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For years, dissing Starbucks has been a popular pastime among the coffee cognoscenti, but is Starbucks really the Evil Empire? Before you jump to conclusions, there are some things you should probably know.
One of the biggest criticisms of Starbucks is that the coffee giant doesn’t do enough to support the Fair Trade movement, or that the percentage of Fair Trade coffee the chain sells is minuscule. That may have been a legitimate complaint in 2000, but a grassroots effort pressured Starbucks to carry Fair Trade coffee in 100% of their stores. Today, more than 7,500 Starbucks stores carry some Fair Trade coffee. Starbucks has long followed its own CAFÉ Practices to ethically source and import coffee, and has steadily increased the amount of Fair Trade and otherwise ethically sourced coffee it purchases.
While Starbucks only purchases about 8.1% of its coffee from Fair Trade certified sources, that amounted to 44.4 million pounds of coffee, making Starbucks the largest single purchaser of Fair Trade coffee in the world. Those numbers, however, only tell part of the story. For the past decade, Starbucks has worked directly in partnerships with coffee growers around the world to whom it offers a higher price than the Fair Trade floor price and has worked to promote sustainable growing practices and organic farming among the growers it buys from. The company also buys coffees that are certified by other third party certifiers. In all, Starbucks sourced about 93% of its coffee through ethical sources and paid an average price of $2.56 per pound. By contrast, the floor price for Fair Trade coffee in 2012 was $1.60 (which includes a 20 cent premium that goes to the coffee cooperative rather than to the individual farmer). In addition, more than 95% of coffee contracts included a financial transparency clause. Starbucks goal is 100% ethically sourced coffee by 2015.
A second major criticism of Starbucks has been that it exploits employees and won’t allow them to unionize. As with the Fair Trade debate, the reality is far more complex. Starbucks has long offered full-time benefits – and quite generous ones, at that – even to part-time employees. Those benefits include health insurance and stock in the company. However, many baristas point out that the realities of working in a coffee shop – including a dependence on tips and insecure work hours – mean that it can be difficult to make ends meet working for Starbucks. In addition, unions do more than negotiate for better wages – they also represent workers in disputes with management, including unfair firings, and negotiate fair policies for scheduling and discipline.
What it comes down to, in the end, is that Starbucks works to treat its workers well – and has quite a reputation for doing so – but workers have no real representation to negotiate with management over the long term. While Starbucks under the current corporate leadership may treat its workers well, a leadership change could leave workers with no protection. That’s not being evil – just short-sighted.
Far from being the evil corporation driving other coffee shops and cafés out of business, Starbucks corporate policy includes nearly a dozen initiatives to support all of their various communities. Those initiatives include Create Jobs for USA, an initiative that provides capital grants to help support businesses in underserved communities. The grants may get small business loans, microfinance, community center financing or housing project financing. The Create Jobs program is not very different in scope and intent than many of the programs Starbucks operates in the communities where they source their coffee.
In addition, the company launched a Community Store program in 2012, where stores partner with the community in which they are located to invest in the community and provide benefits that the community actually needs. These are just a few of the initiatives and policies that are part of the Starbucks culture. That culture extends to every employee, with incentives for employees to become engaged in community service and bring their own ideas to the company’s attention.
From building greener stores to reducing waste and encouraging recycling, Starbucks takes the environment seriously. The company is on track to make 100% of their cups either reusable or recyclable by 2015, diverting tons of paper waste from landfills. In coffee-growing countries, Starbucks works with farmers to help them mitigate issues arising from the impact of climate change and encourages the use of sustainable farming practices, including shade coffee plantations and organic growing. From small efforts, such as making coffee grounds available to local gardeners to use in compost, to major initiatives, such as contributing to the development of renewable energy and reducing greenhouse gas emissions, Starbucks is a leader in environmental responsibility.
Obviously, no one will be referring to Saint Starbucks anytime soon. The company is in business to make money, after all, and has a responsibility to its corporate shareholders to make as much money as possible. Under the guidance of CEO Howard Schultz, Starbucks is, in many ways, a model for good corporate citizenship, and not the Evil Empire as it is often portrayed.
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Old article below
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We’ve all heard the anti-corporation brigade yelling about Starbucks and how it’s turning the world into a giant corporate generic mess, exploiting farm workers in the third world, driving small cafes out of business, and burning their beans to make them look darker. But Starbucks says they’re a model corporate citizen, donating large amounts of money to the third world, rejuvenating neighborhoods and employing thousands as they pay above market rates.
So who is right? Is Starbucks really evil? You decide.
