Starbucks Corporation is an American coffee company and coffeehouse chain.

Starbucks was
founded in Seattle, Washington in 1971. As of 2018, the company operates 28,218 locations
worldwide.
Starbucks is considered the main representative of "second wave coffee", initially distinguishing
itself from other coffee-serving venues in the US by taste, quality, and customer experience while
popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-
minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays
uses automated espresso machines for efficiency and safety reasons.
Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee
known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea
products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks
including items such as chips and crackers; some offerings (including their annual fall launch of
the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-
packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select
"Starbucks Evenings" locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream,
and bottled cold coffee drinks are also sold at grocery stores.
On December 1, 2016, Howard Schultz announced he would resign as CEO effective April 2017
and would be replaced by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017, and
Howard Schultz retired to become Chairman Emeritus effective June 26, 2018.
OUR MISSION

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Starbucks Coffee’s Corporate Mission Statement

Starbucks Coffee’s corporate mission is “to

inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.” This mission
statement reflects what the company does to keep its business running. It is clear that target
consumers are given emphasis in this corporate mission.

Starbucks Coffee’s Corporate Vision Statement

Starbucks Coffee’s corporate vision is “to

establish Starbucks as the premier
purveyor of the finest coffee in the world while maintaining our
uncompromising principles while we grow.”

Starbucks Coffee “inspires and nurtures the human spirit,” starting with its employees. To
address this component of its mission statement, the company maintains a small company
culture, where rapport and warmth are important. In this way, the corporate mission is a direct
determinant of Starbucks Coffee’s corporate culture. In addition, the same component of the
company’s mission statement pertains to customers’ experience. The business extends its warm
and small company culture to its customers. Aiming to be the premier purveyor means that
Starbucks Coffee wants to achieve leadership in providing its products, especially coffee of the
best quality. The company achieves this component of its vision statement by continuing its
multinational expansion as one of the largest coffeehouses and coffee companies in the world.
Analysts and critics point out that coffee from McDonald’s or Dunkin’ Donuts may be better
than Starbucks coffee in some aspects. Nonetheless, Starbucks addresses the “uncompromising
principles” component of its corporate vision statement. These principles include ethical conduct
and a warm culture. The company maintains these principles. Also, the company satisfies the
“growth” component of its vision statement, as manifested in the continuing global expansion of
the business through new Starbucks locations. The company now has more than 28,000 locations
around the world. Thus, the business effectively addresses its corporate vision.

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Starbucks core values are written like a philosophy and they are:

 Creating a culture of warmth and belonging, where everyone is welcome.

 Acting with courage, challenging the status quo.
 Being present, connecting with transparency, dignity and respect.
 Delivering our very best in all we do, holding ourselves accountable for results.
 We are performance driven, through the lens of humanity.

The Board is responsible for organizing its functions and conducting its business in the
manner it deems most effective and efficient, consistent with its duties of good faith and due
care. To meet that responsibility, the Board has adopted a set of flexible policies to guide its
governance practices in the future. These practices, set forth below, will be regularly re-
evaluated by the Nominating and Corporate Governance Committee in light of changing
circumstances in order to continue serving the best interests of shareholders. Accordingly, the
summary of current practices is not a fixed policy or resolution by the Board, but merely a
statement of current practices that is subject to continuing assessment and change.

Determination of Independence of Non-Employee Directors

No relationship between any non-employee director and the Company should be of a nature that
could compromise the independence or judgment of any Board member in governing the affairs
of the Company. The determination of what constitutes independence for a non-employee
director in any individual situation shall be made by the Board in light of the totality of the facts
and circumstances relating to such situation and in compliance with the requirements of the
Nasdaq Stock Market’s applicable listing standards and other applicable rules and regulations.

Committees

The present Board Committees are the Audit and Compliance Committee, the Compensation
and Management Development Committee and the Nominating and Corporate Governance
Committee. All members of all committees shall be non-employee directors of the Company and
meet the independence requirements applicable to membership on each committee of the Nasdaq
Stock Market, applicable law, 3 and the applicable rules and regulations of the Securities and
Exchange Commission (including, with respect to audit committee membership, Section
10A(m)(3) of the Securities Exchange Act of 1934 (the “Exchange Act”)), in each case as may
be in effect from time to time. The Board considers its current committee structure to be
appropriate, but the number and scope of committees may be revised as appropriate to meet
changing conditions and needs. The Nominating and Corporate Governance Committee is
responsible for reviewing and recommending to the Board, at least annually, the assignment of
directors to various committees. The Nominating and Corporate Governance Committee will
also recommend to the Board from time to time changes in committee assignments to ensure
diversity of Board member experience and to vary the exposure of the members to the affairs of

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the Company. No committee member shall serve as chair of a committee for more than two four-
year terms. The duties and responsibilities of the Board Committees are set forth in their
respective charters.

