Starbucks - Reports Business Ethics


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Starbucks - Reports Business Ethics

  2. 2. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Business EthicsFinal ProjectSection – CStarbucks CorporationSubmitted By:Ali Zulfiqar BBA02103040M. Haris Mumtaz BBA02103144Arslan Jan BBA02103143Asad-ul-Bashir BBA02103088Sufwan Saleemi BBA02103164Usman Tahir BBA02103227Ali Mukhtar BBA02103120Submitted To:Sir. Hassan RasheedThe University of Lahore (UOL)Lahore Business School (LBS)
  3. 3. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Table of Content Starbucks Company Profileo The Starbucks Storyo Folkloreo Our Coffeeo Our Storeso Our Partners Productso Consumer Productso Brand Portfolio Investor Information Being a Responsible Companyo Ethical Sourcingo Environmental Stewardshipo Community Involvement History Mission Recognition Wikipedia Starbucks Corporation Business Ethics&Standard of Business Conducts Workplace Environment:o How we treat One Anothero How We Treat Our Customerso Diversityo Workplace Health, Safety and Securityo Starbucks Quality and Customer Protectiono Substance Abuse and Weaponso Wage and Hour Rules Business Practiceso Compliance with Laws and Regulationso International Businesso Interaction with the Governmento Sales Practices and Advertisingo Fair Competitiono Conflicts of Interesto Gifts and Entertainmento Securities
  4. 4. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS) Intellectual Property and Proprietary Informationo Confidential Informationo Other Intellectual Propertyo Use and Retention of Company Recordso Books and Recordso Financial Accounting, Internal Controls and Auditing Matterso Community Involvement Environmental Mission Statement Environmental Commitment Personal Activities Political Activities Public Relations Ethical Decision-Making Framework
  5. 5. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)StarBucks Company Profile:The Starbucks StoryOur story began in 1971. Back then we were a roaster and retailer of whole beanand ground coffee, tea and spices with a single store in Seattle’s Pike PlaceMarket. Today, we are privileged to connect with millions of customers every daywith exceptional products and nearly 18,000 retail stores in 60 countries.FolkloreStarbucks is named after the first mate in Herman Melville’s Moby Dick. Our logois also inspired by the sea – featuring a twin‐tailed siren from Greek mythology.Our CoffeeWe’ve always believed in serving the best coffee possible. Its our goal for all ofour coffee to be grown under the highest standards of quality, using ethicalsourcing practices. Our coffee buyers personally travel to coffee farms in LatinAmerica, Africa and Asia to select the highest quality beans. And our masterroasters bring out the balance andrich flavor of the beans through the signatureStarbucks Roast.Our StoresOur stores are a neighborhood gathering place for meeting friends and family. Ourcustomers enjoy quality service, an inviting atmosphere and an exceptional cup ofcoffee.Total stores: 17,651* (as of July 1, 2012)Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil,Bulgaria, Canada, Chile, China, Costa Rica, Curacao, Cyprus, Czech Republic,Denmark, Egypt, El Salvador, England, Finland, France,Germany, Greece,Guatemala, Hong Kong/Macau, Hungary, Indonesia, Ireland, Japan, Jordan,Kuwait,Lebanon, Malaysia, Mexico, Morocco, New Zealand, Netherlands,Northern Ireland, Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania,Russia, Saudi Arabia, Scotland, Singapore, South Korea,Spain, Sweden,Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United States andWales.
  6. 6. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Our PartnersWe offer the finest coffees in the world, grown, prepared and served by the finestpeople. Our employees, who we call partners, are at the heart of the StarbucksExperience.We believe in treating our partners with respect and dignity. We areproud to offer two landmark programs for our partners: comprehensive healthcoverage for eligible full‐ and part‐time partners and equity in the companyThroughBean Stock.ProductsStarbucks offers a range of exceptional products that customers enjoy in our stores,at home, and on the go. Coffee: More than 30 blends and single‐origin premium coffees. Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espressobeverages, Frappuccino® coffee and noncoffee blended beverages,smoothies and Tazo® teas. Merchandise: Coffee‐ and tea‐brewing equipment, mugs and accessories,packaged goods, music, books and gifts. Fresh Food: Baked pastries, sandwiches, salads, oatmeal, yogurt parfaitsand fruit cups.Consumer Products Coffee and Tea: Whole bean and ground coffee (Starbucks and Seattle’sBest Coffee brands), Starbucks VIA®Ready Brew, Starbucks® K‐Cup®portion packs, Tazo® tea filterbags and tea latte concentrates. Ready‐to‐Drink (RTD): Starbucks® bottled Frappuccino® coffee drinks,Starbucks Discoveries® chilled cupcoffees, Starbucks Doubleshot®espresso drinks, Starbucks Doubleshot® Energy+Coffee drinks; Seattle’sBest Coffee® Iced Lattes, Starbucks Refreshers™ beverages, Tazo® bottlediced and juiced teas. Starbucks® Ice Cream: Super‐premium coffee and coffee‐free flavors.Brand PortfolioStarbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulangeand Torrefazione Italia Coffee.
