WRITTEN REPORT CORPORATE SOCIAL RESPONSIBILITY: THE STARBUCKS COFFEE COMPANY HISTORY

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The first Starbucks was opened in Seattle, Washington, on March 30, 1971 by three partners: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. The name is taken from Moby-Dick; after Pequod was rejected by one of the co-founders, the company was named for the first mate on the Pequod, Starbuck. Entrepreneur Howard Schultz joined the company in 1982 as Director of Retail Operations and Marketing, and after a trip to Milan, advised that the company should sell coffee and espresso drinks as well as beans. Seattle had become home to a thriving countercultural coffeehouse scene since the opening of the Last Exit on Brooklyn in 1967, the owners rejected this idea, believing that getting into the beverage business would distract the company from its primary focus. To them, coffee was something to be prepared in the home, but they did give away free samples of pre-made drinks. Certain that there was money to be made selling pre-made drinks, Schultz started the Il Giornale coffee bar chain in April 1986. The company is named in part after Starbuck, Captain Ahab's first mate in the novel Moby-Dick, as well as a turn-of-the-century mining camp (Starbo or Storbo) on Mount Rainier. In 2006, Valerie O'Neil, a Starbucks spokeswoman, said that the logo is an image of a "twintailed siren". In the first version, which was based on a 17th-century "Norse" woodcut,[66] the Starbucks siren was topless and had a fully visible double fish tail.[69] The image also had a rough visual texture and has been likened to a melusine.[70] In the second version, which was used from 198792, her breasts were covered by her flowing hair, but her navel was still visible. The fish tail was cropped slightly, and the primary color was changed from brown to green In the third version, used between 1992 and 2011, her navel and breasts are not visible at all, and only vestiges remain of the fish tails.

VISION, MISSION, VALUES AND GOALS Vision: "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow" Objectives: The Company's objective is to establish Starbucks as the most recognized and respected brand in the world Strategy: To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Values and Principles

The keystone value in the effort "to build a company with soul" was that the company would never stop pursuing the perfect cup of coffee. Schultz remained steadfastly opposed to franchising, so that the company could control the quality of its products and build a culture common to all stores. He was adamant about not selling artificially flavored coffee beans"We will not pollute our high-quality beans with chemicals Starbucks management was also emphatic about the importance of pleasing customers. Employees were trained to go out of their way, taking heroic measures if necessary, to make sure customers were fully satisfiedthe theme was "just say yes" to customer requests. Employees were also encouraged to speak their minds without fear of retribution from upper managementsenior executives wanted employees to be vocal about what Starbucks was doing right, what it was doing wrong, and what changes were needed. Management wanted employees to contribute to the process of making Starbucks a better company. Schultzs approach to offering employees good compensation and a comprehensive benefits package was driven by his belief that sharing the companys success with the people who made it happen helped everyone think and act like an owner, build positive long-term relationships with customers, and do things efficiently.

MENU OVERVIEW Certified Organic - coffee that's better for the planet Organic coffee is grown using methods and materials that have a lower impact on the environment. Organic farming practices help replenish and maintain soil health, reduce the use of toxic and persistent pesticides and fertilizers, and build biologically diverse agriculture. Starbucks purchased 14 million pounds (6.4 million kilograms) of certified organic coffee in fiscal 2009. Our organic offerings include Organic Yukon Blend and Organic Shade Grown Mexico. Although a Starbucks black coffee has only 5 calories, if you add sugar, syrups, cream, milk, whipped cream or toppings, your quick-pick-me-up becomes an unhealthy high-calorie drink. In fact, the American Heart Association links the daily consumption of sugar-sweetened drinks to diabetes and heart disease. Coffee Nutrition - All Starbucks brewed coffees contain 5 calories per cup at all serving sizes, according to the company website. Starbucks coffee contains no fat, cholesterol or carbohydrates and less than 1 g protein per serving. Brewed coffee at Starbucks includes their Bold Pick of the Day, Pike Place Roast and Decaf Pike Place Roast. All brewed coffees contain antioxidant phytochemicals called chlorogenic acids. Additives - Adding milk, cream or sweetener to Starbucks beverages can change the nutritional composition, especially the calorie count of the beverage. According to MayoClinic.com, stirring in 1 tbsp of heavy cream can add 52 calories to a drink. Half-and-half adds 20 calories per tbsp and fat-free milk contributes 5 calories per tbsp. A tbsp of sugar increases the calorie count of a beverage by 49 calories. Considerations - While skim milk and coffee can fit into any well balanced diet, Starbucks flavor syrups add sugar, carbohydrates and calories to your diet. Adding flavor to your latte comes with 60 calories and 18 grams of carbohydrates, according to Starbucks.com. You can have the sweet

