Company implementing corporate social responsibility

1 CHAPTER 1: OVERVIEW OF CORPORATE SOCIAL RESPONSIBILITY 1.1 Introduction of Corporate Social Responsibility CSR: Corporate Social Responsibility CSR has gained greater significance in

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

COLLEGE OF BUSINESS SCHOOL OF MANAGEMENT

UEH UNIVERSITY

FINAL ASSIGNMENT

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

COLLEGE OF BUSINESS SCHOOL OF MANAGEMENT

UEH

UNIVERSITY

FINAL ASSIGNMENT

Responsibility (CSR): 13 2.5.1 Internal stakeholders of Star biuiCS: - 5 5 nọ nh Hư He 13 2.5.2 External stakeholders of Star biuiCÌkS: - 5= se Họ Họ nh Hư He 16 NEIEENE NET H TY HT TH T00 000003009009 09004 009004 00900909 50 90000999919 9990 06 17

1

CHAPTER 1: OVERVIEW OF CORPORATE SOCIAL RESPONSIBILITY

1.1 Introduction of Corporate Social Responsibility (CSR):

Corporate Social Responsibility (CSR) has gained greater significance in the contemporary business environment because of the rising public apprehension regarding matters like climate change, societal disparities, and ethical conduct in business operations

The historical development of CSR can be traced back to the early 20th century when companies initially started to partake in philanthropy and charitable donations Nevertheless, it wasn't until the 1950s and 1960s that the notion of social responsibility began to take shape, comciding with the emergence of social and environmental movements

In the 1970s and 1980s, the concept of "corporate citizenship" gamed prominence, underscoring the ethical and societal responsibilities of corporations This shift led to an increased emphasis on sustainability and the creation of shared value for all stakeholders during the 1990s and 2000s

Today, CSR holds a pivotal role in businesses spanning various sectors, as companies aim

to cultivate strong relationships with customers, employees, and communities by addressing their concerns and making a positive impact on society and the environment

1.2 Definition of Corporate Social Responsibility (CSR):

According to the textbook "Business and Society: Ethics, Sustainability, and Stakeholder Management” by Archie B Carroll, Jill Brown, and Ann K Buchholtz, there are definitons about corporate social responsibility (CSR)

“Corporate social responsibility involves a serious consideration of how a company's actions affect society.”

While this definition may have some inherent ambiguities, it is worth noting that most evolving definitions of CSR also come with their own limitations Another more specific definition suggests that “social responsibility is the duty of decision makers to take actions that safeguard and enhance the overall well-being of society, along with their own interests.”

This definition highlights two active dimensions of social responsibility: protection and enhancement Protection implies preventing adverse impacts on society, while enhancement involves creating positive benefits for society Similar to the first definition, this second characterization also contains some unavoidably vague terms

A third useful definition, albeit more general, contextualizes social responsibilities in relation to the economic and legal objectives of businesses It suggests that the concept of social responsibility assumes that corporations have obligations not only in the economic and legal realms but also certain responsibilities to society that go beyond these obligations

In essence, corporate social responsibility (CSR) involves the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive

1.3 A Four-Part Definition of Corporate Social Responsibility (CSR):

According to Caroll, the social responsibility of business encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at

a given point in time

This four-part definition contextualizes the economic and legal expectations of businesses by connecting them to broader societal issues These societal concerns encompass ethical obligations and voluntary (discretionary) philanthropic responsibilities These four responsibilities together establish a foundation or framework that clarifies and outlines a business's obligations to the society it operates within

Economic Responsibilities: At a foundational level, businesses have economic responsibilities Free enterprise systems require businesses to be economic entities; meaning, as organizations, businesses should have the objective of producing goods and services that society needs and desires, and selling them at fair prices - prices that members of society believe reflect the value of the goods and services provided and ensure that the business makes

a sufficient profit to ensure its survival and growth and to reward its investors When considering their economic responsibilities, businesses apply various management concepts aimed at financial effectiveness - focusing on revenues, costs, investments, strategic decision-

making, and a host of other business concepts aimed at enhancing the organization's long-term financial performance

