Triple Bottom Line - Starbucks Coffee


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Triple Bottom Line - Starbucks Coffee

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