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Case Study: Corporate Social Responsibility of Starbucks

Starbucks is the world’s largest and most popular coffee company. Since the beginning, this premier cafe aimed to deliver the world’s finest fresh-roasted coffee. Today the company dominates the industry and has created a brand that is tantamount with loyalty, integrity and proven longevity. Starbucks is not just a name, but a culture .

It is obvious that Starbucks and their CEO Howard Shultz are aware of the importance of corporate social responsibility . Every company has problems they can work on and improve in and so does Starbucks. As of recent, Starbucks has done a great job showing their employees how important they are to the company. Along with committing to every employee, they have gone to great lengths to improve the environment for everyone. Ethical and unethical behavior is always a hot topic for the media, and Starbucks has to be careful with the decisions they make and how they affect their public persona.

The corporate social responsibility of the Starbucks Corporation address the following issues: Starbucks commitment to the environment, Starbucks commitment to the employees, Starbucks commitment to consumers, discussions of ethical and unethical business behavior, and Starbucks commitment and response to shareholders.

Commitment to the Environment

The first way Starbucks has shown corporate social responsibility is through their commitment to the environment. In order to improve the environment, with a little push from the NGO, Starbucks first main goal was to provide more Fair Trade Coffee. What this means is that Starbucks will aim to only buy 100 percent responsibly grown and traded coffee. Not only does responsibly grown coffee help the environment, it benefits the farmers as well. Responsibly grown coffee means preserving energy and water at the farms. In turn, this costs more for the company overall, but the environmental improvements are worth it. Starbucks and the environment benefits from this decision because it helps continue to portray a clean image.

Another way to improve the environment directly through their stores is by “going green”. Their first attempt to produce a green store was in Manhattan. Starbucks made that decision to renovate a 15 year old store. This renovation included replacing old equipment with more energy efficient ones. To educate the community, they placed plaques throughout the store explaining their new green elements and how they work. This new Manhattan store now conserves energy, water, materials, and uses recycled/recyclable products. Twelve stores total plan to be renovated and Starbucks has promised to make each new store LEED, meaning a Leader in Energy and Environmental Design. LEED improves performance regarding energy savings, water efficiency, and emission reduction. Many people don’t look into environmentally friendly appliances because the upfront cost is always more. According to Starbucks, going green over time outweighs the upfront cost by a long shot. Hopefully, these new design elements will help the environment and get Starbucks ahead of their market.

Commitment to Consumers

The second way Starbucks has shown corporate social responsibility is through their commitment to consumers. The best way to get the customers what they want is to understand their demographic groups. By doing research on Starbucks consumer demographics, they realized that people with disabilities are very important. The company is trying to turn stores into a more adequate environment for customers with disabilities. A few changes include: lowering counter height to improve easy of ordering for people in wheelchairs, adding at least one handicap accessible entrance, adding disability etiquette to employee handbooks, training employees to educate them on disabilities, and by joining the National Business Disability Council. By joining the National Business Disability Council, Starbucks gains access to resumes of people with disabilities.

Another way Starbucks has shown commitment to the consumers is by cutting costs and retaining loyal customers. For frequent, loyal customers, Starbucks decided to provide a loyalty card. Once a customer has obtained this card, they are given incentives and promotions for continuing to frequent their stores. Promotions include discounted drinks and free flavor shots to repeat visitors. Also, with the economy being at an all time low, Starbucks realized that cheaper prices were a necessity. By simplifying their business practices, they were able to provide lower prices for their customers. For example, they use only one recipe for banana bread, rather than eleven!

It doesn’t end there either! Starbucks recognized that health is part of social responsibility. To promote healthier living, they introduced “skinny” versions of most drinks, while keeping the delicious flavor. For example, the skinny vanilla latte has 90 calories compared to the original with 190 calories. Since Starbucks doesn’t just sell beverages now, they introduced low calorie snacks. Along with the snacks and beverages, nutrition facts were available for each item.

Also one big way to cut costs was outsourcing payroll and Human Resources administration . By creating a global platform for their administration system, Starbucks is able to provide more employees with benefits. Plus, they are able to spend more money on pleasing customers, rather than on a benefits system.