Legal Responsibilities Legal responsibilities reflect society's perspective on "codified ethics” in the sense that they articulate fundamental notions of fair practices as defined by lawmakers It is a business's responsibility to comply with these laws, which represent society's view of what is morally acceptable in a legal context However, if a business disagrees with laws that have been passed or are about to be enacted, society provides a mechanism through which dissenters can be heard via the political process In recent decades, society has witnessed

a proliferation of laws and regulations aimed at monitoring and controlling business behavior Ethical responsibilities As laws are necessary but not exhaustive, ethical responsibilities become crucial to encompass actions, norms, and behaviors that society anticipates or prohibits, even when not formally stated in the legal framework Ethical responsibilities encompass a comprehensive range of norms, standards, values, and anticipations that mirror what consumers, employees, shareholders, and the community consider as equitable, just, and

in harmony with the safeguarding of stakeholders’ moral rights Adding to these ethical expectations stemming from society and stakeholders are the implied standards of ethical conduct inferred from the overarching universal ethical principles found in moral philosophy, including concepts like justice, nghts, and utilitarianism

Philanthropic Responsibilities: Lastly, this mvolves voluntary, discretionary, or philanthropic roles for businesses While not strictly obligations in the literal sense, these are perceived as responsibilities because they align with the current public expectations of businesses The extent and nature of these actions are voluntary and discretionary, solely driven

by a business's willingness to participate in social endeavors that are not obligatory, not legally mandated, and not commonly anticipated as ethical duties of businesses Nevertheless, the public anticipates that businesses will engage in philanthropic endeavors, and thus, this category has become a component of the implied social agreement between businesses and society These activities may encompass corporate donations, contributions of products and services, employee volunteering, community development, and any other voluntary utilization

to the community simply because it is a part of that community

CHAPER 2 COMPANY IMPLEMENTING CORPORATE SOCIAL RESPONSIBILITY

2.1, Starbucks background:

In 1971, Starbucks was born in Seattle's historic Pike Place Market, offering fresh- roasted coffee beans, teas, and spices inspired by the classic tale "Moby-Dick.” Howard Schultz, a New Yorker, joined the company in 1982 and, after experiencing Italy's coffee culture in 1983, was inspired to transform Starbucks into a coffeehouse In 1987, Starbucks transitioned to its iconic green aprons The company expanded across the United States, Japan, Europe, and China, becoming a global presence by welcoming millions of customers in neighborhoods worldwide Throughout this journey, Starbucks remained committed to its mission: fostering human connection through every cup, conversation, and community interaction

As of now, Starbucks has more than 33,833 stores in 64 countries around the world, with over 150,000 employees Among them, more than 65% of Starbucks stores are located in the United States

2.2 Corporate social responsibility (CSR) objectives of Starbucks:

Starbucks is dedicated to achieving carbon neutrality, minimizing environmental impacts, fostering employee volunteerism, and contributing to charitable causes The company upholds the highest social responsibility standards throughout its supply chain Starbucks ensures that all suppliers adhere to environmental regulations, prioritize worker safety, show respect and dignity to employees, and employ environmentally sustainable manufacturing methods To fulfill these CSR goals, Starbucks is undertaking a range of economic, legal, ethical, and philanthropic initiatives, which will be detailed in the following section

2.3 Starbucks and implementation of Corporate Social Responsibility (CSR): 2.3.1 Economic responsibility of Starbucks:

Starbucks meet its economic responsibility by prioritizing practices that promote sustainable business growth while upholding philanthropic, environmental, and ethical standards The company carefully weighs its economic decisions against their broader societal impact It provides products and services that address societal needs while generating profits to sustain its operations

Starbucks fulfills its economic responsibility through the implementation of the following measures:

¢ Generate high and consistent level profitability: Starbucks aims to achieve a consistently high level of profitability by capitalizing on opportunities to target new products and customer markets Through effective and efficient business management, the company reduces costs, thereby increasing its profit margins

® Minimize cost: Cost minimization is another crucial economic objective for Starbucks The company achieves this by actively managing variable costs and investing in automated technologies to decrease labor costs Starbucks also

diligently tracks expenses and optimizes available resources to accomplish its cost reduction goals

Reduce waste: Starbucks has implemented a significant cost-saving initiative through the introduction of a new manufacturing process that minimizes waste This waste reduction not only aligns with Starbucks' environmental responsibility but also contributes to cost-cutting efforts and enhanced profitability Additionally, Starbucks is committed to increasing the use of recycled products, which reduces material costs and benefits society by conserving valuable resources

