Starbucks, the fast growing coffe relailer with over $4 billion in annual sales, places a high priority on corporate social responsibility. Its give all its employees who work over 20 hours per week heath insurance benefits and stockoptions. It strives back to the communities that it does business in by supporting local schools, literacty programmes,and environmental activities. One of its newest social responsibility initiatives is to cultivate and reward environment socially responsible coffee suppliers, a practice it calls sustainable sourcing Company exo reason for making sustainable sourcing. Company executives reason for making sustainable sourcing an important comerstone of its global growth stategy will help Starbucks brand. The impetus for Starbuck to start a programme of social responsibility with coffee growers orginally had been a way to respond to critics from the “fair trade” movement __ which advocates fair payments to farmers in developing nations ___ that had accused Starbucks of underpaying coffee growers, a claim Starbuck denied after it opened its books to them to prove that was not the case. There were sound economic reason for the initiative as well. With an annual growth rate of 20 percent Starbuck executives wanted to make sure that the future supply of coffee would be predictable and reliable the specialty coffee beans that Starbucks uses were disrupted, its growth plan plans an quality its coffee would be al risk. To protect its coffee supply, starbucks realized it had to identify and nurture partners that could meet its quality standards and keep up with increasing demand. At the same time, the company needed to be certain that its supplias shared its commitment to corporate citizenship. Therefore in 2001 company launched its preferred supplier programme to attract and reward farmers committed to socially and enviromentally responsible farming. The company assumed that the growers that took the best care of their employees and land would also be the most effective and responble suppliers __ the kind of partners it wanted to fulfill its gressive growth plan. To become a prefered suppliers to Starbuck, coffee growesrs must apply to the programme. apply the programme. Reviewers evaluate o measures to determine how well they adhere to sustainable environmental practices (procedures that protect the scarce land on which hitth-quality coffee can grow) and responsibily social practics (method, for ecamplple,that reduce the risk that deliveries will be commromised by labour unrest, corruption, or legal violations). Suppliers accepted into the programme are awarded points for meeting environmental, social, and economic criteria. The more points they earn, the more Starbucks pays them for their coffee. Preferred coffee growers will receive a 5 percent premium on each pound of beans they sell. They can also earn long-team contracts to reduce market receive credit to fund improvements that promote sustainability. In 2009 Starbuck purchased 81 percent of its coffee from fair trade certifed suppliers.
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