Commitment and Response to Shareholders

One way Starbucks has demonstrated their commitment and response to shareholder needs is by giving them large portions. By large portions, Starbucks is implying that they plan pay dividends equal to 35% or higher of net income to. For the shareholders, paying high dividends means certainty about the company’s financial well-being. Along with that, they plan to purchase 15 million more shares of stock, and hopefully this will attract investors who focus on stocks with good results.

Starbucks made their commitment to shareholders obvious by speaking directly to the media about it. In 2004, Starbucks won a great tax break, but unfortunately the media saw them as “money grubbing”. Their CEO, Howard Shultz, made the decision to get into politics and speak to Washington about expanding health care and the importance of this to the company. Not only does he want his shareholders to see his commitment, but he wants all of America to be able to reap this benefits.

In order to compete with McDonalds and keeping payout to their shareholders high, Starbucks needed a serious turnaround . They did decide to halt growth in North America but not in Japan. Shultz found that drinking coffee is becoming extremely popular for the Japanese. To show shareholders there is a silver lining, he announced they plan to open “thousands of stores” in Japan and Vietnamese markets.

Commitment to Employees

The first and biggest way Starbucks shows their commitment to employees is by just taking care of their workers. For example, they know how important health care, stock options, and compensation are to people in this economy. The Starbucks policy states that as long as you work 20 hours a week you get benefits and stock options. These benefits include health insurance and contributions to employee’s 401k plan. Starbucks doesn’t exclude part time workers, because they feel they are just as valuable as full time workers. Since Starbucks doesn’t have typical business hours like an office job, the part time workers help working the odd shifts.

Another way Starbucks shows their commitment to employees is by treating them like individuals, not just number 500 out of 26,000 employees. Howard Shultz, CEO, always tries to keep humanity and compassion in mind. When he first started at Starbucks, he remembered how much he liked it that people cared about him, so he decided to continue this consideration for employees. Shultz feels that a first impression is very important. On an employee’s first day, he lets each new employee know how happy he is to have them as part of their business, whether it is in person or through a video. His theory is that making a good first impression on a new hire is similar to teaching a child good values. Through their growth, he feels each employee will keep in mind that the company does care about them. Shultz wants people to know what he and the company stand for, and what they are trying to accomplish.

Ethical/Unethical Business Behavior

The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and the occasional unethical behavior. The first ethically positive thing Starbucks involves them self in is the NGO and Fair Trade coffee. Even though purchasing mostly Fair Trade coffee seriously affected their profits, Starbucks knew it was the right thing to do. They also knew that if they did it the right way, everyone would benefit, from farmers, to the environment, to their public image.

In the fall of 2010, Starbucks chose to team up with Jumpstart, a program that gives children a head start on their education. By donating to literacy organizations and volunteering with Jumpstart, Starbucks has made an impact on the children in America, in a very positive way.

Of course there are negatives that come along with the positives. Starbucks isn’t the “perfect” company like it may seem. In 2008, Starbucks made the decision to close 616 stores because they were not performing very well. In order for Starbucks to close this many stores in one year, they had to battle many landlords due to the chain breaking lease agreements. Starbucks tried pushing for rent cuts but some stores did have to break their agreements. On top of breaching lease agreements, Starbucks was not able to grow as much as planned, resulting their future landlords were hurting as well. To fix these problems, tenants typically will offer a buyout or find a replacement tenant, but landlords are in no way forced to go with any of these options. These efforts became extremely time consuming and costly, causing Starbucks to give up on many lease agreements.

As for Starbucks ethical behavior is a different story when forced into the media light. In 2008, a big media uproar arose due to them wanting to re-release their old logo for their 35th anniversary. The old coffee cup logo was basically a topless mermaid, which in Starbucks’ opinion is just a mythological creature, not a sex symbol. Media critics fought that someone needed to protect the creature’s modesty. Starbucks found this outrageous. In order to end the drama and please the critics, they chose to make the image more modest by lengthening her hair to cover her body and soften her facial expression. Rather than ignoring the media concerns, Starbucks met in the middle to celebrate their 35th anniversary.

