Fiscal 2003 Annual Report - Starbucks Coffee Company
L I V I N G O U R VA L U E SCorporate Social ResponsibilityFiscal 2003 Annual Report
STA R BU C K S M I S S I O N S TATEMENT AND GUIDING PRINCIPLESTo establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromisingprinciples as we grow.The following six Guiding Principles will help us measure the appropriateness of our decisions: Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.What It Means to Live Our Values at StarbucksWe are very proud to present you with Starbucks third annual Corporate Social Responsibility Report, thisyear titled “Living Our Values.” Throughout our Report, we explain the measures we take to align ourdecisions and actions with Starbucks Mission Statement and Guiding Principles.The topics presented here relate to our definition of corporate social responsibility. They are subjects we alsobelieve to be important to our partners (employees), customers, shareholders, suppliers, communities, andothers. As information was gathered for each topic, we stepped back and asked ourselves if we are hitting themark or falling short of our own expectations. In the spirit of transparency, we share our findings with you,the reader.Maintaining the trust of our stakeholders will never be taken for granted at Starbucks. We know it’ssomething to be earned every day, and happens only if we uphold our core values. We are committed to doingthis – it’s our promise to you.Howard SchultzOrin C. Smithchairman andpresident andchief global strategistchief executive officer
living our valuesTable of Contents21422Partners Our Workplace Culture 4 Being a Starbucks Partner 7 Creating a Healthy andSafe Work Environment 12 Recognition 13 Going Forward 13Diversity Diversity in Our Workplace 16 Supplier Diversity 18 Engaging with DiverseCommunities 20 Recognition 21 Going Forward 21Coffee A Snapshot of the Coffee Industry 24 Sustaining Coffee Communities 26 Recognition 36 Going Forward 373848Customers Meeting Our Customers’ Expectations 40 Bringing Starbucks to OurCustomers 41 Improving Our Communities with Our Customers 43 Listening to OurCustomers and Stakeholders 44 Going Forward 47Community and Environment Engaging Our Partners 50 The Starbucks FoundationSupports Literacy 55 Contributing to Local Communities 57 Coffee- and Tea-GrowingCommunities 60 Minimizing Our Environmental Impact 62 Recognition 68 Going Forward 697078Profitability Starbucks History and Company Profile 72 Corporate Governance 74 Expectations of Our Suppliers 75 Recognition 76 Going Forward 77Independent Verification Letter About This Report 79 Feedback and FurtherInformation 80Cover photo: Care is taken to ensure Starbucks coffees are roasted to perfection.
Blythe BrockStarbucks partnerBlythe Brock was devastated when her mother became seriously illand her health started to decline rapidly. Realizing that time wasrunning out, Blythe treasured every moment with her mom, serving asher primary caretaker in every possible way. At the Starbucks storeshe supervises in Tucson, Arizona, Blythe cut back her hours, whichdrastically reduced her salary and benefits. But the support of herco-workers kept her strong. They urged her to apply for a financialassistance grant through Starbucks CUP (Caring Unites Partners)Fund. It’s a special program that is funded by partners and designedto help fellow partners, like Blythe, during difficult times.“I’m so thankful for the CUP Fund grant. It helped me get throughthe time when I was caring for my mom,” Blythe explained. “AtStarbucks, there’s a genuine spirit of people helping people. We’remore than co-workers here. We’re partners.”The experience of losing a parent was traumatic for both Blythe andanother Starbucks partner – her brother Josh. He also received aCUP Fund grant.
Provide a great work environmentand treat each other withrespect and dignity.Starbucks core business is more thanjust coffee. We are in the peoplebusiness. And we know our successdepends on the people we hire, retain anddevelop. The creation of Starbucks stockoption plan in 1991, Bean Stock, made ouremployees our partners. Giving employeesan ownership in the company and sharingthe rewards of our financial success hasstrengthened our partnership.Results from Starbucks 2003 Partner View Survey revealed that our partners havea high level of engagement – meaning they are emotionally and intellectuallycommitted to Starbucks success. Engaged partners are more likely to say goodthings about the company, they often go beyond what is requested of them, andthey indicate a desire to stay with Starbucks longer.Many things contribute to the great work environment at Starbucks. Whilewe aren’t perfect, and we realize there are opportunities for improvement, wedefinitely see what’s working. For a closer look inside Starbucks workplace,please read on.