Board Membership

Criteria The Nominating and Corporate Governance Committee is responsible for, among other
things, reviewing the appropriate skills and characteristics required of directors in the context of
prevailing business conditions and for making recommendations to the Board regarding the size
and composition of the Board. The objective is a Board that brings to the Company a variety of
perspectives and skills derived from high quality business and professional experience.

Majority Voting

The Company has adopted majority voting procedures for the election of directors in uncontested
elections. In an uncontested election, nominees must receive more “for” than “against” votes to
be elected. The term of any director who does not receive a majority of votes cast in an election
held under the majority voting standard will terminate on the earliest to occur of (i) 90 days after
the date election results are certified; (ii) the date the director resigns; or (iii) the date the Board
fills the position.

Procedure for Selecting New Director Candidates

The Board is responsible for recommending the candidates to stand for election at the annual
meeting of shareholders. The Board has delegated the screening and nomination process to the
Nominating and Corporate Governance Committee. The Nominating and Corporate Governance
Committee is expected to work closely with the Chair of the Board and the president and chief
executive officer in determining the qualifications desired in new Board members and to select
or recommend candidates to the full Board, including any candidate recommended by the Board
to stand for election at the annual meeting of shareholders.

Extending the Invitation to a Potential New Director to Join the Board

Upon concurrence of the members of the Board, invitations to join the Board will generally be
extended on behalf of the Board by the Chair of the Board and the chair of the Nominating and
Corporate Governance Committee. Other Board members may participate as appropriate.

Board Member Orientation and Continuing Education

An orientation process is in place to acquaint new directors with the business, history, current
circumstances, key issues and top managers of the Company.

Directors are also encouraged to participate in external continuing education programs, as they or
the Board determine is desirable or appropriate from time to time.

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Selection of Agenda Items for Board Meetings

The Chair of the Board, together with appropriate members of management, shall develop the
agenda for each Board meeting. If the Chair of the Board is not an independent director, the
agenda is circulated in advance to the lead independent director. Board members may suggest
additional or alternative items for consideration.

Board Materials Distributed in Advance

As much information and data as practical relating to the meeting agenda items and the
Company’s financial performance shall be sent to Board members sufficiently in advance of
meetings to permit the directors to review the materials.

Executive Sessions of Independent Directors

Each Board meeting agenda will include time for an executive session with only independent
directors present. Such executive sessions will be presided over by the Chair of the Board, if
independent, and otherwise by the lead independent director if the Chair of the Board is not
independent.

Duties of Independent Chair of the Board

In addition to other duties set forth in these Corporate Governance Principles and Practices and
the Company’s Bylaws, the duties of the Chair of the Board include, but are not limited to, the
following:

• Preside over and manage the meetings of the Board of Directors

• Approve the scheduling of meetings of the Board of Directors, lead the preparation of the
agenda for each meeting and approve the agenda and materials for each meeting
• Serve as liaison between management and independent directors
• Represent the Board of Directors at annual meetings of shareholders and be available,
when appropriate, for consultations with shareholders
• Act as an advisor to the chief executive officer on strategic aspects of the business
• Such other duties as prescribed by the Board of Directors

Duties of Independent Vice Chair

In addition to other duties set forth in these Corporate Governance Principles and Practices and
the Company’s Bylaws, the duties of the Vice Chair of the Board include, but are not limited to,
the following:

• Preside over and manage the meetings of the Board of Directors in the absence of the
Chair of the Board

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 • Work closely with and under the direction of the Chair of the Board to assist the Chair of
the Board to carry out his or her duties, including, but not limited to, the duties of the
Chair of the Board listed above
• Such other assistance as the Chair of the Board may request
• Such other duties as prescribed by the Board of Directors

Role of Lead Independent Director

If the Chair of the Board is not an independent director, upon the recommendation of the
Nominating and Corporate Governance Committee, the independent members of the Board shall
select a lead independent director for a term of two years. The lead independent director shall
serve in that capacity for not more than two consecutive two-year terms or until such person’s
successor shall have been duly selected by the independent members of the Board.

The duties of the lead independent director shall include but not be limited to, (1) presiding at the
scheduled executive sessions of independent directors as well as presiding at all meetings of the
Board at which the Chair of the Board is not present, (2) serving as a liaison between the
independent directors and the Chair of the Board, (3) approving the scheduling of Board
meetings as well as the agenda and materials for each meeting and executive session of the
independent directors, (4) approving and coordinating the retention of advisors and consultants
to the Board, and (5) such other responsibilities as the independent directors may designate from
time to time. The lead independent director and the Chair of the Board shall each have the
authority to call meetings of the independent directors.

