| www.starbucks.com |
|
| Share Price (3/15/07): | $29.59 |
| OVERVIEW: | |
| Market Value (3/15/07): | $22.2 BIL |
| Revenue (2006): | $7.8 BIL |
| Employees: | 145,800 |
| Return on Equity 2006: | 26.9% |
| HIP PRACTICES: | |
| Vision: | "Lead from the heart -- and integrate into the business;" instilled at store level as well as HQ. |
| Metrics: | CAFÉ (coffee and farmer equity) practices incorporate social and environmental targets, covering half of sourcing by weight. Company-wide tracking includes eco-metrics, but no health outcomes |
| Financials: | Each store's water use, energy use (KWh per sq.ft.), recycling content tracked -- with associated cost savings targets. |
| Accountability: | Board's Corporate Social Responsibility (CSR) Committee gets monthly updates from SVP of CSR, and entire Board updated twice per year. Corporate and utility CEOs see impact driving overall health of the business. |
| Decision-Making: | New products, partners and acquisitions screened for sustainability, but criteria vary by situation. |
| HIP OUTCOMES: | |
| Health: |
Sky-high 87% employee satisfaction, positively showcasing good management relations, managed stress and open communications. In fiscal-year 2006 in US market, spent more on health-care than coffee beans. Employees eligible after 90 days if working 20 hours per week. Company pays 75%; staff pay 25% (and as low s $5 per week). |
| Wealth: |
Seek to build wealth of farmers in Africa, Latin America and Asia with fair-trade program -- and certified products now in 24 geographies. |
| Earth: |
66.4% post-consumer paper products (not including hot cups) in 2006 -- 16% above its goal for the year; Converted all hot beverage cups in Starbucks U.S. and Canada stores to 10% PCF content version. Quadrupled renewable energy purchase to equal 20% of the energy used in U.S. and Canada company-operated stores. |
| Equality: |
Representative diversity of workforce: 65% women, 30% ethnic; at VP level or above not fully represented with 34% women and 14% minority executives. In 2006, spent $213 million with minority- and -women-owned suppliers, with goal of $250 million in 2007. |
| WHAT'S NEXT: | |
| Practices: | Rolling out CAFÉ practices to all sourcing insures branding on high-ground and even higher global impact -- benefiting global incomes and asset-building. |
| Outcomes: | With such a satisfied and diverse staff, morale keeps customers coming back for high-touch service -- leading to increased retention, and recurring profits. |
| OTHER RATINGS: | |
| KLD (+/-): Companies rated from negative (0) to positive (6) in seven areas. | Community: 6.0 Governance: 4.5 Diversity: 4.5 Employees: 4.0 Environment: 4.9 Human Rights: 3.4 Product: 3.1 Included in KLD Indexes for: Domini 400, BMSI (Broad Market Social Index) |
| RESOURCES | |
| Sustainability or CSR Report: | Corporate Responsibility 2006 Annual Report |
| Annual Report: | Investor Relations |
--Lisa LaMotta and R. Paul Herman
