Starbucks Pledges Continued Ethical Sourcing of Sustainable Coffee

In its seventh annual Fiscal 2007 Corporate Social Responsibility Annual Report, the Starbucks Coffee Company has once again confirmed its pledge to continue supporting ethical sourcing of sustainable coffee while supporting coffee farmers, their communities and environment.

The latest Starbucks Corporate Social Responsibility Annual Report (CSR) openly shares Starbucks progress in several areas important to the growth of the business and to its unwavering commitment to ethical coffee sourcing, environmental responsibility, community involvement and workplace practices.

In an open letter to report stakeholders, Howard Schultz, President and CEO of Starbucks said:

 “Even during this time of change for our company, one thing that will never change is our long-standing commitment to conducting business in a responsible and ethical manner. Going forward, we will only deepen our approach by continuing to integrate social and environmental responsibility into every aspect of our business.”

Starbucks Coffee Company 2007 Corporate Social Responsibility Annual Report

The report highlights Starbucks progress in several key strategic Corporate Social Responsibility areas including -

  • Sustainable coffee: Purchasing 65 percent of its coffee in fiscal 2007 through Coffee and Farmer Equity (C.A.F.E.) Practices, Starbucks program for sustainable coffee, with a goal of purchasing 80 percent of coffee from C.A.F.E. Practices-approved suppliers by fiscal 2013.
  • Paying higher prices: Purchasing only high-quality Arabica coffee beans and paying higher prices that premium quality commands. Starbucks paid an average price of $1.43 per pound ($3.16 per kilogram) in fiscal 2007.
  • Fair Trade Certified coffee: Continuing to be the largest purchaser, roaster and distributor of Fair Trade Certified coffee in North America and amongst the largest worldwide, purchasing 9 million kilograms in fiscal 2007.
  • Conservation International (CI) collaboration: Announcing a five-year commitment to CI to address climate change by supporting farmers and communities who are preserving forests in coffee regions.

The CSR report also outlines of some of the goals that Starbucks are working to accomplish by 2010 including –

  • Renewable energy: Aspiring to have 50 percent of store energy come from certified renewable sources.
  • Green building: Incorporating green building standards into all new building construction.
  • Less waste: Re-establishing ceramic serve ware as the global standard for customers who enjoy their beverages in Starbucks stores.
  • Making each, Starbucks store the heart of the local neighbourhood.
  • Starbucks economic footprint in local communities: A study commissioned by Starbucks found that Starbucks stores contribute to local economic growth, create new jobs and add to local tax revenues. For every dollar spent at a Starbucks store, on average, $2.23 is put back into the local economy through employee wages and benefits, taxes, and payments to local vendors that provide some of its goods and services.
  • Customer attitudes:  Eighty-six percent of customers surveyed responded that they were extremely or very likely to recommend Starbucks to a friend or family.
  • Community investments:  Starbucks contributions to local communities in the U.S. and around the world, through in-kind and cash donations, including partner volunteerism and company-matched gifts, were valued at $18 million in fiscal 2007.

The full Starbucks seventh Corporate Social Responsibility Annual Report is available at http://www.starbucks.com/csr