The negatives:
* The Organic Consumers Association says Starbucks is lagging on using Fair Trade coffee, where the grower of the coffee bean itself is paid a living wage, no matter what the going rate of coffee is. “Despite repeated pledges, Starbucks is still buying coffee and chocolate produced under exploitative labor conditions, and in the case of cocoa plantations in Africa, workers who are actually slaves.” According to Global Exchange, Starbucks buys over 100 million pounds of coffee each year, yet less than 1% is purchased from coffee farmers who are guaranteed a living wage. Source: Scotland on Sunday, May 4, 2003
* Starbucks employees aren’t always happy with their bosses, and that’s why they formed the Starbucks Baristas Union. The union, along with fair trade outfit, Global Exchange, want Starbucks to increase the amount of fair trade coffee they purchase from 1% to 5%. Says the union leaders, “We see our struggles for humane wages and working conditions as united [with the coffee growers [-] No longer will Starbucks be allowed to run roughshod over its baristas or coffee farmers.” Source: Inter Press Service, July 7, 2004
* Starbucks was called to task by environmentalists “for failing to adhere to its Environmental Mission Statement by slipping from industry leader to laggard on Fair Trade, and for adopting a patchwork approach to sustainability through its “Commitment to Origins” line of coffees.” Source: The Green Life
* Though Starbucks makes claims of improving workers conditions in the third world, the company will not allow human rights monitors to verify their claims. Critics say that there is little evidence that any improvement programs have been implemented. Source: Biodemocracy News, March 2001
* Starbucks refuses to guarantee that milk, beverages, chocolate, ice cream, and baked goods sold in the company’s stores are free of genetically-modified ingredients, including recombinant Bovine Growth Hormone (rBGH), a Monsanto-produced cow steroid. The substance is banned in every industrialized nation besides the U.S., because it is known to cause health problems in dairy cows, and is “associated with a higher risk of cancer in humans.” Source: Biodemocracy News
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Francis says
I think it ought to be noted that all of those articles sited above were written during the time period which Howard Schultz stepped down from his CEO management position at the company, when the company made a lot of decisions which it now regrets. Now, in 2008, Howard Schultz re-took over the company, and much of the coffee is fair trade certified and other issues are working on being cleared up.
The Best Cup Of Coffee says
I’m inclined to think that *$’s is evil. The reasons are far too many. But what irks me most is the entire Ethiopian Trademark situation they embarked on last year. That….my coffee loving friends is EVIL!
Hans says
Reasons to hate Starbucks: High prices; pastry that’s often mediocre; limited seating that’s tied up by jerks who hog entire tables for hours and use them as personal desks (and employees say nothing); an absence of customer “rewards” like a lousy free coffee after spending $20 or more on 10 of them; corporate arrogance, the likes of which led Starbucks to sue a small Orthodox Christian monastery because the monks sold their own coffee and called one of their blends “Christmas Blend”, which Starbucks owns the copyright to; neighborhood saturation which drove out mom and pop coffee shops; bogus concerns about the environment and community and people in the face of exploitive business practices that are geared to the almighty buck. Star Bucks that is.
Islaybrown says
drarkham5:
yes, with capitalist, western world, so-called ‘privileged’ ideals, one chooses a path in life that would bring in the most income. For the most part, the growers and farmers would be living in destitute conditions, with no education, a responsibility to family and little or absolutely no other options than a usually inherited farm. To even think that you commented on how the price of our coffees would rise if these workers were paid decently for thier crop, is absolutely disgusting, and really, just not true. High-end starbucks employees are getting billions of dollars from thier overpriced coffee. It is ridiculous to believe that we are paying for what we are getting. it does NOT cost the company $5.00 for the coffees. The majority of that price is profiteering. The reason our world is so screwed up is because of our uncontrollable greed and ignorance. Fair trade coffee, tea, sugar and chocolate are so easy to attain. They are sold in many places, especially wholesale bulk. Exploitation is not okay, even if it does save you 26 cents on your next coffee splurge.
scizen says
Jon,
As it turns out coffee is about the best cash crop out there, except for obvious illegal substances. But what crushes little coffee farmers and raises the need for Fair Trade and other programs is that they are at the mercy of so many hostile market forces. From the local buyers, coops, an international forces, the little Juan Valdez gets very very little. I know. I lived and worked with these people. They cant just “grow something else” that has any cash crop value.
Hey, if you don’t care about the farmer, then buy Fair Trade for your own good! Happy well-fed farmers will have incentive to grow better coffee for you to enjoy.
Jon says
“If farmers in third world nations cannot make a living wage growing coffee, then they should grow something else.”
I’m pretty sure it’s that easy in a 3rd world country.
Jack Shipley says
When we started our coffee shop we spent a lot on training, brining in a barista trainer who was a judge at the last WBC.
When I visit indie shops the lack of training is too frequently immediately apparent — most often in the form of an 8 second double shot!
Yes, bad quality and poor service is why indie shops bust.
