SOCIAL RESPONSIBILITY &ENVIRONMENTAL SUSTAINABILITY

“Organizations have tramendous social obligations.” – Ralph Nader

“Organizations have no obligation to do any more for society than is legally required.” – Milton Friedman

Social Policyconcerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.

Corporate Social Responsibility

• Is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

• Emphasizes obligation and accountability to society.

Starbucks Foundation

• The Starbucks Foundation is a separate charitable organization that receives funding from Starbucks Corporation and private donations.

• The foundation gave $13.5M in 2011, making 145 grants to nonprofit organizations.– >$3M for Starbucks Youth Action Grants– $250k to American Red Cross for victims of

tornadoes in the United States’ Midwest– $1.2M for the earthquake and tsunami happened

in Japan

Serving our Communities• builds a passionate network of people eager to be a catalyst for change in their local neighborhood.

• in 2012, we brought together our customers and partners, civic leaders and non profit organizations to contribute to more than 631,000 hours of service around the world with more than 2,100 community service projects completed in just 30 days.

Engaging Youth• Helps young people learn the skills required for our changing global economy, such as business savvy, social conscience and collaborative communication.

Environmental Sustainability

Environmental Sustainability> making decisions and taking action that are in the interests of protecting the natural world, with particular emphasis on preserving the capability of the environment to support human life. 

Some of the common environmental concerns include:> damaging rainforests and woodlands through logging and agricultural clearing> polluting and over-fishing of oceans, rivers and lakes> polluting the atmosphere through the burning of fossil fuels

Environmental Sustainability> making decisions and taking action that are in the interests of protecting the natural world, with particular emphasis on preserving the capability of the environment to support human life. 

Some of the common environmental concerns include:> damaging rainforests and woodlands through logging and agricultural clearing> polluting and over-fishing of oceans, rivers and lakes> polluting the atmosphere through the burning of fossil fuels

“We share your commitment to the environment “

> it’s important to help care for our planet, and we’ll encourage and work with others to do the same

> committed to reduce its operating costs and increase shareholder value through energy and water efficiency

BUILDING GREENER STORES

LEED® Certified Storesdesign and build our stores in an environmentally responsible way by utilizing energy and water saving strategies and by choosing to use green building materials and construction methods.

Goal: Build all new, company-owned stores to achieve LEED® certification.

Progress through 2012: We have achieved LEED certification for 116 stores in 12 countries and we are addressing specific geographic challenges in our high growth markets.

Energy Conservation & Renewable Energybuilding more energy-efficient stores and facilities, conserving the energy and water we use and purchasing renewable energy credits

Goal: Reduce energy consumption by 25% in our company-owned stores by 2015.

Progress through 2012: While extreme weather in 2012 contributed to just over a 1% increase in electricity consumption from the year before, we have plans in place to help us achieve our 25% reduction goal by 2015.

Water ConservationWater is a precious natural resource. Using it responsibly is essential to our company.

Goal: Reduce Water consumption by 25% in our company-owned stores by 2015.

Progress through 2012: Water consumption decreased slightly in 2012, bringing us to a total decrease of 17.7% since 2008.

RECYCLING AND REDUCING WASTE

We are committed to significantly reducing and diverting the waste our stores generate. Recycling is just one way we do this.

Goal: Implement front-of-store recycling in our company-owned stores by 2015.

Progress through 2012: In 2012, we increased the availability of front-of-store recycling by an additional 453 stores in the U.S. and Canada.

CUPS AND MATERIALS

Innovating in Recycling and Food PackagingWe are working to shrink our environmental footprint and meet the expectations of our customers by reducing the waste associated with our cupsGoal: Develop comprehensive recycling solutions for our paper and plastic cups by 2012.Progress through 2012: While we proved the recyclability of our cups in U.S., Canada, UK and Germany, and continue to expand recycling in those countries, we are still working toward materials and/or infrastructure solutions for our remaining company-owned markets.

Reducing Waste with Reusable Cups Goals and Progress Reusable cups are an important component of our overall waste reduction strategy.

Goal: Serve 5 percent of beverages made in our stores in personal tumblers by 2015.

Progress through 2012: In 2012, customers used personal tumblers more than 35 million times, and we are implementing new solutions in 2013 to bring us closer to this goal.

CLIMATE CHANGE

Climate StrategyAddressing climate change is a priority for Starbucks. Starbucks has been implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and climate adaptation and mitigation efforts. We’re also committed to championing progressive climate change policy in partnership with other businesses and organizations.

Greenhouse Gas EmissionsTo continue to track and quantify our own environmental footprint, we conducted an inventory of our greenhouse gas (GHG) emissions in 2012.

More than 80 percent of our GHG emissions are attributable to energy for use in our stores, offices, and roasting plants, we are focusing our efforts on energy conservation and the purchase of renewable energy.

Forest Conservation committed to championing progressive climate change policy in partnership with other businesses and organizations.Goal: Improve farmers’ access to carbon markets, helping them generate additional income while protecting the environment.Progress through 2012: We focused on providing agricultural best practices which will help farmers better respond and/or adapt to regional climate changes, and have expanded our program to Brazil.