Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

My Starbucks –The National Braille Press honoredStarbucks barista Cindy Rogers andStarbucks with its prestigious Hands On!Award in September 2006. The awardrecognized Cindy’s outstanding work onbehalf of braille literacy, and Starbuckssupportive workplace environment andemphasis on literacy. Cindy sharedthe honor this year with First LadyLaura Bush at a Gala event in Boston.Since June 2005, Cindy has hosteda Children’s Story Hour in her Mesa,Arizona, Starbucks store to read braillestorybooks to children and adults.She also has visited 75 schools in thepast year, talking to children abouther blindness, and passing out braillealphabet cards to help children learnletters. Cindy credits Starbucks forencouraging her to start her StoryHour series. “Starbucks inspires usto give back to our communities, so Idecided to make it my mission to sharemy passion for braille literacy as avehicle to transform lives,” Cindy said.Supplier DiversityTo operate and grow our business, Starbucks depends on abroad network of suppliers that ranges in size and scope. Weare dedicated to providing a world-class supplier program thatsupports diversity. Starbucks instituted a Supplier Diversityprogram several years ago to ensure that qualified andcertified diverse U.S. businesses have equal opportunities toprovide our goods and services. A diverse supplier is definedby Starbucks as a business that is certified by an independentthird party to be at least 51 percent owned, operated andmanaged by women, minorities, or individuals who aresocially or economically disadvantaged.The commitment we’ve made to supplier diversity is intendedto provide not only opportunities for diverse businesses, butalso to create a positive and sustained economic impact on thelocal communities where these businesses are based.In fiscal 2006, Starbucks did $213 million in business withfirst tier* women- and minority-owned businesses, exceedingour goal of $206 million.* First tier suppliers are paid directly or relationships are managed directly byStarbucks for their products and services. Only first tier suppliers are counted inour diverse supplier spending.In fiscal 2006, Starbucks made the following improvementsin our supplier diversity program:• Developed a new coding system to better identifyminority- and women-owned suppliers, which we plan toimplement in fiscal 2007.• Increased our presence at minority business events anddiversity trainings.• Increased our level of participation with the NationalMinority Supplier Development Council and Women’sBusiness Enterprise National Council.Spending with Diverse Suppliers(in millions)$213$114$166Fiscal year 2004 2005F U T U R E G O A L S2006Our goals for fiscal 2007 include:• Spending $250 million on purchases from certifieddiverse suppliers.• Implementing a supplier diversity training programfor all new buyers.• Developing a five-year supplier diversity plan thatenables Starbucks to further advance our diversesupplier base.• Creating a supplier diversity advisory council tosupport the advancement of supplier diversity atStarbucks.• Developing meaningful key performance indicators(KPIs) to help track and measure progress towardour supplier diversity goals.More information about Starbucks Supplier Diversityprogram is available at Starbucks.com.D I V E R S I T Y74