Most of the time
it's been termed as waste of resources and burden of company bottom line. It is therefore
important that the choice as to if a corporation should step in or not must be supported evaluation
of the opportunities and threat.
This implies that firm ‘s interest beyond making profit lies in engaging itself in such activities
which can or may not directly contribute towards its bottom line. Extensive study of theoretical
framework covering the aspects of management priorities, stakeholder ‘s stakes, management
and CSR was done explored further amplification of CSR and its importance.
Company sets its priorities and business goals. As far as CSR cares it's not yet clear that where it
stands in terms of management priorities but definitely stakeholders’ expectations and employee
‘s rewards take the front seat.

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REVIEW OF LITERATURE
CSR is ―A concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis‖
(Commission of the ecu Communities‖, 2001)
The trend is clearly visible globally as more and more business owners have started paying more
attention to the social implications of their activities. Corporate social responsibility may be a
commitment by business towards ethical behavior (Moir, 2001),
when it all begins. it's not only about how companies manage the business processes to supply an
overall positive impact on the society (Baker, 2008).
The development of the involvement of companies and therefore the emergence of sustainability
thinking in business together are often seen as a pro-active drive (Edvardsson and Enquist,
2009).
A commercial activity generates both negative and positive externality simultaneously for both
the environment and therefore the society. the essential idea is to attenuate the negative
externality and generate more positive externality. Expectations of the society towards
businesses have grown tremendously during the past few decades, the strain is upon a socially,
environmentally and legally responsible businesses. Organizations have skilled this expectation
by indulging during a set of activities which are termed as Corporate Social Responsibility, but
that has not been enough, businesses cannot resolve social and environmental problems of the
society unless they know where to focus and what's the strategy to become better businesses and
yet not be criticized. the necessity is to utilize a firm ‘s resources within the best manner.
Companies have a crucial role within the development of a society and environment because
there's high demand within the marketing of products that companies offer product and repair
quality to their customers. However, companies have the obligations to try to practice corporate
social responsibility (CSR). CSR is entering a replacement era where suppliers from developing
countries have significantly increased in importance. it's almost becoming an obligation and
responsibly many companies.

23. 23
CSR ‘s role in addressing issues regarding corporate responsibilities of a corporation and its
relationship with the society and environment has been a really debatable topic (Enquist et. al,
2007a).
In the past companies are practicing CSR but most of the time it's been viewed as something to
fill annual reports and company PR statements or hypocrisy. In fact, it's never been taken
seriously enough so on make it a part of corporate business strategy. And we don’t have enough
business cases to argue for (Vogel, 2005).
Corporate social responsibility is not about Philanthropy. The under lying theme of corporate
social responsibility is that business and society are interwoven rather that distinct entities
(Wood, 1991). Corporate social responsibility is fast gaining importance as more and more firms
realize its value (Chaudhry and Krishnan, 2007).
For the first time business owners all over the CSR activities into their core business strategy and
started assessing its impact seriously. As CSR has to ensuring competitive advantage and
strategic gains (Kotler and Lee, 2005; Porter and Kramer, 2006). The focus of this research is on
how Starbucks is succeeding in the business world using CSR: Its analysis of CSR strategy,
implementation and outcome. As commonly perceived CSR isn't what's written in company ‘s
code of conduct or annual reports.
That is only one a part of total CSR initiatives taken by the corporate. In general, social
responsibilities of a corporation need to include all the three bottom lines: Ecological, Economic,
Social.

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RESEARCH METHODOLOGY
RESEARCH DESIGN
Methods of data collection or research methodology can be defined as a process, procedure or
technique to collect, select and analyze the information collected regarding the research topic.
The main objective of the methodology of data collection is to ensure the reader about the
validity and reliability of the overall study. The various methods of data collection usually
include surveys, interviews and other research techniques which may include both past and
present data.
OBJECTIVE
The main objective of this study is to investigate how Starbucks succeeds in a business world by
using CSR. Also, to study how this company succeeds in gaining a competitive advantage in its
business.
The collection of data can be done in two ways – primary data collection and secondary data
collection.
Primary data – It is a type of data that is collected by the researcher himself/herself with a
specific goal or a purpose. Example of primary data collection is the collection of data by the
students for their project work by way of surveys (questionnaires), interviews, sampling, etc.
Secondary data – It is a type of data that has already been collected by someone else for some
other purpose, but the researcher is utilizing it for another purpose. Example of secondary data
collection is using the census data, that is already available, to analyze the impact of education

25. 25
on career choice and earnings.
The information collected for research in this project is totally based on secondary data. It
includes online sources from Google, different research papers, research articles, etc.