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Starbucks CSR: Corporate Social Responsibility

Starbucks CSR programs and initiatives are led by Michael Kobori, chief sustainability officer for the world’s largest coffeehouse chain. CSR initiatives for Starbucks cover wide range of business aspects and employee relationships such as supporting local communities, educating and empowering workers, gender equality and minorities, energy and water consumption, waste reduction etc.

CSR Programs and Initiatives

Starbucks Supporting Local Communities

• Starbucks Community Store program aims to assist local non-profit organizations in their efforts to provide education and training to achieve poverty eradication for the young segment of population. The company plans to open 100 Community Stores by the end of 2025.
• Starbucks has cooperated with non-profit organizations, community leaders and organizational stakeholders to provide more than 520,000 hours of volunteering service around the globe. [1]
• The global coffeehouse chain runs FoodShare food donation program in all company operated stores in US and Canada. 10.4 million and 1.2 million meals were donated in US and Canada respectively in FY21.

Starbucks Educating and Empowering Workers

• Starbucks College Achievement Plan is an education program that allows employees to obtain online degrees from Arizona State University. Approximately 2500 employees earned their degrees via this program in FY21 alone
• It has been noted that “at the height of the global financial crisis, when other companies were cutting HR costs wherever they could, Starbucks invested in staff training, including coffee tastings and courses that ultimately qualified for credit at higher education institutions” [2]
• In FY21 the company oversaw more than 136000 course enrolments in Starbucks Coffee Academy and more than 55,000 course completions since launch.

Starbucks and Gender Equality and Minorities

• At present about 40% of Starbucks US employees are minorities and 65% are women.
• Among vice presidents, 48% are women and 15% are minorities.
• The global coffeehouse chain aims to achieve at least 30% BIPOC representation and 50% representation of women for all enterprise roles by 2025.

Diversity in Starbucks Corporate Roles [3]

• Starbucks previously achieved and currently maintains 100 percent pay equity in the U.S. for women and men and people of all races for partners performing similar work
• There are 12 partner networks within the company such as Armed Forces Network, Black Partner Network, Disability Advocacy Network and others
• The global coffeehouse chain has achieved and maintained 100% pay equity for women and men and people of all races performing similar work in the U.S. and achieved and maintained gender equity in pay in global company operated markets Canada and Great Britain.
• The multinational chain of coffeehouses received 100% score on the Disability Equality Index.

Energy Consumption by Starbucks

• Greener Store format in North America consumes 30% less energy compared to traditional stores
• 66% of company-operated stores are powered using renewable energy
• The world’s largest coffeehouse chain is committed to reach to 100% renewable energy in its global operations

Water Consumption by Starbucks

• The company plans to ensure that 50% of water it uses is conserved or replenished by 2030
• In FY21 water withdrawals in operations reduced by 11% compared to the base year of FY19
• Greener Store format in North America use 30% less water compared to traditional store formats

Waste Reduction and Recycling by Starbucks

• During the past five years Starbucks Japan has turned tons of spent coffee grounds into compost and feed for cows
• The global coffeehouse chain aims to reduce the waste it sends to landfill by 50% by 2030.

Carbon Emissions by Starbucks

• The world’s largest coffeehouse chain aims to achieve 50% absolute carbon reduction in scope 1, 2 and 3 greenhouse (GHG) emissions in all direct operations and value chain by 2030
• The company plans to become carbon positive i.e. store more carbon than it emits by year of 2030.

Starbucks and Sustainable Sourcing 

• The company has 10 Farmer Support Centres in Latin America, Asia and Africa
• Starbucks purchase of coffee from the Eastern Democratic Republic of Congo helped more than 4,500 small-holder farmers to more than triple their incomes.
• In FY21 99.9% of tea sourced by Global Coffee, Tea & Cocoa, the company’s global coffee sourcing team, verified as responsibly sourced
• Starbucks doubled the Global Farmer Fund to USD 100 million. Since FY18, USD 54.8 million in loans has been deployed.

Starbucks Corporation Report contains a full analysis of Starbucks corporate social responsibility including Starbucks CSR issues. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Starbucks . Moreover, the report contains analyses of Starbucks leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Starbucks marketing strategy and its ecosystem.

