I. Track record information
The main idea of Corporate Social Responsibility (CSR) is the fact that companies doing companies are not only focused on their shareholders but also their stakeholders.
Broadly described, CSR is the dedication of businesses to donate to sustainable economical development by running business responsibly while retaining the preservation of the environment and dealing with the employees, their families, the local community and contemporary society at large to improve their lives in ways that are best for business and for development.
Within the business enterprise sector, CSR is becoming one of the major main beliefs promoted within modern times available plan to achieve business success. One of the companies that choose CSR is Starbucks.
Starbucks is committed to being a truly accountable company in the communities. Its concentration is on ethically sourcing high-quality coffee, lowering its environmental effects, and contributing favorably to communities. As part of the CSR program, the company in cooperation with Conservation International developed C. A. F. E. (Espresso and Farmer Equity) Techniques in 1998.
C. A. F. E. Methods is a voluntary resource chain program that delivers purchasing preference to espresso suppliers who source coffee beans that are cultivated, processed, and bought and sold in an financially, socially, and environmentally responsible manner. Those coffee farmers who abide by best environmental and communal techniques will be rewarded with higher prices.
There are four main regions of concentrate in C. A. F. E. Methods.
Product quality
All espresso must meet Starbucks requirements of high quality.
Economic accountability
Suppliers must submit evidence of payments made throughout coffee supply chain to show how much of the purchase price Starbucks pays for unroasted coffee gets to the farmer.
Social responsibility
The rights of employees are covered. Third-party verifiers help the company to ensure their working and living conditions are safe and adequate.
Environmental leadership
Verifiers will actions in spot to manage misuse, protect drinking water quality, conserve water and energy, maintain biodiversity and reduce agrochemical use.
By 2015, Starbucks targets to buy 100% responsibly grown up and ethically traded coffee. In order to achieve this goal, it is vital to observe the alignment of the C. A. F. E. Techniques with generic corporate strategy.
A common strategy is a core idea about how a company can best compete in its current market (Pearce & Robinson, 2007). As defined by Michael Porter, there are three common strategies: cost management, differentiation, and concentrate. Cost leadership means the pursuit of cost decrease in every aspect. The differentiation strategy involves the creation of something that is perceived by the industry to be unique. The common strategy of concentrate targets a specific group or specific geographic market.
II. Problem definition
Based on the info above, understanding corporate competitive strategy is vital. Every decision should be linked to the generic strategy. An organization that fails to integrate its public responsibility strategy using its generic strategy will most likely face an issue in a long run. Therefore, it is so important to make certain that strategy and company's programs are aligned in order the organisation can achieve its goals productively. This research will analyse the connection between Starbucks' universal strategy and its own Corporate Public Strategy, especially its C. A. F. E. tactics program.
Research questions
The main questions need to be answered in this case are as follows.
Is Starbucks doing most best for their stakeholders in cases like this coffee farmers in Indonesia by applying CSR?
Do the farmers really get their reasonable price Starbucks is appealing?
Are the caffeine Starbucks bought responsibly cultivated and ethically exchanged?
Are C. A. F. E. techniques beneficial to coffee growers?
What influence does indeed the generic strategy give to the business?
What will be the dissimilarities of nowadays competitive strategy and earlier general strategy?
What will be the fundamental reasons a business should align its CSR tactics with its corporate and business strategy?
Research objectives
This research paper is firstly directed to understand the idea of Corporate Friendly Responsibility and the essential value of integrating CSR and universal strategy.
The second target is to show the knowledge that the author has gained during the study.
The third goal is to compare the ideas mentioned in textbooks with what really happen in the true life. The writer will soon get into a genuine life, i. e. working regular in the real business environment; it is therefore important to obtain a glimpse of it. It is expected that the writer decide to face everything by the time the author gets into competitive business environment.
III. Research methodology
Data gathering methods
The data used in the dissertation will be gathered using the principal and secondary (office) research. Major research will be completed by interviewing some individuals related to this issue. This is classified as a qualitative research.
Methodology
Motivation
Sources
1. Secondary (workplace) research
To gather data about Starbucks' Corporate Social Responsibility
To collect data about C. A. F. E. practice guidelines
To gather information about competitive and commercial strategy
To find information on C. A. F. E. verifiers in Indonesia and their practices
To find info about espresso farmers and vendors in Indonesia
Starbucks website and gross annual reports
Articles and published journals from EBSCOhost and internet
Books
Previous research reports
Forum
2. Main research
To find information on execution of C. A. F. E. confirmation in Indonesia
To get data about caffeine growing method
To find info about caffeine growers and distributors
Interviewing C. A. F. E. verifiers/ documentation body
Interviewing caffeine growers in Indonesia
Theoretical framework
This case study depends on books collection, such as:
Corporate Public Responsibility: Doing the best Good for YOUR SMALL BUSINESS as well as your Cause by Philip Kotler and Nancy Lee, 2004
Corporation, Be Good! By William C Frederick, 2006
Pour Your Heart and soul INVOLVED WITH IT: How Starbucks Built a Company One Cup at the same time by Howard Schultz and Dori Jones Yang, 1999
Exploring Corporate Strategy: 8th release by Gerry Johnson, 2008
Crafting and Performing Strategy, by Arthur A. Thompson, A. J. Strickland, John E. Gamble
Data analysis
Exploratory research
Contact the object of the research
Literature review
Proposal approved
Develop proposal
Reveal the corporate strategy
Develop interview questions
Reveal the business's CSR practices
Analyse the practice and strategy
If it is align
If it is not align
Reveal the inconsistency
Conclusion & recommendation
The examination will be performed by gathering secondary and major data.