  7. 7. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Investor InformationStarbucks went public on June 26, 1992 at a price of $17 per share (or $0.53 pershare, adjusted for subsequent stock splits) and closed trading that first day at$21.50 per share.Starbucks was incorporated under the laws of the State of Washington, in Olympia,Washington, on Nov. 4, 1985.Starbucks Corporations common stock is listed on NASDAQ, under the tradingsymbol SBUX.Being a Responsible CompanyAt Starbucks, we have always believed in the importance of building a great,enduring company that strikes a balance between profitability and a socialconscience. Ethical Sourcing: We take a holistic approach to ethically sourcing thehighest quality coffee. This includes responsible purchasing practices,supporting farmer loans and forest conservation programs. When we buycoffee this way, it helps foster a better future for farmers and a more stableclimate for the planet. It also helps create a long‐term supply of thehigh‐quality beans we’ve been carefully blending, roasting and packingfresh for more than 40 years. Environmental Stewardship: We share our customers commitment to theenvironment. And we believe in the importance of caring for our planet andencouraging others to do the same. It is our goal that by 2015, 100% ofourcups will be reusable or recyclable. We will also work to significantlyreduce our environmental footprint through energy and water conservation,recycling and green construction. Community Involvement: From the neighborhoods where our stores arelocated to the ones where our coffee is grown – we believe in fosteringthriving communities. Bringing people together, inspiring change andmaking aDifference in people’s lives – it’s all part of being a good neighbor.By 2015, we hope to contribute one million volunteer hours each year to ourcommunities.
  8. 8. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)History: (Detail) (Timeline) 1971 Starbucks opens first store in Seattle’s Pike Place Market. 1982 Howard Schultz joins Starbucks as director of retail operations andmarketing. Starbucks begins providing coffee to fine restaurants andespresso bars. 1983 Howard travels to Italy, where he’s impressed with the popularity ofespresso bars in Milan. He sees the potential to develop a similarcoffeehouse culture in Seattle. 1984 Howard convinces the founders of Starbucks to test the coffeehouseconcept in downtown Seattle, where the first Starbucks® Caffè Latte isserved. This successful experiment is the genesis for a company that Schultzfounds in 1985. 1985 Howard founds Il Giornale, offering brewed coffee and espressobeverages made from Starbucks® coffee beans. 1987 Il Giornale acquires Starbucks assets with the backing of localinvestors and changes its name to Starbucks Corporation. Opens in Chicagoand Vancouver, Canada. 1988 Offers full health benefits to eligible full‐ and part‐time employees.o Total stores: 33o 1989 Total stores: 55 1990 Starbucks expands headquarters in Seattle.o Total stores: 84 1991 Becomes the first privately owned U.S. Company to offer a stockoption program that includes part time employees.Opens first licensedairport store at Seattle’s Sea‐Tac International Airport.o Total stores: 116 1992 Completes initial public offering (IPO), with common stock beingtraded on the NASDAQ National Market under the trading symbol SBUX.o Total stores: 165 1993 Opens roasting plant in Kent, Wash. Announces first two‐for‐one stocksplit.o Total stores: 272 1994 Opens first drive‐thru location.o Total stores: 425 1995 Begins serving Frappuccino® blended beverages.o Introduces Starbucks® super‐premium ice cream.o Announces second two‐for‐one stock split.o Opens roasting facility in York, Pa.
  9. 9. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)o Total stores: 677 1996 Begins selling bottled Frappuccino® coffee drink through NorthAmerican Coffee Partnership (Starbucksand Pepsi‐Cola North America).o Opens stores in: Japan (first store outside of North America) andSingapore.o Total stores: 1,015 1997 Establishes the Starbucks Foundation.o Opens stores in: the Philippines.o Total stores: 1,412 1998 Extends the Starbucks brand into grocery channels across theU.S.Launches Opens stores in: England, Malaysia, New Zealand, Taiwan andThailand.o Total stores: 1,886 1999 Acquires Tazo Tea.Partners with Conservation International topromote sustainable coffee‐growing practices.Acquires Hear Music, a SanFrancisco–based music company.Announces third two‐for‐one stock split.o Opens stores in: China, Kuwait, Lebanon and South Korea.o Total stores: 2,498 2000 Howard Schultz transitions to chairman and chief global strategist,Orin Smith promoted to president andchief executive officer.Establisheslicensing agreement with TransFair USA to sell Fairtrade certified coffee inU.S. and Canada.o Opens stores in: Australia, Bahrain, Hong Kong, Qatar, Saudi Arabiaand United Arab Emirates.o Total stores: 3,501 2001 Introduces ethical coffee‐sourcing guidelines developed in partnershipwith Conservation International.Introduces the Starbucks Card.Announcesfourth two‐for‐one stock split.o Opens stores in: Austria, Scotland, Switzerland and Wales.o Total stores: 4,709 2002 Establishes Starbucks Coffee Trading Company (SCTC) in Lausanne,Switzerland.o Opens stores in: Germany, Greece, Indonesia, Mexico, Oman, PuertoRico and Spain.o Total stores: 5,886 2003 Acquires Seattle Coffee Company, which includes Seattle’s BestCoffee and Torrefazione Italia coffee.Opens roasting facilities in CarsonValley, Nev., and Amsterdam, Netherlands.o Opens stores in: Chile, Cyprus, Peru and Turkey.
