What does Stakeholder Analysis entail?

It attempts to understand perceptions, expectations, and

priorities of all of those who have an interest (either direct or
indirect) in an institution.
Stakeholders views should result from interactions with
Stakeholders, not as an analysis of what an institutions
employees believe stakeholders want or think.
Who are our Stakeholders (who are they?)

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Employees (baristas, partners)

Customers
Suppliers (supply firms, coffee farmers)
Environment
Investors
6Governments
Employees. Starbucks prioritizes employees in its
corporate social responsibility efforts. As
stakeholders, employees typically demand for better
working conditions, job security and higher wages.
Starbucks organizational culture emphasizes the
employees-first attitude. Employees are also given
wages above the legally mandated minimum wage.
In 2014, Starbucks boosted its CSR performance for
this stakeholder group by giving scholarships to
employees based on a partnership with Arizona State
University. In this partnership, Starbucks pays for
56% of tuition fees for employees junior and senior
years at the University. However, the companys
performance in addressing employees as
stakeholders has room for improvement. In some
countries like New Zealand, Starbucks gives very low
wages to juvenile workers (youth rates). These youth
rates are often criticized. The firm can improve its
corporate social responsibility performance by

addressing such issue in this stakeholder group.

Customers. Starbucks considers customers as
among its top stakeholders. The interests of this
stakeholder group are high quality service and
products, such as coffee and related beverages. As
the worlds most popular specialty coffeehouse
chain, Starbucks effectively addresses this interest.
The company also includes customers as major
stakeholders by extending the Starbucks culture to
customers at its cafs. For example, warm and
friendly relations are emphasized within the company
and in how baristas interact with customers. Thus,
Starbucks Coffees corporate social responsibility
efforts fulfill the interests of this stakeholder group.
Suppliers. Starbucks suppliers are composed of
wholesale supply firms and coffee farmers. The main
interest of this stakeholder group is compensation
and a growing demand from Starbucks. Farmers aim
to increase coffee yield to generate more revenues.
Starbucks addresses the interests of these
stakeholders through a number of corporate social
responsibility programs. For example, the firms
supplier diversity program ensures that more
suppliers from around the world are included in the
supply chain. In addition, Starbucks Coffee and
Farmer Equity (CAFE) program requires transparency
among wholesale suppliers to ensure that coffee
farmers are properly paid. Thus, Starbucks corporate
social responsibility efforts comprehensively address
the interests of this stakeholder group.
Environment. Starbucks has corporate social
responsibility programs for environmentally sound
business. The companys CAFE program has led to
higher biodiversity and shade quality in certified

coffee farms. Currently, 90% of Starbucks supply is

from CAFE-certified farms. This significant figure
shows that Starbucks is effective in addressing its
corporate social responsibility to this stakeholder
group, although there is room for improvement.
Investors. As in any business, Starbucks must
address investors as stakeholders. Investors have
interests in high financial performance of the
company. Starbucks global expansion and continued
dominance in the coffeehouse industry indicates high
financial performance. Even though it suffered
considerable decline in 2007, Starbucks has
recovered and is on a growth path once more. Thus,
the firm satisfies this stakeholder groups interests.
Governments. Starbucks must address the interests
of numerous governments as stakeholders,
considering the companys global presence. In
general, Starbucks complies with rules and
regulations. However, the company has been
criticized for tax evasion in Europe. Starbucks uses a
network of locations in different European countries
to exploit tax advantages. At present, much of this
system remains, with Starbucks paying unexpectedly
low taxes in the U.K. Thus, the companys
comprehensive corporate social responsibility efforts
can be improved to address this stakeholder group.