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How Starbucks Used Social Ethics as Their Primary Marketing Strategy

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Corporate responsibility is the term President Clinton used for a conference of CEOs in May 1996 and refers to the fact that management must take good care of the people who do the work and show concern for the communities where they live. The evidence seems clear that those businesses, which actively serve their many customers, employees and communities in creative, morally thoughtful ways also, over the long run, serve their shareholders best. Companies do in fact, do well by doing good! Typically, “social responsibility” is the term used by companies that give a percentage of their earnings to charity, or sell organic products, or try to save the rain forest. It is true that Starbucks maintains the focus of contributing positively to their communities and environment and this has always been their mission. In addition, Starbucks needs to grow and sustain its business. They need to generate profits to demonstrate that the company is healthy and well managed. Through effective socially responsible strategies, and well thought out charity work, and a very strong sense of business ethics, Starbucks has been able to use this concept toward their growth. They have figured out that running a socially responsible company entices people to spend money and become loyal customers of theirs. Before Starbucks went public in 1992, they were a struggling Seattle company, trying to make it big. Once they made it, though, public attitudes toward them began to change. Some of the same people who once rooted for them begin to criticize them. Once they decided they were no longer an underdog, they looked for ways to knock them down. When measured against five million satisfied customers a week, their detractors are few in number. But when you are sincerely trying to build an enterprise with high principles, you can’t help feeling discouraged when their intentions are

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