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SECONDARY DATA ANALYSIS & INTERPRETATION
STARBUCKS ENVIORNMENTAL MISSION
Starbucks is altogether one amongst one in every of one among the leader companies which
committed to a task of environmental leadership in all facets of business.
Following are seven commitments that Starbucks uses to satisfy Environmental mission.
1) Understanding of environmental issues and sharing information with our partners.
2) Developing innovative and versatile solutions to cause change.
3) Striving to shop for, sell and use environmentally friendly products.
4) Recognizing that fiscal responsibility is important to our environmental future.
5) Instilling environmental responsibility as a corporate value.
6) Measuring and monitoring our progress for every project.
7) Encouraging all partners to share in our mission.
These Ten principles make Starbucks has strongly commitment to providing benefits for society,
environmental and particularly about right.
Human Rights
• Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; and
• Principle 2: confirm that they're not complicit in human rights abuses.
Labor Standards
• Principle 3: Businesses should uphold the liberty of association and therefore the effective
recognition of the proper to collective bargaining;
• Principle 4: the elimination of all sorts of forced and compulsory labor;
• Principle 5: the effective abolition of kid labor; and

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• Principle 6: the elimination of discrimination in respect of employment and occupation.
• Environment
• Principle 7: Businesses should support a precautionary approach to environmental challenges;
• Principle 8: undertake initiatives to market greater environmental responsibility; and
• Principle 9: encourage the event and diffusion of environmentally friendly technologies.
Anti-Corruption
• Principle 10: Businesses should work against corruption altogether its forms, including
extortion and bribery.
STARBUCKS CODE OF CONDUCT
Starbucks has developed a classy sourcing program that seeks to make sure that Starbucks coffee
comes increasingly from suppliers who treat their workers well, pay them an honest wage, and
respect their rights. Starbucks agreed to adopt a code in 1995 which has evolved into C.A.F.E.,
an incentive- based system under which Starbucks growers receive economic incentives for
following a comprehensive set of sourcing guidelines. The goal is to be purchasing 80 percent of
coffee through
C.A.F.E. Practices by 2013. C.A.F.E. Practices may be a green coffee sourcing guideline
developed together with Scientific Certification Systems (SCS), a third-party evaluation and
certification firm.
Practices are the rules designed to assist company work with coffee farmers to form sure that
Starbucks sources in coffee growing sustainably grown and processed high quality coffee by
evaluating under triple bottom line; the economic, social and environmental aspects.
A few of the tangible benefits are:
• Attracting and retaining our partners (e.g., comprehensive benefits package for motivates
worker, guarantees that its employees perform their add safe and healthy workplaces),

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• Customer loyalty (e.g., by customers surveyed in 2007, found that 38 percent associate
Starbucks with good corporate citizenship and 86 percent –being extremely or very likely to
recommend Starbucks to a friend or family.)
• Reducing operation cost (e.g. by 2010, increasing our customers ‘use of reusable commuter
mugs tenfold, Maintaining 10 percent post-consumer fiber content in our hot cups.)
• Creating a sustainable supply chain (Starbucks recognized that the success of farmers was not
only a social responsibility of the corporation but also a critical component of its own future
growth. We have made significant investments in our supply chains, with the future in mind.
• Starbucks social responsibility are often considered into two different dimensions: Social
responsibility concerning the interior environment of Starbucks and social responsibility
concerning the external environment of Starbucks. Starbucks defines corporate social
responsibility as conducting business; “For us corporate social responsibility is not just a
program or a donation or a press release. It’s the way we do business every day”
COMMITMENT TO THE PRODUCT
For quite 35 years, Starbucks has purchased, roasted and sold high-quality coffee beans through
shops and commercial wholesale accounts. While coffee is Starbucks core product, the corporate
markets, sells and/or licenses a broader range of products, including Tazo® tea, Starbucks
Entertainment CDs, Ethos™ water, Starbucks™ liqueurs and Starbucks® ice cream, food and
dairy items and brewing equipment and merchandise. Starbucks purchased Fair Trade products.
To Starbucks give a great product for customers, while paying farmers a fair price (an estimated
four percent of global coffee productions) and taking care of the environment.
SOCIETY
Starbucks does charity to society $18 million or 1.7 percent of pre-tax company’s earning. From
seventh CSR annual report Starbucks created a replacement approach and focus for its local
giving programmes, like hours volunteered by partners and customers in U.S. and Canada. Its
vision heading to local communities by aligning resources and leveraging technology to support

