Starbuck’s Supplier Relationships

STARBUCK’S SUPPLIER RELATIONSHIPS

Equitable treatment

Starbucks practices diversity and equitable treatment to all four areas they engage business with. These four areas are, partners, customers, supplier and communities.

• Partners (employees) – Starbucks seeks out and engages with partners who are as diverse as the communities they serve. Starbucks tends to hire young and energetic employees.80 %of Starbucks employees were white, 85 % had some education beyond high school, and the average age was 26” (Starbucks, 2009).

• Customers – Starbucks’ public image incorporates the company’s ability to recognize and respond to their customers’ unique preferences and needs.

They plan to provide an exceptional customer experience by connecting with their customers in a culturally relevant way.

• Communities – Starbucks supports and invests in local neighborhoods and global communities through strategic partnerships and economic development opportunities that deepen their ties in the communities where they do business.

• Suppliers – Starbucks is trusted and is a welcoming company for suppliers. “Through their supplier diversity program, they work to increase their business relationships with minority- and women-owned suppliers”(Starbuck, 2009).

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Hight Quality

Starbucks’ long-term success is linked to the success of the thousands of farmers who grow their coffee.Over the last decade, Conservation International has helped them develop buying guidelines that address their principles for ethical sourcing. Called Coffee and Farmer Equity (C.A.F.E.) Practices, these guidelines help our farmers grow coffee in a way that’s better for both people and the planet. C.A.F.E”(starbucks, 2009). Practices is a comprehensive set of measurable standards focused on the following four areas:

• Product Quality – All coffee must meet Starbucks standards of high quality.

• Economic Accountability – Economic transparency is required. Suppliers must submit evidence of payments made throughout the coffee supply chain to demonstrate how much of the price that Starbucks pays for green (unroasted) coffee gets to the farmer.

• Social Responsibility – Measures evaluated by third-party verifiers are in place to ensure safe, fair and humane working conditions, including protecting the rights of workers and providing adequate living conditions. Compliance with minimum-wage, child labor and forced labor requirements is mandatory.

• Environmental Leadership – Measures evaluated by third-party verifiers are in place to manage waste, protect water quality, conserve water and energy, preserve biodiversity and reduce agrochemical use.