Eduardo Bello (left), shift supervisor,and Melanie Bandulin, barista, adda little laughter to their day atStarbucks.OU R WOR K P L AC E C U LT U R EStarbucks Mission Statement and Guiding Principles, which were formalized in 1990,are the roots of our culture and serve as guideposts for our partners. In fact, 78 %of our partners say our values provide meaningful direction in their jobs at Starbucks.An entrepreneurial spirit permeates the atmosphere at Starbucks, adding to an environment that values every person’s ideas and talents. It’s customary not to capitalizepartners’ titles at Starbucks, which signals that everyone, regardless of their position,contributes to the company’s success. There is a significant focus on communicationsystems designed to give everyone a voice, including Mission Review and the Standardsof Business Conduct Helpline. Recognition is integral to Starbucks culture as is thenotion of helping each other, which is demonstrated through our internal CUP (CaringUnites Partners) Fund.MISSION REVIEWAt Starbucks, being truly committed to our core values means holding one anotheraccountable for our actions. Through Mission Review, partners are encouraged tovoice opinions about whether or not company practices are consistent with our MissionStatement and Guiding Principles. When our partners send their comments or questionsto our Mission Review team, they are connected to the right person for a response. Theprocess is monitored, and partners’ concerns are shared with Starbucks leaders.CSR 2003PA R T N E R S4
THE HELPLINEAnother vehicle our partners use to communicate is the Standards of Business ConductHelpline, part of our Corporate Compliance Program. It’s open for calls around the clockso that partners can speak directly with non-company, impartial agents. Informationshared through the Helpline is typically treated in an anonymous and confidential manner,assuring partners they are free from retaliation. Issues that arise are investigated andresolved in a manner consistent with our Mission Statement and Guiding Principles.ASK ORINBob Shaftoe (left) receives the DistrictManager of the Year Award from Jim Alling,executive vice president of Starbucks U.S.,at Starbucks 2003 Leadership Conference.Sometimes partners prefer to share their concerns directly with Starbucks ceo. Wecreated a channel for non-retail partners to “Ask Orin” via Starbucks intranet. Partnerscan submit questions or suggestions directly to Orin Smith, anonymously and confidentially if desired. They can expect a reply within 10 business days. Orin also keeps in touchby hosting a variety of informal gatherings with partners throughout the company.“If people relate to thecompany they work for, ifthey share an emotionaltie to it and buy in to itsdreams, they will pour theirheart into making it better.”RECOGNIZING OUR PARTNERS— Howard Schultz, Starbuckschairman and chief global strategistThere are 30-plus recognition programs at Starbucks that are used to highlight theachievements of our partners, whether it’s for “jobs well done,” or to acknowledge theprofound impact certain partners have had on the company. Workplace recognition goesa long way to let partners know they are deeply appreciated and valued.Beyond our formal programs, we enjoy celebrating our partners’ special occasions –anniversaries, birthdays and other personal or professional milestones. These are thetypes of everyday experiences that strengthen the bonds between our fellow partners, andcreate a better workplace community.5PA R T N E R SCSR 2003
Starbucks partner Leanne Paluckwent to Alaska to work alongsideresearch scientists and study sea otterson a company-sponsored EarthwatchExpedition.EARTHWATCH EXPEDITIONSStarbucks commitment to environmental stewardship has taken on special meaningfor our partners. For the last two years, we have offered our partners the chance foran opportunity of a lifetime – a company-sponsored Earthwatch Expedition. In 2003,Starbucks sent five partners on two-week expeditions to work with the EarthwatchInstitute’s conservation scientists. This year, we plan to send another five partners.While it’s not a formal partner recognition program, a great deal of excitement has beengenerated among our partners about the possibility of being selected for one of theseincredible journeys.CARING UNITES PARTNERS – THE CUP FUNDSeveral years ago, Starbucks partners wanted a way to help their peers who fellon troubled times. Their desire led to the creation of the CUP Fund, an emergencyassistance program available only to Starbucks partners, and funded exclusively bypartners through payroll deductions and special fundraisers.CUP Fund grants are made to U.S. and Canadian partners throughout the year. Anypartner may apply to receive a CUP Fund grant of up to 1,000 to ease the financialstress caused by an emergency. In fiscal 2003, the CUP Fund provided financial reliefto 306 partners, totaling 247,000, a 70% increase over grants made last year.CSR 2003PA R T N E R S6
