Essay: Corporate social responsibility of Costa coffee

11/12/15
This report will be a description of the corporate social responsibility of Costa coffee. Not only will I be explaining thoroughly the positives and negatives of CSR in a business atmosphere I will also delve into how Costa have used it to their advantage in their own business and how it has helped to boost sales and keep the consumers happy.
Corporate Social Responsibility of Costa
CSR which stands for corporate social responsibility can be defined as a form of self regulation used by companies as their business model. This meaning the CSR policy works as a set regulation system or a way companies can monitor their own set ethics rather than being regulated by external bodies. There are some key words that need to be taken into account when talking about CSR which are the things to be assessed if your policy is to be successful, these are customers, suppliers, employees, community and environment. There are several factors which explain the growing interest in corporate social responsibility. The first factor is the new concerns and expectations of citizens, consumers, public authorities globalisation and industrial change. The second factor is the increasing influence of social criteria on the investment decisions of individuals and institutions, as investors or consumers. The third factor is the growing concern about environmental degradation. Corporate social responsibility is no longer defined by how much money a company contributes to charity, but by its overall involvement in activities that improve the quality of people’s lives. Corporate Responsibility has come up as a significant subject matter in the international business community and is progressively becoming a mainstream activity. There is mounting recognition of the momentous effect the activities of the private sector have on the workforce, clientele, the society, the environment, competitors, business associates, investors, shareholders, governments and others groups. To have a successful corporate social responsibility policy you have to strive for change, with well thought out objectives and directives the foundation is set for success. The success of a CSR policy doesn’t just depend on following the rules implemented but going the extra mile trying to make your policies feel personal to all parties involved. A company’s CSR can be seen as a duty or a sense of duty to the community whether it be ecological, economical or social. CSR can be seen as a way of expanding a company’s audience as well as pleasing the market that is already there. There are many positives to the use of CSR, including bringing new business, enhancing relationships with current customers and suppliers as well as possibly retaining a happy work force. Companies may be able to attract new customers with it being common knowledge that certain CSR techniques are in use, for example a company like McDonalds decided to take a geographical as well as a environmental approach in their CSR by understanding that at the time society was worried about global warming and doing what’s best for the environment. A number of changes were implemented to coincide with this n their website they stated “We use low energy LED light bulbs, energy saving equipment and waterless urinals, and recycle used cooking oil into biodiesel to fuel more than half of our delivery trucks. We also recycle the cardboard boxes used in more than 89% of our restaurants, and more than 85% of our packaging is made from renewable resources. We are the Community Partner Community Partner of the four nations’ Football Associations. This means we work with local football clubs, schools, youth teams and junior leagues around the UK. Our programme gives people the chance to volunteer and qualify as a football coach so they can give free, high-quality coaching to young people across the country.” These changes meaning that McDonalds as a company have not only embraced the local community by becoming a community partner but are also becoming eco conscious by converting to using recyclable packaging. Another company with a good reputation for their corporate social responsibility is boots. The UK based company have been known to regularly revise such policies and on their website state, “Throughout our 160 year history, you will find many examples of responsible business practice and the active role that Boots UK has played in helping to build healthy and more sustainable communities. Why? Because it really does matter and it makes a big difference.”  As a company they have four main focal points they are aiming to tackle to make a change which are The pressure put on natural resources, youth unemployment, town center regeneration to help bring the community together and climate change. Their website further goes on to explain how they are the aiming to be ‘The UK’s most socially responsible retailer in the health and beauty market’ and the measures put in place to make that possible. Morals of multi-companies includes activities that are ethically upright. It is normal information that the majority of the exercises organizations are occupied with may not meet the required moral guidelines. This is on account of, numerous organizations tend to concentrate on benefit making instead of whatever other thing. Business morals is an up and coming issue essentially because of the sheer number of persons included. The activities of a couple of persons may appear to be protected on a little scale however on a huge scale, such activities could be wrecking. An illustration of such circumstances that may be viewed as deceptive is the terminating or workers to keep the overall revenue of an organization high. In the wake of the money related breakdown, numerous individuals lost their employments. The greater part of the persons who lost their occupations included common hirelings who are white collar class persons. Keeping in mind the end goal to guarantee that the partnerships spare some cash, a large portion of these labourers were laid off. Such an activity is viewed as unscrupulous. This is on account of; despite the fact that the organizations are some way or another at a misfortune, the terminating of every one of those workers implies that such a large number of individuals are going to endure. The multi-enterprises could live with the misfortune acquired yet would rather keep away from that by terminating some of their specialists. Business ethics is the behaviour that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer. Ethics can be seen as the unwritten rules, whereby you won necessarily be disciplined for not following the guidelines but will be frowned upon by most and will feel a level of guilt. Companies not following ethical protocols and in turn breaking laws can be punished with payment of a fine. Examples of companies being fined for committing such offences include Total the oil and gas company who attempted to have a pipeline built in Myanmar through the use of slave labour, Ryanair, the budget airline who have been heard to not allow staff members to charge their mobile phones using the company electricity or to use the company pens.  Philanthropy can be defined as the act of giving time and or money to help create a positive living atmosphere and make life better for others. Can also be defined as a gift being given for humanitarian purposes. Examples of philanthropy include a number of celebrities patronising charities whether it be adopting an animal in another country or sponsoring children from third world countries. NGO, which stands for nongovernmental organisation  A non-governmental organization (NGO) is any non-profit, voluntary citizens’ group which is organized on a local, national or international level. Task-oriented and driven by people with a common interest, NGOs perform a variety of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. Some are organized around specific issues, such as human rights, environment or health. They provide analysis and expertise, serve as early warning mechanisms and help monitor and implement international agreements. Their relationship with offices and agencies of the United Nations system differs depending on their goals, their venue and the manda
te of a particular institution.
