Example: barber

RESPONSIBLE BUSINESS PRACTICES

At Starbucks, the choices we make and actions we take area reflection of our core values. To become what Starbucks istoday the leading retailer, roaster and brand of specialty coffee took the vision to create a values-driven coffee company inspiredby passion, dedicated to quality and guided by exceptionallystrong aspires to be recognized as much for our commitmentto social responsibility as we are for the quality of our ve focused our efforts on improving social and economicconditions for coffee farmers; minimizing our environmentalimpact; making a positive contribution in the communities wherewe do BUSINESS ; and providing a great work environment for ourpartners (employees).Throughout our 30-year history, we have been committed to socialresponsibility. Today, with the strength of our brand in themarketplace, Starbucks has an opportunity to lead by responsibility starts with being accountable to Starbucksstakeholders our partners, customers, shareholders, suppliers,community members and others and communicating openlyabout our BUSINESS PRACTICES and performance.

During the past year, a worldwide surplus of coffee has dramatically reduced wholesale prices.At the end of fiscal 2001, prices paid for coffee on the “New York C” had dipped to $0.48/lb—a level not seen in nearly 30 years. Responsible Business Practices Responsible Business Practices COMPANY PROFILE Fiscal 2001—October 2,2000 to

Tags:

  Business, Worldwide

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of RESPONSIBLE BUSINESS PRACTICES

1 At Starbucks, the choices we make and actions we take area reflection of our core values. To become what Starbucks istoday the leading retailer, roaster and brand of specialty coffee took the vision to create a values-driven coffee company inspiredby passion, dedicated to quality and guided by exceptionallystrong aspires to be recognized as much for our commitmentto social responsibility as we are for the quality of our ve focused our efforts on improving social and economicconditions for coffee farmers; minimizing our environmentalimpact; making a positive contribution in the communities wherewe do BUSINESS ; and providing a great work environment for ourpartners (employees).Throughout our 30-year history, we have been committed to socialresponsibility. Today, with the strength of our brand in themarketplace, Starbucks has an opportunity to lead by responsibility starts with being accountable to Starbucksstakeholders our partners, customers, shareholders, suppliers,community members and others and communicating openlyabout our BUSINESS PRACTICES and performance.

2 We are, therefore,publishing our first annual Corporate Social Responsibility Reportto communicate the way we do goal throughout this Report is to provide information to ourstakeholders about our policies and PRACTICES , and to provide,when possible, measures of our performance. By publishing thisReport, Starbucks joins a small but growing number of companiesthat are assessing their corporate citizenship, taking measuresto provide transparency on performance and being accountableto stakeholders. We realize that every day we must conduct ourbusiness in ways that earn your admiration and trust. We hopethis Report helps us to do just regards,ABOUT THIS REPORTThe information in this Reportis for fiscal year 2001 (October 2,2000, through September 30, 2001)and covers Starbucks company-operated retail and distributionoperations in North America andsourcing activities in coffee-origincountries.

3 Other than somecompany-wide financialinformation, Starbucks specialtyoperations and international retailmarkets are not included in thisReport. Starbucks North Americanoperations include Canada and , excluding Abramowitz PhotographyHoward Schultzchairman andchief global strategistOrin C. Smithpresident andchief executive officerOrin SmithHoward SchultzRESPONSIBLE BUSINESS PRACTICES3 The BUSINESS Case for Social Responsibility3 Sustainability is Essential to Our Success 4 Sourcing in Origin Countries 5 Social Investments in Origin Countries6 Commitment to Origins8 Minimizing Our Environmental Impact 11 Working with Our Suppliers13 Listening to Our Stakeholders INVESTING IN OUR COMMUNITIES17 Part of the Neighborhood18 Community Investments21 The Starbucks FoundationINVESTING IN OUR PARTNERS23 Creating a Strong Workplace EnvironmentTa b l e o f C o n t e n t sStarbucks Mission StatementTo establish Starbucks as the premierpurveyor of the finest coffee in the worldwhile maintaining our uncompromisingprinciples as we following six guiding principles willhelp us measure the appropriateness ofour

4 Decisions: Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essentialcomponent in the way we do BUSINESS . Apply the highest standards ofexcellence to the purchasing, roastingand fresh delivery of our coffee. Develop enthusiastically satisfiedcustomers all of the time. Contribute positively to ourcommunities and our environment. Recognize that profitability isessential to our future Fiscal 2001 Report3 THE BUSINESS CASE FOR SOCIAL RESPONSIBILITYS tarbucks defines corporate social responsibility as conducting our BUSINESS in waysthat produce social, environmental and economic benefits to the communities inwhich we operate. In the end, it means being RESPONSIBLE to our is growing recognition of the need for corporate accountability. Consumersare demanding more than product from their favorite brands.