[1] Starbucks Global Responsibility Report (2014)

[2] Leinward P. & Davidson, V. (2016) “How Starbucks’s Culture Brings Its Strategy to Life” Harvard Business Review, Available at: https://hbr.org/2016/12/how-starbuckss-culture-brings-its-strategy-to-life

[3] Global Environmental & Social Impact Report 2021 , Starbucks Corporation

In 2001, Earthwatch and Starbucks formed what would become an 11-year partnership to promote sustainable farming practices in one of the world’s premier coffee-growing regions. In collaboration with a cooperative of 2,500 farmers in the Los Santos region of Costa Rica, Earthwatch researchers and Starbucks employees worked with farmers to increase the use of tools and agriculture practices that benefited both the farmers and the natural environment.

The Problem

Costa Rica is one of the world’s largest producers of coffee, and Costa Rican coffee beans are considered among the best in the world. While coffee farming can be a major source of revenue for farmers, the intensive farming practices commonly used also have major impacts on the country's biodiversity-rich rainforests. These management practices reduce biodiversity and degrade the soil, and the fertilizer and pesticides used leeches into the surrounding environment, polluting soil and water. Careful monitoring helps improve the efficiency of farming practices, but in many cases, farmers don’t have the resources to document these problems or to explore alternative and sustainable farming methods.

As a major buyer of Costa Rican coffee with a strong ethic in promoting sustainable farming practices, the Starbucks Coffee Company wanted to identify scientifically proven ways to make coffee farming more sustainable while building strong relationships with local farmers and engaging their employees and customers in their sustainability mission.

The Solution

Over the course of the 11-year partnership, more than 400 people, including Starbucks employees, Starbucks customers, and Earthwatch volunteers, traveled to Cope Tarrazu, a cooperative of 2,500 farmers nestled high in the mountains in one of the world’s premier coffee-growing regions. The teams worked side-by-side with farmers to help researchers collect data on soil acidity, plant productivity, the use of agricultural inputs, and biodiversity indicators. At the same time, they learned about key relationships between sustainable practices and coffee quality. The input of the farmers was vital to the success of this program, as they gave insights into the problems farmers face and were able to evaluate which solutions would work for farmers. Additionally, the farmers were able to learn surveying and data collection practices and how to interpret that data.

Our work with Earthwatch is an important extension of Starbucks’ commitment to sustainability. By helping farmers improve their practices, we help create a reliable source of high-quality coffee and better environmental outcomes.

— Colleen Chapman, Director of Corporate Responsibility at Starbucks.  

This partnership significantly reduced pollution and the cost of production while empowering farmers to make management decisions that enhanced biodiversity and sustainability outcomes. 

More than 200 farmers were trained in sustainable coffee farming methods, which reached four communities. By the end of the program, 85 percent of farmers were using more sustainable practices.

Farmers were able to understand their soil composition and condition, allowing them to selectively apply fertilizers, herbicides, and pesticides as well as plant beneficial shade trees and ground cover vegetation. As a result, farmers were able to spend less money on pesticides while reducing pollution, conserving soil quality, and protecting biodiversity.

The program not only created higher coffee yields and associated financial benefits to local farmers, but it also provided an excellent platform for Starbucks to communicate some of its core environmental values to its customers and employees.

This partnership allowed Starbucks to increase the sustainability of its business practices, engage their employees, and contribute to meaningful environmental science.

I am so happy to work for a company that actively searches for ways to make a difference, and help people become empowered with the knowledge and experiences to share with others.

— A 2011 program participant

About Earthwatch

Earthwatch is an international nonprofit organization that connects people with scientists worldwide to conduct environmental research and empowers them with the knowledge they need to conserve the planet. Since its founding in 1971, Earthwatch has been taking action to address global change through a time-tested model of citizen science and community engagement. By pairing citizen science volunteers from all sectors of society with researchers around the world, Earthwatch teams have helped to safeguard critical habitats, conserve biodiversity, and promote the sustainable use of natural resources. For more information, visit Earthwatch.org .

Get in Touch

To discuss corporate partnership opportunities, email Kelly A. Doyle, Director of Strategic Partnerships , at  [email protected] .

To stay up to date with our latest partnership work, sign up for the  In Partnership  newsletter.

