9

Two sustainability leaders that superbly address the new rules

The new rules for addressing the demands of today’s sustainability-minded consumers not only represent a seismic shift in communication strategy but also now require a thorough, life-cycle approach to product development and the ability to forge constructive coalitions with a wide array of new corporate stakeholders. While most businesses are still learning the new rules and trying to adapt accordingly, some business are leading the way, pioneering new strategies, and enjoying the myriad benefits. While many companies, large and small, fit into this category, two have been chosen to be profiled in depth in this chapter: Starbucks and Timberland.

Of course, no company can be considered 100% sustainable – and these companies have their eco-shortcomings, too – but I believe that the progress made by these two firms can represent a model for others who follow in their steps and, I hope, a platform from which to build on even these leaders’ efforts. Consumer loyalty to these companies and their offerings proves that new sustainable branding strategies can form the basis of an enduring business and provide leverage in the face of formidable competition. They superbly demonstrate how new strategies of green marketing can create jobs, build brand loyalty, and return hefty profits, all the while contributing to a more sustainable society.

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Addressing
the New Rules


The Timberland Company

In 2009, Timberland had over $1.3 billion in sales, more than 200 stores in 15 countries – and an environmental consciousness that reflects the aspirations of customers who appreciate the high quality of the company’s footwear and apparel. And it all starts with CEO Jeffrey Swartz. Now leading the company his grandfather acquired in 1952, Swartz actively and strategically imprints his environmental and social values on the company. Passionate and visible within the environmental business community, his position on the environment is perhaps best summed up in the philosophy behind Timberland’s Mountain Athletics® shoe line: “Enjoying the outdoors to the fullest, and leaving it the way you found it.” Swartz believes that he has a responsibility to be proactive in minimizing his company’s environmental impact and maximizing its benefit to the community. So Timberland does the right thing in order that its customers (who have good reason to care about the environment and their communities) will be educated accordingly – and will reward Swartz by choosing his company’s products over those of his competitors.

Swartz’s philosophy that “doing well and doing good are inextricably linked” demonstrates that Timberland is about more than just profit and exemplifies his company’s strategy at a time when consumer purchases and trust in business are low. He believes that the current economic recession will strengthen his company and provide an opportunity for the brand to reinforce its status as an environmental leader in its industry.

An emphasis on cutting carbon

From its offices to its manufacturing plants to its retail stores, all of Timber-land’s operations are conducted with an eye toward minimizing environmental impact, along with the goal of achieving carbon neutrality in Timberland facilities and employee travel by 2010. The company uses multiple, leading-edge strategies to reduce its overall carbon footprint.

First, Timberland aims to reduce overall energy demand (which in turn yields savings). At their Stratham, New Hampshire global headquarters and the European distribution center in the Netherlands, activities such as installing skylights and replacing the outdated lighting system with energy-efficient alternatives saved 460,000 kWh of energy in its first year. An innovative new roof was installed at the New Hampshire headquarters to make it easier and cheaper to cool the building.

Second, Timberland has been able to transfer over 12% of its energy to renewable sources. Wind and other renewable sources provide 100% of the electricity needed to run Timberland’s European distribution center. A $3.5 million, 400 kW solar array at Timberland’s distribution center in Ontario, California provides about half of the facility’s electricity – with the added bonus of preventing hundreds of thousands of pounds of greenhouse gas. In a 2006 press release announcing the Ontario solar array project Jeffrey Swartz said, “We are fully committed to reducing our environmental impact and decreasing dependency on non-renewable resources by finding alternative ways to produce energy.”

Timberland enlisted the support of the Business for Social Responsibility (BSR) Clean Cargo initiative to develop tools for tracking carbon emissions. Timberland applies these tools to evaluate carrier and transportation choices for transporting products from factories to its distribution centers. These efforts to reduce its own carbon footprint have led Timberland to consider the footprint of its employees, specifically emissions associated with employee commuting. Timberland created prime reserved parking spaces at its corporate headquarters for employees who drive fuel-efficient vehicles or carpool. To further assist in the reduction of the carbon footprint associated with its employees’ activities, in 2008 the New Hampshire headquarters began a “Victory Garden” from which employees purchase vegetables. Employees are able to get fresh produce without the food miles and all proceeds from the sale go to a local food bank.

