Corporate social responsibility is taking on a bigger role within the coffee industry. Consumers are finding it more important that these coffee companies act ethically and limit the negative impact on the environment. Firms that follow the triple bottom line of economic, social, and environmental goals gain a competitive advantage throughout the industry. Most companies have implemented corporate procedures that heavily involve social responsibility into their missions, and have set out strategic goals that align with both their business plans and the environment, therefore the companies who have not are falling behind. Consumers want a company that promises to help our world as well as a company that takes action in regard to a healthier planet. These actions could include making donations to charities, reducing pollution or waste in their business processes, or offering benefits that will help those in need. Every company faces an issue of how to implement corporate social responsibility. The better the company is to the consumers and communities, the happier and more loyal customers will become.
The first and foremost principle of the bottom line firms attempt to maximize is profit. Some companies believe that attempting to implement corporate social responsibility is more costly than beneficial. Offering positive qualities to the customers and the environment will reel in more consumers leading to more profit. However, profit goals need to be attained to offer environmental and social promises. Economic success is the primary focus and goal, overall coffee has become much more popular in recent years and the industry is booming with caffeine advocates rising globally. Therefore, economic and profit goals are not the most difficult principle in the triple bottom line to focus on when creating a well-rounded coffee business.
The social aspect is enormous in terms of creating a versatile company. Socially the coffee industry is attempting to become more than a business that just sells coffee. Most companies are offering benefits for students such as paid tuition, Starbucks has taken a massive leap in the social facet by providing more work to youth employees. Employees have been given the ability to earn up to $1,000 in tuition reimbursement annually for their studies while working part-time or full-time for the company (Starbucks, 2019). Providing benefits such as this not only inclines more people to apply for your organization, but it also gives an excellent image for the social aspect of the company influencing more sales from customers.
Environmentally is where the coffee industry struggles. The industry has been known to create a variety of problems for the environment, starting at the point of creating coffee from scratch to the point of sale. These issues include deforestation, water pollution and contamination, and waste. This gives a poor public perception for the industry, but as time passes the industry has taken major steps into reducing the environmental harms. They now offer a different method to cultivate coffee that leaves a much less destructive footprint on our environment. Shade-grown coffee is the new fad for cultivating coffee, as coffee plants are interspersed beneath local forest trees mimicking the way coffee grows naturally in these regions (Moore, 2019). Following this method reduces the harms to bird habitats and other fauna in Latin America. This is a small step in the right direction, the waste issue is exponentially increasing as more plastic cups are being used. Although some companies have implemented paper straws to decrease the waste footprint, this again is a positive step, but the waste problem needs much more focus to solve a monstrous environmental issue.
All things considered, corporate social responsibility requires long term commitment from the companies. More organizations are starting to implement these practices creating a more complete business. It looks excellent for the company financially, as it produces less risk within the business creating more respect from financial markets. Large companies such as Starbucks and Dunkin Donuts are improving their coffee offered by purchasing higher-priced certified coffee. Coffee is the second most tradable commodity in the world pulling billions of dollars into the industry (Moore, 2019). Profit is definitely important in running an organization, but without a positive social aspect and an environmentally friendly business, the company will fail to become one of the best in the industry. To sum up, the coffee industry has made large leaps in becoming more responsible not only for providing a service, but also to provide coffee that serves a social purpose and follows environmental practices.
Wisconsin. (2019). A Simple Explanation of the Triple Bottom Line: University of Wisconsin. Retrieved from https://sustain.wisconsin.edu/sustainability/triple-bottom-line/.
References
Moore, V. (2019, September 1). Environmental Impact of the Coffee Production - Facts and Figures. Retrieved from https://www.sustainablebusinesstoolkit.com/environmental-impact-coffee-trade/.
Starbucks. (2019). Benefits and Perks. Retrieved from https://www.starbucks.ca/careers/working-at-starbucks/benefits-and-perks.
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