  10. 10. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)o Total stores: 7,225 2004 Opens first Farmer Support Center in San Jose, Costa Rica.ReleasesRay Charles, Genius Loves Company CD with Concord Records.IntroducesStarbucks Coffee Master Program.o Opens stores in: France and Northern Ireland.o Total stores: 8,569 2005 Jim Donald becomes president and chief executive officer to replaceretiring Orin Smith. Acquires Ethos Water. Announces fifth two‐for‐onestock split.o Opens stores in: Bahamas, Ireland and Jordan.o Total stores: 10,241 2006 Launches the industry’s first paper beverage cup containingpost‐consumer recycled fiber.o Opens stores in: Brazil and Egypt.o Total stores: 12,440 2007 Eliminates all artificial trans fat and makes 2 percent milk the newstandard for espresso beverages.o Opens stores in: Denmark, the Netherlands, Romania and Russia.o Total stores: 15,011 2008 Chairman Howard Schultz returns as chief executive officer. AcquiresCoffee Equipment Company and its Clover® brewing system. Launches MyStarbucks Idea, Starbucks first online community. Launches Pike PlaceRoastTM, which quickly becomes Starbucks top‐selling coffee.o Opens stores in: Argentina, Belgium, Bulgaria, Czech Republic andPortugal.o Total stores: 16,680 2009 Launches Starbucks VIA™ Ready Brew Coffee. Opens East AfricaFarmer Support Center in Kigali, Rwanda. Launches myStarbucks andStarbucks Card iPhone apps and Starbucks Card Mobile payment.o Opens stores in: Aruba and Poland.o Total stores: 16,635 2010 Expands digital offerings for customers with free unlimited Wi‐Fi,Starbucks Digital Network. Seattle’s Best Coffee reinvents business strategyto extend brand’s reach. Expands coffee offerings with ultra‐premiumStarbucks Reserve™ line and Starbucks® Natural Fusions.o Opens stores in: El Salvador, Hungary and Sweden.o Total stores: 16,858 2011 Celebrates 40th anniversary with updated brand identity and month ofglobal community service. Launches Starbucks® K‐Cups® portion packs.Acquires Evolution Fresh.
  11. 11. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)o Opens stores in: Guatemala.o Total stores: 17,003 2012 Introduces Starbucks® Blonde Roast. Announces Verismo® system byStarbucks premium single‐cup espresso machine. Opens Farmer SupportCenter in Manizales, Colombia. Acquires La Boulange® bakery brand toelevate core food offerings. Launches Starbucks Refreshers™ beverageplatform.o Opens stores in: Costa Rica, Curacao, Finland, Morocco and Norway.o Total stores: 17,651 (as of July 1, 2012)
  12. 12. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Mission―Our mission: to inspire and nurture the human spirit – one person, one cup andone neighborhood at a time.‖
  13. 13. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Recognition:Since the beginning, Starbucks has been a different kind of company. One that isdedicated to inspiring and nurturing the human spirit. Committed to serving thefinest coffee, creating an exceptional customer experience, and being a great placeto work. We are grateful to our partners (employees) for making us the companythat we are. And we are honored to be acknowledged for their efforts. Here aresome of our recent awards and recognition. ―No. 1 Best Coffee,‖ Fast Food and Quick Refreshment categoriesZagat’s Survey of National Chain Restaurants – 2009‐2011 ―No. 1 Most Popular Quick Refreshment Chain‖Zagat’s Survey of National Chain Restaurants – 2009‐2011 One of ―The 100 Best Companies to Work For‖Fortune – 1998–2000, 2002–2012 One of the ―Most Admired Companies in America‖Fortune – 2003–2012 One of the ―World’s 50 Most Innovative Companies‖Fast Company – 2012 One of the ―World’s Most Ethical Companies‖Ethisphere – 2007‐2012 One of the ―100 Best Corporate Citizens‖Corporate Responsibility/Business Ethics – 2000‐2012 ―Sustainability Design Award‖Global Green USA – 2011 ―Most Ethical Company, European Coffee Industry‖Allegra Strategies – 2009‐2011―Business Person of the Year,‖ Howard Schultz, Starbucks chairman, president andchief executive officerFortune – 2011
  14. 14. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Wikipedia Starbucks Corporation:Starbucks Corporation is an American global coffee company and coffeehousechain based in Seattle, Washington. Starbucks is the largest coffeehouse companyin the world, with 20,891 stores in 62 countries, including 13,279 in the UnitedStates, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom,556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 171 inThailand and 10 in India.Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sellpackaged food items, hot and cold sandwiches, and items such as mugs andtumblers. Starbucks Evenings locations also offer a variety of beers, wines, andappetizers after 4pm. Through the Starbucks Entertainment division and HearMusic brand, the company also markets books, music, and film. Many of thecompanys products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.From Starbucks founding in 1971 in Seattle as a local coffee bean roaster andretailer, the company has expanded rapidly. Since 1987, Starbucks has opened onaverage two new stores every day. The first store outside the United States orCanada opened in the mid-1990s, and overseas stores now constitute almost onethird of Starbucks stores. The company planned to open a net of 900 new storesoutside of the United States in 2009, but has announced 300 store closures in theUnited States since 2008.
