tarbucks CSR: Corporate Social

Responsibility
Posted on April 12, 2017 by John Dudovskiy
Starbucks CSR Programs and Initiatives
Starbucks Supporting Local Communities
 Starbucks employees and customers have contributed more than 3 million
hours of community service over the past seven years[1]
 Within the scope of Global Month of Service 1,163 employee-led projects
in April 2015 alone
 Starbucks Community Store program aims to assist local non-profit
organizations in their efforts to provide education and training to achieve
poverty eradication for the young segment of population. The company
has risen more than USD 900,000 since its launch in 2011.
 Starbucks has cooperated with non-profit organizations, community
leaders and organizational stakeholders to provide more than 520,000
hours of volunteering service around the globe.[2]

Starbucks Educating and Empowering Workers

 Almost half of Starbucks employees are younger than 24 years old
 Starbucks College Achievement Plan is an education program that allows
employees to obtain online degrees from Arizona State University.
 The company aims to hire 10,000 veterans and military spouses by 2018
and 2000 new employees from this segment of population was hired in
2014.
 It has been noted that “at the height of the global financial crisis, when
other companies were cutting HR costs wherever they could, Starbucks
invested in staff training, including coffee tastings and courses that
ultimately qualified for credit at higher education institutions”[3]
Starbucks and Gender Equality and Minorities
 At present about 40% of Starbucks US employees are minorities and 65%
are women.
 Among vice presidents, 48% are women and 15% are minorities.
 Within the top leadership team, comprising senior vice presidents and
higher executives 18% are minorities and 29% are women.

Energy Consumption by Starbucks

 Starbucks has more than 800 LEED® certified store, including the
LEED® Platinum Starbucks® Reserve Roastery and Tasting Room in
Seattle.
 The company increased its purchases of renewable energy from 20% in
2008 to 100% for global company operates stores in 2015
 Despite significant increase in the size and mix of the business since the
base year 2008, the company achieved a net energy reduction of 25%
from 6,8 kwH to 5,10 kwH per square foot a month in company-operated
stores in the US and Canada
 Starbucks opened its 500th LEED-certified store in 2014, more than any
other retailer in the world. LEED has been implemented in 19 counties
and 98% of new company-operated stores in Americas are built according
to LEED standards.
 New Energy Management System is installed in about 4000 stores to
optimize heating and cooling. In 2014, energy performance improved
only 4.6% compared to the baseline levels.
Water Consumption by Starbucks
 In 2015 Starbucks exceeded its water conservation goal, reducing
consumption more than 26% over 2008 – from 24 gallons of water per
square foot of retail space to fewer than 18 gallons
 As it is illustrated in figure below, the company has been gradually
decreasing its water consumption in company-operated stores and in 2015
it achieved 26.5% reduction in water consumption compared to base year
2008

Average water use per square foot/store/month U.S. and Canada

company-operated stores[4]
 In 2014, Starbucks achieved water savings of more than 23% compared
to baseline levels set in 2008. LEED certified stores made immense
contribution to water saving initiatives

Waste Reduction and Recycling by Starbucks

 During the past five years Starbucks Japan has turned tons of spent coffee
grounds into compost and feed for cows
 Front-of-store recycling has been implemented in 59% of company-
operated stores in the USA and Canada
 In 2014, customer-facing recycling was added to more than 760 stores. In
total customer-faced recycling is integrated in 3849 or 47% of all
company-operated stores in the US and Canada
 Starbucks encourages and rewards customers to bring their own tumblers
and mugs to stores. In 2014, customers did that 47.6 million times, up
from 46.9 million in 2013.

Starbucks and Sustainable Sourcing

 In 2015, 99% of coffee sourced by Starbucks was certified as ethically
sourced by A.F.E. Practices, Fairtrade, or another externally audited
system[5]
 The company has 8 Farmer Support Centres in Latin America, Asia and
Africa
 Starbucks purchase of coffee from the Eastern Democratic Republic of
Congo helped more than 4,500 small-holder farmers to more than triple
their incomes.
 6% of coffees purchased are Fairtrade and 1% is organic.
 Starbucks investment in farmer loans with Root Capital has grown from
USD150,000 in 2000 to USD12 million today, including a USD3 million
investment in 2014.
Starbucks Corporation Report contains a full analysis of Starbucks
corporate social responsibility including Starbucks CSR issues. The report
illustrates the application of the major analytical strategic frameworks in
business studies such as SWOT, PESTEL, Porter’s Five Forces, Value
Chain analysis and McKinsey 7S Model on Starbucks. Moreover, the
report contains analyses of Starbucks leadership, business strategy,
organizational structure and organizational culture. The report also
comprises discussions of Starbucks marketing strategy and addresses
issues of corporate social responsibility.
[1] Global Responsibility Report (2015) Starbucks Coffee
[2] Starbucks Global Responsibility Report (2014)
[3] Leinward P. & Davidson, V. (2016) “How Starbucks’s Culture Brings
Its Strategy to Life” Harvard Business Review, Available at:
https://hbr.org/2016/12/how-starbuckss-culture-brings-its-strategy-to-life
[4] Source: Global Responsibility Report (2015) Starbucks Coffee
[5] Global Responsibility Report (2015) Starbucks Coffee

What are Starbucks’ CSR initiatives?

