1.

OBJECTIVE OF THE PROJECT

To study the corporate social responsibility

To study various companies corporate social responsibility

SCOPE OF STUDY
The scope of the study is to extend the knowledge of corporate social responsibility

2.RESEARCH METHODOLOGY
The information is collected from various websites of the companies.

3.INTRODUCTION
Your business doesn't exist in isolation, simply as a way of making money.
Your employees depend on your business. Customers, suppliers and the local
community are all affected by you and what you do. Your products, and the way you
make them, have an impact on the environment.
Corporate social responsibility (CSR) takes all this into account and can help
you create and maintain effective relationships with your stakeholders. It isn't about
being "right on", or mounting an expensive publicity exercise. It means taking a
responsible attitude, going beyond the minimum legal requirements and following
straightforward principles that apply whatever the size of your business. This guide
explains how you can exploit the benefits that CSR can bring to your bottom line.
Definition
CSR:
Corporate, Social, and Responsibility. In broad terms, CSR relates to
responsibilities corporations have towards society within which they are based and
operate, not denying the fact that the purview of CSR goes much beyond this. CSR is
comprehended differently by different people.
Philip Kotler and Nancy Lee (2005):
A commitment to improve community well being through discretionary
business practices and contributions of corporate resources
MallenBaker:
A way companies manage the business processes to produce an overall
positive impact on society.

HISTORY
The concept of CSR in India is not new, the term may be. The process though
acclaimed recently, has been followed since ancient times albeit informally.
Philosophers like Kautilya from India and pre-Christian era philosophers in the West
preached and promoted ethical principles while doing business. The concept of
helping the poor and disadvantaged was cited in much of the ancient literature. The
idea was also supported by several religions where it has been intertwined with
religious laws. Zakaat, followed by Muslims, is donation from ones earnings which
is specifically given to the poor and disadvantaged. Similarly Hindus follow the
principle of Dhramada and Sikhs the Daashaant. In the global context, the recent
history goes back to the seventeenth century when in 1790s, England witnessed the
first large scale consumer boycott over the issue of slave harvested sugar which finally
forced importer to have free-labor sourcing.In India, in the pre independence era, the
businesses which pioneered industrialisation along with fighting for independence also
followed the idea. They put the idea into action by setting upcharitable foundations,
educational and healthcare institutions, and trusts for community development. The
donations either monetary or otherwise were sporadic activities of charity or
philanthropy that were taken out of personal savings which neither belonged to the
shareholders nor did it constitute an integral part of business. The term CSR itself
came in to common use in the early 1970s although it was seldom abbreviated. By late
1990s, the concept was fully recognised; people and institutions across all sections of
society started supporting it. This can be corroborated by the fact that while in 1977
less than half of the Fortune 500 firms even mentioned CSR in their annual reports, by
the end of 1990, approximately 90 percent Fortune 500 firms embraced CSR as an
essential element in their organisational goals, and actively promoted their CSR
activities in annual reports (Boli and Hartsuiker,2001).

CSR behaviour can benefit the firm in several ways

It aids the attraction and retention of staff

It attracts green and ethical investment

It attracts ethically conscious customers

It can lead to a reduction in costs through re-cycling

It differentiates the firm from its competitor and can be a source of competitive
advantage

It can lead to increased profitability in the long run.

Corporate Social Responsibility (CSR) is a concept whereby organizations
consider the interests of society by taking responsibility for the impact of their
activities on customers, employees, shareholders, communities and the environment in
all aspects of their operations. This obligation is seen to extend beyond the statutory
obligation to comply with legislation and sees organizations voluntarily taking further
steps to improve the quality of life for employees and their families as well as for the
local community and society at large.
With businesses focusing on generating profits, sustainability was not a
popular concern among companies up until recently. Now, in an era of globalization,
multinational corporations and local businesses are no longer able to conduct
destructive and unethical practices, such as polluting the environment, without
attracting negative feedback from the general public. With increased media attention,
pressure from non-governmental organizations, and rapid global information sharing,
there is a surging demand from civil society, consumers, governments, and others for
corporations to conduct sustainable business practices. In addition, in order to attract
and retain employees and customers, companies are beginning to realize the
importance of being ethical while running their daily operations. The corporate
response has often meant an adoption of 'a new consciousness', and this has been
known as Corporate Social Responsibility since the 1970s. As stated by the
department of Trade and Industry in the United Kingdom, CSR represents "the
integrity with which a company governs itself, fulfills its mission, lives by its values,
4

engages with its stakeholders, measures its impact and reports on its activities".
Although most people appreciate the recent advancement of CSR, some argue that
corporations are still not doing enough or are only acting in self interest. These people
say that multinational corporations are acting ethically in areas that are highly
regulated, such as North America, but at the same time, they are acting in an opposite
manner in other parts of the world (such as using cheap or child labour). In addition,
while corporations must have good CSR policies in order to maintain their reputation,
they are also expected to maximize profits for stakeholders such as shareholders,
employees, and customers. Therefore, people argue that businesses do not put in a
sufficient amount of resources to achieve what they have promised in their CSR
policies.
In any case, companies are now expected to perform well in non-financial areas such
as human rights, business ethics, environmental policies, corporate contributions,
community development, corporate governance, and workplace issues. Some
examples of CSR are safe working conditions for employees, environmental
stewardship, and contributions to community groups and charities. The practice of
CSR is subject to much debate and criticism. Proponents argue that there is a strong
business case for CSR, in that corporations benefit in multiple ways by operating with
a perspective broader and longer than their own immediate, short-term profits. Critics
argue that CSR distracts from the fundamental economic role of businesses; others
argue that it is nothing more than superficial window-dressing; still others argue that it
is an attempt to pre-empt the role of governments as a watchdog over powerful
multinational corporations.
What is CSR or Corporate Social Responsibility?
CSR was a buzzword created in the early 1970's although it was seldom abbreviated
back then. Corporate social responsibility (CSR, also called corporate citizenship,
corporate responsibility, responsible business and sometimes corporate social
opportunity) is a concept whereby a business organisation considers the wider social
and environmental effects that it has as a trading entity outside of its direct trading
environment. For example, a mining company destroys the natural landscape when
mining so part of its social responsibility to the community where they are mining
could be to invest in reforestation projects.
5