  15. 15. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Business EthicsStandard of Business Conducts
  16. 16. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Workplace Environment:How we treat One AnotherConsistent with Starbucks Global Human Rights Standard, Starbucks promotesequal opportunity in its hiring practices, makes recruiting decisions based solely onjob-related criteria and does not use forced labor. When employing partners underthe age of 18, managers must comply with all Starbucks-established or legallyrequired limitations on minimum hiring age, and on hours and tasks performed bythese partners to ensure any work performed does not hamper the partnerseducation, health, safety, and mental or physical development.For further information, refer to the Global Human Rights Standard, which can beobtained by contacting Business Ethics and Compliance. At Starbucks we treateach other with respect and dignity. This means that all partners are entitled towork in an environment that is free of harassment, bullying and discrimination.Harassment, bullying and discrimination take many forms, including: Unwelcome remarks, gestures or physical contact The display or circulation of offensive, derogatory or sexually explicitpictures or other materials, including by email and on the Internet Offensive or derogatory jokes or comments (explicit or by innuendo) Verbal or physical abuse or threatsQ: One of my co-workers emailed an inappropriate joke to me and some teammates. I find itoffensive, but I don’t know if I should approach my co-worker with my concern. What should Ido?A: We each have an obligation to ensure that Starbucks is a great place to work for all partners,and offensive behavior such as this is not acceptable. If you feel uncomfortable speaking withyour co-worker directly, contact your manager, Partner Resources or Business Ethics andCompliance.How We Treat Our CustomersLegendary customer service is a top priority at Starbucks. We strive to make everycustomer’s experience pleasant and fulfilling, and we treat our customers as wetreat one another, with respect and dignity. This means, for example, that we neverharass or discriminate against our customers.
  17. 17. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)―We treat our customers as we treat one another, with respect and dignity.‖DiversityStarbucks actively creates and promotes an environment that is inclusive of allpeople and their unique abilities, strengths and differences, and promotes diversityas a strategic and competitive business advantage for the company.―We respect diversity in each other, our customers and suppliers and all otherswith whom we interact.‖As we continue to grow, embracing diversity in every aspect of our business—from the way we work together to the way we procure goods and services—is vitalto our long-term success. We respect diversity in each other, our customers andsuppliers and all others with whom we interact. Our goal is to be one of the mostinclusive companies globally, working toward full equity, inclusion andaccessibility for those whose lives we touch.Workplace Health, Safety and SecurityPartners are expected to follow all safety rules and practices; cooperate withofficials who enforce these rules and practices; take necessary steps to protectthemselves and other partners; attend required safety training; and reportimmediately allAccidents, injuries and unsafe practices or conditions. In order toenhance workplace security, you should be familiar with and follow any worksafety information and training provided to you.Q: Our work safety standards far exceed what is required by law where I work and ourcompetitors only follow local requirements. Shouldn’t we do the same?A: No. We must adhere to our company safety policies. Starbucks is committed to providingpartners with a safe and secure environment everywhere we operate, even if this means weexceed local requirements.Starbucks Quality and Customer ProtectionStarbucks commitment to quality means that we take steps to protect ourcustomers’ health and safety. You can play your part by following all proper
  18. 18. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)procedures relating to the storage, handling, preparation and service of Starbucks®coffee and other products; by working to ensure clean, sanitary and safe conditionsin all of our facilities; and by continually exploring ways to maintain and improveStarbucks quality standards and practices.Please notify your manager immediately if you become aware of anything thatsuggests that a product, process or situation may pose a danger to health or safety.Starbucks has established procedures for such situations, and your manager isaware of the appropriate steps to take.Substance Abuse and WeaponsStarbucks has strict standards regarding substance abuse and weapons. Partners arenot permitted to use or possess alcoholic beverages on company property, exceptwhere alcohol is specifically permitted at a Starbucks-sponsored social event. Anexception applies if your job involves the sale of alcohol, but in that case, you maynot consume the alcohol and must participate in any special training required forthat business.You also may not use or possess illegal drugs or controlled substances onStarbucks property or while you are engaged in any job-related activity. Partnersmay not report to work under the influence of alcohol, illegal drugs or controlledsubstances.Partners may not have or possess any weapon while in a Starbucks store, plant oron other Starbucks property. Starbucks takes its rules regarding workplace health,safety and security very seriously. It is essential that you understand and followThem, together with any more detailed guidance provided to you.Wage and Hour RulesStarbucks is committed to following all applicable wage and hour laws andregulations. To help ensure that all work performed for Starbucks is compensatedcorrectly, partners compensated on the basis of hours worked must report andRecord time accurately in accordance with established local procedure.Q: Lately my store has been very busy and it has been hard to find time to do routine cleaning.At this morning’s store meeting, our manager told everyone that if they don’t complete their
  19. 19. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)tasks before they punch out they will have to stay “off the clock” to do so. Is it okay for ourmanager to ask this of us?A: No. Working off the clock is strictly prohibited by Starbucks. Starbucks is committed toensuring that all partners are accurately compensated for all work performed. Any requests towork off the clock must be reported to Partner Resources or Business Ethics and Compliance.Business PracticesCompliance with Laws and RegulationsStarbucks is committed to full compliance with the laws, rules and regulations ofthe countries in which it operates. You must comply with all applicable laws, rulesand regulations when performing your duties.When you think a conflict exists between the Standards and an applicable law, ruleor regulation, or if you have a question concerning the legality of your or otherpartners’ conduct, you should consult with your manager or another partydescribed in the ―Asking for Guidance and Voicing Concerns‖ section of thisbooklet.International BusinessStarbucks is committed to the highest ethical standards in all business transactions.Partners must follow all applicable laws, rules and regulations when conductingStarbucks business.―Starbucks will be accurate and truthful in representing business transactions togovernment agencies.‖Payments made to any foreign agent or government official must be lawful underthe laws of the United States and the foreign country. Payments by or on behalf ofStarbucks to foreign agents or government officials should always be strictly forServices rendered and should be reasonable in amount given the nature of thoseservices. Under no circumstances may a partner make payments in violation of thelaw or to induce government officials to do business with Starbucks.
