Serving the communityKnown to be more than just a coffee brand, Starbucks Malaysia’sphilanthropic project,...Serving...

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Accounting

Serving the community
Known to be more than just a coffee brand, Starbucks Malaysia’sphilanthropic project, Connecting Communities in Malaysia, hashelped drive the economy in small villages by supporting localproduce and craft. Established back in 2013, the project encouragesethical sourcing while opening up a gateway of opportunities toelevate the lives of farmers and their entire community at the sametime. Kampung Lubuk Jaya, a rural village in the outskirts of KualaSelangor, was among the first to benefit from this project. Thevillage folk were approached to sell fresh homegrown bananas toStarbucks Malaysia. The bananas were then processed, made intodelectable pastries and sold at Starbucks Malaysia outlets acrossthe country. Today, Starbucks has enlisted two additional villagesin Kuala Selangor, namely Kampung Sungai Gulang Gulang and KampungParit Serong, as its banana suppliers As part of its objective tosupport fair trade and ethical sourcing, the coffeehouse chainpurchases bananas directly from local farmers at an agreeable rate,helping them earn slightly more by buying direct. Aside fromboosting the economy within Kampung Lubuk Jaya, Starbucks Malaysiaalso managed to raise over RM118,000 to build a Community ComputerCentre for the children in the village. Contributions were acquiredfrom the 15% of sales made from retail of the banana-based productssold at Starbucks Malaysia outlets. In 2015, the coffee powerhouseadopted Felda Chini Timur 01, a village in Pahang, as its secondproject recipient. The project involved producing mengkuang-basedproducts, aimed at supporting and cultivating local talent andhandicraft. Carefully woven mengkuang leaves were turned into cupsleeves, coasters and placemats, and sold across 50 outlets in thecountry. In both endeavours, Starbucks Malaysia’s effort more thanpreserved local heritage, it ultimately boosted the income of thevillagers as well. “Here at Starbucks, we always believe incontributing back to the communities wherever we do business in. Tocelebrate our 15th anniversary in 2013, we launched ConnectingCommunities in Malaysia, a community project that contributes tosmall villages in support of local and ethical sourcing to make animpact to the lives of families and local communities,” sharedStarbucks Malaysia and Brunei managing director Sydney Quays.
1). Determine the approach taken by Starbucks in its corporatesocial responsibility. Justify your reasoning.
2). What are the pros and cons of the involvement of businessesin corporate social responsibility (CSR) activities?

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1 Determine the approach taken by Starbucks in its corporate social responsibility Justify your reasoning The approach taken by Strabucks can be condensed in one phrase Prosper with all Their CSR activity has not only contributed to the villages and community they See Answer

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In: AccountingServing the communityKnown to be more than just a coffee brand, Starbucks Malaysia’sphilanthropic project,...Serving the communityKnown to be more than just a coffee brand, Starbucks Malaysia’sphilanthropic project, Connecting Communities in Malaysia, hashelped drive the economy in small villages by supporting localproduce and craft. Established back in 2013, the project encouragesethical sourcing while opening up a gateway of opportunities toelevate the lives of farmers and their entire community at the sametime. Kampung Lubuk Jaya, a rural village in the outskirts of KualaSelangor, was among the first to benefit from this project. Thevillage folk were approached to sell fresh homegrown bananas toStarbucks Malaysia. The bananas were then processed, made intodelectable pastries and sold at Starbucks Malaysia outlets acrossthe country. Today, Starbucks has enlisted two additional villagesin Kuala Selangor, namely Kampung Sungai Gulang Gulang and KampungParit Serong, as its banana suppliers As part of its objective tosupport fair trade and ethical sourcing, the coffeehouse chainpurchases bananas directly from local farmers at an agreeable rate,helping them earn slightly more by buying direct. Aside fromboosting the economy within Kampung Lubuk Jaya, Starbucks Malaysiaalso managed to raise over RM118,000 to build a Community ComputerCentre for the children in the village. Contributions were acquiredfrom the 15% of sales made from retail of the banana-based productssold at Starbucks Malaysia outlets. In 2015, the coffee powerhouseadopted Felda Chini Timur 01, a village in Pahang, as its secondproject recipient. The project involved producing mengkuang-basedproducts, aimed at supporting and cultivating local talent andhandicraft. Carefully woven mengkuang leaves were turned into cupsleeves, coasters and placemats, and sold across 50 outlets in thecountry. In both endeavours, Starbucks Malaysia’s effort more thanpreserved local heritage, it ultimately boosted the income of thevillagers as well. “Here at Starbucks, we always believe incontributing back to the communities wherever we do business in. Tocelebrate our 15th anniversary in 2013, we launched ConnectingCommunities in Malaysia, a community project that contributes tosmall villages in support of local and ethical sourcing to make animpact to the lives of families and local communities,” sharedStarbucks Malaysia and Brunei managing director Sydney Quays.1). Determine the approach taken by Starbucks in its corporatesocial responsibility. Justify your reasoning.2). What are the pros and cons of the involvement of businessesin corporate social responsibility (CSR) activities?