Qualification: Pearson BTEC Level 3 National Extended Diploma in Business
Unit Number and Title: Unit 20: Investigation Corporate Social Responsibility
Learning Aim: C: Review the CSR record of a private sector business
Assignment Title: CSR in action at a major private sector business
Introduction
The business which has been chosen within this assignment is Starbucks. The company is
the biggest coffeehouse in the globe and therefore contains 28,000 stores within 75
countries. It aims to serve various items within their menus such as coffees, pastries, snacks
and both hot and cold beverages. Most of the Starbucks stores also sell packaged food items
and also various mugs. Within this assignment, the main purpose for choosing Starbucks is
to be explaining the impact of the company’s behaviour and also on ways they have helps
the local communities on their record of Corporate Social Responsibility. Following this, I will
also be stating Starbucks financials, policies regarding diversities and employment and of
course its whole operation. Finally, the report will be ending with an evaluation of the
potential impact of weak corporate governance on a major private sector business.
I have chosen Starbucks as it is the biggest coffeehouse within the globe which also means
there will be a ton of variety of informational sources about the business. Starbucks also
being the biggest coffeehouse and also being very well known, it is clearly known that they
have done quite few good things to help out communities and also the environment. When
it comes to social responsibility, Starbucks is known to also have a good solid reputation.
P6: Explain the impact of a selected business’s behaviour, and it’s help in a local
community, on its CSR record
As mentioned, Starbucks is the biggest coffeehouse within the world operating within 75
countries with more than 28,000 stores. Within the UK, there are around 806 of them.
When reviewing the CSR of Starbucks, their main aim is to be the leaders and the full-on
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, contributors which provides a great healthy environment and also great support for society
for everyone to endure and get involved.
When it comes to the company’s coffee beans and the produce of it as a whole alongside
with its farmers, the company does pay a lot of care and attention to this area. Due to the
huge global demand and supply of Starbucks, the farmers were not getting as much paid for
their efforts which led Starbucks provided them money to buy their own coffee which
increased the affection to farmers. On the other hand, they offer premium prices in order
for the farmers to be making profits and be providing enough for their families.
When it comes to supporting societies and communities, Starbucks have lent a good hand
especially when it comes to creating and conducting social projects and donations. They are
even donating items to communities who are looking into starting their own coffee shops
and hubs. They have also helped the homeless by providing food and drink. The owners of
these hubs and cafes are able to go local Starbucks and are able to receive many donations
such as sugar, milk, coffee etc. The company has also helped the community connection
within the middle easter countries during the month of Ramadan. Growing their farmers
support centre and also farmer loans is one of Starbucks ongoing objectives as they want
their farmers to be making profit and ensure the farmers are still producing very high-
quality coffee. When it comes to farmer programs and other activities, Starbucks has been
able to invest more than $70 million.
When it comes to environmental changes, Starbucks is fully aware of the changes going on.
They have been working strongly together with local communities in order to reduce the
overall non-renewable resources. Starbucks instead uses a lot of water which does affect
the business quite negatively which is why it is figuring out various ways in order to reduce
water usage. Reward points system was introduced by Starbucks by reducing the overall
garbage which is created by themselves. This can be proven when Starbucks had stated that
they will offer £0.10 reduction for each customer who is using a reusable cup. Furthermore,
Starbucks had continued to engage the community by creating many projects such as in
2019, Starbucks supported 50,000 youths in supporting the communities and in 2015, it also
provided $2 million for 20,000 youths to be managed.
Another great example was one of the great projects by Starbucks called Starbucks
Foundation. This was developed in order to help the community globally and within this
project, there was 2 programs created which was to be supporting cocoa, tea and coffee
communities. Therefore, the other program was the $5 million donation to the Fostering
Education within China which allowed the children within China to have good futures by
allowing them to have a strong education. Lastly, during the global pandemic of Covid-19,
Starbucks had donated $3 million through Starbucks Foundation in order to support the
relief efforts.
During the Black Lives Matter protest, Starbucks had tweeted “Black Lives Matter. We
continue to listen to our partners and communities and their desire to stand for justice
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