Timberland’s industry-leading carbon reduction strategies have not only significantly reduced its environmental impact (between 2006 and 2009 emissions reduced by 36%) but have also returned hefty financial savings; combined energy savings and reductions in business travel are helping the company save over a million dollars per year.

A social conscience, too

Timberland’s environmental activities are complemented by a strong social conscience, embodied in numerous programs that engage its youthful target audience while providing opportunities for employees to develop their leadership skills and appreciate the natural environment.

First, as a global brand and a global citizen, Timberland recognizes that they have a responsibility to ensure that their products are produced in an ethical way. Their Code of Conduct helps them ensure fair, safe and non-discriminatory workplaces for their 175,000 workers in 290+ factories in 35 countries, and they aim to create positive change in communities where their products are made.

For more than 20 years, Timberland employees have been given paid time off and “service sabbaticals” to perform community service, usually associated with the outdoors. Community service “challenges [the] employees’ potential, builds strong teams and galvanizes [the] company’s greatest resource as a united force for change.”1 Employee volunteer time has benefited over 200 community organizations in 30 countries. By the end of 2009, more than 600,000 hours of meaningful change had been “clocked” by Timberland employees in the service of local communities and the environment.

Timberland’s programs support a wide variety of social and environmental initiatives, creating goodwill in local communities and reflecting positively on the brand. For example, since 1989 Timberland has supported City Year, a Boston-based nonprofit that unites young people of all backgrounds for a year of full-time service, giving them skills and opportunities to change the world. Jeff Swartz served as chair of the group’s board of trustees between 1994 and 2002, and for 20 years Timberland has provided uniforms for City Year’s corps members.

The majority of Timberland’s cash and product donations currently reinforces the company’s Earthkeeping agenda. Current partners include Yele Haiti and Trees for the Future, which create and maintain sustainable fruit tree nurseries in the outskirts of Gonaives as part of a broader effort to reforest Haiti. Timberland also works with World Wildlife Fund’s tree planting program in Nepal and Green Net, a Japan-based NGO focused on stopping the desertification of China’s Horqin Desert. Since 2005, Timberland has supported Green Net and has sent volunteers to China to help plant trees and restore the formerly rich grasslands in that area.

Other company-wide programs serve as morale-boosters and leadership opportunities for employees. For example, Serv-a-palooza is an annual daylong service event that takes place at Timberland locations around the globe and focuses on improving community green spaces. Over a hundred projects get carried out in upwards of 20 countries, and include cleaning up public spaces in Lawrence, Massachusetts, to planting trees in an urban forest in Bangkok, Thailand. Outreach programs such as these not only signify positive social change, but also translate into happy employees; Timberland is consistently listed by magazines such as Fortune and Working Mother as one of the best places in America to work.

Products with minimal impact

Timberland’s products combine an outdoor aesthetic, quality, and functionality characterized by their durability and ability to withstand the elements, and are made with the environment in mind.

Timberland seeks to reduce its environmental impact at different stages of its products’ life-cycle, starting with concerted efforts to reduce the impact of leather – a key ingredient in the company’s signature boots. That’s why, in 2005, Timberland banded together with the UK-based BLC Leather Technology Centre to convene a cross-brand organization called the Leather Working Group (LWG), whose members work together toward the common goal of better environmental performance of tanneries. Timberland’s Earth-keepers™ product line is specially designed to represent its environmental values in actions. The products feature organic, recycled, and renewable materials. Starting in the fall of 2009, Earthkeepers outsoles incorporate Green Rubber™, a recycled, devulcanized rubber made from waste material by Malaysia-based Green Rubber Inc., using a new proprietary technology. Timberland estimates that the fall 2009 Earthkeepers collection will use 50 tons of Green Rubber material – cutting down on the need to use some 42 tons of virgin rubber. The company launched a Design for Disassembly boot and boat shoe that can be returned to any Timberland store for recycling at the end of their life.

Aside from shoes and boots, the Earthkeepers line-up includes clothing, outerwear, hats, and bags – some of which incorporate organic, recycled, and/or renewable materials. Recycled PET plastic is used to create the nylon for Earthkeepers backpacks and messenger bags, as well as the majority of Earthkeepers knit scarves and hats. Organic cotton is used in the scarves, knitted hats, T-shirts, and baseball caps; the wool jackets incorporate 50% recycled wool; and the belt even uses small recycled leather panels.