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Starbucks Stakeholders, CSR & ESG

Starbucks Corporation manages stakeholder interests through programs for corporate social responsibility (CSR) and environmental, social, and corporate governance (ESG) goals that match issues relevant to the foodservice industry. These issues, such as the ecological and social trends shown in the PESTLE/PESTEL analysis of Starbucks , encourage businesses to integrate corporate citizenship, sustainability, and green business practices into their strategies. In this case, the coffeehouse company advocates CSR-focused social movements, especially those pertaining to sustainability. Based on Archie B. Carroll’s description of corporate social responsibility, Starbucks accounts for the interests of stakeholders, because the company is viewed as a citizen of society. The coffee business has a corporate citizenship approach that addresses multiple stakeholder groups, such as employees and farmers.

The effectiveness of social responsibility strategies influences long-term success and the satisfaction of business goals and objectives based on Starbucks’ mission statement and vision statement . The company’s CSR, ESG, and stakeholder management programs support strategies for leadership in the coffeehouse industry.

Starbucks’ Stakeholders & CSR/ESG Initiatives

Starbucks’ corporate social responsibility practices address the concerns of different stakeholder groups. These CSR and ESG practices are similar to those of other large multinational companies in food service and other industries. Starbucks’ corporate citizenship approach deals with the concerns of its stakeholders, as follows:

• Employees (baristas, partners) – highest priority
• Suppliers (supply firms, coffee farmers, and others)
• Environment and communities
• Governments

Employees . Starbucks prioritizes employees in its corporate social responsibility efforts. As stakeholders, employees are interested in better working conditions, job security, and higher wages. This prioritization agrees with Starbucks’ organizational culture (company culture) and its emphasis on the employees-first attitude. The company sets its employees’ wages above the legally mandated minimum wage. Also, Starbucks boosts its corporate citizenship performance for this stakeholder group by giving scholarships to employees, in partnership with Arizona State University.

Customers . Starbucks considers customers among its top stakeholders. The interests of this stakeholder group are high-quality service and products, such as coffee and other beverages. As the world’s most popular coffeehouse chain, Starbucks effectively addresses these interests through its corporate social responsibility efforts. The company extends its corporate culture to customers at its cafés. For example, warm and friendly relations are emphasized in the company and in how baristas interact with customers. This approach enhances Starbucks’ service quality and customer experience. Also, the company has stringent standards and requirements for its supply of raw materials, like coffee beans. These quality standards contribute to the business strengths shown in the SWOT analysis of Starbucks . Thus, the coffee company’s corporate social responsibility strategy accounts for the interests of this stakeholder group of customers.

Suppliers . Starbucks suppliers include wholesale supply firms, coffee farmers, and other vendors or producers. The main CSR/ESG interest of this stakeholder group is the profitability of business relations with the coffeehouse chain. For example, coffee farmers aim to increase their yield to generate more revenues while supplying Starbucks. The company’s corporate citizenship approach addresses coffee farmers and related stakeholders through a supplier diversity program that aims to include more suppliers from around the world, while stabilizing the supply chain. Moreover, the company’s Coffee and Farmer Equity (CAFE) program requires transparency among wholesale suppliers to ensure that coffee farmers are properly paid. Starbucks’ operations management , particularly supply chain management, supports these multi-pronged corporate social responsibility efforts for the interests of this stakeholder group of suppliers.

Environment and Communities . Starbucks has corporate social responsibility programs for ecologically sound, sustainable, and green business operations. The company’s CAFE program leads to higher biodiversity and shade quality in certified coffee farms. Currently, most of the company’s supply comes from CAFE-certified farms. This situation reflects sustainability goals as the business improves its coffeehouse chain operations. Other corporate social responsibility efforts include support programs for communities, such as through the Starbucks Foundation. These multiple programs and initiatives enable the coffee company to improve its corporate citizenship status while benefiting the stakeholder group of communities and the environment.

Investors . As a business, Starbucks Corporation must address investors as stakeholders. In the corporate social responsibility context, investors are interested in the economic benefits of the coffeehouse chain, particularly in terms of dividends and share price. As a responsible business, the firm maintains dominant and profitable global operations in the coffeehouse industry, thus satisfying investors’ need for profitability and business growth. Also, to address this corporate social responsibility, Starbucks keeps improving its competencies to protect the business against competitors, including coffeehouse firms, like Tim Hortons and Costa Coffee, as well as foodservice businesses, such as Dunkin’, McDonald’s McCafé , Wendy’s , Burger King , and Subway . These competitors offer food, coffee, and other drinks that affect Starbucks’ strategies for sustainability and corporate citizenship.