Advantages of corporate social responsibility

Japanese companies often have 100 year business plans. If you are planning to be
around in business for the long-run then making sure ALL your stakeholders are
looked after is wise. If you mess the environment up people notice. If you mess people
around people remember. If you mistreat people they never forget. And yet when you
care for the environment you are awarded. When you care for people you are awarded.
You are rarely forgotten when you genuinely care. A business enterprise is no different
to a human - people will have feelings about it and that impacts business positively or
negatively.
Many companies say they care and yet they may not take the actions of caring. Going
beyond what is expected becomes exemplar and noted. An enterprise' actions are notes
the most by its employees and staff. The business team that runs an organization
knows what is going on. They know all the high and low points of a company. These
exact same people interact each and every day with the businesses customers. How
they feel about the company they work for impacts the bottom line of a company
directly. A sales person who loves his work and the company will sell more. The
receptionist who cares for her company will care for its customers making them feel
better and of course they are then more likely to return.
Many businesses make a loss the very first time a customer shops with them. This is
an amazing little known fact outside of the business world. It may cost thousands of
dollars for some companies to gain new customers because of long lead times or
expensive advertising campaigns. If they only sell to a customer once then they don't
ever recover their investment in acquiring that new customer or make a profit.
Customers these days are spoilt for choice. Many customers choose a business on how
they feel about the company of the people in the company. Most purchasing decisions
are subjective. Adding subjective and hard to measure components to a business such
as solid CSR programmes add to the perceived value added benefit a customer
received when they shop with the company.
2008's Good purpose global study of consumer thinking showed that almost seven
out of 10 (68%) consumers say they would remain loyal to a brand during an
economic downturn if it supports a good cause. Surprising. And logic-defying!
6

 That same very recent study highlighted some other interesting things too. Like this:
half (52%) of global consumers are more likely to tell others about a brand that
supports a good cause over one that does not, with 54% saying they would help a
brand promote a product if there was a good cause behind it. And going even further
Around the world, consumers have voiced a strong desire for business marketers to
link their brands to social action. Forty-two percent say that if two products are
identical in price and quality then the one that has the commitment to a social purpose
trumps key factors like design, innovation and brand loyalty when selecting one brand
over the other. Stunning isn't it?
The citizen brand emerges. And this comment from this key report just says it all: It
means that putting meaning into marketing is more important than ever. One of the
reporters puts it this way: "These findings present brands with an opportunity to
engage in 'mutual social responsibility'-brands and consumers working together to
effect positive social change for mutual benefit -and to realize a 'return on
involvement,' a new metric that looks at participation and involvement as true builders
of brand loyalty. When a brand acts as a 'citizen brand,' contributing to community and
society beyond its functional benefits, 'doing good' can translate to 'doing well' and the
brand can forge a stronger emotional bond with its consumers.
THE FUTURE OF CORPORATE SOCIAL RESPONSIBILITY
Companies today are increasingly sensitive about their social role. The
companies not only concentrate on how they will position their product or how they
will sell it but also they have a social strategy because they have started feeling that
brands are built not only around good quality of the product; but also around emotions
and values that people ascribe to those products
In addition to be more precisely defined, the CSR movement is evolving
following some trends that I intend to describe briefly:
First, there are no more a few companies, which have consecrated themselves to this
new doctrine, but the majority of large enterprises have introduced it in their agenda.
Philip Kotler and Nancy Lee in their book Corporate Social Responsibility indicate
that charitable giving has risen from $9.6 b in 1999 to $12, 19 b. In spite of some
opponents like the survey in The Economist last year which maintains that CSR is

eroding the basis of the free enterprise system, every time more this new doctrine is
catching the attention of business people.
Second, since the term triple bottom line (people, planet and profit) was carried in
1994, an accelerating progression from early concerns about safety, health and
environment to a growing range of social concerns have been seen, among them
human rights and diversity. Recently other concerns like fair trade pricing and fair
wages as well as socially increasingly have increasingly made headlines. There is an
increasing conviction that there is not a conflict but a positive correlation between
CSR and profitability and that profit can go hand-in-hand with social and
environmental responsibility.
Third, the social responsible enterprises every time more publish their activities for
their shareholders and the public in general, either in their general annual report or in
CSR specific reports. According to a survey of KPMG in 2002, 45% of co portions
issued environmental, social or sustainability reports compared with 35% in their 1999
survey. Greater transparency is a means to improve accountability and trust.
Fourth, CSR has ceased to be a form of philanthropy so that it is no more the case to
sign a check at the end of each financial year, after a positive result - and CSR enters
into the normal activities of the corporation before declaring its profits and becoming
a all year around responsibility. It is a shift to making long-term commitments to
especial social issues providing more than cash contributions, sourcing funds from
business units as well as philanthropic budgets, forming strategic alliances, etc. CSR is
becoming as much as anything a way of thinking about and doing business. Corporate
investment decisions driven by quarterly profit earnings are short-sighted and sacrifice
long-term wealth creation.
Fifth, it is no longer the owner or the CEO the one which decides to write the check,
but it is the collective commitment of all the corporation from the CEO until the last
employee; it is precisely the employees satisfaction one of the objectives of CSR.
There is an increasing awareness of CSR among the workforce.
Sixth, before a social activity generally dissociated from the cooperation, the trend is
that the activity be totally related with the core business of the cooperation, its
products or services (for instance when an electronic corporation decides to train the
students of a school on the use of computers).
Seventh, the establishment of a social norm to do good. As William Clay Ford Ford
Motor Company CEO there is a difference between a good company and a great
company. A good company offers excellent products ands services. A great company
8

also offers excellent products and services but also thrives to make the world a better
place. From the philosophy of doing good to look good, to the conviction of doing
well and doing good.
Eighth, it is clear today that CSRs success requires the decisive cooperation of the
government and business in a strong symbiosis. This is particularly clear in
developing countries. As the World Summit on Sustainable Development
(Johannesburg 2000) recognized, partnership between business, government and civil
society is the key to the progress we need on sustainable development.
Ninth, every time sectoral projects on CSR are materializing like in the mining
industry, the energy industry or the apparel industry, for example, the Multi-fibre
Arrangement Forum, or like the Equator Principles where a group of large financial
institution decided to impose conditions particularly environmental conditions to their
clients projects.
Ten. Up to now CSR has been something voluntary (voluntary to adopt and voluntary
to comply with). Today there is a big debate where CSR should remain voluntary or
should become compulsory. Many believe for example that the limitation off the CO2
in the atmosphere emissions will not stop voluntary unless it becomes a legal duty.
All of these trends mean that businesses need to manage their environmental and
social impacts much better: corporate responsibility has to cease being a bolt-on to
business operations; and instead be built-in to business purpose and strategy. This
involves a clear link to business values and culture; strong leadership form the top;
and the active engagement of stakeholders.
Some of the drivers pushing business towards CSR include:
1. The shrinking role of government
In the past, governments have relied on legislation and regulation to deliver social and
environmental objectives in the business sector. Shrinking government resources,
coupled with a distrust of regulations, has led to the exploration of voluntary and nonregulatory initiatives instead.
2.

Demands for greater disclosure

There is a growing demand for corporate disclosure from stakeholders,

including customers, suppliers, employees, communities, investors, and activist
organizations.

