Triple Bottom Line - Starbucks Coffee

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  • 1. STARBUCKS COFFEE:Fair Trade or Fair Marketing
    Presented by:
    Jose Enrique Guadiana Chong
    Amy Qiu
    Tseli Mohammed
    Brenna Schneider
    Alex Volpone
    Na Wang
    14 March, 2011
    Managing the Triple Bottom Line
    International Business School
    Brandeis University
  • 2. History
    2
  • 3. Industry Setting
    1998: six companies control 50% of the world trade market
    2000: US consumes 17% of the total consumption, but about 40% of the dollar volume sold
    2002: difficulty in terms of overproduction and non-responsible coffee growing
    Nestlé, Procter & Gamble, Kraft, and Sara Lee accounted for approximately 70% of global roasting capacity and 40% of retail market.
    Roasters deal directly with importers, exporters or cooperatives
    Price of coffee at its lowest in 30 years due to increasing supply of coffee from countries with low production costs.
    Supermarkets main retailers with 60% or more of the coffee sold in the US
    Gourmet coffee market grows to 8% of the world coffee sales
    3
  • 4. Partnership withConservation International (CI)
    CI and producers signed agreements
    Individual producers commit to delivering an authorized quantity of beans to their cooperatives, which in turn sign contracts with Starbucks
    CI had a team of three full time extensionists who” visited every farm and monitored progress and results” against the following criteria:
    No trees could be felled on producers’ farms or in the Biosphere Reserve
    No coffee pulp could be thrown into the rivers
    planting of more and different varieties of shade trees
    CI provide training courses in the villages to the farmers, co-op managers, and technicians on quality control, organic farming methods, tree planting and pulping methods, among others.
    4
  • 5. CSR Efforts
    “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”
    Focus on:
    Ethical Sourcing
    Environment
    Community
    5
  • 6. Ethical Sourcing
    Coffee Sourcing
    C.A.F.E. Guidelines
    Increase in Purchase of C.A.F.E. Certified Coffee
    Fair Trade and Organic
    Farmer Support
    Farmer Loans $14.5 million
    Cash Flow Challenges between harvests
    6
    “We've always believed that businesses can - and should - have a positive impact on the communities they serve.”
  • 7. Goals: Ethical Sourcing
    7
  • 8. Environment
    Improve Environmental Impact
    Coffee Growing Regions
    Retail Business Locations
    Reduce Water and Energy Consumption
    Climate
    Farmers’ Access to Carbon Markets
    Green Construction
    Recycling
    2012: recyclable cup solution
    2015: front-of-store recycling
    2015: 25% of beverages served in reusable containers
    8
  • 9. Goals: Environment
    9
  • 10. Goals: Environment
    10
  • 11. Community
    Community Service (200,000 hours)
    Global Month of service
    Dream House in Baltimore
    City Year in Los Angeles
    Food project in Boston
    Youth Action
    50,000 young people
    (STARBUCKS)RED
    Starbucks Foundation
    Starbucks China Education Project
    C.O.A.S.T Fund
    Ethos Water
    11
  • 12. Goals: Community
    12
  • 13. In the news…
    13
  • 14. Analysis of CSR Efforts
    Marketing rosier than reality?
    Ethical Sourcing:
    If 2015 goal achieved, 100% of coffee will have min 60% compliance
    1% of all Starbucks Coffee is Fair Trade
    Environment: Recycling:
    Only 10% of cups made from recycled material, and not apparent aim to change this
    Community: Volunteerism:
    2008: employees in Canada and the US dedicated 245,974 volunteered hours
    2009: employees worldwide only 184,011 volunteered hours
    14
  • 15. “Some may question whether a company can truly do well and do good. We know from experience that it’s not only possible to do both; it’s critical to our future success.” ~ Starbucks 2009 CSR Report, 2
    15