5 Employees arechoosing to work for companies with strong values. Shareholders are more inclinedto invest in businesses with outstanding corporate reputations. Quite simply, beingsocially RESPONSIBLE is not only the right thing to do; it can distinguish a companyfrom its industry that there are positive returns for being a socially RESPONSIBLE company,Starbucks believes it makes sense to view our actions in terms of investments. Byinvesting in sustainable BUSINESS PRACTICES and the origin countries that provide ourcoffees, we encourage a continued high-quality supply. In the communities where wedo BUSINESS , we invest in local organizations to improve the quality of life. And byinvesting in our partners, through competitive wage and benefit structures, andopportunity for stock ownership, we have an edge in attracting and retainingqualified, productive employees and that helps reduce our hiring, training andother turnover the end, there is no conflict between doing good and doing well.

6 At Starbucks, webelieve the two go IS ESSENTIAL TO OUR SUCCESSC offee is second only to water as the world s most popular drink, with more than400 billion cups consumed every year. Coffee is a giant industry employing 20million people globally, and ranks as the second most traded commodity on theplanet after , Starbucks has purchased our coffees at premiums over the world scommodity market prices (or the New York C, which is the worldwide referenceused by coffee traders for commodity-grade coffee). The premiums we pay vary bythe type of coffee, as well as the overall quality of that particular coffee, relative tothe quality of New York C the past year, a worldwide surplus of coffee has dramatically reducedwholesale prices. At the end of fiscal 2001, prices paid for coffee on the New YorkC had dipped to $ a level not seen in nearly 30 BUSINESS PracticesResponsible BUSINESS PracticesCOMPANY PROFILEF iscal 2001 October 2, 2000 toSeptember 30, 2001:(Information below represents totalcompany unless noted)Total net revenues: $ billion Net earnings: $181 million Earnings per share: $ Total income taxes: $108 millionStock price (high/low): $25/$14 Number of company-operated locations: 2,971 (North America)Number of partners (employees):54,000 (North America)Location of Starbucks corporateheadquarters.

7 SeattleOpposite page (top) Starbucks CoffeeCompany worldwide headquarters, knownwithin the company as the StarbucksSupport Center, located in page (bottom) El TriunfoBiosphere Reserve, Chiapas, Mexico,where Starbucks Shade Grown Mexicocoffee is price drop affects all growers, particularly those with small family farms thatproduce nearly three-fourths of the world s coffee supply. Starbucks purchases ourcoffee from many of these small, multigeneration farms, paying premium prices thatenable farmers to provide for their families and maintain their family farms. AsStarbucks BUSINESS expands, so does our need for the coffee they Starbucks purchases about one percent of the global coffee supply, ourpurchases are for only the highest quality arabica coffee beans grown in the of Starbucks exceptionally high standards for quality coffee, one of our mostcritical needs is to secure a long-term supply of unroasted green coffee from thefarmers we know and sustainability of their farms is intrinsically linked toour recognizes the importance of helping to ensure that coffee farmers have asustainable livelihood.

8 To address this challenge, we have moved away from NewYork C -based formula pricing, focusing on several strategies including: Securing more contracts based on outright, negotiated prices. Negotiating more long-term contracts. Increasing the amount of coffee purchased directly from farms and cooperatives. Assisting coffee farmers in gaining access to affordable credit. Introducing new coffee sourcing guidelines that reward farmers for usingsustainable growing PRACTICES . Offering financial support for health and educational projects that directly benefitfarmers and their communities. Expanding our sustainable coffee category, Commitment to Origins, includingShade Grown Mexico and Fair Trade Certified IN ORIGIN COUNTRIESS tarbucks helps farmers improve their standard of living while ensuring a sustainablesupply of high-quality coffee by purchasing at outright prices, signing long-termcontracts and buying directly from farms and cooperatives (co-ops).

9 For the coffeeStarbucks purchased in fiscal 2001 and the contracts that Starbucks has negotiatedfor coffee purchases in fiscal 2002, Starbucks pays an average price of $ perpound, excluding freight, for green coffee purchased in these PricesCoffee prices can be negotiated either at outright prices or in relationship to theprevailing wholesale price. Starbucks preference today is to source coffee at outrightprices. This provides stability and predictability for both buyers and sellers. In fiscal2001, 12 percent of Starbucks coffee supply was purchased at outright prices. Forthe orders we placed in fiscal 2001 that will be delivered in fiscal 2002, 74 percentof our green coffee will be purchased at outright ContractsLong-term contracts with suppliers benefit both producers and Starbucks.

10 Farmersare guaranteed attractive prices over multiple crop years, and Starbucks is able tosecure future coffee supplies at predictable costs. During fiscal 2001, nearly threepercent of Starbucks total supply of coffee was delivered through long-termcontracts. For fiscal 2002 delivery, Starbucks has been able to increase the amountof coffee purchased under long-term contracts, negotiated at outright prices, to31 *80%70%60%50%40%30%20%10%0%Long-termcont racts*Directpurchases*SOURCINGF iscal 2001 Fiscal 2002 Percentage of Total Coffee Purchased* Not mutually exclusiveMary Williams, Starbucks senior vicepresident of coffee, meets with HectorCortez in the Atitlan region ofGuatemala while on one of her manycoffee buying Fiscal 2001 Report5 Direct PurchasingSmall to midsize farms and co-ops provide most of the coffee beans for have visited many of these farms and built relationships with the fiscal 2001, nine percent of our total coffee supply was purchased directly fromfarms and co-ops.


Related search queries