3. Increased customer interest

There is evidence that the ethical conduct of companies exerts a growing
influence on the purchasing decisions of customers. In a recent survey by Environics
Internationals, more than one in five consumers reported having either rewarded or
punished companies based on their perceived social performance.
4. Growing investor pressure
Investors are changing the way they assess companies' performance, and are
making decisions based on criteria that include ethical concerns. The Social
Investment Forum reports that in the US in 1999, there was more than $2 trillion
worth of assets invested in portfolios that used screens linked to the environment and
social responsibility. A separate survey by Envirnics Internationals revealed that more
than a quarter of share-owning Americans took into account ethical considerations
when buying and selling stocks. (More on socially responsible investment can be
found in the 'Banking and investment' section of the site.)
5. Competitive labour markets
Employees are increasingly looking beyond pay checks and benefits, and
seeking out employers whose philosophies and operating practices match their own
principles. In order to hire and retain skilled employees, companies are being forced to
improve working conditions.
6. Supplier relations
As stakeholders are becoming increasingly interested in business affairs, many
companies are taking steps to ensure that their partners conduct themselves in a
socially responsible manner. Some are introducing codes of conduct for their
10

suppliers, to ensure that other companies' policies or practices do not tarnish their
reputation.
Some of the positive outcomes that can arise when businesses adopt a policy of
social responsibility include:
Company benefits:

Improved financial performance;

Lower operating costs;

Enhanced brand image and reputation;

Increased sales and customer loyalty;

Greater productivity and quality;

More ability to attract and retain employees;

Reduced regulatory oversight;

Access to capital;

Workforce diversity;

Product safety and decreased liability.

2. Benefits to the community and the general public:

Charitable contributions;

Employee volunteer programmes;

Corporate involvement in community education, employment and homelessness

programmes;

Product safety and quality.

11

3. Environmental benefits:

Greater material recyclability;

Better product durability and functionality;

Greater use of renewable resources;

Integration of environmental management tools into business plans, including lifecycle assessment and costing, environmental management standards, and ecolabelling.
Nevertheless, many companies continue to overlook CSR in the supply chain for example by importing and retailing timber that has been illegally harvested. While
governments can impose embargos and penalties on offending companies, the
organizations themselves can make a commitment to sustainability by being more
discerning in their choice of suppliers.
Under Indian Companies Act, 2013
135. Corporate Social Responsibility
(1) Every company having net worth of rupees five hundred crore or more, or
turnover of rupees one thousand crore or more or a net profit of rupees five crore or
more during any financial year shall constitute a Corporate Social Responsibility
Committee of the Board consisting of three or more directors, out of which at least one
director shall be an independent director.
(2) The Board's report under sub-section (3) of section 134 shall disclose the
composition of the Corporate Social Responsibility Committee.
(3) The Corporate Social Responsibility Committee shall,
(a) formulate and recommend to the Board, a Corporate Social Responsibility
Policy which shall indicate the activities to be undertaken by the company as
specified in Schedule VII;
(b) recommend the amount of expenditure to be incurred on the activities referred to in
clause (a); and
(c) monitor the Corporate Social Responsibility Policy of the company from time to
time.
(4) The Board of every company referred to in sub-section (1) shall,
12

(a) after taking into account the recommendations made by the Corporate Social
Responsibility Committee, approve the Corporate Social Responsibility Policy for the
company and disclose contents of such Policy in its report and also place it on the
company's website, if any, in such manner as may be prescribed; and
(b) ensure that the activities as are included in Corporate Social Responsibility
Policy of the company are undertaken by the company.
(5) The Board of every company referred to in sub-section (1), shall ensure that the
company spends, in every financial year, at least two per cent. of the average net
profits of the company made during the three immediately preceding financial years,
in pursuance of its Corporate Social Responsibility Policy:
Provided that the company shall give preference to the local area and areas around it
where it operates, for spending the amount earmarked for Corporate Social
Responsibility activities:
Provided further that if the company fails to spend such amount, the Board shall, in its
report made under clause (o) of sub-section (3) of section 134, specify the reasons for
not spending the amount.
Explanation.For the purposes of this section average net profit shall be calculated
in accordance with the provisions of section 198

4.INTRODUCTION

P&G is one of the largest and amongst the fastest growing consumer goods companies
in India. Established in 1964, P&G India now serves over 650 million consumers
across India. Its presence pans across the Beauty & Grooming segment, the Household
Care segment as well as the Health & Well Being segment, with trusted brands that are
household names across India. These include Vicks, Ariel, Tide, Olay, Gillette,
Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders, Wella and Duracell. Superior
product propositions and technological innovations have enabled P&G to achieve
market leadership in a majority of categories it is present in. P&G India is committed
to sustainable growth in India, and is currently invested in the country via its five
13

plants and over nine contract manufacturing sites, as well as through the 26,000 jobs it
creates directly and indirectly. Our sustainability efforts focus on Environmental
Protection as well as Social Responsibility to help develop the communities we
operate in.
P&G operates under three entities in India - two listed entities Procter & Gamble
Hygiene and Health Care Limited and Gillette India Limited, as well as one 100%
subsidiary of the parent company in the U.S. called Procter & Gamble Home
Products.
P&G touches and improves the lives of about 4.4 billion people around the world with
its portfolio of trusted, quality brands. The Company's leadership brands include
Pampers, Tide, Ariel, Pantene, Mach3, Bounty, Dawn, Fairy, Gain,
Pringles, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Duracell,
Olay, Head & Shoulders, Wella, Gillette, Braun, Fusion, Ace, Febreze,
and AmbiPur. With operations in about 80 countries, P&G brands are available in
more than 180 countries worldwide.

Established Year
Head Quarter
Sales Number
Product Available Area

1837
Ohio, Cincinnati, USA
About $ 82,559 million ( 2011 fiscal year) CONFIRM
Over 80 countries
Skin care, Hair Care, House Care, Health Care, Oral Care,

Category
Brands
Employee Numbers
Board chairman
CEO
Global
Technical

foodetc
About 300 brands
About 127,00 employees
A.G. Lafley
A.G. Lafley

Centers
Billion

28

Brands

US

dollar
24

14

5.SOCIAL RESPONSIBILITY
Live, Learn and Thrive Overview
Since its inception, P&G has improved life for more than 300 million children around
the world through our Live, Learn and Thrive cause. Every second of every day, two
children benefit from P&G Live, Learn and Thrive initiatives.
By focusing our social investments on improving life for disadvantaged children and
youth, P&G and our brands are able to focus our attention on an area that is critically
important, now and for generations to come.
There is tremendous need in this area, as millions of children around the world live in
heartbreaking conditions. By focusing our expertise, technologies, and resources to
address these issues, we can help children get off to a healthy start, receive access to
education, and build skills for life.
There are more than 100 Live, Learn and Thrive programs taking place in over 65
countries every day. From providing life-saving vaccinations and safe water in Africa,
to safe homes across Europe, to educational opportunities in Asia, to essential nutrition
in North America, to early childhood development in Latin AmericaP&G aims to
improve life for children and youth around the world.