Qualifications of Lead Independent Director

In order to serve as lead independent director, a director must meet the independence standards
of the Nasdaq Stock Market. Additionally, a director must, (1) be available to work closely with
and act as an advisor to the Chair of the Board and the president and chief executive officer, (2)
be available to effectively discuss with other directors concerns about the Company or the Board
and relay those concerns, where appropriate, to the Chair of the Board, the president and chief
executive officer or other members of the Board, (3) ensure the effectiveness of the Board of
Directors and that it maintains its independence from management, and (4) be familiar with
corporate governance best practices.

Board Access to Senior Management

All Board members have access to senior management, with the expectation that such contact
will be minimally disruptive to the business operations of the Company. The Chair of the Board,
with input from the president and chief executive officer, is encouraged to invite senior managers
who can provide additional insight into business matters being discussed and those with high
future potential who should be given personal exposure to members of the Board to the meetings.

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Board Confidentiality

Directors must protect and hold confidential all non-public information that comes to them, from
whatever source, as directors of the Company, absent authorization from the Board to disclose
particular information. Accordingly, Directors may not use confidential information for their
own personal benefit or to benefit persons or entities outside of the Company, and they may not
disclose confidential information outside the Company, either during or after their service as
directors, except with authorization of the Board or as may be otherwise required by law. This
obligation of confidentiality extends to board and committee discussions and deliberations that
may take place among directors, officers and employees and board materials.

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Straws are out, lids are in: Starbucks announces environmental
milestone

In the beginning, the assignment was limited in scope: Could Emily Alexander design a new lid
for just one beverage to be used in just one store?

Alexander, an engineer in Global Research & Development at Starbucks, and her team set to

work drawing up plans for a strawless lid that would showcase Starbucks’ Draft Nitro and its
trademark cold foam that was being served at a Reserve store in Seattle.

For several weeks in 2016, Alexander would grab any available pen and a sheet of used printer

paper when inspiration struck. She sketched and she sketched, working with a supplier in

Wisconsin to conjure up complex designs including a two-piece twist-lock lid and a pull-tab lid

that went nowhere (too busy). The versions that seemed most promising allowed customers to

exult in the frothy foam, which Alexander calls “the hero of Nitro coffee.” Those anointed

designs were then made into prototypes and shared with leadership, who would sit around, sip

creamy foam through the lids and analyze their aesthetic. Ultimately, what emerged was a design

that featured a teardrop-shaped opening about the size of a thumbprint — a cleaner, less-ridged
version of a hot cup lid.

“We realized we had our lid after 10 weeks of experimenting,” said Alexander, who recently
began a new role as a senior sourcing analyst in the Global Sourcing department.

What she didn’t realize is how impactful that strawless lid would become. Amid ongoing

company conversations about reducing waste and safeguarding the environment, Starbucks is

announcing today that it will phase out plastic straws from its more than 28,000 stores worldwide

by 2020, a decision that will eliminate more than 1 billion straws a year. In their place? The lid
that Alexander developed.

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From their debut in one initial store, the cold-cup lids now are used for a small number of drinks

including Draft Nitro and Cold Foam in more than 8,000 stores in the U.S. and Canada. They

will become the standard lid for all iced drinks except Frappuccino, which will be served with a

straw made from paper or PLA compostable plastic manufactured from fermented plant starch or

other sustainable material. Customers who prefer or need a straw can request one made of

alternative materials for use with any cold drink. Last year in Santa Cruz, Calif., Starbucks

started testing out straws made from materials other than traditional plastic. It is now in the
middle of testing paper straws in its U.K. stores.

Alexander found out just two weeks ago that the lid she designed would be the antidote to the

company’s plastic straw phase-out. She was sworn to secrecy until today’s official

announcement. “I am really excited to have developed something that can be part of this big

transformation of going strawless,” she said. “It was this very small thing and now it is so much
bigger and more impactful.”

Seattle and Vancouver, B.C., customers will be the first to see the new lids replace single-use
plastic straws, with other locations coming on board through 2020.

“Starbucks’ decision to phase out single-use plastic straws is a shining example of the important

role that companies can play in stemming the tide of ocean plastic,” said Nicholas Mallos,

director of Ocean Conservancy’s Trash Free Seas program. “With eight million metric tons of
plastic entering the ocean every year, we cannot afford to let industry sit on the sidelines.”

The lid that is replacing the straws is also made of plastic, but its polypropylene content can be

widely recycled. “By nature, the straw isn’t recyclable and the lid is, so we feel this decision is

more sustainable and more socially responsible,” said Chris Milne, director of packaging

sourcing for Starbucks. “Starbucks is finally drawing a line in the sand and creating a mold for

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other large brands to follow. We are raising the water line for what’s acceptable and inspiring
our peers to follow suit.”

