1. The founder, Howard Schultz, realized the importance of following ethical guidelines and striving towards a good image. He followed the four levels of social responsibility mentioned in the book (Ferrell et al., 2015, 36). The first step was to think economically and maximize the stakeholder’s wealth. On the legal level, he followed the rules and regulations and then stuck to his ethical views and the mission statement of “people first and profits last”. As the company grew, the impact on the environment grew as well and they realized the importance of giving back to the community, as is the philanthropic level of the social responsibility. By creating a department that focuses on global responsibility, shareholders can keep track of the performance through annual reports …show more content…
Knowing a company strives to be environmentally friendly and cares about their employees, can encourage customers to continue to come back. This ensures that the business can continue to grow and jobs are secured. Social responsibility requires companies to look beyond profit maximization and deal with issues such as consumer protection, sustainability, corporate governance, and social issues (pg. 38). It entails building trust between the customer and the company by protecting their personal information and obeying the law. Howard Schultz seemed to follow the biblical principle of honesty, integrity, and fairness and it reflects on his company. Starbucks employees benefit from good health care programs, wellness programs, and assistance in earning a degree. These are great examples of social responsibility. If the employees are valued, it will reflect on their performance and customer service and, in turn, will produce satisfied customers as well. Being concerned with social responsibility can only benefit a company. It creates satisfied employees and customers. Although it might not always generate the largest profit possible, the end result is worth