Carroll’s CSR Pyramid. According to Carroll (1983:608), “corporate social responsibility involves the conduct of a business so that it is economically profitable, law abiding, ethical and socially supportive. To be socially responsible then means that profitability and obedience to the law are foremost conditions when discussing the firm’s ethics and the extent to which it supports the society in which it exists with contributions of money, time and talent”. And the different layers in the pyramid help managers see the different types of obligations that society expects of businesses.
Costa coffee is a British based multinational coffeehouse originally founded in London but who currently have their headquarters in Dunstable. Founded by Sergio and Bruno Costa in Lambeth, South London in 1971 the company has grown rapidly and become the second largest coffeehouse chain in the world behind Starbucks and the Largest in the United Kingdom. Costa was later bought out by Whitbread in 1995 and has since grown to an astounding 2,861 stores across 30 countries. Costa is the UK’s favourite coffee shop, having been awarded “Best Branded Coffee Shop Chain in the UK and Ireland” by Allegra Strategies for three years running (2010, 2011 & November 2012). Costa have quite a good reputation for their CSR policy, being green and altogether being ethical with their products and ways of acquiring raw materials.  In regards to the environment Costa have taken a head on approach to environmental issues. Firstly with the way their cups are produced from sustainable wood as they claim on their website stating, “The secret to a delicious, piping hot cup of take-away coffee is a great cup. And at Costa we make sure ours are eco-friendly too – our paper cups come from card made of sustainable wood pulp from forests in northern Europe. The thermal cover is made of recycled content and the lid is 100% recyclable. Whilst our cups are recyclable in locations across the UK, we are working with our manufacturer to create a cup that can be recycled anywhere in the world. This all adds up to one of the world’s most environmentally friendly paper cups, and the perfect drink to take with you”.  Also on their website they claim “We know our customers want to support British farmers and trust their quality and welfare standards; thus, all Costa’s poultry, pork and beef products are from British farms. This is clearly labeled on all Costa packaging. Here at Costa, we only use British milk. Milk is a vital product for Costa and all our UK milk used is British and Farm Assured. Although Costa’s milk volumes are less than 0.5% of the UK market, we take our responsibilities towards the dairy industry very seriously and always seek to ensure that a fair price is paid to farmers. We source our milk through an independent processor and we have taken milk from the same group of farmers for almost five years. This means that we are able to speak directly with the farmers as well as the processor and we all benefit from having long term relationships. As a result of our ongoing discussions with our partners, we have moved to a different way of calculating prices payable to our farmers. Collectively, we have agreed a new payment system, which measures both a basket of market prices and the cost of production per litre. Our partners are very supportive of the move and believe it to be a fair way of working. Having a sustainable milk supply allows us utmost traceability in the milk we supply to our stores and we are committed to supporting the British dairy industry and safeguarding future British milk supplies.”
Costa have created their own charity known as “The Costa Foundation” which is an independent charity which aims to reduce the levels of poverty in the coffee growing communities. The Costa foundation have opened two schools in Ethiopia and has its own website “www.thecostafoundation.com” due to the success it has had so far. The foundation has supported schools all in countries across the world including Colombia, Costa Rica, Ethiopia, Guatemala, Honduras, Peru, Vietnam and Uganda.
In conclusion, taking everything into account, this essay has demonstrated that corporate social obligation is an imperative component for nay business companies. It has been demonstrated that there are a wide range of territories in which an organization may center its corporate social obligation. The main territory of center in corporate social obligation is concerning nature. Different regions that ought to be considered in the advancement of corporate social obligation projects are training, wellbeing, sustenance and livelihood. “Social obligation speculation consolidates speculators’ monetary objectives with their commitment and devotion to considers that guarantee the prosperity of society, for example, ecological amicable practices, financial development and equity in the public arena”. These components are parts of corporate social obligation, as well as a show of the moral benchmarks of an organization. It is deceptive for a few people to claim so much and win such a great amount, to the detriment of other enduring individuals from society. It is additionally exploitative for organizations to participate in ecologically debasing practices that outcome in diseases and death toll. It can be reasoned that Social corporate obligation and the support of high moral gauges is impossible yet a commitment for all business. Corporate Social Responsibility is a great guideline to have in regards to keeping on top of social factors of you business and a great way to not only gain a larger target market but keep the audience you already have happy as well as working side by side with regulatory bodies not working against them.
Reference List
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