15

We believe companies can be a force for good in the world, and this is who we are as a
global corporate citizen. Live, Learn and Thrive is woven into our philanthropy, cause
marketing, product donations, disaster relief, and employee engagement. The cause is
a reflection of our Purpose, and it embodies our goal of being closer to consumers
from all walks of life and in touch with the needs of communities around the world.
This commitment goes well beyond the P&G facilities. Every year, thousands of P&G
employees worldwide personally commit to helping children and youth live, learn and
thrive in their communities and beyond. Many employees volunteer their time or work
in groups on team-building projects such as building playgrounds for children,
teaching the importance of safe hygiene, or mentoring tweens and teens. And millions
of dollars have been donated by employees with the goal of improving life for children
and youth.
While we have made progress, there is much work to be done. Millions of children are
in need of a healthy start, access to education, and skills for life. Through P&G Live,
Learn and Thrive, we believe we can make a meaningful difference. If you would like
to join in our effort, consider donating to the Live, Learn and Thrive Fund your
donation will go to improving life for children in need.

16

6.Social Responsibility Programs in India

P&Gs flagship Corporate Social Responsibility Program Shiksha is an integral part of

our global philanthropy program - Live, Learn & Thrive. Now in its 8th
year, Shiksha has till date helped 280,000 underprivileged children access their right to
education. The program has built & supported over 140 schools across India, in
partnership with NGOs like Round Table India (RTI), Save the Children (STC), Army
Wives Welfare Association (AWWA) and Navy Wives Welfare Association (NWWA),
amongst others.
Shiksha began with P&G Indias research which revealed education as the one cause
that consumers are most concerned about and are looking for a simple way to
contribute to. With this insight and founded on P&Gs purpose, Shiksha was launched
in 2005 to enable consumers to contribute towards the cause of education of underprivileged children through simple brand choices.

17

Since its inception, Shiksha has made a cumulative donation of over Rs. 22 crores
towards helping children on the path to better education. This is a result of the support
from our consumers who participated in the Shiksha movement by buying P&G
brands for one quarter of the year, thus enabling P&G to contribute a part of the sales
towards the cause.

Shikshas NGO Partners

Shikshas vision is to help India get to 100% Shiksha someday, and it is working
towards this vision in partnership with NGOs like Save the Children India, Army
Wives Welfare Association (AWWA), Navy Wives Welfare Association (NWWA) and
Round Table India (RTI), amongst others.
Each of Shikshas NGO partners focuses on a critical approach towards education,
with NGO Round Table India specializing in building educational infrastructure and
supporting schools across India, NGO Save the Children laying emphasis on the girl
child via supporting the governments Kasturba Gandhi Balika Vidhyalays, and the
NGOs AWWA and NWWA serving the unique educational needs of differently-abled
children of naval and army officers families.

Shiksha Schools
Shiksha aims to build the educational future of India Brick by Brick by
addressing the need for better educational infrastructure and building the tangible asset
of schools. Shikshas interventions span across health and hygiene facilities at schools
such as clean drinking water and separate toilets for boys and girls, advanced
educational aids such as libraries and computer centres, as well as basic infrastructure
needs such as classrooms.
18

Shiksha Supporters
Shiksha has evolved into the national consumer movement that it is today, with the
invaluable support of our stakeholders amongst the media, influencers, employees and
customer partners. Over the years, the program has received generous support from
many thought leaders & celebrities such as actors Anupam Kher, Sushmita Sen, Saif
Ali Khan, Sharmila Tagore, R Madhvan, Abhay Deol, Konkona Sen, Tabu and Soha
Ali Khan; social activist Dr. Kiran Bedi; artist Jatin Das and many more.
These activities together help Shiksha further its motto
', (if India will study, India will grow) and help us touch and improve the lives
of our consumers.

Disaster Relief
India has braved several natural disasters in the recent past, such as the Tsunami in
South India, floods in Bihar or earthquakes in J&K and Gujarat. P&G has stepped
forward in each of these calamities and helped communities get back on their feet.
Most recently we helped rebuild the Army School in Ladakh, located in one of the
most challenging Himalayan Terrains, which was wrecked by the Flash Floods in
2010.

19

7.INTRODUCTION

Bayerische Motoren Werke AG usually known under its abbreviation BMW, is a

German luxury automobile, motorcycle, and engine manufacturing company founded
in

1916. Headquartered in Munich, Bavaria,

Germany,

it

also

owns

and

produces Mini cars and serves as the parent company of Rolls-Royce Motor Cars.
BMW produces motorcycles under BMW Motorrad, and plug-in electric cars under
the BMW i sub-brand. It is one of the best-selling luxury automakers in the world.
[3]

The company is a component of the Euro Stoxx 50 stock market index.

Production
In 2006, the BMW group (including Mini and Rolls-Royce) produced 1,366,838 fourwheeled vehicles, which were manufactured in five countries. In 2010, it
manufactured 1,481,253 four-wheeled vehicles and 112,271 motorcycles (under both
the BMW and Husqvarna brands).
The BMW X3 (E83) was made by Magna Steyr, a subsidiary of Magna of Canada, in
Graz, Austria under license from BMW until 2010. More than 45,973 were produced
in 2009. Starting October 2010, the new BMW X3 (F25) is produced at BMW US
Manufacturing Company, Greer, Spartanburg County, South Carolina.
20

It is reported that about 56% of BMW-brand vehicles produced are powered by petrol
engines and the remaining 44% are powered by diesel engines. Of those petrol
vehicles, about 27% are four-cylinder models and about nine percent are eightcylinder models. BMW also has local assembly operation using complete knock down
components in Thailand, Russia, Egypt, Indonesia, Malaysia, and India, for 3, 5, 7
series and X3.
Environmental record
The company is a charter member of the U.S. Environmental Protection Agency's
(EPA) National Environmental Achievement Track, which recognizes companies for
their environmental stewardship and performance. It is also a member of the South
Carolina Environmental Excellence Program.
In 2012, BMW was named the world's most sustainable automotive company for the
eighth consecutive year by the Dow Jones Sustainability Indexes. The BMW Group is
the only automotive enterprise in the index since its inception in 1999. In 2001, the
BMW Group committed itself to the United Nations Environment Programme, the UN
Global Compact and the Cleaner Production Declaration. It was also the first company
in the automotive industry to appoint an environmental officer, in 1973. BMW is a
member of the World Business Council for Sustainable Development.
BMW is industry leader in the Carbon Disclosure Project's Global 500 ranking and
3rd place in Carbon Disclosure Leadership Index across all industries. BMW is listed
in the FTSE4GoodIndex. The BMW Group was rated the most sustainable DAX 30
company by Sustain analytics in 2012.
BMW has taken measures to reduce the impact the company has on the environment.
It is trying to design less-polluting cars by making existing models more efficient, as
well as developing environmentally friendly fuels for future vehicles. Possibilities
include: electric power, hybrid power (combustion engines and electric motors)
hydrogen engines.
BMW offers 49 models with EU5/6 emissions norm and nearly 20 models with CO2
output less than 140 g/km, which puts it on the lowest tax group and therefore could
provide the future owner with eco-bonus offered from some European countries.
However, there have been some criticisms directed at BMW, and in particular,
accusations of greenwash in reference to their BMW Hydrogen 7. Some critics claim
21

that the emissions produced during hydrogen fuel production outweigh the reduction
of tailpipe emissions, and that the Hydrogen 7 is a distraction from more immediate,
practical solutions for car pollution. The BBC's Jorn Madslien questioned whether the
Hydrogen 7 was "a truly green initiative or merely a cynical marketing ploy"

