Starbusks And Conservation International

12350 Words50 Pages
9-303-055
REV: MAY 1, 2004

JAMES E. AUSTIN
CATE REAVIS

Starbucks and Conservation International
Aligning self-interest to social responsibility is the most powerful way to sustaining a company’s success.
—Orin Smith, President and CEO, Starbucks Coffee Company
In mid-2002, the management of Starbucks, the world’s leading specialty coffee company, was examining its collaborative efforts with the environmental nonprofit Conservation International to promote coffee-growing practices that would enhance the environment and produce high-quality coffee beans. This four-year-old alliance was an integral part of Starbucks’ business and social strategy of strengthening the well-being of small coffee producers.
These efforts were taking place
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While keeping the focus on quality coffee, Starbucks began global expansion of its stores
(Japan and Singapore in 1996 and Taiwan, Thailand, New Zealand and Malaysia in 1998) and established strategic partnerships with PepsiCo for its bottled Frappuccino and Dreyer’s for the
Starbucks line of ice creams in 1996. By fall 2002, the company had 4,000 stores in the United States and another 1,500 in 22 other countries, with plans to expand to 10,000 stores in 60 countries by 2005 and 15,000 stores by 2007; each day three new stores opened. Additionally, Starbucks had a wholesale business and sold to food service establishments and supermarkets, as well as through catalogs and the Internet.
Starbucks had revenue of $2.7 billion in 2001, up from $465 million in 1995 (see Exhibit 1 for financials). Nearly two-thirds of revenue came from coffee beverages, 15% from coffee beans, and
24% from food and coffee-related items.

Mission Statement
From the beginning, Schultz wanted to create a company that employees were proud of, was profitable, and was a good place to work.3 In 1990, the senior executive team created with employee input the company’s mission statement: “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six guiding principles were:


Provide a great work environment and treat each other with dignity and respect.



Embrace diversity

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