Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Starbucks Social ResponsibilityStandards – Manufactured GoodsStarbucks purchases an increasing number of manufacturedproducts that are sold in our stores or used in our businessoperations. With the aim to ensure these products areproduced without harm to workers or the environment,in fiscal 2006 we created a new internal organization –Sustainable Procurement Practices (SPP) – focused onsocially responsible procurement practices, the Supplier SocialResponsibility Program and Supplier Diversity.Initially launched in 2005, the Supplier Social ResponsibilityProgram aims to integrate responsible procurementpractices throughout Starbucks global supply chain formanufactured goods by June 2010. This will help ensuresupply chain transparency, encourage a shared responsibilitybetween Starbucks buyers and suppliers, and support soundpurchasing decisions through a system of standards, tools andfactory assessments.In fiscal 2006, we advanced our work in responsible sourcingfor manufactured goods by developing an enhanced setof factory standards, creating tools for monitoring andcompliance, and initiating a pilot test of 10 factories inChina. Our Supplier Social Responsibility Standards(SSR) for factories include requirements for worker healthand safety, worker treatment and rights, worker hours andcompensation, transparency and environmental protection.Rather than seek short-term remedies for issues that mayarise, Starbucks stresses the importance of continuous,measurable improvement among our suppliers.Additional progress made this year includes:• Development of new Zero Tolerance Standards todesignate critical non-negotiable behaviors for suppliersof manufactured goods, including lack of transparency,denied access, child labor, forced labor, nonpayment ofwages and physical/sexual abuse.• Development of and testing of processes and tools toimplement the SSR Standards. These include factoryassessment forms, an SSR Standards Manual and otherresources.• Training of our internal buyers on the SSR guidelines,standards and tools.F U T U R E G O A L SOur goals for fiscal 2007 include:• Selecting factory monitoring firms to conductindependent assessments.• Rolling out the Supplier Social Responsibility (SSR)Standards.• Assessing all new factories and systematicallyassessing existing factories.• Conducting three factory training sessions for anestimated 60 factories.• Verifying and reporting on our factory base/supplychain for manufactured products.Key Supplier Social Responsibilit yProgram Policies1. Code of Conduct – overarching business standardsand practices2. Standards for Manufactured Goods & Services –specific guidelines that incorporate applicable laws,codes and regulations3. Zero Tolerance Standards – non-negotiable standardsfor being a Starbucks supplierP R O D U C T S 33