8.BMWs Programs
Enjoy Safe Life with Chinese Children
BMW Launched Children Safety Education Cartoon
After two years of careful planning and preparations, BMW has produced 52 series
animation for children city safety life, which has been named as The story of An An
and launched on Ka Ku Cartoon program Beijing TV at 17:00pm on April 26. BMW
hopes that children can learn more about daily traffic knowledge from "An An bear"
and his friends. Meanwhile, it is another innovation in the field of safety education
during the nine years of BMW Children's Traffic Safety Education project, and also
proved that BMW as a really good corporate citizen, who fullfills his long term
promise to take its corporate social responsibility and contribute to China.
As a pioneer in the field of children's road safety education, BMW has made many
efforts to establish and maintain the harmonious traffic safety environment. Since
"BMW Children's Traffic Safety Education " project started in China in 2005, BMW
has always been committed to help Chinese children to learn traffic safety knowledge
and improve their abilities of self protection by interesting activities. As a premium car
brands, BMW is the first one to launch a cartoon----The Story of An An on TV.
BMW pays attention to children's safety problems in daily life and use TV program to
break the time and geographical constraints of the traditional model of children's
traffic safety education, and bring all kinds of safety knowledge, healthy and civilized
way of life to Chinese families to make more school-age children benefit from it.
2013 " BMW Children's Traffic Safety Education" is about to open. Along with The
Story of An An, BMW will continue to develop more scientific and interesting game
to expand the target population, and accompany the majority of Chinese children to
grow healthily and happily, which will provide a lot of help to children's traffic safety

22

education.
Safety Education Makes Safe Summer Vacation.
2013 BMW Children Traffic Safety Education launched in Shanghai
On July 1st, 2013 BMW Children Traffic Safety Education in Shanghai launched in
the BMW Brand Experience Centre with the theme of Green Travel holds up the
dream of safety. In the following week, BMW will create a unique green and safe
summer experience tour for the children in Shanghai. Zhao Yijia, the East Region
director of Brilliance BMW Automobile Co., Ltd, Zhang Wei, the deputy director of
the safety, Shanghai Transport and Port Bureau, and Jiang sheng, the activity minister
of Shanghai Student Activity Management Center attended the opening ceremony.
The newly-built BMW Brand Experience Centre located in the Shanghai World Expo
is the first BMW brand experience center in the world to show the brand culture and
concept. In front of the BMW Brand Experience Centre, the training camp built a
simulated city with optimized road environment which is more realistic than before.
Following the courses of AnAn Traffic School, kids can drive BMW mini electric
cars to 4 event venues to experience different pleasure of study by learning traffic
safety knowledge and feeling the fun of driving. In the AnAn Movie Theater and
"Learning First Aid with AnAn", children can learn more self protection knowledge by
watching BMW Children safe city life TV series AnAns Story, 3D animation and
learning first aid knowledge. Through the 4D seat experience in the AnAn Happy
Zone, kids can understand the importance of Child safety seats better. In the "AnAn
Teenager Academy", children will experience the advanced education concept of
German BMW Teenager Academy and learn more knowledge about clean energy,
green travel and resource classfication.
Nine Years Care Lifts up Safety Dream
2013 BMW Childrens Traffic Safety Education Ended in Beijing
On October 21, 2013 BMW Childrens Traffic Safety Education themed Green
Travel Makes Our Safety Dream held the closing ceremony in Beijing, bringing the
five-month safety journey to a successful end. BMW has carried out the program for
nine consecutive years. It has become a model of public welfare programs of the auto
industry in the road safety education area through innovation of event forms and
23

broadening of study contents. It also has made useful exploration for Chinas children
education

career.

Mr. Karsten Engel, President & CEO, BMW Group Region China, Mr. Yu Weiyue,
Director at School Administration Office of Basic Education Department, Ministry of
Education, Mr. Guo Kai, Deputy Director at China Standardization Magazine and Peer
Reviewer at National Quality Safety Social Practice Base for School Students, as
well as domestic media and young campers were present at the event. They all
expected the milestone of the tenth anniversary the next new development stage
while

looking

back

the

past

nine

years.

This year, the training camp was upgraded again, and a 600-sq.m Sim City with
lifelike road environment was built. It provides rich study content through five venues
with different functions, including AnAn Traffic Camp, AnAn Fantasy Cinema, AnAn
First Aid Training Center, AnAn Joy Landand AnAn Junior Campus. In this happy
castle, BMW will bring an unforgettable happy study hour to children no matter you
learn traffic safety knowledge while driving a BMW mini electric car, or learn the
importance of a child safety seat by experiencing a 4D seat, or learn tips about first-aid
and knowledge about self-protection by watching AnAns Story, a BMW TV series
about

childrens

urban

safety

life.

The media open day for the 2014 "BMW Brilliance Quality Education Open
Course"
On Nov. 14, the media open day for the 2014 "BMW Brilliance Quality Education
Open Course" was held at the joint venture's Plant Tiexi in Shenyang, attracting the
participation of journalists from 60 media nationwide and students from a local
primary school. Dr. Stefan Kasperowski, VP of Total vehicle, quality management,
BMW Brilliance Automotive Ltd., and Mr. Wu Xiaobo, director of department of
Quality Management General Administration of Quality Supervision, Inspection and
Quarantine of the Peoples Republic of China (AQSIQ) attent the open course.
As the first joint venture to establish the "National Social Practice Base of Quality for
Primary and Secondary School Students," BMW Brilliance Automotive Ltd. has
integrated its advanced quality and safety management experience into the course. The
24

program has been designed to improve students' awareness of the significance of

quality and safety through joyful instructions. Plant Tiexi has been placing a high
priority on quality, with its complete range of quality and safety guarantees laying a
firm foundation for the launch of the course. This year, the company further enriched
its training content, with theoretical knowledge combined with a variety of practical
activities. In addition to providing high-quality products, BMW Brilliance has been
making great contributions to the sustainable development of the Chinese society and
local auto industry. The carmaker has also been committed to carrying out its
corporate social responsibility in terms of education, innovation in resources, cultural
communication,

as

well

as

social

integration.

Foster the Growth of Children.

