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Corporate Social Responsibility Report 2019
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History
Starbucks was founded in 1971, in a town called Seattle’s Pike Place Market. It was a single store that were a roaster and retailer of whole bean and ground coffee, tea, and spices. Today, they are privileged to connect with millions of customers evryday in those 76 markets. The name that was inspired, goes by Moby Dick, who recalled the romance of high seas and the seafaring tradition of early coffee traders. In 1981, Howard Schultz, stepped into a Starbucks store for the first time, and from his first cup of Sumatra, he was compeletely drawn into Starbucks and joined the company a year later. Schultz had a vision to bring tradtion back to United states after he came back from his trip to Italy and wanted to create a space for conversation, and a sense of community.
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Mission and Values “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
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OUR VALUES With our partners, our coffee and our customers at our core, we live these values: Creating a culture of warmth and belonging, where everyone is welcome. Acting with courage, challenge, and finding new ways for growth with everyone. Being present, connecting with transparency, dignity and respect. Delivering our very best in all we do, holding ourselves accountable for results. We are performance driven, through the lens of humanity.
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Portland, Oregon 8 Starbucks
Table of Contents History Mission and Values 10 Letter of CEO 12 Ethical Sourcing 16 Greener Retail 22 Pathways to Opportunies 26 Our People 30 Goals for the Future 32 Credits
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Letter of CEO
Dear Starbucks partners—past and present, I write to you today while enjoying a French Press of my favorite coffee, aged Sumatra, having many emotional feelings; Pride. Nostalgia. I sit here feeling a tremendous sense of gratitude. For years I’ve had a dream to build a different kind of company, one that has the potential to enhance many lives and endure long after I was gone. Thanks to you all, my dream has come true. Who could have imagined how far we would travel together, from 11 stores in 1987 to more than 28,000 stores in 77 countries. But these numbers does not mean true measures of our success. Starbucks changed the way millions of people drink coffee, but we also changed people’s lives in communities especially for our coffee communities around the world, for the better. When I think about Starbucks, I think about our mission, values, and guiding principles that have come to life. Our years of community service and the C.U.P. Fund for partners in need. Our volunteer efforts in New Orleans and our annual Global Month of Service. Free college tuition through the College Achievement Plan. Our commitments to hire veterans, Opportunity Youth, and refugees. Policies like parental leave and pay equity. And our partners’ countless acts of kindness that has occured in our stores, offices, roasting plants, and distribution centers every single day. These values are just as important as our coffee. Sourcing and roasting the highest quality arabica coffee will always be our heritage and never stop reaffirming Starbucks leadership position in all things coffee. I can think of no better words of this than our Reserve stores, and the magnificent Roasteries that we have built in Seattle and Shanghai, as well as the ones we will open in Tokyo, Chicago, New York City, and Milan. Bringing Roasteries to life with an incredible design team has been among the great joys of my career, and I’ll proudly host the openings of the Milan and New York Roasteries in a few months. Kevin Johnson is a true servant leader, and he will lead Starbucks as this great company enters its next journey. It’s our duty as leaders to constantly reimagine Starbucks. I am honored to call Kevin my friend and partner. And Starbucks is fortunate to have him. They, too, believe that Starbucks has a responsibility to use our scale for good. I believe in my heart that Starbucks partners will continue what was started decades ago. Great coffee and our stores will always be catalysts for community. Now more than ever the world needs places to come together with compassion and with love. Providing the world with a warm and welcoming third place may just be our most important role and responsibility, today and always. - Howard
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Ethical Sourcing
We’re committed to helping people thrive a long-term sustainability of the premium products we provide. Whether it’s arabica coffee, tea, cocoa or manufactured goods, to offering ethically purchased and responsibly produced sustainable products of the highest quality.
Coffee Starbucks is dedicated to helping farmers overcome challenges that are facing coffee communities. We are 100% committed to buying ethically sourced coffee in partnership with Conservation International. We’re collaborating with the industry to make our coffee the world’s finest sustainable agricultural product, as a founding member of the Sustainable Coffee Challenge. Starbucks have invested more than $100 million in supporting coffee communities.
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“Starbucks has a role and a meaningful relationship with people that is not only about the coffee.”