flavor without the calories by choosing a sugar free flavor syrup or simply ordering one of the skinny selections on the Starbucks menu. Features - Your coffee drink isn't just empty calories. Depending upon the drink and size you choose, you've consumed between six grams and 22 grams of protein. According to WhyMilk.com, a grande cafe latte at Starbucks provides 415 mg of calcium, or 40 percent of the recommended daily allowance. You'll also get 35 percent of the recommended daily value of vitamin D and a decent dose of potassium, magnesium and vitamin A in your latte. Warning - A latte can be a healthy and delicious way to add calcium, protein and vitamin D to your diet, but you do need to choose smart. A venti peppermint white chocolate mocha with whole milk packs 700 calories, according to Starbucks.com, if you add the whipped cream on top. Make drinks like this a rare, special treat to avoid adding pounds along with your caffeine buzz

MERCHANDISE Merchandising is more than simply the arrangement of products on the shelf. It is an integral component of the business image. It should be considered when you design your logo, business cards, brochures, letterhead, packaging, and product mix. When you examine your merchandising, you examine what the customers' experience, from their first sight of your storefront, until they leave store - hopefully with a purchase in hand. Merchandising is also about understanding the way customers shop. By using this knowledge, you can position your merchandise to increase sales. You need to create an environment that attracts the customer, is comfortable to shop, and encourages the customer to return.

ETHICAL RESPONSIBILITY Ethical responsibility impacts almost every profession, from art to science to coaching to the criminal justice system to medical personnel, according to ChildLife.org. Ethical responsibility means fulfilling obligations in all ethical areas, or as many areas as possible. When an ethical dilemma occurs, involved individuals must choose between a wide variety of ethical principles and weigh which ones should be emphasized. Morality and ethics are about the difference between what is right and what is wrong. For example if you are overweight say 30 stone and you decide to eat a whole chocolate cake you have a moral and ethical responsibility. o Community o Environment o Ethical Sourcing o Wellness o Diversity

The Starbucks Foundation has three main focus areas which include: o o Supporting our retail communities through the Starbucks Shared Planet Youth Action grants. Collaborating on projects that support social investments in coffee-, tea- and cocoa-producing communities.

Helping children around the world get clean water and raising awareness of the world water crisis through Ethos Water.

PROJECTS Ethiopia Zege Community Development Project People Helped: 10,000 Contribution: $392,808 Years: 19941998 Guatemala Civil Society Development People Helped: 34,340 Contribution: $150,000 Years: 19942000 Maternal Health and Nutrition People Helped: 276,000 Contribution: $40,000 Years: 19921993 Regional Technical Advisor People Helped: Unavailable Contribution: $30,000 Years: 19931994 Rural Water and Health People Helped: 65,400 Contribution: $189,361 Years: 1993-1997 Indonesia Community Self-Financing of Rural Water and Sanitation Facilities People Helped: Unavailable Contribution: $24,892 Years: 1993 Biodiversity Conservation for National Parks People Helped: 31,000 Contribution: $47,629 Years: 19961997 Environmental Education and Media Development People Helped: 33,000 Contribution: $150,000 Years: 19992001 Village Maternal Health Care

People Helped: 89,000 Contribution: $78,995 Years: 19931995 Flores Community Health Project People Helped: 48,000 Contribution: $40,000 Years: 1992 Kenya Girl Child Development People Helped: 70,000 Contribution: $133,752 Years: 20002001 Pied Crow Childrens Magazine People Helped: 2,200,000 Contribution: $129,003 Years: 19931997 EMERGENCY RESPONSE PROJECTS Angola Emergency Relief Supplies for War-affected Populations People Helped: Unavailable Contribution: $1,300 Years: 1996 Burundi Internally Displaced Persons Emergency Project People Helped: Unavailable