Increase operational efficiency: Starbucks is committed to maintaining a highly efficient business operation To achieve this goal, the company conducts regular traming sessions to reduce error rates and enhance communication among all supply chain partners Starbucks promotes a culture of continuous improvement and establishes mechanisms for performance measurement Data is collected to assess and refine processes, and information needed to address operational inefficiencies is readily accessible These efforts have enabled Starbucks to achieve maximum operational efficiency, resulting in reduced errors, increased accuracy, and enhanced customer satisfaction

Increase product and service quality: Customer retention stands as another

crucial economic objective for Starbucks, and this is attained by continuously enhancing the quality of products and services Starbucks has ingrained a commitment to quality within its organizational culture, and employees receive traming to provide exceptional customer service The company conducts regular customer surveys to gather feedback and uses the collected data to continually improve product and service quality, aligning them with customer expectations This strategy has proven effective in retaining customers and enhancing overall business performance

Maximize sales: Sales maximization is another significant economic objective pursued by Starbucks The company employs various strategies to achieve sales growth By effectively reducing costs, Starbucks can provide discounts to

customers to stimulate sales Additionally, the company expands into new markets, introduces new products, and utilizes effective marketing and communication strategies to meet its sales targets These efforts collectively contribute to driving increased sales and business growth

2.3.2 Legal responsibility of Starbucks:

Starbucks is obligated to adhere to societal regulations and standards while operating within the community These fundamental rules are a reflection of society's ethical principles and dictate how Starbucks conducts its business affairs transparently and equitably Laws and regulations are defined by local, regional, and national authorities, ensuring that the company can generate profits while maintaining the broader welfare of society To prevent potential legal issues arising from non-compliance, Starbucks has designated a compliance officer in a senior position within the organizational structure This individual is responsible for ensuring that the company fulfills all its fundamental legal obligations

Starbucks fulfills its legal responsibility through the implementation of the following

measures:

Products/services complying legal standards: Starbucks consistently manufactures products and provides services that comply with all applicable legal standards The company ensures that its products meet safety regulations and adheres to legal requirements When advertising its products, Starbucks refrains from making false or misleading claims about its products and business practices

to prevent deceiving consumers This commitment to legal and ethical standards underscores Starbucks’ dedication to responsible business conduct

Labor law: Labor law encompasses a range of regulations pertaining to employment, compensation, working conditions, and labor relations Starbucks demonstrates compliance with labor laws in several key ways Starbucks adheres

to minimum wage laws to ensure fair compensation for workers Workplace safety is prioritized by complying with occupational health and safety standards The organization manages labor relations and resolves industrial disputes in accordance with the industrial relations act Additionally, Starbucks enforces

antidiscrimination laws to establish an open, inclusive, and equitable work environment, demonstrating its commitment to fair and ethical employment practices

Contract fulfillment: Starbucks ensures the fulfillment of all contracts with both internal and external stakeholders, safeguarding their nghts in accordance with the terms of each agreement It satisfies standard employment contracts, partnership agreements, indemnity agreements, and agreements associated with property and equipment leasing Furthermore, Starbucks upholds its legal obligations toward suppliers by conducting fair and equitable dealings with vendor organizations The company actively assists suppliers in maintaining approved quality standards and meeting expected delivery criteria, reinforcing its commitment to responsible and ethical business relationships

Intellectual property: Starbucks takes care of all intellectual property laws to enforce and protect the nghts of owners and creators of inventions The intellectual property areas imclude trade secrets, patents, trademarks and copyright laws

Privacy and information protection: Starbucks has established a transparent privacy policy and implements comprehensive measures to safeguard customer information The company has designated a data security and compliance officer responsible for taking appropriate actions to prevent identity theft and ensure data protection This commitment to data security underscores Starbucks’ dedication

to protecting customer privacy and maintaining data integrity

Environmental law: Starbucks is committed to strict compliance with environmental laws and regulations The company takes proactive measures to minimize hazardous waste and actively addresses biodiversity and conservation concems to prevent pollution incidents This dedication to environmental responsibility aligns with Starbucks' commitment to reducing its ecological footprint and promoting sustainable practices

Paying taxes and other duties: Starbucks acts as a responsible corporate citizen

by diligently fulfilling its tax and duty obligations to the government The