INTRODUCTION/HISTORY

History

Starbucks is one of the largest Coffehouse Company in the world. It is typical company-owned store has a pleasant coffee-house atmosphere replete with couches and Wi-FI. Starbucks also licenses stores, not to individuals but to other businesses. For example in US Starbucks licenses stores to Barnes and Noble booksellers. Some of these establishments provide similar Starbucks atmospheres; others just have a counter to sell coffee and pastries. Starbuck's stores account for about 90% of Starbuck's revenue. The first Starbucks was opened in Seattle, Washington on March 30, 1971 at Pike Place Market by three partners, where it remains in operation and where the main headquarters are located.

The CEO

The Comapny took a change in direction through the views of Howard Schultz current CEO of Starbucks who after visiting Italy tried to adapt the same principles in order to build a strong bar culture. Schultz utilized Starbucks ability to provide quality coffee beans and opened up a new store called II Giornale. In 1987 Giornale took over the assets of Starbucks for $3.8 million and also changed its name to Starbucks Corporation. Currently there are 17,133 stores in about 49 countries, which include about 11,068 in the US, more than 800 in Japan and about 1,000 in Canada. When asked by My Prime Time Magazine the secret to his success, Schultz answered " Don't be threatened by people smarter than you. Compromise anything but your core values. Seek to renew yourself even when you are hitting home runs. And everything matters."

Howard Schultz at Starbucks

Ethical and Social Responsibilities

Starbucks believe that businesses can and should have a positive impact on the communities they serve. They are dedicated to earning the trust and respect of their customers, partners and neighbors. By being responsible and doing the things that are good for the planet and each other. In order to accomplish their mission statement, they have installed a list of principles, stated as the understanding of environmental issues, sharing information with their partners, and striving to buy, sell and use environmentally friendly products. Starbucks also organize activities as neighborhood clean-ups and walk-a thons.

Policies that also have been implemented are the bying policies, which only allow the company to purchase from those other businesses (suppliers) who follow the same

environmental strategy as Starbucks.

Environmental Stewarship

Starbucks formalized its business pratice ethics in 2006, in its manual titled " Standards of Business Conduct". Which is a guide for all employees, which Starbucks refers to as "partners" to use for their business dealings with one another, with customers and with suppliers. Also Starbucks created the "Starbucks Information Security Standards, which deal with the use of technology and information within the company. And finally the Starbucks Privacy Statement which indicate how Starbucks uses private information. Starbucks was recognized in 2010 as one of the world's most ethical companies for going beyond making statements about doing business ethically and translating the word into action.

Security and Risk Management

To keep up with the rapid growth Starbucks reduce risk through training, surveillance and supply chain programs. Starbucks security function's goals are to protect people, secure assets and enable mission. Those six words inform everything the Starbucks security team does, from keeping coffee buyers safe on trips to Indonesia and Ethiopia, to helping coffee baristas understand what to do if there's an attempted robbery, to monitoring coffee shipments from farm to roasting plant to corner store. Currently Starbucks use a risk management system called RISKMASTER, which allow them to process around 300 claims per month. Erwin Mallernee the director of risk management for Starbucks said "We put together a program where we could cap losses within the deductible and retention at certain predetermined amounts, and we bought a policy for that purpose, so I could guarantee that my losses would never exceed those amounts."

Erwin Mallernee (Starbucks Director of Risk Management)