Although Timberland products have in the past transcended the boundaries of their traditional market and emerged prominently in the “hip hop” fashion realm, Timberland’s marketing strategy is aimed at a loyal base of 16–35-year-old consumers who appreciate its functional products and the company’s values. Timberland recognizes two types of customers: the genuine outdoorsy types and working-class people who appreciate the functionality of their products – and those who wish they were, or simply want to look the part.

Timberland’s retail stores (the newest of which are LEED-certified) have an outdoorsy feel – think exposed timber and earth tones. The use of virgin products and toxic materials is creatively minimized: existing concrete floors are polished, wood fixturing is made from recycled or FSC lumber, and wall paints and floor finishes contain very low or no volatile organic compounds. Store décor is customized to their locality: a New York City store, for instance, sports an entire wall devoted to depicting green spaces in the five boroughs.

Communicating green

Timberland’s Earthkeeper advertising campaign capitalizes on its target clientele’s outdoorsy yet fashionable aspirations, while challenging them to take responsibility for the environment. The company’s ad campaign, launched in 2008, draws in consumers with emotional, visual representations of Timber-land’s slogan, “Take it all on™.” Ads promoting new Earthkeepers products underscore the connection with nature with such promises as: “Wear new Earthkeepers™ [footwear] made with recycled materials or nature might get you back” and “Wear new Earthkeepers™ [footwear] made with recycled materials and nature might return the favor.”

In addition to having an informative website, Timberland uses the younger generation’s connectivity through a corporate presence in every social media arena, from Facebook pages to YouTube channels, to spread messages of social change. 2,400 customers now follow Jeff Swartz on Twitter. The company’s environment blog covers topics such as green book reviews, green legislation, and updates on how Timberland is becoming greener. Entries are written by various members of the Timberland team, including CEO Jeff Swartz.

Cause-related marketing is an important part of Timberland’s strategy, too. In one partnership, Timberland teamed up with actor Don Cheadle (of Hotel Rwanda fame) to create limited-edition boots, boot tags, and shirts with “Not on My Watch” and “Save Darfur” messages to raise awareness and inspire action to help stop genocide in Sudan, with profits going to Ameri-Cares.

Transparency

Timberland is a pioneer in transparent communications, setting standards that have become a model for others inside and outside the industry. Most notably, in the fall of 2006, Timberland pioneered the use of nutrition-type environmental labels, placing them on over 30 million shoeboxes. In the spring of 2007, to supplement the “nutrition” label, it rolled out its Green Index® rating system for select footwear, which calculates product-specific environmental impacts for each pair of Timberland shoes (see Fig. 9.1).

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Figure 9.1 Timberland’s Green Index® label

Reprinted with permission of Timberland

The label comprises two sections: “Our Footprint” delineates corporate-related impacts including climate impact (denoted by the amount of renewable energy used by Timberland footwear overall); chemicals used (the percentage of Timberland footwear that is PVC-free); resource consumption (the percentage of Timberland footwear that uses “eco-conscious materials,” as well as the percentage of recycled content of the shoebox itself); and the number of trees Timberland has planted to date. The second section, “Product Footprint,” provides product specific environmental information including, where available, the Green Index® rating.

The company plans to expand the use of the Green Index rating to all of its footwear in 2012, and to adapt these labels for use on its apparel and other products in the future, with the goal of increasing transparency on the environmental impacts of its products. It is also partnering with the Outdoor Industry Association to develop standard environmental metrics for outdoor industry products.