BMW JOY Home Children Care Program
With the aim to create equal growth opportunity for disadvantaged children in rural
areas of China, so as to enable them to pursue a brighter future, and thus promote the
harmonious and inclusive development for all members of the society, BMW Warm
Heart Fund joined hands with BMW dealers and customers nationwide to launch the
BMW JOY Home Children Care Program in June 2011.
BMW JOY Home is the first long-term public welfare program jointly initiated by
BMW and its dealers. The program aims to provide necessary assistance and
emotional care for disadvantaged children through the provision of donations by
BMW WHF and the establishment of BMW JOY Home which includes 10,000
books, 6 computers; a set of projection equipment, as well as volunteer activities
participated in by BMW customers. By August 2013, 53 BMW JOY Homes had been
set up, covering 28 provinces in China and benefiting 40,000 children.
From 2012 to 2014, WHF carried out many theme campaigns in BMW JOY Home,
including Cheer up the Olympics with LoveBMW JOY Home 2012 Warm Heart
Sports Game, Green Our Planet through RecyclingBMW JOY Home 2012 Green
Theme Event Protecting our Plant Friends BMW JOY Home Children Care
Program 2013 Theme Campaign and Run for Love BMW JOY Home 2014
Marathon Theme Campaign, providing a chance for children to broaden their visions.
Safeguarding Children for Ten Years
25

BMW Childrens Traffic Safety Education 10th Anniversary Ceremony Held in

Beijing
BMW Childrens Traffic Safety Education held its 10th anniversary celebration and
kicked off a grand opening ceremony of this year's event at Olympic Park Beijing on
May 30th. As a well-known public welfare initiative, BMW Children's Traffic Safety
Education is opening a new chapter for what is China's longest corporate social
responsibility project. The 2014 program, with the theme of Safeguarding Children
for Ten Years, will run in 5 cities. It will focus on hot social issues and forge an
infotainment platform that is both instructive and entertaining so it will benefit more
of the population. It will feature a brand-new children's safety education games app, a
new version of the safety textbook, and a safety education classroom. A knowledge
park, which is a centerpiece of the program's Beijing stop, covers an area of more than
6,000 square meters. It will be open to the public from May 31 to June 3, serving as a
gift

to

Chinese

children

on

Childrens

Day.

Mr. Olaf Kastner, President and CEO of BMW Brilliance, said at the opening
ceremony, Children require and rely on guidance and support in road traffic
situations. We want to share our know-how. As the core project of BMWs corporate
citizenship strategy, BMW Childrens Traffic Safety Education has adhering to the
philosophy of interactive teaching in order to promote safety-related knowledge.
Seeing the smiles on these lovely childrens faces has been the best reward in our
strive to contribute to the wellbeing of young children in the past decade, which also
fully

embodies

the

brand

philosophy

of

BMW

Is

Joy'.

26

9.INTRODUCTION
Starbuck Background
Starbuck Coffee Company was founded in 1971, the first retail store opened in
Seattles Pike Place Market in the United States. The company name was inspired by
Moby Dick that it was evoked the romance of the high seas and the seafaring tradition
of the early coffee traders. In 1981, Howard Schultz came to Starbuck and he would
like to be a part of Starbuck. After that Starbuck agreed and hired Howard Schultz. He
had to work hard with Starbuck and his ideas was about the tremendous potential of
expanding the Starbucks enterprise outside Seattle and exposing people all over
America to Starbucks coffee. Meanwhile, the owners have against in his ideas that it
made him despondent. The Starbucks management wanted to focus on traditional core
business of selling only coffee beans and equipment. But Howard still remained
important on this part and finally the owners rethink and believe in his ideas. During
1983, Howard went to Italy and he became enchanted with Italian coffee bars and
romance of the coffee experience. Schultz got the idea to change the shops like a style
of Italian coffee but he has adapted in case of American style. In the late 1985,
Howard Schultz left Starbucks, he started his own company. His plan was too pen
espresso bars in high-traffic downtown location. The name of his company was II
Giornale Coffee Company. In March 1987, the owners decided to sell Starbuck in
Seattle, when Howard learnt of this, he immediately decided to buy Starbucks and
finally his acquisition was completed in August 1987. So he became Starbucks
president and CEO until now a day.
After acquisition of Starbuck in 1987, Howard has integrated between II Gil and
Starbucks together. Howard worked hard on popularizing coffee such as the caf latte,
later and the Frappuccino. His plans objective expanded Starbuck stores of 125 in
1987, 15 new stores opened in fiscal 1988, 20 in 1989, 30 in 1990, 32 in 1991, and 53
in 1992-producing a total of161 stores. It was exceeded for expansion Starbucks
stores and became profitable in 1990; profits had increased every year thereafter

27

Company responsibility
Starbucks run business by responsibility and conducting its self in the methods which
are

giving trust and respect from its customers and neighbors. In this way, it calls

shared planet that means Starbucks emphasize on ethical sourcing, environmental

stewardship

and

community involvement. Moreover

under companys operation, it also believes

in

supporting the good workplace for partners or staffs encouraging ethical business prac
tices and maintaining legal compliance, corporate governance and also public policy
Mission statement
The Starbursts Company has the principles of running business every day how we
live that everyday as following
Our Coffee:
The Company focuses on the quality of coffee bean and also enhancing farmers live
who grow the coffee bean. The world market of coffee has historically been sensitive
to price flexibility in which is linked to global demand and supply. It has been affectin
g to coffee farmers so Starbucks helps them to buy coffee and has adopted a more
integrated and sustainable model. Starbucks has paid premium price to help farmers to
make more profit and support their families. Starbucks has created a policy that they
call C.A.F.E (Coffee and Farmer Equity) to show responsibility towards the moral,
environmental and quality aspects of processing and selling coffee. Moreover,
Starbucks provides funds for farmers to access credit, purchasing conservation and
certified coffee that includes organic and Fair Trade Certified and also investing in
social development project in coffee producing countries. The last thing, Starbucks has
collaborated with coffee producers in Costa Rica that it offers farmers with training
about the high quality coffee and technical support. Starbucks focus more on this
stakeholder because they are sustainable to the company
Our partners:
Our employees are called partners, and this is literally true, since every individual is
offered stock options. We seek to seamlessly interweave variables that ensure quality
28

for the customer with literal ownership in the company. We want to be the employer of
choice in each market in which we do business. In order to achieve this goal we pay
fairly, provide

benefits to all whether

part-time

or full-time, and

encourage individuality and open communication

From the message of Howard Schultz, its employees (partners) are keys of success in
business. Its attractive and preserves the capability of employees (partners) that drive
the company success. Starbucks tries to create a workplace that both values and
recognizes each persons contribution. The employees were called partners because
they accept diversities of people to be together. Starbucks treats employees as
partners, this has made them feel valued and treat them with respect and dignity.
Starbucks has fulfilled their commitment to partner by following Guiding principles.
For instance in Guiding principle that the company doing to: care for partners well
being, promote respectful workplace culture, provide opportunities for training and
career growth and etc
Moreover, Starbucks has a project call Partner Engagement; this project partner
will participate in CSR activities. For instance, Starbucks Coffee Thailand launches ne
w non-coffee beverage Strawberries & Cream Frappuccino with team activity in
support of neighbourhood community.
Starbuck partners design construction in teams of a new safer and colourful
playground for the Duang Prateep Foundation Day Care centre is one example of their
involvement and effort in making a positive impact in neighbouring communities
(Starbucks Coffee Thailand 2010).
Our stores:
Customers feel like their places, good environment, warm condition which they can
meet and enjoy with friends in rhythm of life (can see from services diversity).
Our neighbourhood:
We are the part of community. We are responsible in every community that we are
going to operate business. Starbucks has donated and done activities for
social project. Starbucks has conducted 16 community connections in 8 countries arou
nd MiddleEast during Holy month of Ramadan such as Neighborhood Girgean
29

Celebration in Kuwait, they has celebration of the local tradition of Girgean by partner
distributed Girgean packs to children during Ramadan month. Moreover, in Egypt, the
partner of Starbucks visited to children cancer hospital 57357 that they spent time to
take care children and donated a painting board to the playroom (Starbucks Report
2010)
Our shareholders:
We

are

responsibility

of

shareholder

rights.