  20. 20. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Partners must comply with all local and foreign laws regarding customs and trade.Starbucks will be accurate and truthful in representing business transactions togovernment agencies. All information that a partner furnishes to any customsofficial or to any agent hired by Starbucks to facilitate imports and exports must beaccurate and truthful. If you conduct business internationally on behalf ofStarbucks, please make sure you have a thorough understanding of these laws andknow enough about any third parties doing business in Starbucks name to ensurethey are making appropriate decisions on our behalf.Starbucks partners at no time are permitted to influence the outcome of anybusiness decision by exchanging bribes or kickbacks of any kind.Interaction with the GovernmentStarbucks is committed to complying with local laws, regulations and codes and toworking fairly and honestly with government officials and others in ourcommunities.In doing so, our actions must meet high ethical and legal standards. It is againstStarbucks policy (and may be a breach of law) to offer or make a payment or giftof any kind in order to facilitate a local process or to influence a local governmentofficial.―Partners must be truthful and straightforward in their dealings with thegovernment.‖If you are contacted by a government or regulatory representative and asked toprovide information or submit to an inspection, you should inform your managerimmediately. Your manager will take appropriate actions or contact the appropriatedepartment for guidance.Starbucks policy is to deal honestly and fairly with government authorities and tocomply with valid governmental requests and processes. Partners must be truthfuland straightforward in their dealings with the government and may not direct orencourage another partner or anyone else to provide false or misleadinginformation to any government official or representative. Partners must not director encourage anyone to destroy records relevant to an investigation.
  21. 21. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Q: We use an agent to facilitate relations with local government officials. Recently he asked usto increase his commission, and I suspect he wishes to pass this money on to the local officials.What should I do?A: If you suspect that the agent is making illegal payments on Starbucks behalf, the company isunder an obligation to investigate whether this is the case and to halt any such payments. Youshould report your suspicions to your manager or Business Ethics and Compliance.Starbucks commitment to working fairly and honestly with the governmentincludes all interactions with government officials.Certain partners will be notified and trained on a regular basis for the purposes ofcompliance with relevant federal laws, including those regarding lobbyingdisclosure, anti-bribery and anti-corruption.Sales Practices and AdvertisingStarbucks competes on the merits of our products and services in all sales andadvertising. Our communications with our customers or potential customers mustbe truthful and accurate. When we say something about our products and services,we must be able to substantiate it. We sell the quality of what we do; we do notdisparage our competitors.Fair CompetitionFair competition laws are intended to promote vigorous competition in a freemarket. It is in Starbucks best interest to promote free and open competition.Starbucks must make its own business decisions, free from understandings oragreements with competitors or suppliers that restrict competition. We considercompliance with these laws of vital importance. When conducting Starbucksbusiness, all partners must: Not discuss pricing, production or markets with competitors Not set resale prices with customers or suppliers Always present Starbucks services and products in a manner consistent withour core values Not induce a third party to breach an existing agreement
  22. 22. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS) Never act in a manner that could be seen as an attempt to exclude present orpotential competitors or to control market pricesQ: I am going to a trade show. May I go to a competitor’s booth?A: Yes. You may go to the booth and collect any publicly distributed material. However, if youtalk to anyone at the booth, identity yourself as a Starbucks partner, and avoid conversationsabout business. If you have any questions, a good practice is to consult Law & Corporate Affairsfor guidance before you attend.Q: A salesperson for a competitor and I are friends. Occasionally we talk about marketing plans.Should I be concerned?A: Yes. You are revealing confidential information that Starbucks has invested time and moneyto develop. You also may be violating competition laws that ban discussions of marketing andpricing.Conflicts of InterestWe all must avoid conflicts of interest. A conflict of interest exists when a personalinterest or activity interferes or appears to interfere with the duties that youperform at, or owe to, Starbucks. A conflict of interest may unconsciouslyinfluence even the most ethical person and the mere appearance of a conflict maycause a partner’s acts or integrity to be questioned.In addition to annual disclosure, potential conflicts of interest must be disclosed tothe partner’s manager or the vice president in charge of the partner’s department orbusiness unit, who will contact the chief ethics and compliance officer (CECO).If the partner prefers, disclosure can be made directly to the CECO via BusinessEthics and Compliance.Q: I have a relative I’d like to hire to do some work at Starbucks. Since it’s a legitimate projectthat needs to be done, and my relative is trained to do this type of work, is it okay if I hire her?A: Although the work is legitimate, this situation creates the appearance of a conflict. Thecircumstances of this situation should be raised with Business Ethics and Compliance so that anindependent review can be done prior to committing to a contract. This will help protect you,your relative and Starbucks if the relationship ever comes into question.
