Social and Ethical Responsibilities of Starbucks Company - Essay Example

Question No Why did you pick this company? Question No 2: How do they address their social and ethical responsibilities? Question No 3: On what stock exchange are they traded? Question No 4: Describe the business organization and its structure? Starbucks Company Starbucks is an American global company traded in coffee. It was established in March 30, 1971 and head office is located in Washington. It is world’s largest coffeehouse company. It has 20,891 stores operating in 64 countries of the world including United States, Canada, China, United Kingdom and Japan. The total numbers of employees of all the branches are approximately 16000. It is public traded company. Its net income per annum is US $ 8.8 million. Its revenues were recorded US $ 14.89 in financial year 2013. This company provided high quality coffee brands. Its sales and expansions are growing faster each and every decade. In the financial year 2013, the sales were recorded US$ 180,000 and the purchasers of these specific brands were around 27000 people according to a media report. Growth of this company contributing a lot in the economic health of the United stated. It brings employment opportunities in the country, positively effects gross domestic product GDP of the country as well. This company has selected because this can give us better and accurate business picture. It has a relatively good position in overall coffee industry. The data provided for this company must be accurate and flawless reason being its one of the best and successful business from many years. There are professional financial analysts that are maintaining all of its financial record effectively and efficiently. Social and Ethical Contribution: Star buck actively participating in the social and environmental activities. However the Starbucks established in 1971 but in 1999 it started a “Grounds for your Garden” in order to make the business environmental friendly For instance, instead of throwing away spent coffee grounds during the summer season, these grounds are left out for green-thumbed customers who want to use them in their gardens as a source of acid for the soil. In 2004, star bucks started a campaign to reduce the size of their paper napkins, store junk bags and alleviate their solid waste production. Environmental Protection Agency ranked Star bucks at number 15 in 2008. According to one of US newspapers named ‘Sun’ reported that star bucks is wasting 23.4 million liters water per day. In response to this published report star bucks start working for the saving of water in 2009, it re assessed its dipper well systems to control the excessive use of water. After few months of efforts, star bucks successfully developed the new water saving solutions to meet the government health standards. This strategy helps all the operating stores of star bucks to save 570 liters of water per day. To protect the natural environment star bucks started 10% recycling of its coffee cups and give 10 cent discount to the customers who brought their own reusable cup. In 2003, Starbucks acquired a water brand named Ethos. The prominent feature of this water was clearly labeled on the bottle ‘helping children get clean water’. This project was under taken to provide the clean water to underdeveloped areas. This was not associated with any charity organization it was totally star bucks own brand but with time it gain critics that the label mislead its consumers they may thought that Ethos is an charity organization which actually not, it is totally for profit brand. However the sales of Ethos getting increase day by day and at time it reaches over $6,200,000 and contributes a lot socially in the environmental health of the country. Starbucks Corporate Social Responsibility has also decided to promote the environment in escalating bio diversity and quality shade in significant bio diversity hotspots around the globe. Star buck and Stock Exchange: In 1992, start bucks traded initial public offerings IPO at stock market of United States. This action has certainly increased its sales and revenues. This increases the number of 140 outlets with revenue of US$ 73.5 million. This was a huge success for star bucks because this increases the market value of a company by US $271 million. After that share price of star bucks is getting increase day by day due to its competitive repute in the business market. Star bucks endeavor to make every employee a partner in its business. This partnership can be offering by different stock options, health related benefits and even different form of grants. This partnership motivates its employees to work harder and with sincerity for the success of the business. This company offers worldwide learning for human resource management systems. Star bucks traded at NASDAQ under the symbol SBUX. NASDAQ is an American stock exchange. It is the world’s second largest stock market in term of market capitalization. NASDAQ stands for National Association of Securities Dealers Automated Quotations. In 1992, it co integrated with London Stock Exchange LSE to form the foremost intercontinental association of securities markets. The portfolio of star bucks included certain brands i.e. Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Organizational and business structure: With respect to its business and organizational structure it follows matrix organizational structure. They operate under four U.S. divisions including Western/Pacific, Northwest/Mountain, Southeast/Plains and Northeast/Atlantic. By adopting matrix organizational structure business has the biggest advantage of maximized communication channels. Star bucks started operating at international level in 1995 by ventures its business with Japan. Successful partnership allows star bucks to operate its business even in the foreign countries. Star buck chosen Japan because of its largest population and due to its high consumer’s income. After thorough research star bucks adopted a new business model in which they capture their culture. They found that Japanese are fonder of taking coffees with smoking environment so they develop this environment in all of their Japanese stores. This strategy was not appreciated at the initials but later on this contributes a lot in the success of business. The executives of star bucks operates its business worldwide from its headquarter which is established in Washington since its birth. The district managers are responsible for all the operations of their district region stores. They report directly to the star buck’s corporation. A store manager acts as a chief for that store. There are many shift supervisors who act as a manager in case manager is not in the acting position or out. The employees working under the supervision of these shifting supervisors are called ‘baristas’. Starbucks does not work under a franchise structure however, they follow license system. These licensed stores are controlled by the head quarter of star buck. These stores have to follows the same guidelines and standards that have originated by the main office of star bucks. However the managers are allowed to adopt the cultural differences if these are harming sales of that specific stores operating in that specific region. All the items available at stores must be approved from star buck corporate office first only then available in stores for sale. Starbucks maintains its management in an attempt to give shelter to the company brand and guarantee that it remains one that is actually connected with the original quality. Star buck treats all of its employees from executives to the baristas as partners. They believe that the success journey they cover since 1971 is not only the contribution of the owners but contribution as a whole, of all of its team members. As a key principle of social responsibility they facilitate from suppliers to its customers equally. Works Cited 1. Simkin, Daren. The Traveler. Farrar, Straus and Giroux, 2008. 2. Behar, Howard. It’s not about the Coffee: Leadership Principles from a life at Starbucks. Portfolio Hardcover, 2005. . Read More