Starbucks 2001 Annual Report Download - page 1

Fiscal 2001 Annual Report 17
Dear Shareholders,
As you know, Starbucks is dedicated to sourcing the highest quality coffees available throughout the
world.To that end, we are committed to encouraging and expanding the production of high quality,
sustainably grown coffee, which we believe is the key to a healthier future for our industry. Starbucks
defines sustainability as an economically viable model that addresses the social and environmental
needs of all the participants in the coffee supply chain, from producer to consumer.
For some time, Starbucks has been in the process of defining a new purchasing philosophy.While we
are committed to addressing social and environmental concerns, we also think that there are
compelling business reasons to effect change in the worldwide coffee market. By enlisting the support
of coffee suppliers who are like minded sustainability advocates, we hope to create a network of
industry leaders who will join us in finding a way to create positive changes within our global coffee
community. And while we do not underestimate the difficulty of such an endeavor,we have concluded
that over the long term our collective choices are quite clear. The coffee industry must undergo
internal change to ensure a solid future.
In partnership with The Center for Environmental Leadership in Business, a division of Conservation
International (CI), and other outside resources, we have developed a set of guidelines that we believe
will not only protect our high quality standards, but also will promote the long-term viability of the
high quality coffee market.We are focusing on quality, economics, environment and people. It is our
intention to provide financial incentives along the supply chain that will promote a healthier industry,
as well as enlist our current suppliers and others as partners in developing truly sustainable sources for
the world’s best coffees.
The guidelines, which will be introduced as a pilot program for the 2002 and 2003 crop years, are
based on the following four criteria:
•Quality Baselines – maintaining Starbucks quality standards
•Social Conditions – conforming to local laws and applicable international conventions related to
employee wages and benefits, occupational health and safety, and labor and human rights
•Environmental Concerns – growing and processing standards that contribute to conservation of
soil and water and to biological diversity
•Economic Issues – benefiting rural communities by boosting producer incomes, expanding
employment and educational opportunities and enhancing local infrastructure and public services
We will use feedback from suppliers and our own experience to make adjustments to the program
during the pilot phase.
We are gratified by the supportive response this program is receiving from producers and other
industry players, and we are extremely enthusiastic about the potential long-term benefits to those in
coffee-origin countries.
Sincerely,
Mary Williams
senior vice president, Coffee
If you would like to learn more about this program, please refer to our Web site at Starbucks.com.