  23. 23. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Some examples of situations in which conflicts of interest may arise: Being employed by or operating a firm, including consulting, that does ordesires to do business with Starbucks or that competes with Starbucks (forexample, working in a competitor’s coffee shop) Making a substantial direct investment in such a firm (by you or a memberof your immediate family) Acting on behalf of anyone besides Starbucks in any transaction withStarbucks (for example, helping someone sell products and/or services toStarbucks) Engaging personally in transactions in which Starbucks has an interestGifts and EntertainmentA gift or favor should not be accepted or given if it might create a sense ofobligation, compromise your professional judgment or create the appearance ofdoing so. In deciding whether a gift is appropriate, you should consider its valueAnd whether public disclosure of the gift would embarrass you or Starbucks.―Giving or accepting valuable gifts or entertainment might be construed as animproper attempt to influence the relationship.‖A gift of money should never be given or accepted. (Some retail partners, however,may accept customary tips for service well done.) As a general rule, partnersshould limit gifts to or from any one vendor or business associate to US $75 peryear.A gift of nominal value may be given or accepted if it is a common businesscourtesy, such as coffee samples, a coffee cup, pens or a similar token. However,during traditional gift-giving seasons in areas where it is customary to exchangegifts of money, such as China, Japan, Malaysia, Singapore and Thailand, partnersshould not solicit but may exchange cash with nongovernmental businessassociates in nominal amounts up to the equivalent of US $20.Trading items of value with other businesses, including shops and restaurants, isstrictly prohibited. You may not encourage or solicit meals or entertainment fromanyone with whom Starbucks does business or from anyone who desires to dobusiness with Starbucks. Giving or accepting valuable gifts or entertainment mightbe construed as an improper attempt to influence the relationship.
  24. 24. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Q: May I accept a business meal from a supplier?A: In most circumstances, modest and infrequent business meals may be accepted. However,whenever a supplier pays for a meal, always consider the specific circumstances and whetheryour impartiality could be compromised or appear to others to be compromised. If the meal isoffered during contract negotiations, you must always politely decline the invitation. Talk withyour manager if you are unsure. Partners may offer or accept meals and entertainment if theyare reasonable and customary, appropriate, occur infrequently and are not expensive. Pleaseconsult the travel and/or expense guidelines for your business unit or department for additionalguidance.Starbucks prohibits offering, giving, soliciting or receiving any form of bribe or inducement.There are serious penalties for engaging in this conduct.Q: A vendor I work with just finished an important project for me on time and under budget. Iwould like to show my appreciation with a gift. What is appropriate?A: When we give gifts, we set the tone for how we conduct business— purely on businessconsiderations. Keep this in mind when selecting a gift for a vendor. As a general rule, partnersshould limit gifts to or from any one vendor or business associate to US $75 per year. Also takeinto consideration their company’s gifts and entertainment policy. Just as we want others torespect our standards, we want to be mindful of theirs.SecuritiesAs a partner, you may become aware of significant and confidential informationabout Starbucks business, often called ―material non-public information.‖ Partnersmay not buy or sell stock (including by cashless exercise of stock options) or anyOther security on the basis of this information. In order to avoid any potentialproblems, you should interpret the term ―material non-public information‖ broadly.Some examples of material information include: Financial information The development of new products or services A proposed acquisition, joint venture or merger Government investigations Changes in key personnelInformation is considered to be non-public unless it has been adequately disclosedto the public. Examples of effective disclosure include public filings with securities
  25. 25. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)regulatory authorities and the issuance of company press releases. There also mustbe adequate time for the market to digest the information.Starbucks requires that the information must be publicly available for at least onefull business day before you may trade in Starbucks securities. Certain executivesand partners with regular access to material non-public information also may nottrade during the blackout periods established by Starbucks.Q: My family and friends often ask me about Starbucks and whether they should buy stock.Usually I tell them what I know about our business and suggest they buy stock. Is this aproblem?A: The same rules about inside information apply whether you buy or sell stock yourself or if yougive the information to someone else—known as “tipping.” If a relative or friend buys or sellsstock based on non-public information that you give him or her, both of you could be liable forviolation of securities laws. Furthermore, you could be in violation simply for sharing materialnon-public information, regardless of whether or not he or she uses it or benefits from it.Intellectual Property and Proprietary InformationConfidential InformationDuring the course of employment at Starbucks, all partners gain some knowledgeand information that is non-public and belongs to Starbucks. Partners are trustedwith maintaining the confidentiality of this valuable information.―Starbucks information should be used only for company purposes and should notbe disclosed to anyone outside of Starbucks.‖Confidential information includes things such as supplier information, Starbuckstechnologies, recipes, formulas, coffee blends, business and marketing plans,internal company communications, and existing and future product information.Starbucks information should be used only for company purposes and should notbe disclosed to anyone outside of Starbucks. Even within the company, only thoseindividuals who truly need to know the information to conduct their businessshould have access to confidential information. If you leave Starbucks, you mustreturn all company materials and property, and any copies.Confidential materials should: Be stored in a secure place and should not be left out where others can seethem
