CASE 2
Starbucks Mission: Social Responsibility and
Brand Strength
CASE NOTES FOR INSTRUCTORS:
Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who
view Starbucks as a socially responsible company committed to green practices and free-trade coffee.
Others might dislike Starbucks because it is a large chain that pushes out smaller local competitors.
Another possible reason students may be opposed to Starbucks are its prices, which are higher than
Starbucks has had a profound influence on the U.S. coffee market. Before Starbucks came onto the
scene, people perceived coffee as an uninteresting product largely consumed by older people in the
United States. It did not have the “cool” factor or the cache that it does today. Starbucks entry in the
market largely changed how Americans consumed coffee—and what they thought about coffee shops.
It all started in the cold, gray climate of Seattle—the perfect setting for launching an appealing, warm,
international beverage. Starbucks emphasized quality while service and location became a critical issue.
In spite of its popularity, Starbucks faltered during the most recent recession, when many customers cut
back on discretionary purchases. This prompted the return of founder Howard Schultz as CEO. Schultz
implemented a restructuring process at Starbucks and closed hundreds of stores. He sought a return to
The company also has a history of giving to charities that affect its primary stakeholders. As part of its
commitment to ethics and sustainability, the company launched its Shared Planet website, which
communicates to interested stakeholders all of the company’s ethics and sustainability initiatives. The
company is a large purchaser of Fair Trade Certified coffee and has partnered with Conservation
International since 1998 to promote sustainable agricultural practices.
In spite of its professed commitment to caring for workers and for social causes, such a large company
always will be subject to criticism. From complaints that Starbucks pushes smaller competitors out of
Case 2: Starbucks Mission: Social Responsibility and Brand Strength 82
QUESTIONS AND DISCUSSION
1. Why do you think Starbucks has been so concerned with social responsibility in its overall
corporate strategy?
It should be obvious from examining the history of Starbucks that Schultz, the founder, was
concerned with social responsibility from the very beginning. Because he made it an original core
value of the company, it has remained a deeply ingrained part of the Starbucks culture. Starbucks
2. Is Starbucks unique in being able to provide a high level of benefits to its employees?
Students should understand that, while Starbucks does provide very good benefits to most of its
3. Do you think that Starbucks has grown rapidly because of its ethical and socially responsible
activities or because it provides products and an environment that customers want?
Students’ answers to this question could provoke serious debate in class. If Starbucks had a poor
record in its activities, it would suffer from diminished reputation, which could lead to lower profits
and reduced customer loyalty. However, many customers likely go to Starbucks, not because of its
ADDITIONAL RESOURCES
• For an overview of Starbucks’ Global Responsibility strategy and commitments, instructors
may want to direct students to Starbucks’ Global Responsibility Report, available online to