Tuesday, October 30, 2012

Starbucks Values Social Responsibility: Interview

This week I interviewed Lisa Zunich, who is a district manager at Starbucks Coffee in Long Beach, CA.  I chose Starbucks because I was already aware of their environmental efforts because they are often listed on the cups when I buy a drink from there.  After reading this weeks assignments about the ethical practices of companies, I wanted to conduct an interview and feature a company who practices the value of social consciousness.  I was not aware that Starbucks goes way beyond recycling.  I hope you are as impressed with their efforts as much as I was.  This interview made me feel better about my latte addiction.

Is Starbucks really socially responsible? 
Yes, the company is very impressive.  They believe that since they have such a large scale global foot print, they can help the community and the world.  At least in places and communities where we do business.

How does Starbucks help or show social responsibility? 
Starbucks has a large scope of ways that they address their social responsibility.  We have several community projects that we are involved in here in the U.S. and internationally.   A big focus for the company has been to create jobs in the America.  We have a partnership with Opportunity Finance Network to help create jobs; we are committed to donating 5 million dollars to the cause.   We create jobs not only by employing the people who work in our stores but also by stocking our stores with products made here in the U.S.  For example, all of the ceramics used in our stores for sale like the mugs and cups are made in the U.S. 

That's great.  Does each Starbucks store work within the community it is in?
Yes.  We have several projects like our Community Service project which involves helping the employees and customers get involved in the community by volunteering with organizations that need their help.  We also have a Youth Action foundation that is designed to engage young people to inspire positive change in their community.  Last year Starbucks donated over 2 million dollars in grants for the Youth Action program.   Our Los Angeles store by USC actually shares a portion of its profits with the community. 

Really?  That's amazing.  What location?
Its the Crenshaw and Coliseum Store, in the Crenshaw district.

Ok, cool.  Good to know.  What is the Ethos Water Foundation?
Ethos Water Foundation was created to raise awareness of the water crisis around the world, where many children and families do not have access to water.  When you buy a bottle of our water, 5 cents goes to the foundation.  Starbucks has raised over 6 million dollars for water stressed countries. 


I know that environmental issues are important to your company.  How does Starbucks show social responsibility for the environment? 
Our cups are partially made from recycled material, and we encourage our customers to bring in reusable cups.  We also launched the first plastic cup that has less of an environmental impact than most plastic cups.  Starbucks is BIG on recycling.  You may notice we have recycling bins not trashcans in some of our stores too.  We are also conscious of how much water we use in our store.  As a company, we are focused on water conservation as well.

Does Starbucks do anything to reduce energy? 
Yes!  We use LED lighting in all of our stores.  We were the first company to really do that.  Our equipment is energy efficient too.  Even our heating and air conditioning systems are energy efficient.  We also are also very invested in renewable energy and have a company goal of being 100% run by renewable energy by 2015.

That's awesome!  Tell me about what Starbucks does globally. 
We are every careful in our coffee purchasing practices from our international farmers.  We use C.A.F.E. (Coffee And Farmer Equity) Practices, which include over 200 indicators such as social, economic and environmental factors to identify farms from which we buy our coffee and tea.  Our Tazo Brand Tea is a member of the ethical tea partnership which also helps to improve the quality of life for tea farmers.  Even our cocoa is purchased from ethical farming producers. 

How can you be sure?  Does Starbucks do any surprise audits on the farms they are contracted with? 
Actually, last year we assessed 129 factories. 38 factories failed our assessment.  As a result we discontinued 26 factories as Starbucks suppliers.  We dropped them immediately because we have a zero-tolerance policy that we take very seriously and we want our suppliers to take them seriously too. 

What is the Global Social Compliance Program?
That is an effort that businesses like Starbucks are involved in to support continuous improvement of environmental and working conditions of global suppliers.   We became members last year. 
  

6 comments:

  1. I may end up being repetitive with my comments/questions this week. Can you discuss the concept of "enlightened self interest" as it relates to starbucks? Does it apply?

    ReplyDelete
    Replies
    1. Enlightened self interest is the idea that when a company or corporation acts to help the interest of others, they are actually serving their own interests. I do think this concept applies to Starbucks, yet, I do not think it changes any opinions about their valiant efforts. More companies should follow the Starbucks model. By helping others, they can help themselves too.

      Starbucks serves itself though all of this effort in a few ways:
      1) Their humanitarian/charitable efforts are a tax write off or tax break. Given their substantial profit margin, these tax breaks are a relief for the corporation.
      2) Any press they get for their efforts, including this blog post, is press for the corporation. From a marketing perspective, its a win win.
      3) The community outreach that is done through each of the Starbucks stores is again, promoting the Brand, and the store in particular. By partnering with those in the community they are partnering with customers and building brand loyalty.
      4) Because Starbucks publicly promotes that they partner with ethical farmer, they are really announcing themselves as an ethical business which makes them look good to perspective business partners.

      Delete
  2. Hi Andrea,
    First, let me say that I love Starbucks. I'm addicted. I have a genuine appreciation of their corporate responsibility and the fact that they go through the lengths of "doing the right thing" at the consumer's expense. I accept it. What bugs me more than anything is the fact that they don't have a recycling program in place. If they do, I don't see it. Glass, plastic, paper and everything that can be recycled, goes right into the trash bin. I understand that this might not fall into corporate responsibility and more of environmental duty, but for a corporation that boasts about all of the good deeds, I wish that one day they will set set up a recycling program. Other than that, great interview!!!

    ReplyDelete
    Replies
    1. Michael,

      I suspect that, like USC, Starbucks uses a MRF (Materials Recovery Facility). It's a system where all of an organization's trash goes on to a conveyor belt and gets hand-sorted to separate recyclables from non-recyclables. How'd you like to have THAT job?

      K

      Delete
  3. Andrea,

    Great interview. Starbucks was my first employer and I really had a positive experience working for them. In addition to being socially conscious they are good to their people as well. I am familiar with the Ethos Water Project, but more recently became aware of rather startling water issues that also exist within our borders. In fact there are several communities within the San Joaquin Valley here in California that have access to water, however do not have access to clean drinking water. It is a sad reality that was brought to my attention through my Rotary Club. I wonder whether the Ethos Project also assists with projects close to home?

    As I recall during my time with the company, Starbucks didn't always have the ethical practices that they do today. In fact I believe that when certain issues related to coffee bean growers arose, Starbucks took a stance and began to advocate for farmers. They certainly have come a long way.

    Ramona

    ReplyDelete
  4. HI Andrea!

    I love the company you choose to write about! I was so happy to read that Starbucks has raised 6 million dollars for sustainable water programs around the world by donating 5 cents from every bottle of Ethos Water sold. Now everytime I go into Starbucks, I will buy a bottle of Ethos to help do my part!

    Great interview!
    Jacqueline

    ReplyDelete