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Triple Bottom Line - Starbucks Coffee
 

Triple Bottom Line - Starbucks Coffee

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    Triple Bottom Line - Starbucks Coffee Triple Bottom Line - Starbucks Coffee Presentation Transcript

    • 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
    • History
      2
    • 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
    • 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
    • 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
    • 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.”
    • Goals: Ethical Sourcing
      7
    • 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
    • Goals: Environment
      9
    • Goals: Environment
      10
    • 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
    • Goals: Community
      12
    • In the news…
      13
    • 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
    • “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