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
many of its competitors. Starbucks seems to be able to justify its higher prices because the company
sells more than just coffee—it sells an experience. Starbucks patrons can order specialty drinks and
hang out in what founder Howard Schultz envisioned to be the “third place” to be after home and work.
Love it or hate it, Starbucks has been very successful at branding.
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 value that initially made Starbucks a great company: quality. Today Starbucks is once again
thriving, and even expanding into the consumer packaged goods market.
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 their partnership with Project Red
raises money for HIV/AIDs research in Africa.
Case 2: Starbucks’ Mission: Social Responsibility and Brand Strength 82
eco-friendly. In light of some of its weaknesses, instructors may ask students whether they feel that
Starbucks deserves its image as a socially responsible brand.
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 Starbucks’ history that Schultz, the founder, was concerned
with social responsibility from the very beginning. Because he made it an original core value of the
2. Is Starbucks unique in being able to provide a high level of benefits to its employees?
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