1. Starbucks social responsibility to society

Although a corporation operates at a competitive environment, and has an aim of making profit, the social norms require an organization to have some projects that are aimed at benefiting the society socially. The social obligation composes, among others, complying with the legal requirements. By doing so, the society benefits indirectly through the government. The responsibility also extends to provision of safe, quality products at fair prices, payment of employees’ employer contributions as well as promoting the safety of the operating environment. The initiative of carrying out social responsibility by a company establishes strong corporate relations with its environment and faith with the customers. This enables the organization to meet its goals.

2. What Starbuck did in its corporate social responsibility.

Starbucks had to implement the principle of fair trade to the coffee growers. At the same time, Starbuck had to institute mutual respect to the coffee growers. The company had to adopt policies that promoted favorable labor conditions, environmental sustainability, direct trade and development in the community. In addition, the company had to invest in boosting grower’s skills to enable them compete internationally. All these were geared towards ensuring that customers were satisfied with the company in order to be effective in coffee production. Although the company experienced additional costs in the Implementation of these policies, it in turn realized a huge sales increment.

3. Why Starbuck invested in fair trade as their CSR.

The first reason why Starbuck invested in fair trade as its corporate social responsibility was to meet the demand of the coffee growers on fair compensation and mutual respect. This was aimed at improving the coffee growers’ working conditions and pulls them out of poverty. Being small-scale growers, and with small plots of land, the only hope for these farmers was their coffee. In fulfilling its social corporate responsibility, Starbuck had to come up with an activity that touched directly on their customers.

4. Measuring the effectiveness of fair trade decisions.

The performance of the company and the favor the company has with its customers, in the competitive environment, is an aspect that can be used to measure the effectiveness of its social corporate responsibility policies. In the case of Starbuck, for example, increase in the sales volume and improvement of the reputation is an aspect that the director can use to evaluate the effectiveness of fair trade social corporate responsibility initiative. The stability of the company in relation to the economic times can also be used to predict the effectiveness of the policies.