Erin Simon, director of sustainability research & development and material science at World

Wildlife Fund U.S., called Starbucks’ decision to eliminate plastic straws “forward-thinking in
tackling the material waste challenge.”

Eliminating straws is a response to requests from partners and customers, said Colleen Chapman,

vice president of Starbucks global social impact overseeing sustainability. “This move is an

answer to our own partners about what we can do to reduce the need for straws,” she said. “Not
using a straw is the best thing we can do for the environment.”

Going strawless is just one of the ways that Starbucks is thinking through more sustainable

approaches to single-use packaging. The company has invested $10 million in the NextGen Cup
Challenge, which seeks to develop a fully recyclable and compostable hot cup.

Starbucks is also encouraging customers to BYOT — “bring your own tumbler” — as part of its

efforts to reduce waste. In 2014, Starbucks began selling a $1 reusable cup in the U.S. The cups

soon became available in Canada and the U.K. as well. More than 18 million have been sold. To

further entice customers to bring their own tumbler, Starbucks is experimenting with a 5p paper
cup charge in London; the charge will be extended to 950 stores in the U.K. later in July.

Developing a recyclable alternative to plastic straws is particularly important as Starbucks’ cold

beverage offerings continue to increase in popularity. Five years ago, cold beverages comprised
37 percent of sales; by 2017, that figure had jumped to more than 50 percent.

“For our partners and customers, this is a significant milestone to achieve our global aspiration of

sustainable coffee, served to our customers in more sustainable ways,” said Kevin Johnson,
president and chief executive officer of Starbucks.

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Alexander, the lead engineer, noted that there’s potential to further develop and improve the lid,

capitalizing on the increasing array of compostable plastic and other sustainable materials. “The
only place we can go is up and forward,” she said.

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It is very interesting to see how Starbucks has operated its business ethics. Especially the mission
statement which is talking about how Starbucks runs its business by using several components to
create a good relationship with its suppliers, partners (employees), customers, communities, the
stakeholders, and also how they are caring for the environment. The other interesting things
about Starbucks are its code of conducts, which show that Starbucks has collaborated with
farmers in orders to gain a high quality of coffee bean at the same time that it improves the
famers life and environment.

Starbucks has run its business by driving Corporate Social Responsibility (CSR) as a tool that
covers the company in every sector of their business. Let’s take the environment, for example.
Starbucks is really concerned about affecting the environment. By utilizing innovative
technologies to improve the effectiveness in its processes, they reduce costs and at the same time
they [are preserving the environment. In terms of social strategies, Starbucks has splendid
strategies to cooperate with its partners and stakeholders. Starbucks has created a lot of activities
to encourage communities and to create long term relationships with them, which reflects on
their brand. In terms of economics, Starbucks is not only thinking about its benefits but also for
all parties related with their business, by following the laws of each country. Starbucks has
managed to create fair trade with its suppliers, customers, and even for their competitors. It has
made Starbucks very successful in its economic situation. Moreover, CSR can build competitive
advantage over competitors that Starbucks gain more competitive advantage by engaging in CSR
into every part the company. Specially, the company focuses on their suppliers (coffee farmers)
and partners (employees) which they have run business as sustainable together. We think that the
company has come to correct the way to run business by fully practicing CSR and keeping their
market position.

Many organizations argue that companies engaged in CSR can obtain increased sales and market
share, reduce costs and increased interest from investors, improved employees motivation,
improved brand awareness and image of the company. However, we think that the company’s
CSR investments will affect the company’s performance positively as customers value CSR
activities. It is the reason why the company has succeeded in business world by CSR.

Moreover, nowadays customers are starting to demand that companies take their social
responsibility. We will suggest that the most important aspects to consider concerning CSR. But
nowadays not only Starbucks has provided those things but also there are competitors providing
all facilities the same such as Mc Donald and Dunkin Donut. Because both of them provide
cheap prices of coffee which everybody can reach them. Although their facilities are not as good
as Starbucks but they have the price strategy to attract customers. Especially today the way of
human life has changed and most people have to hurry for cheaper things. This is an aspect that
Starbucks can improve upon. If this is not done, there is a tendency that some customers will
switch to drink others brands which are cheaper.

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Bibliography:

https://stories.starbucks.com/stories/2018/5-easy-ways-to-reduce-reuse-and-recycle/

https://stories.starbucks.com/stories/2018/starbucks-announces-environmental-milestone/

http://www.diva-portal.org/smash/get/diva2:353800/fulltext02

https://globalassets.starbucks.com/assets/CFA33BFB93E548EABAC1D13A93322013.pdf

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