Starbucks’ social responsibility strategy is based on three pillars: Community, Ethical
Sourcing, and the Environment. Here’s what the company does to have a positive impact
in each of those areas:

To have a positive impact on the communities it works with and in, Starbucks
develops community stores that partner with local nonprofits. The nonprofits these stores
work with offer services aimed to meet the needs of the communities they’re located in.
Starbucks in turn donates $0.05 to $0.15 per transaction to the nonprofit partner. You can
find a list of these community stores here. Starbucks has pledged to hire at least 10,000
veterans and military by 2018, and focuses on diversity and inclusion in the workplace.
The company also provides training opportunities for youth in their communities, and has
even developed the Starbucks Foundation, a 501c3 whose goal is to strengthen those
communities further. These are just a few of their many community-centric initiatives.
The second pillar, Ethical Sourcing, dictates the way that Starbucks purchases its
products. The company is committed to ensuring that their coffee, tea, cocoa,
and manufactured goods are responsibly and ethically produced and purchased. They say
their “success is linked to the success of the farmers and suppliers who grow and produce
[their] products,” and so they only purchase those products from farms and manufacturers
that adhere to a certain standard of ethical treatment.

Starbucks refers to the planet as their “most important business partner,” and takes a
comprehensive approach to reducing their environmental impact. To do this, they
build LEED certified stores, are committed to recycling and conserving water and energy,
and pursue strategies that address climate change on a global level. Generally, Starbucks
tries to be as environmentally friendly as possible in every aspect of their operations.

Why is it working?
First and foremost, Starbucks decided to invest in its people and the communities they
work with. When a company puts people first, and focuses on making positive changes
for the communities they work with and serve, consumers notice. In fact, studies show
that when companies support social or environmental issues, 93% of consumers have a
more positive image of that company. Starbucks’ strategy and resultant outcomes are
proof positive of that study. Plus, when companies like invest in their people, they
see less turnover, and employees become advocates of the company as well.

What’s more, each year, Starbucks publishes a Global Responsibility Report (in 9
different languages!), that shares data highlighting the impact they’ve had over the past
year. They use this data to inform the coming year’s strategy, so as to ensure their
programs are as effective as possible. Rather than simply coming up with a CSR strategy
and blindly sticking to it, Starbucks takes the time to measure and evaluate its programs.

We’re not suggesting that your business’s social responsibility strategy should be on
Starbucks’ level – not right off the bat, at least. But it’s not enough for businesses to do
"just enough to check off the box". Thoughtful CSR programs aren’t just PR stunts or a
show for investors, and the companies that are really succeeding are proof that these
programs can be hugely impactful if implemented well.

Do you know of an awesome CSR program that you think is worth talking about? What
about one you think could use some improvement? Share with us in the comments –
we’re interested.

What is the Role and Responsibility of a For-Profit

Public Company?
 Good things are happening.

Our 2016 Global Social Impact Performance report marks our progress as a
company, one that’s performance-driven, through the lens of humanity. In a year of
tumultuous changes around the world, we’ve exceeded most of our goals to help our
people and the communities we serve, while achieving another year of record
financial performance.

We’ve reached this milestone by being purposeful in our decisions and our actions—
and it’s how we will move forward in the years to come.
The way forward.

We will focus in four areas where our commitment and scale can make the biggest
impact:

 Making coffee the world’s first sustainable product by doing our part to improve the lives of at least
One Million people in coffee communities around the world

 building and operating the world’s largest green retail business

 creating pathways to employment for 1 million people

 strengthening communities by welcoming all and creating impact on issues that matter
OUR FUTURE IN SUSTAINABLE COFFEE

Starbucks is proud to have reached the milestone of 99% ethically sourced coffee.

However, we are not done yet. We will continue to work with that last 1% to bring
producers along on this journey with us. Such as the Starbucks Reserve Eastern DR
Congo Lake Kivu coffee, where we are working with producers to expand our ethical
sourcing effort. Moving beyond our 100% ethically sourced commitment, we are
joining with others to make coffee the world’s first sustainable agricultural product.