  26. 26. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS) Be clearly marked as confidential Not be sent to unattended fax machines or printers Not be discussed where others may hearStarbucks is committed to being fair in the areas of confidential information andmaterials. Just as we take care to protect our information, Starbucks respects theinformation of others.Here are some basic rules to follow: Do not bring any material from prior employers to Starbucks Do not accept or use anyone else’s confidential information (or agree tomaintain anyone’s information in confidence) Do not solicit confidential information from another company’s present orformer employees or suppliers Do not engage in espionage; be transparent in obtaining information aboutthe marketplaceQ: I am able to get an early start on my day by returning calls during my train ride to work. Is thisa problem?A: You must be careful not to discuss non-public company information in public places whereothers may overhear you, such as taxis, elevators or at conferences and trade shows. When it isnecessary to conduct a telephone call in a public place, be mindful of your surroundings.Other Intellectual PropertyAs a partner, the things you create for Starbucks belong to the company. Thisincludes inventions, discoveries, ideas, improvements, software programs, artworkand works of authorship. This work product is Starbucks property if it is created ordeveloped, in whole or in part, on company time, as part of your duties or throughthe use of company resources or information.Partners must promptly disclose to Starbucks, in writing, any such work productand cooperate with the company’s efforts to obtain protection for Starbucks. Toensure that Starbucks receives the benefit of work done by outside consultants, it isessential that an appropriate written agreement or release be in place before anywork begins.―Brands are fragile and must be used carefully and protected from misuse.‖
  27. 27. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Remember, too, that our brands, including the Starbucks name, are extremelyvaluable to Starbucks success. Brands are fragile and must be used carefully andprotected from misuse. Consult Starbucks guidelines for proper trademark usage.When Starbucks uses the work product of others, including art and music, we mustalso be sure to follow the rules. For example, you should only use software forwhich you have a valid license and should only use that software in accordancewith the terms of the license for that software. Written materials and music maybesubject to copyright protection and should be copied only when permitted. Usecaution, as not all copyrighted materials bear a notice.Use and Retention of Company RecordsStarbucks Information Management Policy states that partners will manageinformation in such a way that supports the needs of the business while ensuringefficiency, security and compliance with any legal or regulatory requirements. Thispolicy applies to records maintained in all forms at Starbucks, including paper andelectronic.If you are responsible for preparing or maintaining any Starbucks records, pleasefamiliarize yourself with the Starbucks Records Management Handbook, theStarbucks Records Retention Schedule and specifically the retention periods thatapply to the records you keep. Also remember that there are strict rules relating tothe processing and handling of private and secret information. This includescollecting, storing, using, amending, disclosing and destroying information.Records must always be prepared accurately and reliably, and stored properly inaccordance with the Starbucks Records Management Handbook and the StarbucksRecords Retention Schedule.Records must accurately and fairly reflect, within Starbucks normal accounting andreporting systems, all required transactions and other events.There cannot be any unrecorded company funds, assets or any other type of ―offthe books‖ accounts, no matter what the reason for such accounts.You must not knowingly destroy or discard information that is subject to a legalhold. Records relevant to a legal action cannot be destroyed or discarded and mustbe preserved. If Starbucks receives a subpoena (or other form of legal order), arequest for records or other legal papers, or if we have reason to believe that such arequest or demand is likely, the company policy is to retain all information that isrelevant to the matter.
  28. 28. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)―There are strict rules relating to the processing and handling of private and secretinformation.‖Books and RecordsAll partners must ensure the accuracy and integrity of Starbucks corporate records.This includes reliability and accuracy of books and records, as well as honesty indisclosures and in providing information.The books of account, financial statements and records of Starbucks should bemaintained in accordance with the requirements of law and generally acceptedaccounting principles. All of Starbucks assets and liabilities should be properlyRecorded in its books.Costs and revenues must be recorded in the right time periods. The sale has notofficially been completed until there is evidence of a sales agreement, the title haspassed, and the sales price can be determined and is reasonably collectible. Untilthen, it would be a misrepresentation to record it.Financial Accounting, Internal Controls and Auditing MattersConcerns regarding accounting, internal accounting controls or auditing mattersshould be promptly reported through the Ethics and Compliance Helpline or Webline, described in the ―Asking for Guidance and Voicing Concerns‖ sectionof this booklet. Reports may be made anonymously and will be treated in aconfidential manner.Depending on how they are classified, reports of this nature will be routed toBusiness Ethics and Compliance, the chief ethics and compliance officer or thegeneral counsel in Starbucks U.S. head office, the Audit and ComplianceCommittee of the Board of Directors or the presiding independent director of theBoard.Community InvolvementEnvironmental Mission Statement
  29. 29. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Starbucks is committed to a role of environmental leadership in all facets of ourbusiness.We fulfill this mission by a commitment to: Understanding environmental issues and sharing information with ourpartners Developing innovative and flexible solutions to bring about change Striving to buy, sell and use environmentally friendly products Recognizing that fiscal responsibility is essential to our environmental future Instilling environmental responsibility as a corporate value Measuring and monitoring our progress for each project Encouraging all partners to share in our missionEnvironmental CommitmentAll partners should seek ways to proactively address the environmental impacts ofour operations and incorporate the principles of the environmentalmissionstatement into their work. At a minimum, we all must ensure that Starbucksbusiness practices and activities comply with the letter and intent of the law andallcompany policies.Starbucks understands that environmental responsibility is necessary if we hope topreserve our world for generations to come. Our commitment tocontributepositively to the environment is of the utmost importance to ourcompany. We elaborated further on this commitment in 1992 when we adopted ourenvironmental mission statement, which guides our approach to minimizing ourenvironmentalfootprint. Starbucks has continuously evolved and expanded ourdefinition ofEnvironmental responsibility and what it means to be an environmental leader.Personal ActivitiesStarbucks understands the need for balance between work, personal and familylife, and we encourage partners to be involved in their communities. However,partnersshould not impose their personal beliefs or opinions on other partners orrepresenttheir personal opinions as those of Starbucks. You may keep yourpersonal activities outside of the workplace confidential, butalways keep in mindthat you are a representative of Starbucks. Your conduct can affect perceptions ofthe Starbucks brand and service.
