Many businesses nowadays are focusing on being socially responsible. Whether it is donating a percentage of profits to a cause or agreeing to function ethically, more and more companies are agreeing to abide by these responsibilities. Starbucks for example, is one such company. They have recently announced that they will be offering fair trade espresso at all Canadian university campuses.

This is a huge decision for the company because it impacts them directly. Fair trade and ethically sourced products are often more expensive because the workers are paid fairly and the facilities are safe. Fair-trade products used to be a major point of difference for businesses, however many companies now support the fair trade industry. Starbucks is a profit-driven corporation, so they are looking to benefit themselves with this new value proposition. I think that by selling fair-trade coffee, Starbucks will only become more profitable. They already had a huge consumer base, and now they can cater to those who are socially conscious. While their prices may increase, people will overlook it if they feel like they are contributing to the greater good. I know I feel better buying from Starbucks now that they support fair trade.

Source:

http://www.the-peak.ca/2014/10/starbucks-announces-fair-trade-offerings-at-universities-across-canada/

http://www.starbucks.ca/responsibility/sourcing/coffee

Photo source:

http://persephonemagazine.com/2013/01/is-fair-trade-a-fair-deal/starbucks-fair-trade-ad/

http://www.starbucks.com.au/Global-Responsibility.php

Many entrepreneurs have a hard time developing products from ideas simply because they cannot find the funds. Kickstarter is a website that helps business people solve this problem. Through this site, people can pitch an idea and get people to donate money, or in other words, invest in this person. This is different from the type of investing we learned in class, where companies give up shares for money. They loose ownership of their own company in order to earn profits. In some ways, Kickstarter is better than the typical way to invest. This way new businesses get to own 100% of their company and earn thousands, or even millions of dollars for their business. Eric Migicovsky did this with Pebbles, and Sauder alum, Janice Cheam did this with Neurio, proving how effective online funding can be. I think Kickstarter is an easy way to receive funding, however it is hard to market the product properly. Many failures occur because of not enough advertising, or producing something that isn’t centered on the consumer’s desires. Finding the funds for a business venture is often convincing the right people that you right product.

Sources:

http://www.nytimes.com/2012/04/30/technology/kickstarter-sets-off-financing-rush-for-a-watch-not-yet-made.html?pagewanted=all&_r=0

http://www.theglobeandmail.com/report-on-business/small-business/sb-money/business-funding/frustrated-with-lack-of-venture-capital-in-canada-startup-moves-south/article16522672/

Photo Source:

http://blogs-images.forbes.com/thumbnails/blog_1549/pt_1549_2028_o.jpg?t=1334953513

British Columbia is facing yet another problem regarding the usage of First Nation’s land. BC Hydro is planning on making a dam and hydroelectric generating station on the Peace River. This will cause flooding, as well as destroying precious farmland and wildlife habitat. BC Hydro isn’t even sure if it is the best project to go ahead with. The First Nations’ response to this project was out of BC Hydro’s control, meaning it is an external factor. Furthermore, the business model only had value propositions for people who benefit from this extra energy source. It excluded such a large group of people, which has caused problems. Because British Columbia is Indian land, it isn’t fair for the First Nations people to be forced into complying when they are directly affected. They allow us to use their land so it is disrespectful for companies such as BC Hydro to not consider their impact on these indigenous people. These two groups, BC Hydro and the First Nations, are driven by two different factors. The company is profit driven whereas the First Nations are environmentally driven. An agreement can only be reached through compromise, which will hopefully be the outcome of further communication.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html?__federated=1

http://globalnews.ca/news/1441980/b-c-regulator-should-review-site-c-mayor/

Photo sources:

http://warriorpublications.wordpress.com/2013/12/08/b-c-hydro-faces-widespread-community-opposition-over-site-c-dam/

https://www.bchydro.com/energy-in-bc/our_system/generation.html