Starbucks believes we can increase the prosperity and resiliency of one million
farmers and workers who grow our coffee in coffee communities around the world.
We will do this by investing in coffee communities, sharing our technical coffee
knowledge, and innovating with new approaches.
Investing in Farmers

Thanks to our partners and customers, more than 25 million trees have been
donated to coffee farmers. This effort began In September 2015, when Starbucks
launched the One Tree for Every Bag Commitment to help ensure the long-term
supply of coffee and the economic future of coffee farmers. Its goal—to raise enough
funds by the end of 2016 to plant 20 million coffee seedlings to replace trees that are
declining in productivity due to age and disease, such as coffee leaf rust. With the
help of our customers, we exceeded this goal in just over a year.

To build on that success, Starbucks will quadruple its commitment by providing 100
million healthy coffee trees to farmers by 2025 by leveraging our green coffee
purchases in coffee growing communities most impacted by climate change. We will
work in collaboration with Conservation International (CI) and our partners on the
ground and will share what we learn across the industry, to ensure that other farming
communities looking to replace their trees can benefit from this program.

The Starbucks Global Farmer Fund is a $50M commitment to provide financing to

coffee farmers. Through these loans, farmers have the ability to support agronomy,
restoration and infrastructure improvements. This work directly influences coffee
quality, sustainability and overall profitability for the entire specialty coffee industry.

To support critical issues coffee communities are facing, the Starbucks Foundation
partners with organizations with local expertise to build sustainable solutions. Since
2014, the Starbucks Foundation has awarded origin grants to support smallholder
farming families in coffee and tea-growing communities, reaching approximately
47,000 direct and indirect beneficiaries. By 2020 we plan to reach 250,000 people.

In 2016, Starbucks began funding a new project in Oaxaca, Mexico with

Conservation International focused on delivering a net positive model to reestablish
coffee as a livelihood. Oaxaca was once a globally important origin for high-quality
specialty coffee, but productivity has declined significantly due to climate change,
lack of market access, poverty, migration, and other challenges. CI will work with
local partners to improve farmers’ shade management systems and increase
alternative income streams – ultimately stabilizing farming communities in Oaxaca
and enabling farmers to continue growing coffee. CI will also train producers in water
conservation to protect freshwater resources, and will follow a human rights-based
approach, recognizing the importance of gender and ethnic traditions to ensure the
active participation of women, indigenous farmers and their families.
Sharing Coffee Knowledge

Starbucks currently operates eight Farmer Support Centers in key coffee producing
countries around the world, from Indonesia to Rwanda. There, with our open-source
agronomy approach, farmers get free access to the latest findings of our top
agronomists, including new varietals of disease-resistant trees, and advanced soil
management techniques. Building on traditional growing methods will help farmers
continue to improve both the quality and yield of their crops, and their profitability,
ensuring the future of high quality coffees for everyone. In 2016 we expanded this
network to include a Farmer Support Center in Mexico. With this global network, we
aim to train 200,000 coffee farmers by 2020.
How we are working with others to make all coffee 100% sustainable

We know that greatest challenges in coffee can be solved faster if we collaborate

and share solutions. Therefore, Starbucks is one of the founding members of The
Sustainable Coffee Challenge, a diverse industry coalition led by Conservation
International with the call to action of making coffee the world’s first sustainable
agricultural product. The Challenge began in 2015 at the United Nations climate talks
in Paris and has grown to more than 60 members across the industry, including
other roasters, NGOs, and the governments of Mexico and Rwanda. The Challenge
is now pulling together the industry pre-competitively to develop innovative solutions
to ensure the prosperity and well-being of farmers, workers and communities,
sustained supply of coffee, and conservation of nature. Specifically for Starbucks, we
have an opportunity to partner with others and go beyond our own commitment of
100M trees. Through the Sustainable Coffee Challenge, the industry is coming
together to commit to one billion trees, while developing shared principles for
responsible renovation. Going forward, we invite our partners and customers to
share
Issuingthe
ourjourney with us and
First Sustainability to follow the Challenge at www.sustaincoffee.org
Bond

In May 2016, we issued our first U.S. Corporate Sustainability Bond. The company
will use the net proceeds from the offering of $500 million to enhance its
sustainability programs around coffee supply chain management through Eligible
Sustainability Projects.
Beyond Coffee

We are committed to 100% ethically sourced tea and cocoa

visit Starbucks.com/responsiblity to learn more about our commitment and progress.
SUSTAINABLE COFFEE 2020 GOALS