B E I NG A S TA R B UC K S PA RT N E RStarbucks partner Cherie Vinsonworks as a shift supervisor. She enjoysher team of co-workers, acknowledgingthat “we care about each other.”Through Starbucks Partner View Survey, we asked the majority of our partners in 2003what they thought about working for the company. It was the most extensive researchwe’ve done with this many partners at one time. We went beyond surveying for satisfaction (attitude) to include engagement (behavior), which has a strong and consistent linkto overall business performance.Partners rated the following five items as important or very important in their decisionto join Starbucks:1. The opportunity to work with an enthusiastic team2. Working in a position where I add value3. Medical benefits4. Opportunity to grow and develop skills5. Growth-oriented company7PA R T N E R SCSR 2003
In rating overall satisfaction, 82% of our partners stated that they were satisfied or verysatisfied with Starbucks. More important was the overall rating for partner engagement,which was measured at 73%, placing Starbucks among the best employers in the worldbased on engagement studies conducted by an independent consultant of 1,459 companies in 17 countries.The 2003 Partner View Survey confirmed that Starbucks Mission Statement and GuidingPrinciples have a positive impact on partner engagement. We also heard how importanthealth benefits were to our store partners in their decision to join Starbucks. Althoughsoaring U.S. health care costs have challenged Starbucks and other companies, we arecommitted to designing health plans that ensure our partners have continued access toaffordable health care.PARTNER BENEFITSWhen Eric Yu was attending collegefive years ago, he joined Starbucks asa part-time barista and qualified forhealthcare coverage and other benefits.“As a college student, the healthcarebenefits were very important to me.Now that I’m a full-time assistantmanager, the healthcare coverage andother benefits are still importantto me.”The story has been told many times, but it’s worth repeating. When Howard Schultzbecame head of Starbucks, he vowed to leave no one behind. The commitment stemmedfrom his childhood experiences as the son of a blue-collar worker. An injury kept hisfather out of work, and without company-provided health coverage, the family sufferedtough times. This instilled a vision at Starbucks to “treat people like family and they willbe loyal and give their all.”The importance of treating people like family has never worn off. Today, Starbucks hasone of the most competitive benefits and compensation packages in the retail industry.Here are a few examples of our Total Pay programs: In 1987, Starbucks became one of the first retail companies to offer our part-timepartners who work at least 240 hours per calendar quarter the same comprehensivehealth benefits that our full-time partners receive. This includes medical, prescriptiondrug, dental, vision and alternative healthcare coverage. Starbucks pays approximately 75% of the costs of healthcare coverage for U.S. partners. Starbucks pays 60% of the healthcare coverage cost for our U.S. partners’ dependents,including their same-sex and opposite-sex domestic companions. Bean Stock, Starbucks stock option plan, is offered to all eligible part-time and full-timepartners in the U.S., Canada, the UK, Hong Kong and, for the first time with the fiscal2003 grant, partners in the Netherlands. S.I.P. (Stock Investment Plan) allows all eligible part-time and full-time partnersin the U.S. and Canada to purchase company stock at discounted prices. A similarplan – Starbucks Corporation Share Save Plan – is available to eligible partners in the UK. Starbucks 401(k) plan, Future Roast, is a savings program open to all eligible U.S.partners. Contributions made by partners are matched by Starbucks, and immediatelyvested. Based on length of service, Starbucks matches partner contributions – from 25%to 150% on the first 4% of pay contributed. Canadian partners receive a 25% match ontheir contributions to the Registered Retirement Savings Plan (RRSP), which is similarto the 401(k).CSR 2003PA R T N E R S8
