Purpose - The purpose of this paper is to evaluate two multinational companies that seem to have reconciled the two mandates of CSR and profit maximization while becoming multibillion dollar companies and examine their organizational culture and practices and their management and leadership in order to determine the controlling factors, if any, that have elicited their success while renowned for their CSR policies. Research design, data, and methodology - This is a case study, an analytical approach, which focuses on exploring and analyzing the CSR policies of Starbucks and IKEA. Results – IKEA and Starbucks considered their position in the global business environment and their social responsibilities as crucial and did more than a cursory lip service to the issues. In fact, they both took the more difficult long-term approach and tried to resolve the root causes for the environmental and social issues in their supply chain. Ultimately though, it is the ethical leadership of the top management that sets the tone for the organizational culture and its CSR. Conclusion - IKEA and Starbucks are “living proof” that a company can be successful while treating its employees and the community of suppliers and associates with respect and dignity and while making this world a better place.
Darling, J., Gabrielsson, M., & Seristo, H. (2007). Enhancing Contemporary Entrepreneurship. European Business Review, 19(1), 4-22.
Erwin, P. M. (2011). Corporate Codes of Conduct: The Effects of Code Content and Quality on Ethical Performance. Journal of Business Ethics, 99(4), 535-548.
Ethisphere (2016). World’s most ethical companies: Honorees. Retrieved March 1, 2016, from http://worldsmostethicalcompanies.ethisphere.com/honorees/
Gallo, C. (2013, December 19). What Starbucks CEO Howard Schultz Taught Me about Communication and Success, Forbes. Retrieved March 1, 2016, from http://www.forbes.com/sites/carminegallo/2013/ 12/19/what-starbucks-ceo-howard-schultz-taught-me-about-communication-and-success/#6dfaa74b7d2d
Glaser, C. (2006, May 15). CEO’s Moral Compass Driving Firm’s Profits. Atlanta Business Chronicle. Retrieved March 1, 2016, from http://www.bizjournals.com/ atlanta/stories/2006/05/15/smallb2.html
Hahn, Y. (2015). IKEA and corporate social responsibility: A case study. Journal of Distribution Science, 13(10), 45-50.
Holt, S. (2015). Reassessing our perspectives in leading. Organization Development Journal, 33(4), 9-25. Retrieved March 1, 2016, from http://library.esc.edu/ login?url=http://search.proquest.com.library.esc.edu/docview/1792211053?accountid=8067
IKEA Group (2016). FY15 Yearly Summary. Retrieved March 1, 2016, from http://www.ikea.com/ms/en_US /pdf/yearly_summary/IKEA_Group_Yearly_Summary_2015.pdf
Ingvar Kamprad Quotes (2016). AZ Quotes. Retrieved March 1, 2016, from http://www.azquotes.com/ author/7710-Ingvar_Kamprad
IWAY Standard (2012, December 1). 5.1 ed. IKEA. Retrieved March 1, 2016, from http://www.ikea.com/ ms/en_US/pdf/reports-downloads/ikea-code-of-conduct-the-iway-standard.pdf
Loudenback, T. (2015, August 16). How IKEA founder Ingvar Kamprad became one of the riches self-made billionaires. Business Insider. Retrieved March 1, 2016, from http://www.businessinsider.com/ how-ikea-founder-ingvar-kamprad-became-a-billionaire-2015-7
Marques, J. F. (2008). Spiritual performance from an organizational perspective: The Starbucks way. Corporate Governance, 8(3), 248-257. Retrieved March 1, 2016, from doi: http://dx.doi.org.library.esc. edu/10.1108/14720700810879141
Morsing, M., & Roepstorff, A. (2015). CSR as corporate political activity: Observations on IKEA's CSR identity-image dynamics. Journal of Business Ethics, 128(2), 395-409.
Robins, F. (2005). The future of corporate social responsibility. Asian Business & Management, 4(2), 95-115. Retrieved March 1, 2016, from doi: http://dx.doi.org.library.esc.edu/10.1057/palgrave.abm.9200125.
Schultz, H. (2016). Executive team: Chairman and chief executive officer. Retrieved March 1, 2016, from https://news.starbucks.com/leadership/howard-schultz
Schultz, H., and Yang, D. (1997). Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time. New York, New York: Hyperion.
Shen, L. (2016, February 12). Ikea Has Been Accused of Avoiding 1 Billion Euros in Taxes. Fortune, Retrieved March 1, 2016, from http://fortune.com/ 2016/02/12/ikea-tax-avoidance/
Starbucks Company (2016). Timeline. Retrieved March 1, 2016, from http://www.starbucks.com/about-us/ company-information/starbucks-company-timeline
Strauss, K. (2016, March 9). The World’ Most Ethical Companies 2016, Forbes. Retrieved March 1, 2016, from http://www.forbes.com/sites/karstenstrauss/2016/ 03/09/the-worlds-most-ethical-companies-2016/#79e3b40a73dc