Governments . Starbucks’ social responsibility efforts address the interests of the stakeholder group of numerous governments, considering the company’s global presence. The coffee business complies with rules and regulations but has been criticized for its tax practices in Europe. Starbucks uses a network of locations in different European countries to exploit tax advantages. Thus, the company’s corporate social responsibility efforts can be improved to better address this stakeholder group.

Starbucks’ Corporate Citizenship: CSR & ESG Performance, Actions

Starbucks has satisfactory corporate social responsibility performance in addressing the interests of most of its stakeholders. The foodservice company satisfies most of the concerns of its stakeholder groups, like customers, employees, suppliers, the environment and communities, and investors. However, the corporation can improve its CSR and ESG performance by reaching a 100% CAFE-certified ethical supply chain to maximize the benefits for communities and the environment. Starbucks can also improve its corporate citizenship performance in addressing governments by improving its tax practices, compliance, and related governance areas. These are areas where the coffeehouse chain can implement changes to boost its corporate social responsibility performance to satisfy its stakeholders.

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Journal of Corporate Responsibility and Leadership

Exploring company’s activities in the field of csr: the case of starbucks.

• Edyta Gozdan Nicolaus Copernicus University in Torun
• Agata Sudolska Nicolaus Copernicus University in Torun

Abstract: Recently CSR has gained companies’ attention due to its strategic importance. In the contemporary economy, the enterprises, especially those that are global corporations, are highly involved in several activities focused on meeting both societal and environmental needs. As caring about the better future for next generations, the companies implementing CSR aim at compensating the side effects related their operations. On the other hand, they aim at building their brands perceived as supporting local communities and engaging in particular environmental projects. One of such global corporations highly involved in CSR field is Starbucks. The aim of the study is to is to explore Starbucks’ activities in the field of CSR. The research process is driven by the three following research questions: (1) What are the main areas of Starbucks’ involvement in CSR activities? (2) What are the main Starbucks’ company objectives in the field of CSR? (3) How does Starbucks implement CSR activities following TBL concept? The exploratory single case study analysis of Starbucks company is applied to answer research questions and achieve the aim of the study. The research results presented in the paper indicate that Starbucks carries out several activities focused on supporting different communities as well as prove that the company is engaged in various projects dedicated to environment protection and climate change resistance. 

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Starbucks Coffee Company: Transformation and Renewal

• Format: Print
• | Language: English
• | Pages: 71

Starbucks Coffee Company: Transformation and Renewal analyzes the turnaround and reconstruction of Starbucks Coffee Company from 2008 to 2014 as led by CEO and co-founder Howard Schultz. The case offers executives and students an opportunity to examine in depth how Schultz and his team saved Starbucks from near-collapse, by both executing a deep, comprehensive return to its core values and, at the same time, investing in a range of new products, customer experiences and organizational capabilities designed to make the company fit for enduring success in a turbulent global economy. Set against the backdrop of the Great Recession, the case also considers the impact of unprecedented important shifts in consumer spending and confidence as well as new competitive forces on Starbucks' transformation. The case concludes by examining Schultz's own leadership journey, the lessons he learned personally during Starbucks transformation, and how he is using these lessons—within Starbucks and on the national stage—to redefine the roles and responsibilities of a public corporation in the 21st century.

Based on extensive interviews conducted with Schultz and other Starbucks executives from 2011 to 2014, the case offers a range of vital lessons on leadership, organizational transformation, restructuring, strategy, innovation, entrepreneurial vision, and customer service.

About The Author

Nancy F. Koehn

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• June 2014 (Revised March 2016)
• Faculty Research
• Starbucks Coffee Company: Transformation and Renewal  By: Nancy F. Koehn

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5 Examples of Corporate Social Responsibility That Were Successful

• 06 Jun 2019

Business is about more than just making a profit. Climate change, economic inequality, and other global challenges that impact communities worldwide have compelled companies to be purpose-driven and contribute to the greater good .