BRINGING OUT THE BEST IN OUR PARTNERSFirst, Starbucks attracts and hires great people. Next, our new partners are immersedin Starbucks culture, based on three fundamentals – our Mission Statement and GuidingPrinciples; our passion for coffee; and our commitment to provide legendary customerservice. Then throughout their journey as a Starbucks partner, they are offered all kindsof development opportunities to help them achieve job success.One of our baristas, Angie Martin(left), gets trained by Amanda Cebull,store manager, on how to deliver theperfect Starbucks Experience.The Learning Journey for Retail PartnersOur baristas and their fellow store partners are the face of Starbucks, engaging withour valued customers every day. Our goal is to teach our store partners how to becomepassionate experts in the preparation and delivery of our core product. So on theirfirst day as Starbucks baristas, and throughout their nine-part orientation, our newstore partners are paired with learning coaches who guide them through the process ofbecoming “Certified Starbucks Baristas.”Training for our baristas doesn’t end there. Their education continues as new productsare introduced and company initiatives are launched. When store partners move intomanagement roles, additional training is provided so they become strong leaders.9PA R T N E R SCSR 2003
The Learning Journey for Non-Retail PartnersOur non-retail partners who work at Starbucks Support Center (our global headquartersin Seattle) contribute greatly to our success. We have created a variety of learningopportunities designed to enhance their skills and career development. Some examples are: New Partner Orientation and Immersion – an extensive program designed to impartStarbucks core values; build knowledge of our business and retail operations; inspire anappreciation of coffee; create awareness about Starbucks benefits programs and careerdevelopment opportunities; and introduce partners to their key internal stakeholders. Managers’ Training Series – provides new supervisors/managers with pertinentinformation and the tools to build a strong cross-functional network. Diversity Learning Journey – focuses on issues of diversity to help foster an inclusiveenvironment for partners and customers.Our non-retail partners have theopportunity to enhance their skillsthrough a variety of training programs. Computer Classes – a series of workshops that teach partners various softwareapplications, providing skills they can use to be more efficient in their jobs. Situational Leadership – teaches supervising partners how to tailor their leadership stylein certain situations and bring out the best in their teams. Coffee Workshops – from Coffee Roasting to the Art of Espresso, our partners areexposed to the world of coffee to increase their knowledge and passion.Our goal is to provide every new Starbucks partner with a comprehensive immersionexperience. In fiscal 2003, Starbucks improved our Executive Immersion program,ensuring that new leaders get the information they need; are connected with their keycross-functional peers; and are exposed to Starbucks culture beginning with thein-store experience.RESPECTING OUR PARTNERS’ RIGHTSWhen people are treated with respect, they feel respected. Creating a great work environment where our partners are respected has been and will always be our goal. To us, thismeans continually finding new ways to nurture and strengthen the bond we have with ourpartners. In essence, this is our “labor policy.”Starbucks recognizes our partners’ right to unionize. Trade unions represented less thanone-fifth of 1% of our partners in fiscal 2003. Most union-represented partners are inCanada, and a few of our roasting plant partners in the U.S. are represented.Starbucks follows all laws regarding the employment of minors. The current minimumage of employment at Starbucks is 16, but may be higher in some locations.CSR 2003PA R T N E R S10
I N T E G R AT I N G O UR N E W S E AT T L E C O F F E E C O M PA N YPA R T N E R SIn July 2003, Starbucks acquired Seattle Coffee Company (SCC) and its wholly ownedsubsidiaries, Seattle’s Best Coffee (SBC) and Torrefazione Italia (TI). Acquiring thesebrands allows Starbucks to reach new customers and cultivate new business accountsthat have not previously been served by Starbucks. Once the deal closed, a Starbucksintegration team quickly went to work to ensure SCC, SBC and TI employees (nowpartners) were treated with the utmost sensitivity, respect and dignity.Cheree Best (left) and Steph Morrisonwork at Seattle’s Best Coffee, a whollyowned subsidiary of Seattle CoffeeCompany. After Starbucks acquiredSeattle Coffee Company, its employeesbecame our partners.The Starbucks/SCC integration team is continuing to review the operations of SCC andits subsidiaries. As business decisions are made, Starbucks will ensure SCC, SBC and TIpartners are informed regarding the potential impact to their employment.Some SCC partners have been displaced as a result of the acquisition. Starbucks hasprovided those partners with transition assistance, including an in-placement processto identify other opportunities at Starbucks. SCC partners who do not find otheropportunities with Starbucks will be provided with financial transition assistance.11PA R T N E R SCSR 2003
Starbucks Health & Safety Workplace Performance Recordfiscal year NUMBER OF STARBUCKS PARTNERS
Corporate Social Responsibility Fiscal 2003 Annual Report. STARBUCKS MISSION STATEMENT AND GUIDING PRINCIPLES To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.
