Business Ethics Case Starbucks

He once said, “We are not In the coffee business serving people, but in the people business serving coffee. ” Schultz and Struck realize that social accessibility cannot be reactive and that it must be built in to their business strategy in order to achieve increased profits, increased employee commitment, and a greater customer loyalty. There are countless examples of how Struck Is concerned with the wellbeing of its customers, employees, suppliers, the environment and the communities in which its stores are located.

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In 1992, Struck developed an environment mission statement to more clearly define the company’s environmental goals which led to the creation of the Environmental Struck Coffee Affairs team, with the sole purpose of minimizing the company’s “footprint. ” Struck also takes on the role of a great employer, offering incredible health insurance benefits. In 2005, Struck spent more money on health Insurance for its employees than on the raw materials required to brew Its coffee.

Struck also collaborates directly with some of Its coffee growers through Farmer Support Centers, located in Costa Rica and Rwanda, which provide technical support and training to ensure high quality coffee in the future. Struck does not only support its foreign stakeholders, but it also supports coal charities, such as the Struck foundation and the Jumpstarted program, In the communities of Struck stores and offers free wireless Internet for Its customers In all U. S. Locations so they can have a more enjoyable experience.

Schultz and Struck believe that by being a pioneer in social responsibility, which sometimes means sacrificing short-term gains, they can bring Struck to another level In the future. Struck is very unique when it comes to providing a high level of benefits to 2. Its employees. Howard Schultz grew up in a very poor family with a father whose life as nearly ruined by an unsympathetic employer that did not offer health benefits. Therefore, making Struck a place where people wanted to work was a top priority for him.

Schultz says, “creating an environment where everyone believes they’re part of something larger than themselves but believes they also have a voice. ” is key to maintaining a strong business. In 2005, Struck spent more on health Insurance for its employees than on the raw materials required to brew its coffee. Struck has been ranked one of Fortune’s “100 Best Companies to Work for” for nearly a aced and received the “Most Ethical Company*’ award in the European Coffee Industry by Allegro Strategies In 2010 for the second consecutive year.

Struck has grown rapidly because of a good balance between its ethical and 3. 1 OFF that customers want. Struck not only is at the top of the list when it comes to ethical and socially responsible activities but it is also the third largest chain restaurant in the United States with net revenues of approximately $11 billion a year. To achieve a status as high as third largest chain restaurant in the United States, it is to simply because you are trying to be “green,” although that certainly does play a factor.

By creating locations with free wireless internet to make patrons want to drink their coffee or eat their meal inside the store instead of Just taking it “to-go,” they create customers that want to come back or stay for a second coffee. When you mix such a welcoming atmosphere with their take on being an ethical, socially responsible company that cares about the sustainability of the environment, you are creating a company that succeeds with high profits allowing them the capital to expand rapidly. References (2013, 02). Case 2, Struck’ Mission: Social Responsibility and Brand Strength.