Beyond the cup. - Starbucks

understood and agreed to comply with Starbucks Standardsof Business Conduct. In September 2004, Starbucks releasedan international version of the Standards of Business Conductfor partners outside of North America, which continues to beintroduced to partners in company-owned markets.Some topics in the Standards of Business Conduct include:• Compliance with Laws and Regulations• Conflicts of Interest• Gifts and Entertainment• Antitrust and Fair CompetitionReporting Ethical ViolationsPartners are urged to report any concerns involving ethics,legal issues or potential violations of Starbucks Standards ofBusiness Conduct or company policies through the BusinessConduct Helpline, which is handled by an independentthird party. All concerns are taken seriously and informationprovided to the Helpline is treated in a confidential manner.Partners may also choose to remain anonymous.Starbucks does not tolerate retaliation against any partner whoraises concerns or questions regarding any possible violationhe or she reasonably believes to have occurred.Starbucks also maintains an Auditline for third parties,such as vendors, investors and customers, to report possibleaccounting and/or auditing irregularities.MANAGING CSRThe day-to-day management of Starbucks corporate socialresponsibility initiatives is handled by a team of partners whoreport to the senior vice president of CSR. Some CSR-relatedprograms and initiatives are managed and implemented atthe business unit, division or department level. Our CSRorganizational chart is below.Currently there is no committee of the Starbucks boarddedicated to CSR, although issues related to CSR areperiodically presented and discussed at the board level.FUTURE GOALIn fiscal 2006, Starbucks will form a CSR ExecutiveCommittee to set CSR-related policies and provideguidance for our CSR strategy.Emerging Issues Council (EIC)In 2005, the EIC, a cross-functional team of 18 Starbucksexecutives, helped the company identify and proactivelyaddress several issues, such as our customers’ concerns aboutnutrition; our purchasing practices related to cocoa; andStarbucks impact on climate change. The EIC also initiatedseveral stakeholder engagement sessions that allowed us togain feedback on issues of significance to the company.FUTURE GOALThe Business Conduct and Corporate Complianceprogram will focus on three areas in fiscal 2006:developing and providing further job-specificcompliance training; designing and implementingcompanywide ethics training; strengthening ourcommunications on ethics and compliance that aregeared for our partners.Corporate Social Responsibility GovernanceThe Starbucks FoundationA separate 501(c)(3) charitable organizationBoard of Directorspresident andchief executive officersenior vice presidentCorporate Social ResponsibilityEmerging Issues Council8STARBUCKS AND CORPORATE SOCIAL RESPONSIBILITY