Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

More documents

Recommendations

Info

The Coffee Industry – An OverviewIt is believed that coffee was first consumed as a hot beveragein East Africa during the 11th century. Today, coffee is oneof the most popular beverages, with more than $80 billionin retail sales worldwide.* Furthermore, the coffee industryprovides a livelihood for an estimated 25 million coffeefarmers* in more than 60 coffee-producing countries.*The coffee market has always been prone to ups and downs,mostly related to the balance between supply and demand.Back in 2001, coffee prices fell to a record low of $0.42 perpound ($0.91 per kilogram), and fluctuated near the bottomfor several years. These particular market conditions created aclimate of economic instability that had an impact on manyfarmers and their communities. Today’s market conditionsare greatly improved, evident by recent prices of coffee tradedon the New York “C” market (the worldwide reference usedby coffee traders). In fiscal 2006, world coffee prices averaged$1.04 per pound ($2.29 per kilogram).There are two commercially viable species of coffee – robustaand arabica. High-quality arabica coffee is grown on farmsthat range from very small family-run parcels to large-scaleestates, located primarily between the Tropics of Cancer andCapricorn and situated at higher elevations. These elevationsprovide optimal climatic conditions needed to grow the typeof coffee that is considered specialty grade.The higher-quality and more expensive arabica beans aresold as specialty coffee, which accounts for approximately10 percent** of total worldwide coffee purchases, includingthe coffee Starbucks buys. Starbucks purchases high-qualityarabica coffee beans, paying premium prices for premiumquality. These coffees are sold under the Starbucks, Seattle’sBest Coffee and Torrefazione Italia brands.Quick Coffee Facts:Total worldwide coffee production (Oct. 2005–Sept. 2006):15 billion pounds (7 billion kilograms)*Total coffee purchased by Starbucks (Oct. 2005–Sept.2006): 294 million pounds (133 million kilograms)Number of coffee farmers worldwide: 25 million*Number of countries where coffee is grown: About 60*Number of countries where Starbucks bought coffee infiscal 2006: 24* International Coffee Organization** Specialty Coffee Association of AmericaP R O D U C T S 17
Creating a Sustainable ApproachAfter years of traveling to coffee-growing regions around theworld, we have come to deeply appreciate the care that goesinto producing high-quality coffee. Our coffee buyers, qualityexperts and agronomists spent considerable time in the fieldduring fiscal 2006, sometimes traveling great distances toreach a particular coffee farm.These visits are always worthwhile, especially when we havebeen able to engage directly with farmers, observe theirbest practices, gain insight about their short- and long-termchallenges and identify ways that Starbucks can contributeto the longevity of their business. More important, theyhave helped to raise our awareness about the need for a moresustainable approach to coffee production – one that toucheson every essential aspect of the supply chain – from farmingto processing to exporting.When we began our journey to create a more sustainablemodel, there were several key assumptions we considered andwhich we still believe to be relevant today. We assume that:• A holistic strategy for sustainability must include criteriafor quality, social, environmental and economic aspects.• Premium prices paid for coffee are linked topremium quality.• Economic transparency is required and necessary toevaluate whether farmers receive equitable payment fortheir crops.• Our strong relationships and direct engagement withcoffee farmers and suppliers will keep us in touch withtheir progress and issues.• Coffee-growing communities will benefit from theeconomic stability of local farmers as well as from targetedcommunity investments.• Access to credit and other resources will enablefarmers to make quality improvements and strengthentheir businesses.