Tea Starbucks goal is to be 100% ethically sourced tea by 2020. The journey to produce ethically sourced tea begines with tea farmers. As we do not produce our own tea or own factories like more tea companies. We purchase or source tea from farmers around the world who have generations of technical expertise and equipment to produce the most top quality teas.
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Cocoa Starbucks strive to be 100% ethically sourced on Cocoa by 2020 for all Starbucks that is Cocoa contained beverages. Our approach to cocoa buying, is destinated to ensure a long-term, and high-quality supply while contributing positivelty to the environment and to the cocoa-farming communities.
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“Entrepreneurs must love what they do to such a degree that doing it is worth sacrifice and, at times, pain. But doing anything else, we think, would be unimaginable.”
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Greener Retail
Greener Energy We have invested in renewable energy since 2005, in a steady pace, we will increase our purchases of renewable energy certificates until reached our goal of obtaining 100% of electricity powering global company-operrated stores. We are taking next steps with direct investments in new geographically similiar renewable energy products.
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Climate Change We’re addressing climate change to not only reduce our environmental footprint, but also to ensure the supply of high-quality coffee that our customers can expect from us. Starbucks has been achieving a climate change strategy since 2004, focusing on renewable energy, energy conservation, and climate adaptation and mitigation efforts. In our stores, we have focused on building LEED® standards while also becoming one of the largest purchasers of renewable energy in our sector. At the farm level, we have worked with Conservation International to include climate-smart agricultural practices as part of Coffee and Farmer Equity (C.A.F.E.) Practices, our ethical coffee buying guidelines.
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Greener Stores Creating more eco-conscious stores on a gloabl scale from the design stage right through construction and operations. Starbucks has been a leader for more than a decade in developing and implementing scalable green building program for retail space likes ours. We have joined the U.S Green Building Concil (USGBC) in 2001 and partnered with them to develop the LEED (Leadership in Energy and Environmental Design) for retail programs for an effort to create new constructions and commercial interior strategies for retail businesses.
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Greener Cup We are working to shrink our environmental footprint and meet the expectations of our customers by reducing the waste associated with our business, increasing recycling and promoting reusable cups. Managing the environmental impacts of our business requires collaboration, innovation, and ongoing improvements. We have made substantial progress to reduce the impact of wastes generated in our stores through improved packaging design guidelines, offering reusable cups, advocating for local recycling infrastructure and expanding our customer-facing and behind-the-counter recycling practices.
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Recycling Design Establishment Existing Recycle Markets
Consumer Actions Recyling Program Success Factors Local Government Policy
Transportation Infrastructure Recycling Facilities
Recycling seems like a simple, straightforward initiative but it’s actually quite difficult to achieve. Our customers’ ability to recycle our cups, whether at home, at work, in public spaces or in our stores, is dependent upon many reasons; such as local government policies and access to recycling markets such as paper mills and plastic processors. Some communities are ready to recycle our paper and plastic cups, but with operations in 75 countries,
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Starbucks faces a patchwork of recycling infrastructure and market conditions. Additionally, in many of our stores landlords control the waste collection and decide whether or not they want to provide recycling. These difficult situations require recycling programs that need to be customized to each store and market as it may limit our ability to offer recycling in some stores.
Total Emission (In Thousands of Metric Tons)
Greenhouse Gas Emissions
1200 1000
23%
24.5%
77%
75.5%
2014
2015
24.6%
800 600 400 75.4%
200
2013
Electricity Usage
Direct Emissions
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Pathway to Opportunities
Starbucks College Plan and Opportunies for the Youth In the United States, there are 4.6 million of 16 - 24 year olds who are not working or in school. Starbucks created a program called Opportunies Youth, where they face difficulties and are disconnection from individuals, institutations, and experiences that can help them succeed. We are committed to hiring 10,000 opportunity youth by 2018. An starbuck (partner) employee in the U.S who does not have a college degree and is working part time (20 hours) a week, has an opportunity to enroll in college to finish their first bachelor’s degree at Arizona State University, though Starbucks College Achievement Plan.
Veterans & Military Support Veterans and militiary spouses play an important role in strengthening our communities and our company, through leadership, service, and civic engagement. They are more likely to vote, volunteer, give charity and contact public officials compared to their nonmilitary significiants.
