Coffee and Starbucks
Jonathan Klein
MN 305
Donna Trent
June 29th, 2010 Starbucks Sourcing Problems: Trying to Find a way to Protect the Environment while maintaining a high quality coffee bean
Starbucks Coffee Corporation is facing some strategic decisions on its current policy with regard to partnering with NGOs. Starbucks has a long history of social involvement. “CSR originated in 1994 as the Environmental Affairs Department with a budget of $50,000; by 2002, the 14-member department had a budget of 6 million. (Austin & Reavis, 2004) Recently Starbucks completed a six year, $450,000 project with Conservation International; an NGO that 's mission “is to conserve the earth 's natural heritage and it 's global biodiversity, as well as to demonstrate that human societies are able to live harmoniously with nature. (Austin & Reavis, 2004) At the time CI had a staff of 776, overseeing projects in more than 30 countries on four continents. Roughly two thirds of CI 's staff worked in the field and 90% were citizens of those countries. (Austin & Reavis, 2004) Working with CI on the Chiapas Project, dedicated to working with coffee farmers to stop the destruction of rain-forests by farming and to promote shade-grown coffee which is sustainable, Starbucks has learned that it needs a clearer policy with regards to partnering with other NGOs in the future. Several challenges arose when Starbucks was working with CI on the Chiapas Project, and they both learned valuable lessons. Starbucks needs to consider how valuable the Starbucks-CI alliance had been and what it future might be. Is the approach sustainable? What should be the ongoing strategy for shade-grown coffee? Next, how should new coffee purchasing guidelines be implemented? How should Starbucks and CI approach other roasters to adopt the sourcing guidelines? Finally, how should Starbucks address the Fair Trade movement? When CI identified coffee as an important commodity affecting biodiversity, it launched a pilot
MN 305
Donna Trent
June 29th, 2010 Starbucks Sourcing Problems: Trying to Find a way to Protect the Environment while maintaining a high quality coffee bean
Starbucks Coffee Corporation is facing some strategic decisions on its current policy with regard to partnering with NGOs. Starbucks has a long history of social involvement. “CSR originated in 1994 as the Environmental Affairs Department with a budget of $50,000; by 2002, the 14-member department had a budget of 6 million. (Austin & Reavis, 2004) Recently Starbucks completed a six year, $450,000 project with Conservation International; an NGO that 's mission “is to conserve the earth 's natural heritage and it 's global biodiversity, as well as to demonstrate that human societies are able to live harmoniously with nature. (Austin & Reavis, 2004) At the time CI had a staff of 776, overseeing projects in more than 30 countries on four continents. Roughly two thirds of CI 's staff worked in the field and 90% were citizens of those countries. (Austin & Reavis, 2004) Working with CI on the Chiapas Project, dedicated to working with coffee farmers to stop the destruction of rain-forests by farming and to promote shade-grown coffee which is sustainable, Starbucks has learned that it needs a clearer policy with regards to partnering with other NGOs in the future. Several challenges arose when Starbucks was working with CI on the Chiapas Project, and they both learned valuable lessons. Starbucks needs to consider how valuable the Starbucks-CI alliance had been and what it future might be. Is the approach sustainable? What should be the ongoing strategy for shade-grown coffee? Next, how should new coffee purchasing guidelines be implemented? How should Starbucks and CI approach other roasters to adopt the sourcing guidelines? Finally, how should Starbucks address the Fair Trade movement? When CI identified coffee as an important commodity affecting biodiversity, it launched a pilot
References: Austin, James , and Cate Reavis. "Starbucks and Conservation International."Harvard Business School 9-303-055 (2002): 1-28. Print Hoyt, D., & McMillan, J. (2004). The Global Coffee Trade. Stanford Graduate School of Business, IB-53, 1-54. Retrieved July 26, 2010, from http://www.probeinternational.org/files/The%20Global%20Coffee%20Trade.pdf Raynolds, Laura. "Consumer/Producer links in Fair Trade Coffee Networks."Sociologia Ruralis 42.4 (2002): 404-424. Print. Starbucks Annual CSR Report 2001. (2002, February 15). 2001 Report Untitled. Retrieved July 25, 2010, from assets.starbucks.com/assets/csr-fy01-ar.pdf "TransFair USA | About Us."TransFair USA | Home. N.p., n.d. Web. 22 July 2010.