Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

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Recognizing Our PartnersStarbucks success reflects the quality, imagination andinitiative of our partners. We developed the Starbucks PartnerRecognition Program to honor our partners’ contributions.Currently there are 18 formal recognition programsthat partners can use as tools to reward and inspire oneanother. They range from company awards for leadershipand exceptional service to “on the spot” awards given byco‐workers for a job well done.In recognition of our outstanding performance as a company,Starbucks shared a special cash award with more than100,000 partners in May 2006.Department of Defense Freedom AwardStarbucks was honored by the U.S. Department of Defensewith the 2006 Secretary of Defense Employer SupportFreedom Award for outstanding support of activated partnerswho serve in the National Guard and Reserve. The FreedomAward is the highest award bestowed by the Department ofDefense in recognition of an employer. Starbucks partnerMatt Parkinson nominated Starbucks for the award afterserving 15 months in Iraq. Starbucks supports partners, likeMatt, by making up the difference between partners’ militaryand civilian pay as well as continuing benefits. Partners areable to continue medical, dental and vision coverage for upto 24 months of active duty and to continue Starbucks lifeand disability insurance for up to 12 monthsThe CUP FundSince 1999, the CUP (Caring Unites Partners) Fund hasassisted partners with financial support as a result of anunexpected event such as the death of a partner or familymember, fire or natural disaster. Starbucks partners supportthe CUP Fund with personal contributions. All Starbuckspartners are eligible to apply for assistance. In total, the CUPFund provided more than $1.4 million in direct financialassistance to more than 1,600 partners in fiscal 2006.My Starbucks –Starbucks CUP Fund rescued my familyfrom a difficult financial situation. Wewere drowning financially, due primarilyto tens of thousands of dollars inmedical expenses. My family is so thankfulfor the small but regular contributionsthat many Starbucks partners maketo the CUP Fund. These partnersembody the truth that “we are a peoplecompany that sells coffee.” In addition,the partners that I spoke with aboutthe CUP Fund were kind, compassionateand timely in their response to ourrequest. In times of need, it’s nice toknow Starbucks partners provide eachother a lifeline through the CUP Fund —caring really does unite partners.Dave Mahoney, barista, Memphis, TNW O R K P L A C E69
Partner Training and CareerDevelopmentStarbucks continually invests in training programs and careerdevelopment initiatives to help partners grow and advancetheir careers at Starbucks.All store partners receive comprehensive training. Baristasreceive two weeks of initial training to become experts in thepreparation and delivery of our products. After 90 days onthe job, they receive additional training to deepen their coffeeknowledge and build their confidence. When a barista movesinto another retail position, he or she receives four weeks oftraining as a shift supervisor, eight months of development asan assistant store manager, eight weeks as a store manager and15 weeks as a district manager trainee. In total, in fiscal 2006,our U.S. and Canadian retail partners received an estimated4.9 million hours of training, in addition to practice hours.In fiscal year 2006 Starbucks added two new careerdevelopment programs for store managers:• Store Manager 200 offers over 50 hours of in-placetraining to develop leadership and other keymanagerial skills.• Store Manager 301 is a year-long mentorship anddevelopment program that helps high-potential storemanagers build the competencies necessary for the nextlevel in their careers.We believe in looking internally first and offering ourpartners opportunities to grow and advance. Partners receiveinformation about career advancement opportunities onmypartnercareer.com, and through partner and leadershipcommunications.The following figures reflect internal promotions for certainpositions in fiscal 2006:• 86% of shift supervisor positions were filled byStarbucks baristas.• 67% (approximately) of assistant and store managers werefilled by internal partners.• 54% of district manager positions and over 70% ofregional director positions were filled by internal partners.Workplace Policies and RespectingPartners’ RightsStarbucks workplace policies provide for equal employmentopportunities, and strictly prohibit discrimination orharassment on the basis of age, race, gender, color, nationalorigin, religion, sexual orientation, physical or mentaldisability, as well as any other basis prohibited by federal,state, local or provincial laws. We follow all laws regarding theemployment of minors. The current standard minimum ageof employment at Starbucks is 16, although it may be higheror lower in some locations as required by local regulations.Starbucks also recognizes our partners’ right to organize.We have always focused on providing a great workplaceenvironment and a comprehensive Total Pay package. (Seepage 66 for information about Total Pay.) At the end of fiscal2006, 129 Canadian partners in two cities were the onlyStarbucks partners who had certified union representation.In March 2006 Starbucks entered into an informal settlementagreement with the National Labor Relations Board (NLRB),resolving all outstanding unfair labor practice charges filedby the International Workers of the World (IWW) Local660. The charges originally were filed in connection witha May 2004 petition by the IWW, which it subsequentlywithdrew, to unionize one Starbucks store in New York City.The settlement agreement provided that Starbucks admittedno wrongdoing or liability, but allowed Starbucks to resolveall charges without the distraction of a long and expensivehearing process.This settlement and the underlying claim have generated somenational and international press attention. We understandthat the press coverage stems from a belief that employeesshould be treated fairly, with dignity and respect. This is avalue very much shared by Starbucks.Starbucks has always sought to provide a great place towork for all our partners, while staying true to our MissionStatement and Guiding Principles. Starbucks is committedto following any and all labor laws in a fair and consistentmanner. We do not take action or retaliate against partnerswho express their views about unions or who take part inunion activity.Starbucks named to the TrainingMaga zine Top 100 list in 2006For the third year in a row, Starbucks has been named to theTraining magazine Top 100 list. This recognition is basedon an evaluation of the company’s training and developmentprograms and resources. Starbucks training programs notedin this award include those for career development, coffeeeducation, leadership and front-line manager training.W O R K P L A C E70
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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
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External RecognitionSocially Respon
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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 and 66: Listening to Our PartnersOur workpl
Page 67 and 68: Providing Benefits to Our PartnersS
Page 69: Focusing on Healthcare and Wellness
Page 73 and 74: Fostering Diversity andInclusionAt
Page 75 and 76: My Starbucks -The National Braille
Page 77 and 78: Independent Assurance ReportTo the
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