Sourcing Commitment
100% Ethically-sourced coffee

Open-source agronomy
Train 200,000 coffee farmers by 2020
Planting Trees
Provide 100M trees to farmers by 2025
Global Farmer Fund
$50M invested
LEADING THEin funding
WAY for farmersRETAIL
IN GREENER by 2020

Celebrating a 30-year legacy of environmental leadership we have long understood

the planet is our most important partner. Our approach toward green retail continues
with ambitious goals for 2020 and beyond.
Greener Stores

Starbucks is proud to have built over 1,200 LEED® (Leadership in Energy and
Environmental Design) certified stores in 20 countries. Starbucks is the largest
builder of green stores in our sector and our stores accounts for 20% of the LEED-
certified retail projects globally. Now, Starbucks will deepen its commitment to
environmentally friendly retail by developing a store verification program known as
Greener Retail. Greener Retail will drive sustainable innovation and efficiencies
throughout the store portfolio, not just limiting verification to new stores. Our goal of
achieving 10,000 Greener Retail stores by 2025 will encompass new and existing
stores by evaluating building standards, utility efficiency targets, and Partner
engagement. This new program positions Starbucks to truly leverage its scale for
good and become the world’s greenest retailer.
Innovating a Greener Cup

Starbucks has made significant progress to green up the cup and recognize that
there is still a long way to go. We were the first company to offer a discount for
bringing a reusable cup, the first to include 10% post-consumer fiber (PCF) in our hot
cups and we have led the industry in advocating for increased recycling
infrastructure. While we can recycle the cup in many communities today, we will
continue to collaborate with local governments and stakeholders to increase
recycling in all of our company-owned markets. Our goals for 2022 are designed to
accelerate progress to achieve a greener cup. 1) we aim to double the recycled
content in the hot cup, and explore alternative materials for cold cups. 2) We remain
committed to recycling and will work to double the number of stores and
communities with access to cup recycling. 3) We will promote and incent the use of
“for here” and reusable cups.
Greener Power

Since 2005, Starbucks has invested in renewable energy, and achieved a milestone
last year by purchasing the equivalent of 100% of global company-operated stores
electricity consumption, primarily utilizing renewable energy certificates (RECs) from
the US and Canada and through green electricity supply contracts across Europe.
Starbucks is the number one purchaser of renewable electricity in its sector on the
EPA’s Green Power Partnership National Top 100 list. Last year, Starbucks joined
The Climate Group RE100, a coalition of some of the world’s largest businesses
committed to using renewable electricity. As we look to the future, Starbucks will
focus on identifying new, geographically relevant ways to buy renewable energy and
bring new renewable projects onto the grids of the countries where we operate
around the world.
Greener Partners

We are focused on galvanizing our partners (employees)who are passionate about

sustainability to inspire, teach and learn from them. In 2016, we piloted the Greener
Apron program with both retail and non-retail partners—a voluntary certification
program that helps partners learn about environmental sustainability through three
short modules co-created with Arizona State University’s School of Sustainability.
More than 1,100 partners participated when we launched the pilot. In the spring of
2017, we will expand the program to be available to partners in the U.S., Canada,
the U.K. and the Netherlands. Our goal is to engage 10,000 partners globally by
2020 and create a network of sustainability champions.
GREENER RETAIL 2020 GOALS

Greener Stores
10,000 Greener Stores globally by 2025

Greener Cup
Double the recycled content, the recyclability, and the reusability of our cup by 2022.
Greener Power
Invest in 100% renewable energy to power operations globally by 2020
Greener Aprons
Empower 10,000 partners worldwide to be sustainability champions by 2020

HELPING PEOPLE ACHIEVE THEIR DREAMS.

As a leader in hiring great talent, Starbucks has and will always look to create
opportunities for our partners (employees) and customers in the communities we
serve.
Hiring Veterans and Military Spouses

Hiring and honoring veterans and military spouses allows us all to benefit from their
leadership, experience and sense of service. In 2013 Starbucks committed to hiring
at least 10,000 veterans and military spouses by 2018. In March 2017, we
announced that we met our goal 18 months early and have expanded our goal to
25,000 by 2025. Our commitment extends beyond hiring. It includes expanded
benefits, establishing places for our veteran and military family communities to
connect with one another, creating volunteer opportunities and leveraging their
unique leadership experience to positively shape our company and our world.
Hiring Opportunity Youth

Starbucks is embracing and employing tens of thousands of youth, ages 16-24, who
are disconnected from work and school, to help them achieve their dream and our
shared future. Starbucks led the launch of the 100,000 Opportunities Initiative with
50 other employers in 2015. The country’s largest employer-led coalition committed
to creating pathways to meaningful employment for young people, the coalition has
reached its goal of hiring 100,000 Opportunity Youth—two years ahead of schedule.

