Question

Firm : Starbucks

Analyze three actions taken by the firm that affect the objective of sustainability?At least one of these actions should relate to environmental sustainability and at least one should relate to social responsibility. For each action, explain how it affects the environment and/or society, and how those impacts contribute to or detract from the objective of sustainability. Then interpret each action’s impact on the firm’s profits. Is it a profit-maximizing action? Does it negatively impact the firm’s profits? Explain and, where possible, use the tools and ideas that we have developed in class to back up your discussion.

*Write about two to three paragraphs answering the questions above.

Answer 1

Environmental sustainability steps taken by Starbucks: It will reduce carbons emissions by 50% by relying on renewable energy sources and eliminating plastic straws by the end of 2020. This will be profit maximizing as an additional cost of sourcing straws will reduce on a global scale. It will help address climate change and instill consumer responsibility.

Social responsibility steps taken by Starbucks: Farmer support center wherein the firm works with farmers on one on one basis and traditional growing methods are promoted. It has led to more interaction between farmers and the firm, it ensures sustainable measures are followed by farmers to enhance quality of the product. Farmers profitability has increased because of this interaction, thereby selling good quality coffee and in turn Starbucks profitability has improved because the quality of the final product enhances if the crop is good.

NextGen cup solution: Starbucks has developed a cup which could be easily recyclable and the firm could be able to reduce its waste. This will lead to better management of waste in communities and will help increase the companies profits in the long run as its reliance on procuring new materials would reduce.