Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

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Other Channels for Partner FeedbackIn addition to the Partner View Survey, several otherresources offer partners the opportunity to communicateconcerns, provide input about our business practices, andreport matters that appear inconsistent with the company’sMission Statement and Guiding Principles and/or legaland ethical objectives. These include Mission Review andthe Business Conduct Helpline, as well as frequently heldOpen Forums.Mission ReviewMission Review allows partners a way to voice concerns whenthey believe company polices or practices are inconsistentwith Starbucks Mission Statement and Guiding Principles,and to offer suggestions on how the company can do better.Mission Review comments have helped shape and continueto influence a variety of programs: Tuition Reimbursement,Recognition, Risk Management’s Shoes for Work andthe Barista-Level Training Program are a few examples.Currently, the Mission Review team handles between350 and 500 comments each month. In fiscal 2006, ourMission Review team recorded more than 4,600 contactsfrom partners.Each partner submission receives a personal and timelyfollow-up, either by someone knowledgeable about theissue or topic raised or a member of the Mission Reviewteam. Executives receive a monthly summary of the volumeand types of issues raised through Mission Review, so thatemerging issues can be identified and addressed.We are working to improve partner access to MissionReview. Electronic submissions through Starbucks websitewere successfully tested in selected stores in fiscal 2006.Our goal is to make this capability available to all NorthAmerican company-operated stores in fiscal 2007. Some ofour international markets also have embraced this conceptand provide similar feedback forums to their partners.Efforts are currently underway to connect and coordinatethese programs.Business Ethics and ComplianceStarbucks Business Ethics and Compliance (BEC) programdevelops and distributes Starbucks Standards of BusinessConduct, facilitates legal compliance and ethics training,investigates sensitive issues including potential conflictsof interest, and provides mechanisms for partners tovoice concerns.The following channels are available for partners to raise anyquestions or concerns, including potentially sensitive mattersthey are uncomfortable reporting elsewhere:• Business Conduct Helpline, a toll-free phone number thatpartners may call anonymously, and which is answered24 hours a day, seven days a week by an independentcall center• Email via BusinessConduct@Starbucks.com• Direct contact with BEC team members• Auditline, a toll-free phone number for third parties, suchas vendors, investors, and customers, to report possibleaccounting or auditing irregularities• Referrals from other departments and programs, such asMission ReviewThe majority of reports received by the BEC programinvolve employee relations issues, a trend which is consistentwith other companies – retail or otherwise – that providealternative reporting mechanisms as part of a comprehensiveethics and compliance program. Starbucks does not limitthe types of issues or concerns that partners may report tothe BEC program through these communication methods.We welcome any and all concerns that partners are notcomfortable reporting to others or do not know how to reportto others. By providing these means of reporting, the programhelps to ensure that Starbucks continues to provide a greatwork environment for partners and to remain an employerof choice.Our comprehensive efforts to ensure an ethical workplace aredetailed in Starbucks Standards of Business Conduct, whichcan be reviewed in the “About Us” section of Starbucks.com.Employee RelationsPay, benefits,disciplinary action,and other categoriesthat impactday-to-day work83%Categories of Partner Concerns Reported toStarbucks Business Ethics and Compliance ProgramBusiness PracticesCorporate policy questionsand concerns (e.g., conflictsof interest, privacy andfinancial reporting)3%Safety & SecurityCategories involvingpartner and customersafety, facility conditionsand allegations of theft12%Customer RelationsComments or questionsthat involve customers –reported by partners, or inrare circumstances bycustomers who obtainedthe Business ConductHelpline number in error2%W O R K P L A C E65