  30. 30. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Political ActivitiesPolitical activities must be conducted on your own time and using your ownresources. You must not promote any political or personal views orbeliefs(including by posting or distributing notices or other materials) on or aroundStarbucks premises, and you may not indicate or suggest that you speakforStarbucks or that the company supports your views.Public RelationsAll information disclosed outside of the company must be accurate, complete andconsistent, and disseminated in accordance with Starbucks policies. Weallrepresent Starbucks; if someone asks you for information (for example, themediaor investors), be sure to notify your manager or department head about therequest. They will contact the appropriate party to ensure that the correctprocedureis followed. Please do not attempt to answer these questions yourself.
  32. 32. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Frequently Asked QuestionsQ: What is Starbucks Business Ethics and Compliance?A: Starbucks Business Ethics and Compliance, which includes Starbucks PolicyOffice, is a program that supports Our Starbucks Mission and helps protect ourculture and our reputation by providing resources that help partners make ethicaldecisions at work.Q: What are Starbucks Standards of Business Conduct?A: The Standards of Business Conduct is a resource distributed to all partners tohelp them make appropriate decisions at work. The Standards are a briefstatementof some of the company’s expectations of how we are all toconduct Starbucksbusiness.Q: What am I expected to do with the Standards of Business Conduct?A: Read the Standards carefully at work and make sure that you understand them.If you have any questions or concerns, ask your local PartnerResourcesrepresentative or contact Business Ethics and Compliance via the contactinformation listed on the back inside cover of this booklet.Q: What is Starbucks Ethics and Compliance Helpline?A: The Ethics and Compliance Helpline is a free phone number for reporting issuesor raising concerns that involve ethics, legal issues or potential violations ofStarbucks policy, including the Standards of Business Conductand our core values.No charges will apply to the call, and it is answered live,by a third party, 24 hoursa day, seven days a week.Q: May I call the Helpline if I am not fluent in English?A: Yes. A live interpreter can be made available upon request.
  33. 33. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)Q: What happens when a call is placed to the Helpline?A: Calls to the Helpline are answered by a third party outside of Starbucks. Trainedspecialists speak with callers regarding their questions or concernsand thenforward a report to a Business Ethics and Compliance partner whoworks with theappropriate party or department for investigation and anyappropriate action.Q&AQ: May I call the Helpline anonymously?A: Yes. You will be given a unique report number, which will allow you to call theHelpline again and anonymously check on the status of your report.Calls to theHelpline are not traced and are handled in a confidential manner.We encouragecallers to provide their names and contact numbers becausecalls in which the callerdoes not provide those details can be more difficultto investigate.Starbucks cannotguarantee your anonymity if you identify yourself or giveinformation from whichyou can be identified, but the company will takeevery reasonable precaution toassure that the identity of a caller remainsas confidential as possible.Q: What is the Ethics and Compliance Webline and how does it differ from theHelpline?A: The Ethics and Compliance Webline is a tool that serves as another way forpartners to ask for guidance or to voice concerns. As with the Helpline,concernsmay be submitted anonymously and will be treated in aconfidential manner.Q: Can I be retaliated against or victimized for using the Helpline or Webline?A: Starbucks does not tolerate retaliation against or the victimization of any partnerwho raises concerns or questions regarding a potential violationof Starbucks policythat he or she reasonably believes to have occurred.Q: How do the Helpline and Webline fit with Partner Resources and my localpolicies and procedures, including my local grievance procedure?A: Business Ethics and Compliance works with appropriate local partners toinvestigate and resolve concerns reported to the Helpline or Webline.In addition toyour manager and Partner Resources representative,they are additional ways forpartners to speak up.Q: Who is my contact for more information or to obtain policies?
  34. 34. ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)ALI ZULFIQAR – BBA02103040 – LAHORE BUSINESS SCHOOL (LBS)A: Contact your local Partner Resources representative or Business Ethics andCompliance via the Helpline, Webline or email.