Starbucks is committed to hiring 100,000 opportunity youth by 2020 and the

Coalition is now aligning with the cross-sector goal of creating one million
opportunities by 2021. The group will continue to capture and share new recruiting
and human resources practices tailored to hiring, retaining and advancing
Opportunity Youth.

In the U.S., Starbucks is also opening stores in low-to-medium income communities

that are equipped with training centers where we work with local nonprofits to
provide job-skills training to young people. Around the world, we provide training and
support to young people in ways relevant to their needs and opportunities.
Welcoming and Hiring Refugees

Refugees represent a population who seek a chance to rebuild their lives and have a
fresh start in the face of extraordinarily difficult circumstances. In keeping with our
long-standing history to create opportunity for all and to invest in the people who are
a part of the communities where we do business, Starbucks is leading a global effort
over the next five years to welcome and employ 10,000 refugees whose talent,
experience and resilience will enrich the communities we serve around the world.
Expanding Starbucks College Achievement Plan

By the end of 2016, we had over 6,000 partners participating in the Starbucks
College Achievement program with 227 graduates. In March 2017, we announced
the Pathways to Admission, a program that provides partners the ability to work
toward admission tuition free.
CREATING OPPORTUNITIES 2020 GOALS

Veterans and Military Spouses

Hire and honor 25,000 veterans and military spouses by 2025

Starbucks College Achievement Plan

Graduate 25,000 partners by 2025 and increase accessibility and performance
Opportunity Youth
Embrace and employ 100,000 by 2020
Refugees
Our Heritage
Every day, we go to work hoping to do two things: share
great coffee with our friends and help make the world a
little better. It was true when the first Starbucks opened
in 1971, and it’s just as true today.

Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a
narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean
coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the
seafaring tradition of the early coffee traders.

In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first
walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into
Starbucks and joined a year later.

A year later, in 1983, Howard travelled to Italy and became captivated by Italian coffee bars
and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse
tradition back to the United States. A place for conversation and a sense of community. A
third place between work and home. He left Starbucks for a short period of time to start his
own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the
help of local investors.

From the beginning, Starbucks set out to be a different kind of company. One that not only
celebrated coffee and the rich tradition, but that also brought a feeling of connection.

Our mission to inspire and nurture the human spirit – one person, one cup and one
neighbourhood at a time.
Today, with store in more than 75 markets, Starbucks is the premier roaster and retailer of
speciality coffee in the world. And with every cup, we strive to bring both our heritage and an
exceptional experience to life.

Our Starbucks Mission Statement

Our mission: to inspire and nurture the human spirit –
one person, one cup and one neighbourhood at a time.
Here are the principles of how we live that every day:
Our Coffee

It has always been, and will always be, about quality. We’re passionate about ethically
sourcing the finest coffee beans, roasting them with great care and improving the lives of
people who grow them. We care deeply about all of this; our work is never done.
Our Partners

We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace
diversity to create a place where each of us can be ourselves. We always treat each other with
respect and dignity. And we hold each other to that standard.
Our Customers

When we are fully engaged, we connect with, laugh with and uplift the lives of our customers
– even if just for a few moments. Sure, it starts with the promise of a perfectly made
beverage, but our work goes far beyond that. It’s really about human connection.
Our Stores

When our customers feel this sense of belonging, our stores become a haven, a break from
the worries outside, a place where you can meet with friends. It’s about enjoyment at the
speed of life – sometimes slow and savoured, sometimes faster. Always full of humanity.
Our Neighbourhood

Every store is part of a community, and we take our responsibility to be good neighbours
seriously. We want to be invited in wherever we do business. We can be a force for positive
action – bringing together our partners, customers and the community to contribute every
day. Now we see that our responsibility – and our potential for good – is even larger. The
world is looking to Starbucks to set the new standard, yet again. We will lead.
Our Shareholders

We know that as we deliver in each of these areas, we enjoy the kind of success that rewards
our shareholders. We are fully accountable to get each of these elements right so that
Starbucks – and everyone it touches – can endure and thrive.
 Environmental Mission Statement
Starbucks is committed to a role of environmental leadership in all facets of our business.
We fulfil this mission by a commitment to:

 Understanding of environmental issues and sharing information with our partners.

 Developing innovative and flexible solutions to bring about change.

 Striving to buy, sell and use environmentally friendly products.

 Recognising that financial responsibility is essential to our environmental future.

 Instilling environmental responsibility as a corporate value.

 Measuring and monitoring our progress for each project.

 Encouraging all partners to share in our mission.