Starbucks Coffee is one of the leading American multinational corporations. The “company currently operates in over 45 countries across the globe” (Starbucks Coffee Company 2015, para. 3). Many analysts believe strongly that Starbucks Coffee has managed to revolutionise the coffee-drinking experience of many customers (Starbucks Coffee Company 2015). The company operates in a very competitive and unsustainable industry. This is the case because the coffee is mainly produced in different tropical countries. Soils in such nations are usually loose and vulnerable to constant erosion. As well, this agricultural product “has a high water footprint since 140 liters of water must be used to produce one cup of coffee” (Schultz & Gordon 2012, p. 12). This paper therefore focuses on Starbucks’ relationship with the natural environment.
Starbucks Most Critical Environmental Impacts
Environmental Sustainability
The world is looking for new practices and industrial procedures that can promote the level of environmental sustainability. The natural environment supports the lives of many creatures and human beings. The current rate of global warming has forced governments and corporations to conserve the natural environment. Business organisations should also embrace the best environmental practices. The concept of corporate social responsibility (CSR) is used to guide companies whenever embracing various sustainability practices. Leading companies in CSR have the potential to attract more investors, stakeholders, and customers. CSR is achieved by “conserving the natural environment, embracing the power of biodiversity, promoting the concept of recycling, and reducing emissions” (Schultz & Gordon 2012, p. 48). These global practices are aimed at promoting sustainability.
That being the case, sustainability is the first environmental issue taken seriously by Starbucks Corporation. To begin with, the firm offers disposable cups to its customers. Such cups are “produced using large quantities of energy and resources” (Thompson 2015, p. 4). However, this move has been essential towards reducing the amount of water used by the company. As well, Starbucks has embraced the “use of environmentally-friendly packaging options” (Starbucks Coffee Company 2015, para. 6). Such options have made it possible for the firm to conserve the natural environment.
The main sustainability issue affecting the firm arises from its cups. Such cups cannot be easily recycled. That being the case, the firm is planning to use recyclable cups in the future. It is also planning to introduce reusable mugs in order to reduce the use of cups (Thompson 2015). The strategy will reduce the natural resources used to produce such cups. These green issues and initiatives will eventually make Starbucks Coffee more successful.
Water Management and Usage
Many people in different parts of water do not have access to clean drinking water (York, 2009). York (2009) argues that water shortage is a major problem affecting many communities. Many sources of water are usually contaminated or unhealthy. Sea water is usually salty and unusable. Giant corporations use large quantities of water to produce and deliver various products to their consumers. Such corporations are known to exploit every available water source. Overexploitation of natural water sources can affect the welfare of different communities and populations. This situation explains why different companies are currently required to record their water footprints. This move is aimed at conserving water and making it available to different populations.
Throughout the 2000s, Starbucks “faced strong criticism from different environmental groups because of its wasteful water practices” (Schultz & Gordon 2012, p. 29). Starbucks uses dipper wells to wash coffee and utensils. The company also uses a lot of water to prepare its beverages. That being the case, waster usage has remained another critical concern for Starbucks Coffee. Statistics show that “Starbucks wastes over 6.2 million gallons of water every single day” (Thompson 2015, p. 3). This issue has forced the company to identify new practices and approaches that can address this challenge. Starbucks is currently considering new strategies to recycle its wastewater. It has also been monitoring its water footprint. Audits are conducted regularly in order to reduce their water usage.
Wastes
Starbucks is known to produce numerous wastes. Some of these “wastes include plastic cups, water, cans, and coffee husks” (Thompson, 2015, p. 3). Waste management has become a critical issue in order to address the problem of climate change. Many communities are encouraged to handle their wastes effectively. The practice can reduce the emission of different greenhouse gases. As well, the “management of waste is something that requires large quantities of energy” (Thompson 2015, p. 4). A study by Thompson (2015) indicated that “waste management was responsible for 4-5 percent of green house gas emissions” (p. 9). This challenge forces different agencies to focus on the best waste management practices.
Waste management is something taken seriously at Starbucks. For example, the firm has embraced the use of reusable mugs. As well, new recycling techniques are being used for different cups. Wastewater is also recycled or treated being discharged. Such measures are critical towards making the surrounding environment more sustainable (Bansal & Roth 2000). However, new strategies should be embraced in order to manage every kind of waste produced by Starbucks Coffee.
