The study is based on the importance and application of Global Compact Principles recognised by Starbucks in their business. The two principles that have been undertaken for this study are the Human Rights Principles where the organisation should make sure that they do not complicit in human rights abuses and the Principles related to Environment as the initiatives to promote greater environmental responsibility. An analysis of their business activities will be conducted. Based on the evaluation, certain recommendations will be made that would eventually benefits the stakeholders of the organisations. The challenges and the benefits of the key stakeholders will be analysed as well.
Starbucks’ business missions and objective include treating its employees with huge dignity and great respect. The organisation has always committed towards forcing positive action in the regions where it operates. According to the Global Human Rights Statement issued by Starbucks, the organisation is committed to support and uphold the basic human rights and eliminate all kinds of discriminatory practices (Starbucks.hu 2017). Their policy includes protecting the unique right of the children to pursue education as a priority over work. The organisation prohibits any kind of forced labour or child labour. The employees are free to engage in any association and support the provision of equal human rights to all.
If the sustainability approach of Starbucks is taken into consideration, it has to be said that the coffee seller practices the most effective sustainability approach to protect the environment (Starbucks.hu 2017). Right from its product, to its packaging, Starbucks have sustainability approach to serve mother-nature. For instance, sustainable coffee of Starbucks is well known. The ingredients used in the preparation are organic and do not cause any harm to the environment (Confino 2014). In addition to this, they use bio-degradable and recycling coffee cups to serve their products.
Positive and negative lessons learned from the practices
From the above analysis, it can be easily said that the practices adapted by Starbuck has created positive impact of the organisation and the acceptability of its products has also increased. In fact, the organisation also claims that they direct and guide their employees to ensure that all practices are ethical and support the basic human rights (Starbucks.com 2017). Starbucks practice open communication among the employees and the managers that provides better opportunities to the employees to present their views on any particular matter. This is another effective way of resolving any difference and to respect the rights of employees.
In terms of other sustainable practices, the organisation focuses on deforestation and animal welfare program as well. They are zero tolerance towards any kind of activity that might hamper their ethical business in their supply chain (Starbucks.com 2017). In fact, the store designs are also inclined towards sustainability as the ingredients that they use for the building purpose do not cause any kind of environmental harm.
Business practice recommendations
Starbucks practice all kinds of ethical and human rights approaches to support community and the employees’ rights. Starbucks operates in multi nations and the situation might not be same in every country and nation (Susanty and Eirene 2015). In the countries like India, Indonesia and even China, the practices of discrimination and unequal opportunities happen to be common. Therefore, the organisation needs to focus on such aspects of business. For instance, the best possible recommendation for the organisation to undertake ethical and sustainable approaches is by carrying out CSR activities in these regions of operation.
A number of social responsibilities like affording children’s welfare in terms of their health and education could be effective. The organisation can take the responsibility of improving environmental condition by enhancing equal employment opportunity and better health care service to the employees (Bagnoli and Susan 2016). For the sustainability approach, the farmers of these countries could be given the basic amenities for growing sustainable and high standard food products for the company. This way they would support the food producers and at the same time would be able to meet the sustainable approach of their food products.
Benefits, challenges and risks for key stakeholders
At the time of carrying out the corporate social responsibilities in different regions of operations, the management and the major stakeholders might have to face certain challenges in terms of the political and economic condition of the particular country (Amiraslani et al. 2016). The organisation would have to take legal permission from the government. In addition to this, the presence of huge competitors in the market might also create challenges for the organisation to operate and work as per their planning (Bagnoli and Susan 2016). This might result in monetary loss as well as degrading fame for the organisation. However, if the same approach is undertaken with better precautions and considering the ethical and legal aspect of the country, the organisation would be able to achieve its aim according to their plan.
On the success of the CSR activities, the organisation would eventually gain as well. CSR is also a means of marketing and creative positive image of the organisation among the consumers (Amiraslani et al. 2016). Thus, if the activities are accepted and people also participate in the activities, the chances of gaining more market share increases for the company.
A detailed analysis of the best practices carried on by Starbucks to support human rights and sustainability approach has been carried on in this study. It has been found that the coffee maker undertakes various approaches that supports their human rights and sustainability approach made towards the major regions where they operate. A number of recommendations have been made of which the CSR activity would bring better prosperity to the organisation. In addition to this, they might also undertake other forms of leadership approach that would increase the opportunity for the employees to involve in the major organisational decision. This would increase their morale and supports indiscrimination and inequality as well.
Amiraslani, Hami, K. Lins, Henri Servaes, and Ane Tamayo. "A Matter of Trust? The Bond Market Benefits of Corporate Social Capital during the Financial Crisis." (2016).
Bagnoli, Mark, and Susan G. Watts. "Voluntary assurance of voluntary CSR disclosure." Journal of Economics & Management Strategy (2016).
Confino, Joe Best practices in sustainability: Ford, Starbucks and more Available at: 2014 (2014) [Accessed on: 1-5-2017]
Starbucks Newsroom Available at: [Accessed on: 1-5-2017]
Starbucks.com Public Policy & Internal Standards Available at: (2017) [Accessed on: 1-5-2017]
Starbucks.hu Global Human Rights Statement Available at: (2017) [Accessed on: 1-5-2017]
Susanty, Aries, and Eirene Kenny. "The Relationship between Brand Equity, Customer Satisfaction, and Brand Loyalty on Coffee Shop: Study of Excelso and Starbucks." ASEAN Marketing Journal 7, no. 1 (2015).