We

realize

every

success

and benefits of shareholders that can trust in our business. Starbucks has often to meet
its shareholder. For instance, 2010 Starbucks annual meeting of shareholders at
Marion Oliver McCaw Hall at Seattle Center in USA that it has discussion about a
review of the companys
Environmental Mission Statement

Sharing environmental information with our partners to understand clearly.

Improving innovative and flexible solutions.
Using environment products including selling and using them.
Encouraging responsible environment as corporate value
Following process and measure every project.
All partners involve to companys mission.

Goals & Progress

Starbucks has run its own business for a long time which it operates by carrying
social,environmental economical responsibility. The company focuses to do the right t
hing in partners (staffs) , customers and business that it

tries

to create the innovation for businessand learn from its mistake. Moreover the company
s goal is that caring for the worldsimpact such as ethical
sourcing , environmental stewardship and community involvement as well.
Ethical Sourcing
The company has operated business by bringing the best coffee in the world. So it
supports the farmers live by buying coffee fairly and help them how to grow coffee
bean efficiently including responsible environment as well.

30

Environmental stewardship
Starbucks has emphasized to care for the world environment and support others or
stakeholders to do the same thing. As the company runs business by agricultural
goods.

It

believes in company mission

to maintain

environment such as recycling, green building and so on

Community involvement
The organizations believe different people need to be a part of good community by
supporting various communities activities in many areas. For instance, the
community service, youth action, Starbucks foundation, Ethos water fund, Starbucks
RED and etc .For example, every purchase of a (STARBUCKS) RED EXCLUSIVE
beverage Espresso Truffle, Gingersnap Latte, and Peppermint Mocha Twist - at all
participating stores in the U.S. and Canada, Starbucks will contribute five cents
directly to the Global Fund. And to honour the 20th anniversary of World AIDS Day,
on Dec. 1, Starbucks will contribute five cents to the Global Fund for every
handcrafted beverage purchased at a participating Starbucks as a continued way to
show support for this important issue

31

10. Integrating Corporate Social Responsibility (CSR)

In terms of CSR Starbucks has good governance, ethical conduct and social
responsibility score to their way of running business. Starbucks has driven to create
and increase shareholder value. Starbucks also focuses on maintaining the relationship
between stakeholders and their company. The definition of CSR in term of Starbucks
Company is conducting the business in ways that produce social, environment and
economic benefit for the communities. Starbucks has operated for the companys
stakeholders and including shareholders. Attracting and retaining our partners
(employees), customer loyalty, reducing operating cost, strengthening our supply
chain and license to operate, all of those it is a few of real benefit of the company.
Moreover the Starbucks makes its approach to CSR a competitive differentiator for
Starbucks.
Environmental Stewardship
According to Elkington .J (1997), people have used a lot of natural resources so
organizations try to reduce using natural resource. In this part, Starbucks focuses on
protecting the environment and urges others to the same in order to make a great
business for mankind. They have launched many projects to encourage the
environment. Examples include:
Recycling & Reducing Waste
The aim of Starbucks has plans to recycling all materials that needs to be recycled in
the stores and control waste collection including useable cups 25% in 2015.
Approximately 70%of Starbucks stores in North America can recycle at least one kind
of waste where has commercial recycling services around Starbucks stores. Moreover,
Starbucks offers 10%discount to customers who bring in their own commuter
mugs that they want to decrease environmental impact of cup. By 2009 reusable cups
had been served over 4.4 million more than 2008
Energy Conservation
Starbucks has emphasized two issues that are preserving and developing energy
efficiently, which it has impacted to climate change. In the past, Starbucks tries to
32

reduce its energy by cooperating with GE Company, which develops LED lighting to
replace halogen lighting. The LED lighting was installed 1,000 stores in U.S.A where
could reduce energy only 1.7%from 2008 to 2009 (Examiner 2010). However, the
goal of Starbucks wants to reduce the energy 25% to use within 2010 and also they
still looking forward to other innovative choices to decrease the energy
Water
Water is a very important natural resource in the companys business because it uses
the water to make coffee and tea beverages. In 2009, Starbucks has started this project
by installing the manually operated hand-meter faucet all stores in U.S.A. Starbucks
can save the water about 150 gallons per store per day. Moreover, Starbucks continue
to use technology to save the water such as dishwasher use water less than one gallon
of water per cycle. Other example the company has trained partners (employees) to
keep coil in ice machines clean in order to reduce heat from machines to make ice
melt. From 2008 to 2009 Starbucks can decrease the water 4.1% .In 2015, the goal of
Starbucks has to reduce the water consumption 25% in coffee shops.
Climate
Starbucks believes that high quality products come from good agriculture systems.
Furthermore it also cares about climate change. The company tries to reduce the
environmental impacts by developing initiative solutions. For instance, Starbucks has
incentive programs relating to coffee farmers to reduce carbon emissions from burning
and clearing forests in 29 coffee communities in Sumatra Indonesia, Chiapas and
Mexico region; which are sensitive environments in the pilot programs. Moreover,
Starbucks has collaborated with Earth watch Institute which renews rainfall, water
resource map and indicating biodiversity in order to share knowledge with coffee
farmers

33

11. Community (Social)

Internal
Wage and Hour Rules:
Starbucks has paid the salary and compensation for partners (employees) based on
hours laws and regulations that mean Starbucks offers the benefits fairly
Workplace Environment:
All partners (employees) have been treated with esteem and honour without insulting,
bias,

unfairness,

irritation

and

so

on

.On

the

other

hand,

they

are

working in the company under friendly working environment

.
Workplace Health, Safety and Security:
Officers and partners (employees) have cooperated to each other for following the
safety regulations, practices and training in order to prevent themselves from accidents
or injuries
External
The company believes that good business has to involve and support communities as
well. The goals of Starbucks has supported its partners (employees) and customers
facilitate communities over 1 million throughout the world in 2015. Nowadays
Starbucks has created several projects to engage communities as following:
Youth Action:
The aim of this project is to support 50,000 young generations to created
and participate their communities within 2015 in order to solve problems and develop
communities. In 2009, Starbucks gave award more than 2 million US dollars and
engage more than 20,000 young generations or 42% of target in 2015
Starbucks Foundation:
This project was established to support communities in many ways all over the world.
There are several programs of Starbucks foundation as following:
Nurturing young leaders: this program has contributed young peoples chances to
34

develop their communities

Supporting Coffee, Tea and Cocoa Communities: this program has provided farmer
communities where have grown coffee, tea and cocoa for company by offering
knowledge, training and financial or credit services to enhance product quality and
develop farmers life.
Access to get clean water: Ethos water is funding that support people in developing
countries to enter the clean water.
Fostering Education in China: organization subsidized 5 million us dollars to
educational programs in China by 2005.
Rebuilding the Gulf Coast: C.O.A.S.T. fund was found by Starbucks and Starbucks
foundation to revive Gulf Coast communities ruined by hurricanes Rita and Katrina.
Ethos Water Fund:
The objective of Ethos water fund is help the children who cannot reach the clean
water by supporting 5 cents every bottle of Ethos Water. So far, Ethos water fund has
offered 6 million US dollars to help 420,000 people throughout the world to reach the
clean

water

(Starbucks

2010m).

