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Starbucks Case Analysis
Victor F. Hogan
The George Washington University
PSPR 6210: Corporate Social Responsibility
July 15, 2012

Starbucks serves a total of four billion paper cups to their customers each year. During
Earth Month 2010, Starbucks created a way for their customers to make an environmental impact and try reusable mugs. If one Starbucks customer switches to reusable mugs, then that one person saves seven trees each year. The Starbucks public relations team developed an integrated communications campaign focused around five key phases that underscored the company’s support for environmental responsibility and a premier customer experience.
Through research done by Edelman, Starbucks found that the number one issue consumers’ care about is the environment, and nearly two-thirds of consumers are more likely to trust brands that are socially and ethically sound. Starbucks found that through their website, MyStarbucksIdea.com, that recycling and cups were the top socially responsibility ideas.
With the millions of people that visit Starbucks’ 16,000 locations around the world, the company decided that they would put their mass appeal to good works and help along with the green movement.
Starbucks recycled cup promotion in recognition of Earth Month 2011 was meritoriously conveyed due to the corporations strategic “green” initiatives. The company has developed and implemented numerous short term and long term corporate social marketing campaigns to reduce the firm’s carbon neutral footprint. The corporations’ senior leadership has under taken proactive recycling programs in response to customers, investors and local communities concerns to Starbucks environmental impact.
Starbucks response was effective primary due to the company’s long term environmental plans which included serving reusable cups in North American stores by 2015 and implementing LEED certified building strategies in all newly constructed stores. Energy use in Starbucks' stores makes up roughly 80 percent of its entire carbon footprint a sustainable building program will have significant impact. Starbucks wants to have front-of-store recycling in all company-owned stores serve at least one-quarter of beverages in reusable cups, and make sure at least three-quarters of U.S. customers have easy access to recycling Starbucks cups in the cities where they live.
Starbucks considered sourcing risks, operational efficiency and brand building when making its decision to invest in green programs. Building more sustainable facilities by embracing LEED certification achieves all three: * Sourcing risks. In the world's most important coffee growing regions, there is already more erosion, increased infestation by pests, and shifts in rainfall that are putting supplies of quality coffee at risk. * Operational efficiency. Using energy and other natural resources more efficiently cuts costs. * Brand building. Many of its associates and customers appreciate Starbucks' commitment to reducing its carbon footprint.
Since 2009, Starbucks has implemented recycling programs in 18 markets, established partnerships with several municipalities and concluded three recycling pilots. The company initiated a recycling research and development project with International Paper that demonstrated that its ubiquitous paper cups can indeed be recycled into new ones.

Mostly importantly the firm’s campaign changed the behavior of consumers, competitors, suppliers and local communities. The reusable paper cup program is paramount to Starbucks due to 16 billion paper cups used for coffee each year by Americans; Starbucks customers are responsible for 3 billion cups of those cups. By seizing this opportunity to develop reusable paper cups, the company has raised the bar for corporate social responsibility. Starbucks has developed summits to discuss the future of paper recycling initiatives with competitors and other key stakeholders to change the corporate behavior within the coffee and paper cup industry. Starbucks should continue to measure the campaigns progress by the number of beverages served in tumblers or serve ware. In addition, the firms’ executives wisely adjusted the company’s 2015 goal of 25% beverages served in stores to 5% due to 2010’s truncated numbers. The corporations’ senior managers recognized that behavior change may be slow to come and that time is often needed to educate, change attitudes, and provide infrastructure to support behavior change. Modified Goal: Serve 5 percent of beverages made in our stores in personal tumblers by 2015. In 2011, customers used personal tumblers more than 34 million times-nearly 2% of all beverages served in global company owned stores. Source: Starbucks 2011 Global Responsibility Goals and Progress Report

Modified Goal: Serve 5 percent of beverages made in our stores in personal tumblers by 2015. In 2011, customers used personal tumblers more than 34 million times-nearly 2% of all beverages served in global company owned stores. Source: Starbucks 2011 Global Responsibility Goals and Progress Report

A successful corporate social marketing campaign utilize a strategic marketing planning approach: conducting a situation analysis, selecting target audiences, setting behavior objectives, identifying barriers and benefits to behavior change, and then developing a marketing mix strategy that helps overcome perceived barriers and maximize potential benefits.
In my opinion, Starbucks can take a more aggressive approach in enacting the corporation’s paper cup recycling and LEED building strategies. The following are sustainability programs Starbucks can implement with no additional operating cost: 1) Current stores can meet LEED certifications by requiring landlords to upgrade buildings. * To help restaurants reduce their energy consumption, the Department of Energy and its Pacific Northwest National Laboratory (PNNL) released a technical report that provides recommendations on how to achieve up to 50 percent energy savings in quick-service restaurants which included by not limited to ultra-efficient cooking appliances that reduced kitchen exhaust air flow, optimized HVAC system configuration to better utilize a dedicated outdoor air system and runaround coil loop heat recovery, efficient exterior and interior lighting with dimming controls in dining rooms, and enhanced insulation, cool roofs, and high-performance window glazing.

2) Recommend Starbucks use Wal-Mart supplier performance strategies which include suppliers meeting certain price points. If a supplier cannot lower prices in a predetermined timeframe their business relationship will be terminated. In the case of Starbucks, the company should require paper cup suppliers to design a reusable paper cup or find an alternate supplier.

--------------------------------------------
[ 1 ]. Starbucks Corporate Responsibility Report of 2009
[ 2 ]. Girrbach, C. (2010). How Starbucks Took the Lead on LEED. Retrieved July 15, 2012 from http://www.greenbiz.com/blog/2010/10/28/how-starbucks-took-lead-leed [ 3 ]. Thomas, J. (2011). Starbucks looks to recycle all cups by 2015. Retrieved July 15, 2012 from http://resource-recycling.com/node/2085
[ 4 ]. Kotler, Philip, and Nancy Lee. Corporate Social Responsibility. Hoboken, New Jersey: John Wiley & Sons, 2005. Print.
[ 5 ]. Starbucks 2010 Global Responsibility Goals and Progress Report
[ 6 ]. Kotler, Philip, and Nancy Lee. Corporate Social Responsibility. Hoboken, New Jersey: John Wiley & Sons, 2005. Print.
[ 7 ]. Department of Energy 2010 Technical Support Document:50% Energy Savings for Quick-Service Restaurants
[ 8 ]. Department of Energy 2010 Technical Support Document:50% Energy Savings for Quick-Service Restaurants, p.V

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