The Impact of Digital Transformation Trends on Corporate ESG Case of Starbucks

Abstract

With the intensification of the global greenhouse effect, people's attention to the environment is increasing day by day. Sustainable development has become an important indicator for evaluating enterprises, and the priority of the ESG concept in the business process is gradually increasing. This article takes Starbucks, a leading global coffee retail company, as a typical case of digital transformation for analysis. It successively elaborates on the impact of the company's five major digital transformation processes on ESG. At the same time, by comparing with other globally renowned enterprises, it analyzes the necessity of digital transformation for the ESG of enterprises. Through case analysis and comparison, it is concluded that the digital transformation of enterprises not only benefits ESG indicators in the long-term business development process, but also can expand the competitive advantage of enterprises. This study finds that after enterprises undergo digital transformation; they effectively enhance their ESG by leveraging the information processing and analysis capabilities of digital tools. For instance, Starbucks has promoted the sustainable development capacity of the enterprise by replacing the traditional physical marketing model with digital gift cards and electronic marketing emails. By showcasing the supply chain through blockchain technology and increasing the exposure of migrant workers who grow coffee beans, the transparency and image of enterprises have been further enhanced. Not only that, but Starbucks has also developed Deep brew AI based on machine learning models to analyze market consumption preferences and thereby enhance management efficiency. All the above examples can prove that the digital transformation of enterprises has a positive impact on ESG. There is a positive correlation between the investment of enterprises in technology and ESG.