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Community Service We aim to engage with our local communities through partners (employees), and dream big about what we can do to achieve celebration with local events and projects. Our motto is “One Neighborhood at a Time.” At Starbucks, we believe our store partners are the center of our communities — they have been serving proactively in their communities since Starbuck’s founding and we strive to make it easier for our employees to create projects and relationship with local organizations.
“It was not the calling of coffee, but the calling to try to build a company that my father never got a chance to work for.” 24 Starbucks
Starbucks Foundation Starbucks foundation started in 1997 and it is to create as a part of our committment to strengthen communities. The following community consist of; opportunity for youth, community service, supporting coffee, tea, and cocoa communities, and access to clean water. We are supporting communities around the globe as well.
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Our People Diversity & Inclusion We’re committed to upholding a culture where diversity is valued and respected not just at Starbucks, but globally. So it’s only natural that as a guiding principle, diversity is integral to everything we do here.
At Starbucks we define diversity in the form of an equation. Diversity = Inclusion + Equity + Accessibility Inclusion: human connection & engagement Equity: fairness & justice Accessibility: ease of use & barrier free
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Ferguson, Missouri
“I am convinced that most people can achieve their dreams a nd beyond if they have the determination to keep trying.”
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Diversity at Starbucks
Hispanic/Latino
45%
55% Minority Non-Minority
Black or African American
25%
9%
Asian
6%
Two or more Races
5%
American Indian or Alaskan Native
1%
Native Hawaiian or Other Pacific Islander
1%
Work Force Composition as of December 31, 2018 U.S Partners Only
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Goals for the Future Sustainable Coffee Sourcing Commitment: We will be 100% ethically sourced coffee. Planting Trees: Our goal is to farm 100 Million trees to farmers by 2025, part of a commitment to 1 billion coffee tree. Global Farmer Fund: Our Goal is invest $50 million in Finacing for farmers by 2020. Open source Agronomy: Our goal is to train 200,000 coffee farmers by 2020 to improve the long term sustainabily of their crops and livelihoods.
Sustainable Coffee Greener stores: Our Goal is to build and operate 10,000 Greener Retail stores globally by 2025 that promotes environmental building standards, energy efficiency and partner engagement. Greener power: Our Goal is to invest in 100 % renewable energy to power operations at company-owned stores globally by 2020. Greener partners:Our Goal is to empower 10,000 partners worldwide to be sustainability champions by 2020 through Partners for Sustainability and the Greener Apron voluntary certification program with Arizona State University.
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Creating Opportunies Veterans and military spouses:Our Goal is to hire 25,000 veterans and military spouses by 2025. Starbucks College Achievement Plan: Our goal is to have 25,000 graduates by 2025 and increase the program’s accessibility and performance. Opportunity Youth: Our Goal is to Employ 100,000 Opportunity Youth by 2020, reaching young people who are disconnected from work and school. Refugees:Our Goal is to hire 10,000 refugees globally by 2022.
Strengthening Communities FoodShare: Our Goal is to rescue 100% of food available to donate by 2020 in U.S. company-owned stores. Community Service:Our Goal is to have 100% of Starbucks stores globally participate in community service each year by 2020.
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Credits Content Information https://stories.starbucks.com/stories/2017/starbucks-2016-global-social-impact-report/ https://www.starbucks.com/responsibility
Content Images https://www.pymnts.com/news/retail/2018/starbucks-reserve-stores-headquarters/ http://www.starbucks.co.za/about-us/starbucks-south-africa https://www.starbucks.com/responsibility/environment https://www.starbucks.com/responsibility/environment/water-and-energy https://sprudge.com/inside-the-global-design-world-of-starbucks-69025.html https://reputation-communications.com/starbucks-ceo-howard-schultz-shines-as-citizen-activist/ https://www.businesswire.com/news/home/20150406005974/en/Starbucks-Arizona-State-University-Offer-Unprecedented-Years https://www.dreamstime.com/stock-images-starbucks-community-service-image24469294 https://abcnews.go.com/US/starbucks-opens-store-ferguson-low-income-community-outreach/story?id=38760988
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