IV. Time and costs estimation
Month
Activities
Cost
Up to
August 2009
Generate ideas
Find literatures
Start collecting data from internet
Making the proposal
50 (on catalogs)
0. 30 (on printing)
1st week of
September 2009
Hand in the proposal
Consult with dissertation supervisor, Mr Hans Zahn
2nd to 4th week of
September 2009
Collect data about CSR and C. A. F. E. practices
Hand in revised proposal and talk to with Mr Zahn
Revise interview questions
Perform interviews in Indonesia
900 (plane ticket)
10 (phone)
1st and 2nd week of
October 2009
Write chapter I: intro (track record information, research aims, overview of research method)
3rd and 4th week of
October 2009
Discuss with supervisor on the progress
Write section II: books review/ theoretical construction (universal strategy Porter, CSR, the connection between CSR and common strategy)
Gather more extra data
1st week of November 2009
Discuss with supervisor
Re-write literature review
Write chapter III: research method
2nd week of November 2009
Discuss with supervisor
Start writing chapter IV: examination of final result (company profile, examination on the interview result)
3rd and 4th week of November 2009
Discuss with supervisor
Continue writing section IV
Brainstorm and begin writing section V: summary and recommendation
1st week of Dec 2009
Discuss with supervisor
Continue writing section V
Check what absent on the record, grammar
2nd week of December 2009
Write professional summary
Write bibliography
December 2009
(targeted before Xmas)
Final consultation
Edit the report
Hand in the report
25 (on printing)
January 2010 (targeted before 20th of January)
Oral defence
Total cost estimation is about 1000.
V. Limitations
Starbucks struggles to give informational interviews for university projects because of the high level of request. Therefore, the author will rely typically on extra data.
VI. Statement outline
Executive summary
Table of contents
Acknowledgement
Chapter I: Introduction
Chapter I will consist of overview of the dissertation especially from section II and III. Record information, research targets, benefits of the study, and limitation will also be one of them chapter.
Chapter II: Theoretical framework
In this section, the theories which the research is situated will be presented. There are several concepts and ideas related to this dissertation, such as:
Corporate Sociable Responsibility;
C. A. F. E. Routines program;
Porter's common strategy; and
Competitive strategy.
This chapter also covers earlier research and articles from publications, catalogs, and other different resources.
Chapter III: Research methodology
This part is about description and evaluation of the technique used in the research, including data options and collection methods, as well as the study analysis method.
In this dissertation, data are compiled more likely from extra research somewhat than principal research. Some interviews will be studied as an additional analytical data.
Chapter IV: Findings and analysis
This chapter provides Starbucks company account, empirical findings, and research of findings.
Chapter V: Conclusions and recommendation
This chapter will include conclusion and suggestion for further research.
Bibliography
The Harvard referencing system will be used as helpful information to write this part as well as the citation and quotation in the main report.
Appendices
The dissertation proposal will be included in this part.
Appendix 1
Interview questions (for the coffee farmers)
For what price you sell your espresso?
Who are your caffeine buyers, dealer, or distributors?
What is the caffeine creation monthly?
Do you utilize some sort of sustainable caffeine growing?
Do you sell your coffee to Starbucks?
(if yes please answer q6 till q10, if not answer q11 and q12)
Who is your prior buyer before Starbucks? (if any)
What is the reason you change buyer?
Do you have a special contract/joint venture with Starbucks? Or is it selling price?
Does Starbucks promote eco-friendly means of growing caffeine?
Is selling to Starbucks beneficial to you? In what manner (improve standard of living, condition/riches etc. )?
What is your image of Starbucks?
Would you sell your caffeine to Starbucks?
Appendix 2
Interview questions (for C. A. F. E. verifiers)
What is the business value and strategy?
How does the business intend to achieve the aims?
What is CSR in your opinion?
What is C. A. F. E. routines program in your point of view?
How is the implementation of this program in Indonesia?
Is there any adjustment during the execution of C. A. F. E. guidelines?
What will be the benefits of this program for caffeine farmers and vendors especially in Indonesia?
What will be the benefits of this program for your enterprise?
According to you, is C. A. F. E. practice program can straight be associated with your small business strategy?
etc.
Appendix 3
Consumer buying behavior related to C. A. F. E. methods (reasonable trade coffee)
This part is still have to be further talked about:
whether or not it will be included in this dissertation
If yes, might it be included as a main research or in a appendix
Ethical use is the purchase of something that concerns a particular ethical issue (human protection under the law, labour conditions, dog well-being, environment, etc. ) and is chosen openly by an individual consumer. Some types of ethical consumption profit the environment (e. g. , environmentally friendly products, officially logged wood, animal well-being), while others benefit people (e. g. , products free from child labour, fair-trade products).
Research questions:
What is the link between C. A. F. E. practices with customer behavior?
What aspects are influencing customers to buy fair trade coffee?
What will be the influences of CSR on COB?
