Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Being Locally RelevantProviding a consistent experience for our customers isone of Starbucks greatest strengths. At the same time, weare respectful of our local communities throughout theworld and, when possible, modify our store environmentand customer experience in various ways. For instance, wehave adapted our menu at times to include special fooditems in Asia, Europe and elsewhere; adjusted the days andhours of our store operations depending on local customs;incorporated architectural elements in our store designto reflect the uniqueness of a neighborhood; and createddifferent types of store environments that are culturallyattuned to and meet our customers’ needs.In the UK, Starbucks has an initiative aimed at incorporatingfeatures that make our stores relevant to the localcommunities. For example, in Manchester, England, we havepurchased several items for our local stores from BenchmarkFurniture Design, a local maker of wood furnishings with asocial mission.Some of our stores in the U.S. are also adapted with alocal flair. For instance, instead of building a new store inChicago’s Beverly neighborhood, Starbucks refurbishedan existing limestone building and preserved many of theoriginal features, including a distinctive fireplace mantelwhich we designed to be a focal point of our new store.Supporting Local Communities andEconomic DevelopmentWhether it’s an existing location or we are entering aneighborhood for the first time, an important way we ensurestrong ties to the community is through our support of localprograms and causes. This takes a variety of paths, includingour ongoing support for community-based organizations;encouraging our partners to actively volunteer; establishingalliances with nonprofit organizations; and other localengagement activities.In addition to this type of support, Starbucks has beena catalyst for local economic development. Since 1998,Starbucks has had a joint venture with Johnson DevelopmentCorporation, a company owned by Earvin “Magic” Johnson,through Urban Coffee Opportunities, LLC (UCO). Thegoal of UCO is to bring Starbucks stores to diverse localcommunities in the U.S. At the end of fiscal 2006, there were102 UCO stores in operation.As the name suggests, UCO focuses on creating opportunitiesfor communities that may have been overlooked by otherprominent retailers, despite their long-term potential foreconomic vitality. At times, Starbucks has been the firstpremium brand retailer to site a store in a certain area, apresence that has helped to serve as an economic stimuluswith the creation of new jobs, use of local suppliers, and byattracting other major retailers to the neighborhood. (Formore information on UCO, please see page 75)Building Civic AlliancesIn fiscal 2006, Starbucks worked closely with civicorganizations that helped us better understand theopportunities, concerns and challenges faced by our localcommunities, including the U.S. Conference of Mayorsand the National Trust for Historic Preservation – MainStreet Center.These relationships have been mutually beneficial. Notonly have we forged closer connections to our communitiesthrough these civic relationships, we have also been ableto educate the public about Starbucks brand and the valuewe bring to local municipalities, and gain a broader rangeof insights and feedback at the civic level. We believe theseorganizations have benefited from Starbucks support of issuesthat are important to their constituents. Historic preservation,the environment, infrastructure, jobs and urban revitalizationare just a few of the issues we collectively address throughthese alliances.In the following pages, we explain how Starbucks isinvesting in our local communities in the U.S. and ourinternational markets.S O C I E T Y39