In a recent study by Deloitte , 93 percent of business leaders said they believe companies aren't just employers, but stewards of society. In addition, 95 percent reported they’re planning to take a stronger stance on large-scale issues in the coming years and devote significant resources to socially responsible initiatives. With more CEOs turning their focus to the long term, it’s important to consider what you can do in your career to make an impact .

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What Is Corporate Social Responsibility?

Corporate social responsibility (CSR) is a business model in which for-profit companies seek ways to create social and environmental benefits while pursuing organizational goals, like revenue growth and maximizing shareholder value .

Today’s organizations are implementing extensive corporate social responsibility programs, with many companies dedicating C-level executive roles and entire departments to social and environmental initiatives. These executives are commonly referred to as a chief officer of corporate social responsibility or chief sustainability officer (CSO).

There are many types of corporate social responsibility and CSR might look different for each organization, but the end goal is always the same: Do well by doing good . Companies that embrace corporate social responsibility aim to maintain profitability while supporting a larger purpose.

Rather than simply focusing on generating profit, or the bottom line, socially responsible companies are concerned with the triple bottom line , which considers the impact that business decisions have on profit, people, and the planet.

It’s no coincidence that some of today’s most profitable organizations are also socially responsible. Here are five examples of successful corporate social responsibility you can use to drive social change at your organization.

5 Corporate Social Responsibility Examples

1. lego’s commitment to sustainability.

As one of the most reputable companies in the world, Lego aims to not only help children develop through creative play, but foster a healthy planet.

Lego is the first, and only, toy company to be named a World Wildlife Fund Climate Savers Partner , marking its pledge to reduce its carbon impact. And its commitment to sustainability extends beyond its partnerships.

By 2030, the toymaker plans to use environmentally friendly materials to produce all of its core products and packaging—and it’s already taken key steps to achieve that goal.

Over the course of 2013 and 2014, Lego shrunk its box sizes by 14 percent , saving approximately 7,000 tons of cardboard. Then, in 2018, the company introduced 150 botanical pieces made from sustainably sourced sugarcane —a break from the petroleum-based plastic typically used to produce the company’s signature building blocks. The company has also recently committed to removing all single-use plastic packaging from its materials by 2025, among other initiatives .

Along with these changes, the toymaker has committed to investing $164 million into its Sustainable Materials Center , where researchers are experimenting with bio-based materials that can be implemented into the production process.

Through all of these initiatives, Lego is well on its way to tackling pressing environmental challenges and furthering its mission to help build a more sustainable future.

Related : What Does "Sustainability" Mean in Business?

2. Salesforce’s 1-1-1 Philanthropic Model

Beyond being a leader in the technology space, cloud-based software giant Salesforce is a trailblazer in the realm of corporate philanthropy.

Since its outset, the company has championed its 1-1-1 philanthropic model , which involves giving one percent of product, one percent of equity, and one percent of employees’ time to communities and the nonprofit sector.

To date, Salesforce employees have logged more than 5 million volunteer hours . Not only that, but the company has awarded upwards of $406 million in grants and donated to more than 40,000 nonprofit organizations and educational institutions.

In addition, through its work with San Francisco Unified and Oakland Unified School Districts, Salesforce has helped reduce algebra repeat rates and contributed to a high percentage of students receiving A’s or B’s in computer science classes.

As the company’s revenue continues to grow, Salesforce stands as a prime example of the idea that profit-making and social impact initiatives don’t have to be at odds with one another.

3. Ben & Jerry’s Social Mission

At Ben & Jerry’s, positively impacting society is just as important as producing premium ice cream.

In 2012, the company became a certified B Corporation , a business that balances purpose and profit by meeting the highest standards of social and environmental performance, public transparency, and legal accountability.

As part of its overarching commitment to leading with progressive values, the ice cream maker established the Ben & Jerry’s Foundation in 1985, an organization dedicated to supporting grassroots movements that drive social change.

Each year, the foundation awards approximately $2.5 million in grants to organizations in Vermont and across the United States. Grant recipients have included the United Workers Association, a human rights group striving to end poverty, and the Clean Air Coalition, an environmental health and justice organization based in New York.