Starbucks has to be credited with introducing America to espresso and specialized coffee. We can argue about the other issues. I know there are regional exceptions but for the most part SB paved the way.
The best line I hear at our shop is: “This is so much better than …”
That translates into word of mouth support from customers as they tell their friends.
John Mc says
Hasn’t anyone twigged yet to the benefit of Starbucks?
Starbucks does not attract traditional coffee house patrons, you’ll find most of their patronage are ‘new’ customers. Now once these ‘new’ customers become attracted to coffee, they will want to explore newer experiences, hence they will go to more intimate local coffee houses.
So if coffee houses are closing in your area, it is probably because their service or their product is crap & is unable to even compete with a bland product that is the hallmark of the Starbucks Corporation
SAMIR says
DEAR SIR
I AM TUNISIAN MAN I AM LOOKING FOR STURBUCKS FRANCHISE OPPORTUNITE IN TUNISIA BUSINESS SETUP
Richard says
Starbuck is Evil! They paid their barista at minimum wages, just like Mc Donald. They hire those so called “barista,” but unable to pour out a good cup of Joe. Their coffee as always taste watering…like shit. Perhalf they should come to New Zealand or Italy to learn how to make good coffee. Watch out,this giant copporate will drive as many local cafe out of business.
dc says
Of course they’re evil, they burn their coffee! I was a barista through high school and undergrad, back before Starbucks had taken over the world. I went up to Yakima WA to visit some friends and had some really good coffee at a place called starbucks, and had some great coffee called Seattles Best that a local McD’s was serving (for some weird reason- and that was milleniums b4 Starbucks took SeattlesBest). Sure, it was all a little darker roast than I was used to- but it wasnt the carbonized slag served all over the place now…. I know, I know- they gotta do it to make a homogenized product, but maybe if you gotta ruin your coffee by roasting a few hrs past second crack ;) maybe it’s time to focus back on the product. I now buy FT from a local roaster who was mentored by Alfred Peet for a few years. For those starbucks fanboys/girls who swear by SBs, see if you can find a local shop that roasts their own FT. If they are good at their craft, you’ll never go back to SB’s. I’m gonna lose coffee cred here- but I found a single pot sample of Yuban (of all things) at the store the other day, and I gotta say, a cup of that Yuban, with a mere dash of cream and sugar (a dash, to complement the coffee), was one of the best cups of coffee I’ve had in AGES……
Darren says
It does bother me a little bit that Starbucks is still being targeted for supposedly buying milk that is not guaranteed to be free of rBGH hormone. It seems that some people are under the impression that Starbucks has its own dairy farms that actively employ the hormone used to increase milk yiels. In fact, Starbucks only buys milk from local dairy producers in each of its markets. So, in fact, the milk used in a Starbucks latte, for example is the very same milk that is on the supermarket shelves in that particular city and already in the fridges in the homes of the people that live there. It seems that it’s all too easy to target a big company like Starbucks in this type of situation, when the truth is that all consumers of milk could be doing more to correct the problem. I believe Starbucks in the US have Organic Milk available upon request for a modest surcharge. I wonder how many consumers would be willing to pay 50c for the organic milk. Probably not very many, and yet it seems that Starbucks has taken a lot of criticism on this issue.
AAA says
It is always easy to say: hey, poor people, why don??t you learn to do something else? Hey, not everybody has the opportunity to decide in such a simple way. The market works like that: where there is money, there you have to work. Well, it is good you have the living you want and the freedom of choosing the job you always dreamed about. Poverty is not always a matter of choice.
bob smith says
my sister devloped keyorie from the caffine
scizen says
Sarah,
Concerning “why hate a company that makes millions happy everyday?” First, i don’t think anybody here is saying we should “hate” Starbucks, just that some of their practices are ruthless toward the entities set out in the initial article. Plenty of companies make millions “Happy” everyday, but that doesn’t mean they aren’t hurting many others, especially those who are completely out of the minds and vision of consumers: the lowly coffee farmer on the world market. The average Juan Valdez is completely at the mercy of voracious forces that constantly leave him screwed.
Concerning anonymous’s comment: It is hard to read what you mean, but consider this: The little coffee farmer has little option but to continue raising coffee even when prices are very low. There aren’t many other legal cash crops especially when you consider climate and sustainability. His poor land won’t grow other crops. Besides, it takes considerable effort and patience to get a coffee tree to produce. Our country has hundreds of laws to protect small farms, dairies, ranches, etc. But the Third World Coffee farmer isn’t protected by anyone. For all reading, please support Fair Trade or other responsible programs that help PEOPLE. If you love coffee, then let’s care for those who grow it for us. BTW, a Fair Trade coffee will only cost a consumer about 4 cents or less per cup of coffee. Think about it.