Results

Timberland’s attention to quality, passion for the environment and society, and transparency has earned it a strong customer following willing to pay its premiums, even through the current economic recession, and allow it to be poised for continued long-term growth. The company has also reaped benefits in terms of its positive reputation and goodwill in the communities where employees work and serve through their volunteer projects. For instance, according to Michael Brown, the CEO and founder of City Year, a national service organization which engages young people as tutors and mentors, and long-time Timberland partner:

Every one of the 1,550 diverse young people in service with City Year across America annually is a testament to Timberland’s support for City Year. Timberland provides each young leader with a signature red jacket and a pair of boots that are a symbol of hope and help to tens of thousands of urban students in high-poverty schools, and to communities nationwide. Timberland has been essential to building every aspect of City Year for 20 years. Its people have joined us in service around the globe, our partnership has been highlighted by the Harvard Business School and we seek to redefine what a company and nonprofit can do to change the world together.2

Timberland has also received numerous awards and recognitions. In 2009 the Cause Marketing Forum granted Timberland a Golden Halo award for its goal of being carbon-neutral by 2010 and its policy of encouraging employee volunteerism. Fortune magazine rated Timberland number 78 of the “100 Best Companies to Work For” in 2007, and it has been in the top 100 ever since the list’s inception in 1998. Timberland was also a 2007 recipient of the EPA’s Green Power Leadership Award for its voluntary use of green power. And, in 2010, Timberland was named one of Outside magazine’s “Best Places to Work.”

Perhaps the greatest indicator of success comes straight from Jeffrey Swartz, who says,

With passion, innovation and a sense of purpose, Timberland has sought to improve our communities, our environment and the condition of those beside whom we live and work. We have improved as a company and as a community of individuals through the wisdom, humility and strong sense of justice we have gained . . . and continue to gain every step in our journey.3

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Addressing
the New Rules


Starbucks

Starbucks proves that a global company can turn a proactive approach to sustainability into a strategic and profitable part of its brand. Key to its successful strategy is to actively listen to, interact with, and act on the expectations of its customers, who possess a strong environmental and social conscience, and to constantly demonstrate reductions in the environmental footprint of its operations. In the words of Ben Packard, Vice President, Global Sustainability, at Starbucks:

Consumer brands, while they may not be heavily regulated or political, are on the front lines. We see over 50,000,000 customers in our stores each week, and interact with even more of them online. They give us great ideas about what we should be doing to reduce our environmental impact. We need to take that passion and mobilize it, because consumers are increasingly committed to spending their money with companies that support the global issues that they care about.

Starbucks is that medium and that company. Here’s their sustainability story.

With over 16,000 stores in over 50 countries on six continents, Starbucks has many reasons to be oriented toward sustainability. Volume-wise, coffee is the second most traded commodity in the world (behind oil) and living conditions for coffee workers tend to be below par. Starbucks consumes millions of disposable cups, coffee grounds, and packaging each day along with the water used in making coffee, not to mention the 37 gallons of water embedded in the production of each cup of coffee (52.83 gallons for each latte) and in their operations. It all adds up to a significant environmental footprint, and all because of an innocuous-looking little cup of coffee!

Company: Addressing environmental and social considerations

Starbucks’ history of environmental and corporate social responsibility (CSR) stretches a long way. Acknowledging a need to contribute to the communities where their coffee is produced, in 1991 Starbucks began contributing to CARE, an international development and relief organization that supports coffee-producing communities. By 1995 Starbucks became one of CARE’s largest donors, and they are still in partnership today.

In 1992 Starbucks wrote an environmental mission statement and created an environmental affairs department that was charged with developing environmentally responsible corporate policies and minimizing the company’s footprint. The department was also active in educating partners through the company’s Green Team initiatives and using environmental purchasing guidelines. One of the department’s first initiatives consisted of using recycled paper sleeves instead of double cupping. In 1999 Starbucks named its first senior vice president of its newly created CSR department, which grew from one person to fourteen in its first two years.

In 2008, the company launched its Starbucks™ Shared Planet™ initiative, integrating its social and environmental commitments to doing things that are good for the people and the planet. From the way it purchases coffee, to minimizing the company’s environmental footprint, to being involved in local communities, it is a recommitment to core values, about using its global size for good, and getting its consumers and employees educated, involved, and excited about giving back. Starbucks’ Shared Planet platform divides its environmental and social initiatives into three categories with specific measurable goals within each area: (1) ethical sourcing, (2) environmental stewardship, and (3) community involvement.

Environment
Since Starbucks relies on agricultural products for most of its raw materials and supplies, it makes good business sense for them to steward the environment. Under the environmental section of its Shared Planet platform, Starbucks includes products, operations, and buildings. In 2008, Starbucks outlined a series of environmental targets it is committed to reaching by 2015. Its goals are outlined as follows:

Products

• 100% of cups will be reusable or recyclable by 2015

• A 100%-recyclable cup will be developed by 2012.