Providing Benefits to Our PartnersStarbucks Total Pay package is the cornerstone of our pledgeto treat partners with respect and dignity. The Total Paypackage varies by country to make sure it is locally relevant.The components may include competitive base pay, bonuses,comprehensive health coverage, income protection, vacation,stock options, a savings program, adoption benefits, tuitionreimbursement and partner perks, including a discount onmerchandise in our stores.Pay at Starbucks reflects the knowledge, skills and experiencerequired for a specific job. We regularly consult industrysalary surveys to determine competitive rates, and payaccordingly. Partners are also eligible for merit pay increasesbased on performance.The chart below summarizes the core benefits that our eligiblepart- and full-time partners receive.Starbucks BenefitsPARTNER BENEFITSComprehensive healthcare benefits(U.S. and Canada)Bean Stock – Starbucks stockoption plan (eligible partners inthe U.S., Canada, UK, Hong Kong,Netherlands, Switzerland, Germany,Australia, Costa Rica, China,Thailand, Singapore, Chile, Republicof Ireland and Puerto Rico)S.I.P. – Stock Investment Plan (U.S.and Canada), Share Incentive Plan(UK)Future Roast – Starbucks 401(k)Plan (U.S.), RRSP – RegisteredRetirement Savings Plan (Canada)PROGRAM DESCRIPTIONSAND COVERAGEBenefits include medical, dental, vision,prescription drugs and alternative health coverage.In the U.S., Starbucks paid 77 percent of healthcoverage costs for partners and 60 percent fordependents. In Canada, 73 percent of costs werepaid for partners and 45 percent for dependents.The board of directors determines annual stockoption grants based on company performance upto 14 percent of our partners’ eligible base wages.Every partner through the director level receivesthe same percentage of his or her fiscal-yearwages. For fiscal 2006 performance, the basis forstock option grants was 14 percent.Partners can purchase company stock at adiscounted price on a quarterly basis (U.S. andCanada) or a semiannual basis (UK).Starbucks matches from 25 percent to 150 percent(based on the length of service from the partner’smost recent date of hire) on the first four percentof pay that partners contribute to the U.S. 401(k)Plan. Eligible Canadian partners receive a 25percent match on the first four percent of pay thatthey contribute to the RRSP.ELIGIBILITYOnce initially eligible, full- and part-time partners whoare paid a minimum of 240 hours per calendar quarterand their eligible dependents, including spouses,domestic partners and children. In fiscal 2006, 65percent of U.S. partners and 61 percent of Canadianpartners were eligible for these benefits.*Full- and part-time partners up through director levelwho have been employed by Starbucks since April1 and have been paid for at least 500 hours fromthe first of the fiscal year through March 31 or fromApril 1 through the end of the fiscal year. (Eligibilityrequirements may vary slightly by country.) More than70,000 partners qualified for Bean Stock for fiscal2006 performance.Partners who have worked as a regular Starbuckspartner for at least 90 days and have been paid for anaverage of 20 hours a week during the three monthspreceding the offering. No hours requirement in theUK. In fiscal 2006, 32 percent of eligible U.S. andCanadian partners participated in S.I.P.U.S. partners age 18 or older may participate after thecompletion of 90 days of service. Canadian partnersare eligible after one year of service. In fiscal 2006,21 percent of eligible U.S. partners participated inFuture Roast. Sixteen percent of eligible partners inCanada participated in the RRSP.*With approximately four company-operated stores opening daily in the U.S. and Canada, we have a large number of partners in their eligibility waiting period,typically three months.Partner Benefits – InternationallyWhile specific benefits differ between regions and countries,all of our international business partners share StarbucksTotal Pay philosophy. Below are several representativeexamples of benefits received by Starbucks partners outsideNorth America.• Japan: All partners who work 30 hours per month ormore are eligible for health insurance including annualmedical checkup. Stock and annual leave (vacation) arealso offered.• Chile: All partners are eligible for health insurance, paidvacation and sick leave, among other benefits.• Greece: All partners are eligible for health insurance, paidvacation and sick leave, among other benefits.• China: All eligible partners receive health insurance, sickleave and maternity leave.• Australia: Bean Stock, paid vacation, sick leave and careertraining are among the benefits offered.W O R K P L A C E66
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Starbucks Corporation Corporate SoC
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CONTENTSPAGEGLOBAL REPORTINGINITIAT
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To measure how well we are doing at
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Integrating Corporate SocialRespons
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Policy Governance CouncilOver the y
Page 15 and 16: External RecognitionSocially Respon
Page 17 and 18: OUR WORLD OF PRODUCTSFor 35 years,
Page 19 and 20: Creating a Sustainable ApproachAfte
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: Listening to Our PartnersOur workpl
Page 69 and 70: Focusing on Healthcare and Wellness
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Page 75 and 76: My Starbucks -The National Braille
Page 77 and 78: Independent Assurance ReportTo the
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Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

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