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young social entrepreneurs who are seeking to vary their communities through innovative ideas,
volunteerism and civic action
ENVIRONMENT
Starbucks has launched the shade grown coffee initiative with the environmental organization
Conservation International, which brings business and social objectives even closer. This
program rewards producers who meet Starbucks requirements for quality and economic
transparency also as environmental and social criteria also aims to encourage farmers to use
ecologically sound growing
practices so as to assist protect biodiversity in environmentally sensitive areas promote
environmental sound practices for growing coffee
WORKPLACE
Starbucks has 172,000 partners worldwide. A lot happens during a Starbucks store besides an
excellent cup of coffee. Starbucks offers its customers a welcoming place to permit life to unfold
– to figure, socialize, meet, relax – and more. Our employees, whom we call partners, deliver
that have alongside each cup of coffee they serve. We value and respect our partners because we
all know that our success depends on the contributions, they create a day to make a welcoming
experience.
STARBUCKS CSR PROGRAM AND INITIATIVE
• Starbucks Supporting Local Communities:
Starbucks employees and customers have contributed quite 3 million hours of community service
over the past seven years.
• Starbucks Community Store program:
It aims to help local non-profit organizations in their efforts to supply education and training to
realize poverty eradication for the young segment of population. the corporate has risen quite
USD 900,000 since its launch in 2011.Starbucks has cooperated with non-profit organizations,

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community leaders and organizational stakeholders to supply quite 520,000 hours of
volunteering service round the globe.
• Starbucks Educating and Empowering Workers
almost half Starbucks employees are younger than 24 years old. Starbucks College Achievement
Plan is an education program that permits employees to get online degrees from Arizona State
University. the corporate aims to rent 10,000 veterans and military spouses by 2018 and 2000
new employees from this segment of population was hired in 2014.It has been noted that “at the
peak of the worldwide financial crisis, when other companies were cutting HR costs wherever
they might, Starbucks invested in staff training, including coffee tastings and
courses that ultimately qualified for credit at education institutions”
• Starbucks and Gender Equality and Minorities:
At present about 40% of Starbucks US employees are minorities and 65% are women. Among
vice presidents, 48% are women and 15% are minorities. Within the highest leadership team,
comprising senior vice presidents and better executives 18% are minorities and 29% are women.
• Energy Consumption by Starbucks
Starbucks has quite 800 LEED® certified store, including the LEED® Platinum Starbucks®
Reserve Roastery and Tasting Room in Seattle. the corporate increased its purchases of
renewable energy from 20% in 2008 to 100% for global company operates stores in 2015.
Despite significant increase within the size and blend of the business since the bottom year 2008,
the corporate achieved a net energy reduction of 25% from 6,8 kwH to 5,10 kwH per sq ft a
month in company-operated stores within the US and Canada.
New Energy Management System is installed in about 4000 stores to optimize heating and
cooling. In 2014, energy performance improved only 4.6% compared to the baseline levels.
• Water Consumption by Starbucks
In 2015 Starbucks exceeded its conservation goal, reducing consumption quite 26% over 2008 –
from 24 gallons of water per sq ft of retail space to fewer than 18 gallons. because it is illustrated
in figure below, the corporate has been gradually decreasing its water consumption in company-