Starbucks Corporation Fiscal 2007 Corporate Social Responsibility Annual Report 2 SOCIETY 44 Starbucks Community & Growth Impacts 49 Starbucks Community Investments 54 Our Contributions to Communities Around the World 57 The Starbucks Foundation 61 Starbucks Commitment to Health and Wellness 65 Being Responsive to Our Customers 66 Public Policy and Government Affairs
Starbucks Fiscal 2007 CSR Annual Report will be available online at starbucks. com/csrannualreport in May 2008. Market Information Board of Directors Howard Schultz Starbucks Corporation, chairman, president and chief executive officer Barbara Bass Gerson Bakar Foundation, president Howard Behar Starbucks Corporation, director
Starbucks Corporation Fiscal 2007 Corporate Social Responsibility Annual Report 2 SOCIETY 44 Starbucks Community & Growth Impacts 49 Starbucks Community Investments 54 Our Contributions to Communities Around the World 57 The Starbucks Foundation 61 Starbucks Commitment to Health and Wellness 65 Being Responsive to Our Customers 66 Public Policy and Government Affairs
2021 Starbucks Coffee Company 11 Starbucks Food Donation Guide HOW WE GOT HERE Starbucks Partners (employees) who live the Starbucks Mission and Values daily in our stores expressed concern about the food that was being thrown away each night. Driven by this concern, Starbucks teamed up with Feeding America in 2016 to develop the
Starbucks' UK unit pays roughly 2 million in interest that is tax deductible a year, lowering its tax bill. For McDonald's UK units, that bill is around 1 million. 942 2,657 Starbucks' tax reduction techniques Starbucks' tax reduction techniques Starbucks' tax reduction techniques In 2009, Starbucks UK told investors it was .
U.S.A. Starbucks Coffee Company P.O. Box 34067 Seattle, WA 98124-1067 206-318-1575 Starbucks Coffee Company 2401 Utah Ave. S., Suite 800 Seattle, WA 98134 206-318-1575 EMEA Starbucks Coffee EMEA BV P.O. Box 58081 1040 HJ Amsterdam 31-20-4076500 Starbucks Coffee EMEA BV - Starbucks Coffee Company
Doraisamy, former Starbucks vice president, investor relations1; Dinah Scherwin, Starbucks project manager associate, investor relations; and Lea Gariando, Starbucks investor relations advisor. Ms. Scherwin and Ms. Gariando do not work in the legal department of Starbucks and are non-lawyer members of the Starbucks team.
six different frameworks, namely, SWOT, PESTLE, VRIO, Customer Analysis, MECE, and Criteria Grid. 3.1 Starbucks' Internal and External Environments Analysis 3.1.1 SWOT of Starbucks Starbucks has a huge market in the coffee industry, and Starbucks stores can be seen in most countries. Among many countries, China is one of Starbucks' larger .
