LGT3106 WMM

Topics: Corporate social responsibility, Supply chain management, Supply chain Pages: 5 (1512 words) Published: March 16, 2015
 How to incorporate warehouse and materials management into corporate social responsibility
Student Name: Zhang Xuan
Student ID: 12134034D

Introduction and background
Corporate social responsibility (abbr. CSR) refers a voluntary process of integrating environmental as well as social concerns into company’s business operations and incorporating this concept with interested party (Cruz, 2013). It entails that company should not only concern the profit but should also give back benefit to the environment and society. Over the past years, there has been an apparent increasing social awareness among consumers, which drives organization to keep abreast of this global trend and keep committed to deliver both private and public benefit. In this circumstance, it is no longer acceptable for a corporation to experience economic prosperity in isolation from those agents impacted by its actions. In other word, company is expected to be a good corporate citizen. Therefore, how to incorporate this concept into company’s corporate goal and implement it into operations becomes a big issue. Penetrating the concept into every concerning activity and party along the value chain is an important aspect when implementing CSR. In this regard, warehousing and materials management, which accounts for around 22% value of entire supply chain (Caters&Rogers, 2008), should play an essential role in the CSR incorporated activities. Moreover, successfully and sustainable managing warehouse will provide a solid base for company to achieve a more sophisticated and strategic CSR goal.

This paper will firstly discuss some general practices and rules of materials and warehousing management in corporate social responsibility and then take Starbucks as a successful example with highly social concerns. Before drawing a conclusion, an analysis concerns how Starbucks’s series of practice and achievement could act as a benchmark or provide enlightens for other companies, or even the entire industry.

Case study—Starbucks

Established in 1971 in Seattle, Starbucks is nowadays the largest coffeehouse company with its business penetrating into 63 countries and territories. Sourcing coffee bean from Latin America, Africa and Asia, Starbucks will transport all those beans to its warehouses in EU, the US and Asia after they are baked and packaged. The allocation and number of its main warehouses shows as follows:

Location
Large Warehouses (200,000-300,000 feet square)
Subsidiary smaller DC

The US
5
33
EU
2
3
ASIA
2
5
Canada
0
7

This allocation of warehouses is in consideration of the market size and distribution network, effectively serving 3 major markets of Starbucks (the US and Canada recognized together as North America). Besides, it is also in compliance with Starbucks’ single and global system, which is critical considering its far-flung supply chain. Therefore, successful warehousing design and management contribute to the efficiency and effectiveness of the value chain, providing a solid base for company’s further commitment in CSR.

When constructing those facilities in the US, nearly twenty percent of materials were from recycled content and over seventy-five of construction waste was recycled. The facility features state-of-the-art lighting and water fixtures, and use wind energy as part of its power. This action wined Starbucks silver LEED (Leadership in Energy and Environmental Design) status from the US Green Building Council for its use of recycled materials and commitment to energy and water conservation (Starbucks CSR report, 2009). Apart from the enhancement in brand image, this practice also results in an economic benefit via lowering the warehousing cost, and generates positive influence in the market.

Since 2008, Starbucks has been working on a system-based approach of cup recycling, which is a sort of reverse logistics. In 2009, it launched two main activities, the first...

References: Cruz, J. (2013). Modeling the relationship of globalized supply chains and corporate social responsibility. Journal of Cleaner Production, 73-85
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International journal of physical distribution & logistics managem ent, 38(5), 360-387.
Starbucks CSR Report, 2009. Retrieved from http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
Cup Recycling | Starbucks Coffee Company. (n.d.). Starbucks Coffee Company. (2013).Retrieved from http://www.starbucks.com/responsibility/global-report/environmental-stewardship/cup-recycling
OPPERMAN, J. (n.d.). Where Does That Starbucks Cup Go? - NYTimes.com.Energy and Environment - Green Blog - NYTimes.com. (2013). Retrieved from
http://green.blogs.nytimes.com/2010/11/30/what-next-after-tossing-a-starbucks-cup/
Luciano Barin Cruz Dirk Michael Boehe, (2008)."CSR in the global marketplace", Management Decision, Vol. 46 Iss 8 pp 1187 - 1209
Mullins, L. J.,(2002).Management and Organisational Behaviour, 6th edition (Financial Times Prentice Hall, London)
Refeenvironmentally sustainable manner while recogn- ising the interests of its stakeholders.1
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