Successful companies continue to enthusiastically embrace Corporate Social Responsibility and Corporate Volunteering as core strategies to combat lean economic times.I always thought “self-employed” had a sort of glamorous ring to it. That was until I got bored working from the house and started referring to my local Starbucks as, “the office.” I come here almost every day. I research, email, blog. I even hold meetings here. And yes, I do think of the Starbucks employees as my co-workers. Sigh....
But it’s not a bad place to claim, you know? It’s no secret that Starbucks has done something right as far as business models go - I mean, most of us can’t drive more than a few miles before seeing one. Lately, though, things seem to have taken a turn for the worse. Are we coming to the end of the Starbucks era?
Here are the facts: Starbucks recently closed 600 stores in the US. They posted their first ever loss since opening. Same-store sales are not projected to increase until 2009. The economy is unstable. Consumers are spending less. Credit is costing more. Investors are tense. The media is loud.
Is there anything Starbucks can do to bounce back? Decrease costs? Sure. Increase advertising presence? Ok. Save the world? Definitely. Wait.... what?
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Yep, amid dire projections and bleak economic conditions Starbucks continues to demonstrate leadership and keen insight. Beginning this Thanksgiving (USA) through January 2nd, Starbucks will donate five cents of all holiday beverage sales to fund Africa Aids programs. The venture is in partnership with RED and was announced a few weeks back in New Orleans at a Starbucks leadership conference. Bono himself was on hand to announce the initiative. “This coffee will be beautiful because it’s going to chase away the ugliness of this tiny little virus, HIV,” Bono told the crowd of 10,000 store and district managers. He continued, “(RED) is coming to a corner near you thanks to Starbucks. I’m very excited to be able to say that. The business of Starbucks with roots in Africa and branches all over the world is an ideal fit for (RED). It’s pretty mind-blowing to think that millions of people can buy (RED) going about their daily lives and in doing so raise millions of dollars to fight AIDS in Africa. That’s not a bad hit from your caffeine.”
Besides the big-name stars lined up to lend their star power to the initiative like Mary Louise Parker and Annabella Sciorra, the most interesting piece of the campaign is the “impact calculator.” Customers are encouraged to go online and use the calculator to see how their purchases are saving lives. Talk about connecting customers/donors with outcomes.In addition to this amazing initiative, Starbucks plans to contribute more than 1 million hours of volunteer work per year to the communities where they do business. They have also committed to increase their ethically sourced coffee purchases (including FAIR Trade) from 65 percent to 100 percent. Each store is also working towards increasing recycling and “significantly” reducing water use. (Read more about Starbucks Corporate Social Responsibility objectives).
Surprisingly, this all makes a lot of sense. Edelman's goodpurpose.com study of consumer attitudes surveyed 6,000 people in ten countries. They found that 82% of women and 78% of men feel it is still important for companies to support good causes during a recession. Also, 68% of respondents stated that they would remain loyal to a brand that supported a good cause even during a recession.
Corporate Social Responsibility is no longer a charitable nicety. It is a winning strategy to strengthen the bottom line.
So watch for the commercials to start this Friday. Oh, and if you’re reading this in your own local Starbucks (ahem....the office), take a look at the front window: (11/28) That’s what I’m talking about.
3 comments:
Unfortunately, the rules of economics show that outsourcing your charitable giving to a third party instead of writing the check yourselves is one of the most inefficient ways possible to make change for the better.
Chris,
I agree. There's no getting around the bottom line benefits. So, what if this didn't help the bottom line? Still do it?
Also, is it a guarantee that Corporate Social Responsibility will help strengthen the bottom line? If not, then what do companies do?
I'd be interested in reading your thoughts on these questions.
Thanks for the comment and the questions Al.
CSR is only viable if it benefits both the community and the business. And the corporations operate to make a profit or they die. So, if CSR doesn't achieve that, or contribute meaningfully towards that goal, then the business should not engage in CSR.
Which brings us to the second question. CSR is not, of course, a guarantee of improvement to the bottom line. There are many ways to ensure that CSR does significantly impact the bottom line in positive ways, but many businesses struggle to know how to leverage CSR as a strategy towards that end. They know it is a good thing, but the metrics and systems to really make it work well are not in place.
For example, when it comes to Corporate Volunteering, companies know it looks good to customers, new employees (especially gen Y) and the communities in which they operate. They also believe it helps retain talent, improves morale and creates leadership. But after talking to numerous companies, I know that many companies, even the big ones, don't effectively set goals, execute and measure for these objectives.
So, should they have Corporate Volunteering programs? Yes. There is enough evidence out there to support that choice. But they also need to do the hard work of executing well and measuring for success. If not, they could be wasting all of the benefits they receive.
Good questions by the way. Thanks for inviting my thoughts....
Keep posting your comments, I appreciate the interaction.
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