Operations

• 25% of cups in its stores will be reusable

• Recycling will be available in all of its stores

• 50% of the energy used in company-owned stores will be derived from renewable resources by 2010.

• Greenhouse gas emissions will be reduced by making company-owned stores 25% more energy-efficient by 2010

• It will accomplish a significant reduction in water usage

• It will champion tropical rainforest protection as a solution to climate change.

Buildings

• All new construction will be LEED-certified and locally sourced by 2010.

Social
Starbucks is pioneering the way toward ethically sourced coffee. There may be smaller brands in the marketplace with higher percentages of fair trade coffee within their portfolios, but no company has bought more ethically sourced coffee or done more to help promote it than Starbucks.

One of Starbucks’ core beliefs is that a better cup of coffee is one that also helps create a better future for farmers and a more stable climate for the planet. In this spirit, Starbucks began purchasing fair trade coffee in 2000 and became the largest buyer in 2009 when it doubled its purchases to 40 million pounds of certified coffee. At the same time, Starbucks continued to build on its own Coffee and Farmer Equity (C.A.F.E.) Practices, developed with Conservation International, the global environmental group, in 2003. C.A.F.E. Practices is a set of stringent guidelines to ensure that Starbucks’ coffee purchases are ethically sourced by monitoring hiring practices. These include ensuring biological pest and disease control, and protecting water sources and minimizing water consumption of coffee suppliers, among other things.

Starbucks bought 385 million pounds of coffee in 2008, 77% of which was sourced through C.A.F.E. Practices. Starbucks’ goal is to have 100% of its coffee responsibly grown and ethically traded by 2015. Its other goals in this area are:

• To invest in a better future for farmers and their communities by increasing loans to farmers by 60%, from $12.5 to $20 million

• To combat climate change by offering farmers incentives to prevent deforestation, starting with pilot programs in Sumatra, Indonesia, and Chiapas, Mexico.

To help ensure long-term supplies of its products, Starbucks has also committed to improving the lives of people in coffee-growing communities. Accordingly, it has set up the Small Farmer Sustainability Initiative (SFSI) by partnering with the Fairtrade Labelling Organizations (FLO) and TransFair USA to create a small-scale coffee farmer loan program. These loans help farmers survive the current global economic crisis and emerge as stronger business partners. Starbucks has already invested $12.5 million which small-scale coffee farmers have access to, but it has pledged to expand the fund to $20 million by 2015.

Starbucks has also developed Farmer Support Centers in Latin American and Africa. There are currently two support centers: one opened in Costa Rica in 2004, and a second in Rwanda in 2009. The Farmer Support Centers provide a team of experts in soil management and field-crop production to enhance the quality of coffee and improve farmer yields. Through the centers Starbucks has also committed to support women coffee growers (and help reduce extreme poverty) through continued training and professional development.

Empowered employees

Employees have always been at the center of Starbucks’ commitment to sustainability; founder Howard Schultz’s philosophy is to “treat people like family, and they will be loyal and give their all.” Among its many industry-leading employee initiatives is a generous benefits package for both full- and part-time employees. Eligible employees, or “partners,” receive full health benefits and a share in the company’s growth through the “Bean Stock” stock option plan that allows them to buy shares of Starbucks common stock at 85% of the market value.

Starbucks also makes an effort to include its employees in its CSR initiatives. For example, two years after Hurricane Katrina hit New Orleans, when public and media attention on the city had long since dissipated, Starbucks flew 10,000 partners into the area and committed 50,000 hours, the largest amount committed by any single company. Later it was in front of the same group that Howard Schultz announced Starbucks’ Shared Planet targets and new initiatives.

Sustainably innovative products

In order to keep up with its Shared Planet commitments and to stay ahead of the curve, Starbucks sells its ethically sourced drinks in containers meant to be as environmentally responsible as possible. In 2004, Starbucks put itself on the recycling scene by launching the first-ever hot cup approved by the U.S. Food and Drug Administration (FDA). The hot cup is made with 10% recycled material. Although 10% sounds small, the numbers add up quickly with volume as high as Starbucks: this cup eliminates 5 million pounds of solid waste, 11,300 tons of wood, 58 billion British Thermal Units (BTUs) of energy, and 47 million gallons of waste-water a year.