Everybody in Starbucks

company is not

seen as an employee but as a partner. Also, Starbucks has provided safety training
programs for partners who work with company in order to protect themselves from
accident. Starbucks treats its partners as good as company treats its customers.
Moreover, Starbucks has encouraged communities as well. Because Starbucks
believes that the company and communities have to run together. Starbucks has
created many programs to support communities which Starbuck was established to
encourage these activities such as Young Action program; the company has supported
young generation to improve their communities, moreover Starbucks has supported its
coffee farmers by providing education, system and finance in order to improve the
quality of coffee and farmers life to be better. For other projects, it has helped
children all over the world to access clean water including recovering Gulf Coast
by founding C.O.A.S.T fundto rescue the people at gulf coast and contributing educati
on programs in china.It can therefore be seen that Starbucks has concern for
35

communities

together

withrunning business. Because the company has realized that communities are a part o
f successful businesses.
Economic:
Starbucks is a well known coffee company which succeeds in business world. The
main strategy that Starbucks conducts business is being Ethic Company. In terms of
business, Starbucks has operated businesses by emphasizing high quality of products
and services in
order to make customers satisfaction. For high quality products, Starbucks has always
collaborated with farmers who are one of suppliers by contributing education,
knowledge and training to improve the quality of products for customers and company
has never overstated with customer. All advertising of company has to be truthful and
accurate communication on public. This shows the high standard of the company.
In terms of competition, Starbucks believes in fair markets by agreement with
competitors do not control the markets in order to be free competition and talk about
products and prices too under following laws of each countries where Starbucks has
run business. From financial reports as we showed in the chapter 4, net earnings of the
company in 2006 to2007 Starbucks had grown up except 2008 when it slowed down
because of the economic crisis and also competitors such as McDonald, since entry the
coffee

in

their

stores

as

lower price coffee that it

has different price from brand premium around 15-25% so it made

them

competed

with brand premium as Starbucks. However, in 2009 net earning had grown up again.
In terms of sustainable values-based service, Starbucks focuses on values of
development and managing services of their company to drive the company to run
business smoothly, Starbucks has done a lot of things such as focusing on the highest
standard of delivering coffee, joining with farmers to produce high quality coffee and
also making long term relationships with them and training its partners (employees) as
a strategy for making customers satisfaction on its services. From its companys
mission and code of conduct, it makes sure that the company has strong values for its
business including acceptance of all stakeholders who have affect the company. All are
geared towards creating value to customers and making sure that they get high quality
36

products that will to respond their needs and satisfaction. The second is CSR as a
strategy for sustainable service business in which Starbucks has engaged CSR into
every part of the company. Starbucks is committed to run business by CSR strategy
and have realized high benefits for all stakeholders. We can see Starbucks uses
innovative technologies to protect environment and reduce its cost. Moreover,
Starbucks still supports local societies around companys areas. It is doing business
fairly with their suppliers to make long term relationships. The third issue is valuesbased service experience for co-creating : Starbucks has built their stores as second
home, the customers receive new experiences when they come into the Starbucks
houses

such

as

good

environmental

places,

warmly

welcome

by

all

partners(employees) and high quality coffee and also they can work or meet their
friends to communicate with each other. These facilities are the experiences which the
company offers to customers that make them to have an edge over its competitors. The
fourth issue is values-based service brand and communication for values resonance:
Starbucks Company has provided many channels to communicate with its customers
and other stakeholders such as website, telephone, Starbucks card and etc which all
stakeholders can access gain access to Starbucks in order to share information between
company and stakeholders. Ever since its creation, Starbucks has reputation in its
brand as it has operated CSR business which it has focused on high quality of products
and services. Moreover Starbucks has strong relationships with its customers and
collaborates with social responsibilities as well as communicates company activities
with its stakeholders to promote responsible environment. However If we have
considered financial reports from 2006 to 2009 except 2008 we will see net earnings
showed a continuous increase over the years. It means that Starbucks still has a good
resonances or feedback from customers. The last but not the least is values-based
service leadership for living the values: Starbucks leaderships does not only control
subordinates but they have to understand corporations culture deeply, can collaborate
with the team, support their partners, can communicate with all level of partners and
customers in order to know their problems such as what they need or what they want
and so on. These are necessary not only for leadership purposes but also all
Starbucks partners.

37

12.RECOMMENDATION
P&G needs innovation in its business systemdownstream, upstream, internal, or all
three. For example, maybe it needs innovation in how it distributes its products in its
core grocery, drug, and discount channels or to rethink the way it sells or makes
beauty products. Perhaps the next generation of digitalsocial, mobile, analytics, and
cloudholds the key to unlocking more value from its entire business system, both
inside and outside its current corporate boundaries. Or maybe P&G needs a novel
approach to how the corporate center adds value to its businesses, how its globallocal
operating model works, or whether and how it delivers more affordable products in a
premium-product culture. It will be strategic innovations such as these not just product
innovations that helps P&G get its mojo back.
P&G should increase advertising for brand awareness and the unique characteristics of
their unique brands.

38

CONCLUSION
Procter & Gamble has built an organisation with an innovative culture. Everybody can
contribute to new product development either through research and development or
through their focus, energy and commitment to their role.
This approach to innovation is not new. For example, Procter & Gambles dedication
to innovation led to the development of Flash, a revolutionary brand for its time.
Since its launch many hundreds of innovations now enable it to cater for many more
situations within the household much more efficiently. Similarly P&G created the
disposable nappy business by introducing Pampers.
In a fast-changing world an innovative culture helps an organisation constantly move
forward. Having an innovative culture has actively helped Procter & Gamble develop
and transfer technologies and bring new products to market. Creating innovations that
give people products which make their lives easier and better is what creates a
competitive advantage for P&G. And is what has helped P&G become the successful
global business it is today.

39

BIBLIOGRAPHY
Name of author: Philip Kotler
Name of book: Marketing Management- A South Asian Perspective
Name of Publisher: Pearson Education
Edition: 13th
Year of edition: 2009

WEBLIOGRAPHY
http://www.pg.com/en_IN/
http://www2.bmw.com.cn/cn/en/insights/csr/educational/archive/2013_traffic_educati
on.html
http://www.starbucks.com/responsibility/community/opportunity

40