Starbucks and Conservation InternationalKevin M. Brett

April 18, 2013

Liking or Disliking Starbucks“Whether one likes or dislikes Starbucks or its philanthropy, the Starbucks CSR model looks like a recipe that many corporations recognize as a solid formula for social responsibility,” – Rick Cohen, The Non-Profit Quarterly, April 20,2011

Starbucks Profile Founded 1971; Pike Place Market $13.3 billion annual revenues $1.38 billion net income $43.8 billion market cap $1.18 billion cash $4.20 billion current assets $2.21 billion current liabilities Lattes, Cappuccinos, Mochas Specialty Coffee Drinks

How to Build Trust? Edelman Trust Barometer 2013 Opinion of 31,000 “Informed Publics” Engage with Stakeholders Conduct Affairs with Integrity Offer Outstanding Products and Services

NGOs Most Trusted in Society

2012 NGOs: 58 Percent Business: 53 Percent Media: 52 Percent Government: 43 Percent

Source: Edelman Trust Barometer, 2013

2013 NGOs: 63 Percent Business: 58 Percent Media: 57 Percent Government: 48 Percent

Starbucks and EDF Teamed on an environmentally friendly coffee

cup (e.g. greater use of recycled materials)

Still NGO Confrontation Demonstrations by Seattle Audubon and

Global Exchange Concern for Rain Forests and Species Starbucks is Not Unionized

Mild Arabica Coffee and the Rain Forest

Cultivating the World’s Second Largest Commodity

Starbucks and Conservation International Strategic Alliance

CSR? Fiduciary Responsibility?

Starbucks/CI “Synergy” Due Diligence; Accumulated Trust CI “Quality Control” No Politically Correct Coffee Sales Starbucks Low-Interest Loans Chiapas Biosphere Reserve SBUX Influence on Supply Chain Planting of Shade Trees No Dumping in Rivers

Starbucks/CI Takeaways Proactive, collaborative working relationships with

NGOs can directly benefit fiduciary responsibility and corporate social responsibility.

They are not mutually exclusive terms of art. Inoculate or at least mitigate a MNE against

hostile NGOs.