GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY

INTRODUCTION

Corporate Social
Responsibility is an interconnected
field between social and
environmental concerns of a
company. Corporate social
responsibility is concern to the law,
policies, responsible and ethical
behavior of the company towards
the society and the business itself.
Company’s corporate social
responsibility must be dependable to its impact to the 3 P’s; Planet, People, and Profit.

According to James Chen 2019 corporate social responsibility is a self-regulating

business model that helps a company be socially accountable to itself, its stakeholders, and the
public. By practicing corporate social responsibility, also called corporate citizenship, companies
can be conscious of the kind of impact they are having on all aspects of society including
economic, social, and environmental.

Corporate social responsibility is important because it is essential for the business

success; because it will help the company to build their reputation. Company must ensure that
their business is aware to its impact to the environment and to the society. Starbucks and the
CEO Howard Shultz are aware to the importance of Corporate Social Responsibility; it focuses
to the following issues: Starbucks commitment to the environment, to the employees, and to the
consumers.

In 1999, Starbucks started “Grounds of your Garden” to make their business friendly to
the environment. This gives the left over coffee to anyone requesting it for composing, although
not all stores in a region participate. In 2014, Starbucks began to reduce the size of their napkins
and store garbage bags. In 2008, Starbucks was ranked No.15 on the U.S. Environmental
Protection Agency's list of Top 25 Green Power Partners for purchases of renewable energy.
According to Allen Hershkowitz of Natural Resources Defense Council Starbucks began to use
10% of recycled paper in its beverages cups.

The second way Starbucks has shown their corporate social responsibility is through their
commitment to consumers. The best way to get consumers is to understand them, to think like
them and to act like a customer. Starbucks realized that people with disabilities are important
that’s why the company tried to turn their stores into more convenient environment to the
persons with disabilities. Like lowering counter height and provide atleast one handicap
accessible entrance. Another way Starbucks shown their commitment to the consumers is by
cutting costs and retaining loyalty customers.
 GOOD GOVERNANCE AND SOCIAL RESPONSIBILITY

The first and biggest way Starbucks shows their commitment to their employees is by
taking good care to their workers by giving them health insurance. Another is by treating them
like individuals, not just number 500 out of 26,000 employees.

In business, you need to consider the business ethics or you need to think morally and
ethically. Business ethics helps the company decide what actions are right and wrong in a certain
circumstances or problems. Your decision must be beneficial not only to the company but also to
the society. Starbucks Company is a known supporter of gay marriage/same sex marriage. As
you can see same sex marriage is not morally right, in the eyes of the Lord it is prohibited. We
know that Philippine is one of the two pre-dominant Christian country. Company should consider
the sacredness or the sanctified of Christianity. But Starbucks Company is an American coffee
company and coffee house chain. The first Starbucks store was opened in Seattle Washington, on
March 31, 1971. So for them it is okay to support same sex marriage because America is a free
county. It is always one of their ways where they can increase the profit or atleast about brand
value and employee retention, which both affects the bottom line of the company. For many big
companies, the fear of losing out on talented employees or loyal customers who support gay
rights is even greater than the fear of losing out on the dwindling number of those who don’t.

Starbucks Company’ mission is to inspire and nurture human spirit. At its vision is to
establish Starbucks premier purveyor of the finest coffee in the world while maintaining our
uncompromising principles while we grow.