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Starbucks and
Conservation
International
Kevin M. Brett
April 18, 2013
Liking or Disliking Starbucks
“Whether one likes or dislikes Starbucks or its
philanthropy, the Starbucks CSR model looks
...
Starbucks Profile
 Founded 1971; Pike Place Market
 $13.3 billion annual revenues
 $1.38 billion net income
 $43.8 bil...
How to Build Trust?
 Edelman Trust Barometer 2013
 Opinion of 31,000 “Informed Publics”
 Engage with Stakeholders
 Con...
NGOs Most Trusted in Society
2012
 NGOs: 58 Percent
 Business: 53 Percent
 Media: 52 Percent
 Government: 43 Percent
...
Starbucks and EDF
 Teamed on an environmentally friendly coffee
cup (e.g. greater use of recycled materials)
Still NGO Confrontation
 Demonstrations by Seattle Audubon and
Global Exchange
 Concern for Rain Forests and Species
 S...
Mild Arabica Coffee and the Rain Forest
 Cultivating the World’s Second Largest
Commodity
Starbucks and Conservation
International Strategic Alliance
CSR? Fiduciary Responsibility?
Starbucks/CI “Synergy”
 Due Diligence; Accumulated Trust
 CI “Quality Control”
 No Politically Correct Coffee Sales
 S...
Starbucks/CI Takeaways
 Proactive, collaborative working relationships with
NGOs can directly benefit fiduciary responsib...
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Starbucks and Conservation International.ppf

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How did Starbucks and NGO Conservation International work together to maintain fiduciary responsibility and achieve corporate social responsibility (CSR). It wasn't easy, but it happened.

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Starbucks and Conservation International.ppf

  1. 1. Starbucks and Conservation International Kevin M. Brett April 18, 2013
  2. 2. Liking or Disliking Starbucks “Whether one likes or dislikes Starbucks or its philanthropy, the Starbucks CSR model looks like a recipe that many corporations recognize as a solid formula for social responsibility,” – Rick Cohen, The Non-Profit Quarterly, April 20,2011
  3. 3. Starbucks Profile  Founded 1971; Pike Place Market  $13.3 billion annual revenues  $1.38 billion net income  $43.8 billion market cap  $1.18 billion cash  $4.20 billion current assets  $2.21 billion current liabilities  Lattes, Cappuccinos, Mochas  Specialty Coffee Drinks
  4. 4. How to Build Trust?  Edelman Trust Barometer 2013  Opinion of 31,000 “Informed Publics”  Engage with Stakeholders  Conduct Affairs with Integrity  Offer Outstanding Products and Services
  5. 5. NGOs Most Trusted in Society 2012  NGOs: 58 Percent  Business: 53 Percent  Media: 52 Percent  Government: 43 Percent  Source: Edelman Trust Barometer, 2013 2013  NGOs: 63 Percent  Business: 58 Percent  Media: 57 Percent  Government: 48 Percent
  6. 6. Starbucks and EDF  Teamed on an environmentally friendly coffee cup (e.g. greater use of recycled materials)
  7. 7. Still NGO Confrontation  Demonstrations by Seattle Audubon and Global Exchange  Concern for Rain Forests and Species  Starbucks is Not Unionized
  8. 8. Mild Arabica Coffee and the Rain Forest  Cultivating the World’s Second Largest Commodity
  9. 9. Starbucks and Conservation International Strategic Alliance CSR? Fiduciary Responsibility?
  10. 10. Starbucks/CI “Synergy”  Due Diligence; Accumulated Trust  CI “Quality Control”  No Politically Correct Coffee Sales  Starbucks Low-Interest Loans  Chiapas Biosphere Reserve  SBUX Influence on Supply Chain  Planting of Shade Trees  No Dumping in Rivers
  11. 11. Starbucks/CI Takeaways  Proactive, collaborative working relationships with NGOs can directly benefit fiduciary responsibility and corporate social responsibility.  They are not mutually exclusive terms of art.  Inoculate or at least mitigate a MNE against hostile NGOs.

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