The foundation’s work earned it a National Committee for Responsive Philanthropy Award in 2014, and it continues to sponsor efforts to find solutions to systemic problems at both local and national levels.

Related : How to Create Social Change: 4 Business Strategies

4. Levi Strauss’s Social Impact

In addition to being one of the most successful fashion brands in history, Levi’s is also one of the first to push for a more ethical and sustainable supply chain.

In 1991, the brand created its Terms of Engagement , which established its global code of conduct regarding its supply chain and set standards for workers’ rights, a safe work environment, and an environmentally-friendly production process.

To maintain its commitment in a changing world, Levi’s regularly updates its Terms of Engagement. In 2011, on the 20th anniversary of its code of conduct, Levi’s announced its Worker Well-being initiative to implement further programs focused on the health and well-being of supply chain workers.

Since 2011, the Worker Well-being initiative has been expanded to 12 countries and more than 100,000 workers have benefited from it. In 2016, the brand scaled up the initiative, vowing to expand the program to more than 300,000 workers and produce more than 80 percent of its product in Worker Well-being factories by 2025.

For its continued efforts to maintain the well-being of its people and the environment, Levi’s was named one of Engage for Good’s 2020 Golden Halo Award winners, which is the highest honor reserved for socially responsible companies.

5. Starbucks’s Commitment to Ethical Sourcing

Starbucks launched its first corporate social responsibility report in 2002 with the goal of becoming as well-known for its CSR initiatives as for its products. One of the ways the brand has fulfilled this goal is through ethical sourcing.

In 2015, Starbucks verified that 99 percent of its coffee supply chain is ethically sourced , and it seeks to boost that figure to 100 percent through continued efforts and partnerships with local coffee farmers and organizations.

The brand bases its approach on Coffee and Farmer Equity (CAFE) Practices , one of the coffee industry’s first set of ethical sourcing standards created in collaboration with Conservation International . CAFE assesses coffee farms against specific economic, social, and environmental standards, ensuring Starbucks can source its product while maintaining a positive social impact.

For its work, Starbucks was named one of the world’s most ethical companies in 2021 by Ethisphere.

The Value of Being Socially Responsible

As these firms demonstrate , a deep and abiding commitment to corporate social responsibility can pay dividends. By learning from these initiatives and taking a values-driven approach to business, you can help your organization thrive and grow, even as it confronts global challenges.

Do you want to gain a deeper understanding of the broader social and political landscape in which your organization operates? Explore our three-week Sustainable Business Strategy course and other online courses regarding business in society to learn more about how business can be a catalyst for system-level change.

This post was updated on April 15, 2022. It was originally published on June 6, 2019.

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May 9, 2024

Starbucks: Connecting People through Coffee

• Digital Strategy

Written by Clodagh O’Brien

When people consider getting a coffee, many think of ‘Starbucks’ with its iconic green mermaid logo. Indeed, Starbucks is the largest coffee chain in the world and operates in nearly 80 countries. In the United States, 40% of coffee shops are Starbucks.

That’s not bad for a company that started in a farmers’ market in Seattle in 1971! While Starbucks is famous for its coffee, it’s also envied by many brands and marketers for its innovative ability to promote, engage, and stay front of mind with customers. 

The company is listed 16th on Fortune ’s World’s Most Admired Companies and 72nd on America’s Most Innovative Companies list.       

Over the years, Starbucks has embraced technology (mobile and artificial intelligence ) and used marketing channels to drive brand awareness, get customer insights, and create loyal customers. 

It has also pioneered corporate social responsibility in the industry, a core element of the business that many brands are trying to replicate to cater for consumers who now demand authenticity and transparency. 

But there have been controversies along with a loss in value ($11 billion in 2023) and poor sales. Allegations of anti-pride sentiment, boycotts, firings in its stance against unions, and allegations of being anti-competitive (by buying out competitors’ leases) have hurt the brand’s reputation.    

In this case study, we'll look at how Starbucks has evolved over the past five decades to be one of the most talked-about and successful brands in the world.

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Clodagh O'Brien is a content creator and strategist. Over the last 12 years, she has created and managed content for many SMEs and global brands. She's passionate about digital marketing and the impact of technology on culture and society. You can find her on  Twitter  or  LinkedIn .  

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