Discussion :
In his 2014 annual letter to shareholders, Starbucks CEO Howard Schultz wrote the following:
"Dear Shareholders, One year ago, I asked all of us to seriously consider an essential question for our time: What is the role and responsibility of a for-profit public company? For several years now, Starbucks has recognized that building a great, enduring company requires being performance driven through the lens of humanity. Never, we believe, has this been more critical, which is why Starbucks remains deeply committed to striking the delicate balance between profitability and our social conscience."
You will be asked to consider the issue of whether Starbucks should expand by 50 stores in the United States.
Discuss the following questions:
What is the role and responsibility of a for-profit, public company to the public? To its stakeholders? And to its brand and industry?
How should a company such as Starbucks balance profitability with social conscience when considering a business decision such as this?