Critical Analysis of Starbucks’ Response to the Above Issues
The above discussion shows clearly that Starbucks Corporation focuses on different environmental sustainability issues. The major three issues include environmental sustainability, water usage, and waste management. It is notable that the corporation has managed to address most of its critical sustainability issues. Such measures are undertaken in order to lessen the firm’s impacts on the natural environment. Starbucks operates in a very unsustainable industry (Schultz & Gordon 2012). The coffee industry is characterised by numerous sustainability issues that can pose numerous challenges to different companies. Coffee is usually obtained from various tropical nations. Such nations have been using large tracts of land to produce quality coffee beans for companies such as Starbucks.
The above challenge encouraged Starbucks Coffee to partner with Conservation International (CI). This partnership led to the establishment of the Coffee and Farmer Equity Practices (CAFE Practices). Such practices focus on “the best socially, economically, and environmentally responsible coffee purchasing guidelines” (Schultz & Gordon 2012, p. 89). The approach has encouraged more farmers to embrace various practices that can result in environmental sustainability. Statistics show that Starbucks has “a one percent stake in the global coffee market” (Schultz & Gordon 2012, p. 102). However, it has managed to promote the best practices, thus making the industry more sustainable. The firm also encourages such growers to use sustainable agricultural practices. The firm can also train them in order to use integrated pest management (IPM) strategies. These measures will ensure the firm is on the right track towards achieving its sustainability goals.
The company has identified new strategies to promote the best sustainability practices. The criticisms presented by different environmentalists have forced Starbucks to identify new strategies to conserve water. The firm also conducts “comprehensive water footprint audits” (Starbucks Coffee Company 2015, para. 6). The results are, therefore used to outline new water management practices. The company has been recycling and reusing wastewater. The approach has made it possible for Starbucks to achieve most of its business potentials.
The corporation is currently using different sources of renewable energy. Such sources are expected “to reduce the firm’s energy use by over 20 percent” (Starbucks Coffee Company 2015, para. 9). The firm has also partnered with the United States Green Building Council (U.S. GBC) in order to create sustainable stores in different parts of the globe. The “proposed stores will be cost-efficient, sustainable, and green in nature” (Vogel, 2010, p. 71). These practices show clearly that Starbucks is on the frontline towards conserving the natural environment. Every business function is monitored whenever promoting the best sustainability practices.
Starbucks’ cups contain recycled materials, thus conserving more trees and water. The process also “saves garbage from landfills” (Thompson 2015, p. 7). The strategy reduces the level of pollution in different countries. Starbucks’ decision to produce its cups from recycled materials has reshaped the nature of the coffee industry. Thompson (2015) explains how Starbucks Corporation “collaborates with different business leaders to innovate new practices that can support different forests” (p. 8). The important objective has been to improve the level of sustainability. The company manages wastes using the best practices. It has collaborated with different agencies in order to promote greener practices.
Starbucks can also improve its practices in order to remain profitable. It is notable that some challenges are observed in the coffee industry. The existing gaps should, therefore encourage Starbucks to support different growers of coffee. Studies show that the global coffee industry has remained unsustainable (Starbucks Coffee Company, 2015). However, the agreeable fact is that Starbucks has been using the best strategies in order to deal with the above three issues.
Recommendations
Starbucks Corporations uses a powerful Corporate Social Responsibility (CSR) in order to achieve its business objectives. Effective CSR programs have the potential to produce positive results. Starbucks CAFE program has increased the level of biodiversity. The firm obtains its coffee from CAFE-certified producers (Starbucks Coffee Company 2015). This position shows clearly that the firm has been on the frontline towards supporting the natural environment (York 2009). However, some initiatives can be embraced in order to make Starbucks more sustainable and profitable.
Business ethics is something that should be promoted by every stakeholder. The firm’s efforts to “achieve its goals can be promoted by implementing new internal regulations” (Bansal & Roth, 2000, p. 719). Vogel (2010) argues that “private regulations can result in substantive improvements in corporate behaviour” (p. 68). A multinational firm like Starbucks can use such policies and regulations to support its operations. The strategy will also encourage more employees to embrace the best practices (Barrett 2000). The employees will be ready “to conserve energy, embrace the power of conservation, recycle different materials, and use water effectively” (Bates 2002, p. 469). Such conservation measures will make it easier for the firm to reduce its business costs (Bates 2002). The company will also attract more stakeholders and eventually become profitable.
This corporation can also benefit significantly from the resource-based theory (Hart 1995). This theory encourages firms “to embrace the power of a natural-resource-based view” (Hart 1995, p. 986). According to the theory, companies can achieve their competitive advantages by establishing a positive relationship with the natural environment (Barrett 2000). This goal can be achieved by using powerful strategies that have the potential to promote different sustainable practices (Beckerman, 1992). For instance, Starbucks can use the model to deal with pollution and focus on the concept of sustainability. The firm can also manage its resources in a professional manner. This practice will address most of the problems affecting the company and eventually make it competitive.