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operated stores and in 2015 it achieved 26.5% reduction in water consumption compared to base
year 2008.
Average water uses per square foot/store/month U.S. and Canada company-operated stores
• Waste Reduction and Recycling by Starbucks:
During the past five years Starbucks Japan has turned plenty of spent dregs into compost and
feed for cows.
Front-of-store recycling has been implemented in 59% of company-operated stores within the
USA and Canada
In 2014, customer-facing recycling was added to quite 760 stores. In total customer-faced
recycling is integrated in 3849 or 47% of all company-operated stores within the US and Canada
• Starbucks and Sustainable Sourcing

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In 2015, 99% of coffee sourced by Starbucks was certified as ethically sourced by A.F.E.
Practices, Fairtrade, or another externally audited system.
The company has 8 Farmer Support Centre’s in Latin America, Asia and Africa
Starbucks purchase of coffee from the Eastern Democratic Republic of Congo helped quite 4,500
small-holder farmers to quite triple their incomes.
6% of coffees purchased are Fairtrade and 1% is organic.

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SUGGESTION
Starbucks has come to correct the thanks to run business by fully practicing CSR and keeping
their market position. A company's CSR practice is related to numerous different behavioral
aspects within an organization.
Many companies argue that companies engaged in CSR can help increased sales and market
share, reduce costs and increased interest from investors, improved employee’s motivation,
improved brand awareness and image of the corporate.
However, we expect the company's CSR investments to affect company’s performance
positively as customers value CSR activities. It is the reason why Starbucks has succeeded in
business world by CSR. As presented during this study, CSR has been growing in recent years
and lots of companies are beginning to participate in CSR to run business during which they see
the benefit from CSR. Moreover, nowadays customers are beginning to demand that companies
take their social responsibility.
Companies should participate in the same way as Starbucks participating in CSR.
CSR can increase sales volume and improve finance performance, so it’s good invest in CSR.
For Starbucks, it gives premium espresso which costs are very high contrasting them the
different brands for this the company should maintain its efforts towards production of a highly
satisfying product that meets the expectations of customers. So that it can ensure the company’s
products are liked and the possibility of shifts in demand for its products is minimal.

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CONCLUSION
It is very interesting to determine how Starbucks has operated its business ethics. Especially the mission
statement which is talking about how Starbucks runs its business by using several components to form an
honest relationship with its suppliers, partners (employees), customers, communities, the stakeholders,
and also how they're caring for the environment. the opposite interesting things about Starbucks are its
code of conducts, which show that Starbucks has collaborated with farmers in orders to know a top
quality of coffee berry at the same time it has improves the famers life and environment.
Starbucks has continued its business by driving Corporate Social Responsibility (CSR) as a tool that
covers the company in every sector of their business. By utilizing innovative technologies to reinforce the
effectiveness in its processes, they reduce costs and at the same time they're preserving the environment.
In terms of social strategies, Starbucks has impressive strategies to cooperate with its partners and
stakeholders. Starbucks has created plenty of activities to encourage communities and to form future
relationships with them, which reflects on their brand.
In terms of economics, Starbucks is not only thinking about its benefits but for the all parties related with
their business, and by following the laws of each country. Starbucks has managed to form fair trade with
its suppliers, customers, and even for his or her competitors. It made Starbucks very successful in its
economic situation. Moreover, CSR can build competitive advantage over competitors that Starbucks gain
more competitive advantage by engaging in CSR into every part of the company. Specially, the company
focuses on their suppliers (coffee farmers) and partners (employees) which they have run business as
feasible together.

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REFERENCES
Enquist B, E. B. (2010). Corporate Social Responsibility for Charity or for service Business,. The
Asian Journal on quality vol 9 no 1, 40.
Global Social Impact Report Goals & Progress. (2020).
www.starbucks.com/responsibility/global-report.
L, C. ((1971)). Sustainability Entrepreneurship: Design Principles, Processes, and Paradigms. 7.
Responsibility | Starbucks Mission Statement. (2020). www.starbucks.in/responsibility.
Sornchai, H. (2010). Starbucks with Corporate Social Responsibility (CSR). Faculty Board of
Economic Sciences, Communication and IT, 50.
Yin, R. (2003). Applications of case study research 2 . ed. USA: Sage Publications, Inc., 50.

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PLAGIARISM REPORT

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