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Starbucks Validates Commitment to Transparency in New Corporate Social Responsibility Annual Report

Published 04-07-04

Submitted by Starbucks Corporation

SEATTLE -- In an ongoing promise to promote transparency in its business practices and its dedication to corporate social responsibility, Starbucks Coffee Company (Nasdaq: SBUX) has released its third Corporate Social Responsibility (CSR) Annual Report. Titled "Living Our Values," the report details company initiatives, programs and activities in fiscal year 2003 (Sept. 30, 2002 - Sept. 28, 2003) that demonstrate how Starbucks provides social, environmental and economic benefits to the communities in which it operates globally.

"Since Starbucks opened its first store in 1971, our goal has been to act with integrity and in a responsible manner throughout our business," said Sandra Taylor, senior vice president, Corporate Social Responsibility for Starbucks Coffee Company. "We hope our report helps to instill trust in our stakeholders by illustrating that we continue to operate our business according to our values and guiding principles."

For the second consecutive year, Starbucks CSR Annual Report was independently verified by Moss Adams, a certified public accounting firm. By taking this step, Starbucks is providing additional assurance to its stakeholders that the information is accurate and that its policies and practices are consistent with the information in the report.

Some highlights from the 2003 CSR Annual Report include:

  • Starbucks paid an average of $1.20 per pound for all its green (unroasted) coffee - approximately double the commodity market price. The premium prices Starbucks pays for high-quality coffee help farmers cover their cost of production and provide for their families.
  • Starbucks purchased 6.7 million pounds of coffee that was Fair Trade Certified™, certified organic and/or conservation (shade-grown) - an increase of 97 percent over the previous year.
  • To address standards for social responsibility throughout its supply chain, Starbucks introduced a Supplier Code of Conduct.
  • Starbucks adopted corporate governance initiatives that make its Board of Directors stronger, more independent and better informed.
  • Starbucks partners (employees) and customers volunteered nearly 200,000 hours in local communities. In addition, Starbucks gave $11.3 million in cash and product donations to nonprofit organizations in North America through The Starbucks Foundation and Starbucks corporate giving program.
  • Starbucks reduced its water usage by 30 percent in a sample of more than 1,400 Company-operated stores.
  • 82 percent of Starbucks partners indicated that they are satisfied or very satisfied with their employment at Starbucks. Moreover, partners are highly engaged in their work, meaning they are emotionally and intellectually committed to Starbucks success.
Going Forward
For the first time, in this year's report Starbucks has included future performance targets for its CSR activities, further underscoring the company's commitment to communicate openly and transparently with its stakeholders.

"While we are proud of what we've accomplished, we know there is always room for improvement," added Taylor. "We believe that by publicly stating our future intentions we will continue to see positive changes throughout the company. Next year we will report back on our progress made on the performance targets and intend to continue to raise the bar even higher for ourselves in the coming years."

Starbucks CSR Annual Report was officially released at the Company's Annual Shareholders' Meeting last week and is available online at www.starbucks.com/csrannualreport. To request a printed copy, call 1-800-23-LATTE. Starbucks values ongoing feedback from its stakeholders. Readers are encouraged to complete an online survey at www.starbucks.com/csrsurvey.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business.

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Starbucks Corporation

Starbucks Corporation

It's the way we do business Contributing positively to our communities and environment is so important to Starbucks that it's a guiding principle of our mission statement. We jointly fulfill this commitment with partners (employees), at all levels of the company, by getting involved together to help build stronger communities and conserve natural resources.

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