• Certification labels, such as Fair Trade Certified andorganic, help to advance specific aspects of sustainablecoffee farming.• By embracing sustainability, Starbucks can lead changewithin the coffee industry.As our journey progressed over several years, we created andlaunched a number of programs and initiatives. Collectively,they represent the key components of Starbucks sustainablemodel for coffee production, and have been the focus of ourongoing efforts. They are:• Coffee and Farmer Equity (C.A.F.E.) Practices, a set ofcoffee-buying guidelines, was formally introduced infiscal 2004.• Starbucks Farmer Support Center, an on-the-ground fieldoffice located in Costa Rica, opened in fiscal 2004 toprovide technical resources and ongoing support to coffeefarmers throughout the world.• Funding of coffee community projects was started infiscal 1998.• Starbucks Black Apron Exclusives program launchedin fiscal 2004 to showcase and recognize the productionof rarified coffees of exceptional quality, and rewardthe origin farming community with funding for alocal project.• Loans that enable farmers to access credit began infiscal 2001.• An alliance with Conservation International began in1998 to promote environmentally sound practices aimed atpreserving biodiversity in some coffee-growing regions inLatin America.• The purchasing of certified coffees, such as Fair TradeCertified and organic coffees – both of which promoteaspects of a sustainable farming model – began infiscal 2000.• A partnership with the African Wildlife Foundation toadvance sustainable farming practices in East Africa wasinitiated in fiscal 2005.My Starbucks –I want you - my Starbucks friends – toappreciate the impact your company ishaving on higher prices being paid tocoffee farmers in Papua New Guinea.The local mill is paying the best pricelocal farmers have ever been paid.Everyone here knows Starbucks is buyingthis coffee, but only if it’s good quality.So now farmers are competing with theirquality so they can sell to Starbucks.It shows me how supply and demand iscontributing to a sustainable solution.Thank you, Starbucks.Aarlie Hull(A coffee supplier to Starbucks)P R O D U C T S 18
Page 1 and 2: Starbucks Corporation Corporate SoC
Page 6: CONTENTSPAGEGLOBAL REPORTINGINITIAT
Page 9 and 10: To measure how well we are doing at
Page 11 and 12: Integrating Corporate SocialRespons
Page 13 and 14: Policy Governance CouncilOver the y
Page 15 and 16: External RecognitionSocially Respon
Page 17: OUR WORLD OF PRODUCTSFor 35 years,
Page 21 and 22: The Four Fundamentals ofC.A.F.E. Pr
Page 23 and 24: Our priorities are to increase the
Page 25 and 26: What is Fair Trade Certified ?The
Page 27 and 28: Access to CreditDuring the growing
Page 29 and 30: Tropical Storm Stan Relief EffortsI
Page 31 and 32: Procurement Practices for Sustainab
Page 33 and 34: Dairy and Bakery ProductsDairy and
Page 35 and 36: Ethos WaterStarbucks acquired the
Page 37 and 38: Starbucks GrowTH andCommunity Impac
Page 39 and 40: Local Community Case StudiesLa Mesa
Page 41 and 42: Starbucks Community InvestmentsStar
Page 43 and 44: South Asia Tsunami CommunitiesAs pa
Page 45 and 46: Investing in Communities Aroundthe
Page 47 and 48: The Starbucks FoundationStarbucks c
Page 49 and 50: Supporting Youth: Arts and Literacy
Page 51 and 52: Nutrition Information on Starbucks
Page 53 and 54: Marketing to YouthStarbucks custome
Page 55 and 56: Our Commitment toEnvironmental Stew
Page 57 and 58: Energy ConsumptionSaving energy is
Page 59 and 60: These efforts build on ongoing init
Page 61 and 62: Looking to Our Supply ChainBeyond o
Page 63 and 64: Portrait of a Starbucks StoreAt the
Page 65 and 66: Listening to Our PartnersOur workpl
Page 67 and 68: Providing Benefits to Our PartnersS
Page 69 and 70:
Focusing on Healthcare and Wellness
Page 71 and 72:
Partner Training and CareerDevelopm
Page 73 and 74:
Fostering Diversity andInclusionAt
Page 75 and 76:
My Starbucks -The National Braille
Page 77 and 78:
Independent Assurance ReportTo the
show all

Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Create successful ePaper yourself

Delete template?

Save as template?