Starbuck should also embrace the power of corporate environmentalism (Banerjee, 2001). Some environmentalists believe that Starbucks does not embrace the best environmental conservation practices. Such environmentalists have also explained how the firm focuses on specific environmental issues. That being the case, Starbucks Coffee can use the concept of corporate environmentalism to improve its practices. This concept will make it easier for the firm to focus on every aspect of the natural environment. The leaders at the corporation should mentor and empower their followers. The practice will ensure the firm is committed to the spirit of sustainability (Banerjee 2001). As well, the firm should embrace various environmental regulations and competitive advantages that can improve the level of sustainability. This theoretical approach will ensure the company “manages wastes, conserves water, and supports the natural environment” (Banerjee 2001, p. 503).
Self-regulation practices have been found to support the goals of many organisations. Such practices are usually dictated by the needs of different stakeholders and customers. Different companies “can select their levels of compliance in order to attract more customers” (Christmann and Taylor 2005, p. 2). Starbucks focuses on a similar model in order to remain competitive. The firm can also embrace new practices in order to address the changing needs of different stakeholders. For instance, it can undertake new practices that will eventually make the natural environment more sustainable.
It can also collaborate with different communities in an attempt to promote the best biodiversity issues (Porter & Linder 1995). It should also conduct new studies in order to address the major issues presented by different stakeholders. This approach will produce a powerful program that can address the above environmental issues. Every stakeholder should be involved in the process (Porter & Linder 1995). This approach will make it possible for Starbucks Corporation to become one of the most sustainable firms in the coffee industry.
The above models and theories should be used to develop new laws and policies. Effective legislation should govern the environmental practices embraced by different companies (York, 2009). Modern technologies can also be useful towards addressing the problem of climate change. Such technologies can be used “to manage wastes, produce renewable energies, and improve monitoring practices” (York 2009, p. 102). Evidence-based ideas will also be used to formulate new policies that govern the practices of different companies (Porter & Linder, 1995). Starbucks can, therefore embrace similar recommendations in order to deal with its major environmental issues. Such CSR strategies will play a significant role in making Starbucks the most celebrated, admirable, and profitable multinational company.
Reference List
Banerjee, S 2001, ‘Managerial Perceptions of Corporate Environmentalism: Interpretations from Industry and Strategic Implications for Organisations’, Journal of Management Studies, vol. 38, no. 4, pp. 489-513.
Bansal, P & Roth, K 2000, ‘Why companies go green: A model of ecological responsiveness’, Academy of Management Journal, vol. 43, no. 4, pp. 717-736.
Barrett, S 2000, ‘Introduction to the Special Issue-Trade and environment: local versus multilateral reforms’, Environment and Development Economics, vol. 1, no. 1, pp. 349-459.
Bates, D 2002, ‘Environmental refugees: Classifying human migrations caused by environmental change’, Population and Environment, vol. 23, no. 5, pp. 465-477.
Beckerman, W 1992, ‘Economic growth and the environment: Whose growth? Whose environment’, World Development, vol. 20, no. 4, pp. 481-496.
Christmann, P & Taylor, G 2005, ‘Firm self-regulation through international certifiable standards: Determinants of symbolic versus substantive implementation’, First Annual Conference on Institutional Mechanisms for Industry Self-Regulation, vol. 1, no. 1, pp. 1-47.
Hart, S 1995, ‘A Natural-Resource-Based View of the Firm’, The Academy of Management Review, vol. 20, no. 4, pp. 986-1014.
Porter, M & Linder, C 1995, ‘Green and Competitive: Ending the Stalemate’, Harvard Business Review, vol. 1, no. 1, pp. 120-134.
Schultz, H & Gordon, J 2012, Onward: How Starbucks Fought for its Life Without Losing its Soul, Rodale Books, New York.
Starbucks Coffee Company 2015. Web.
Thompson, A 2015, Starbucks Coffee’s Stakeholders: A CSR Analysis. Web.
Vogel, D 2010, ‘The Private Regulation of Global Corporate Conduct: Achievements and Limitations’, Business and Society, vol. 49, no. 1, pp. 68-87.
York, G 2009, ‘Pragmatic Sustainability: Translating Environmental Ethics into Competitive Advantage’, Journal of Business Ethics, vol. 85, no. 1, pp. 97-109.