To help plan for the 100% recyclable cup scheduled to launch in 2012, in May 2009, Starbucks convened a Cup Summit, attended by 30 cup, cup-stock, and coating manufacturers, recyclers, and waste managers and an equal number of Starbucks partners. In September 2009, the company launched a pilot program in seven New York stores which examined the possibility of collecting and recycling coffee cups in the same waste stream as corrugated cardboard; its goal is to enable the recycling of all sorts of other paper food packaging, making Starbucks the leader and standard-setter in this industry.

Starbucks is also looking to make the plastic cups in which they sell more than one billion cold beverages per year more environmentally sound. In 2008, Starbucks commissioned a group of life-cycle-analysis scientists to study the environmental impact of the plastic cups. They found that changing the cups from polyethylene terephthalate (PET) to polypropylene (PP) would use 15% less plastic overall and emit 45% less greenhouse gases in production, so in 2008, Starbucks began the changeover to PP with the launch of its new Vivanno smoothie cups.

With an eye to reducing waste in its stores, Starbucks is relaunching an aggressive campaign to get customers to bring in reusable cups by providing a 10-cent discount off their drink. The company is also restocking reusable mugs. With Starbucks’ new iPhone application, which customers can use to pay for drinks by scanning a digital barcode, the company gets one step closer to eliminating plastic in its stores altogether. And Starbucks has also found a way to reduce the 7 million tons of coffee grounds headed for landfills each year by creating the Grounds for your Garden program which offers customers and others spent coffee grounds for use in their gardens.

Green marketing and communications focused on consumers and transparency

Starbucks’ marketing integrates sustainability initiatives with communications that specifically focus on interacting with consumers and transparency, in line with the needs of its Millennial and Generation X customers and partner (employee) expectations that the businesses they patronize and work for embrace sustainability and social responsibility. Starbucks’ response is embodied in a website and two high-profile campaigns directed at its very global, very mainstream audiences.

Starbucks makes customers feel a part of the brand through a highly informative and interactive website where they can learn about and participate in five CSR efforts. The (Product) RED page explains what Starbucks is doing to support people living with AIDS in Africa. A separate Shared Planet site details Starbucks’ commitments to ethical sourcing, environmental stewardship, and community involvement, with informative videos and opportunities to get involved. There is also a link to a report on progress of Starbucks’ Shared Planet initiative,4 written in line with guidelines provided by the Global Reporting Initiative. Finally, a My Starbucks Idea site, allows customers and partners to give suggestions about what they would like to see done in a variety of areas such as products and CSR. Starbucks responds on its Ideas in Action page, where it reports the ideas it has launched or is currently considering.

In addition, a high-profile media campaign consisting of traditional paid and social media highlights the brand’s values and overall quality and value. With the tagline “You and Starbucks: It’s Bigger Than Coffee,” it draws a clear connection between consumers and Starbucks’ CSR activities and communicates what “responsibly grown and ethically traded” means, a fundamental part of Starbucks’ core brand. This connection to something larger than just the product it sells helps to increase brand loyalty by making consumers feel a stronger relationship with the company, as well as augment the impact of Starbucks CSR programs. The campaign includes such messages as “How can you help create a better future for farmers? You already are.”

The campaign also redefines value as something that isn’t about what is cheapest but about what is best for consumers, their families, and the world around them. In an economic time when there is less money to spend and Starbucks is facing increased competition from competitors such as McDonald’s and Dunkin’ Donuts, the campaign tells Starbucks’ story by underscoring quality, value, and Starbucks’ social and environmental values. The campaign validates for consumers, and for employees, that they are making the right choice and being conscientious consumers by choosing Starbucks.

Teaming up with stakeholders

Making all of these initiatives possible are Starbucks’ partnerships with stakeholders. Starbucks enriches its social and environmental efforts and ensures their credibility and visibility by teaming up with a myriad of stakeholders who lend their expertise, credibility, and reach. They work with some of the best experts in coffee and international development on the planet.

To help them achieve their ambitious goals, Starbucks partners with Conservation International, with whom it has been working since 1998 to develop socially and environmentally responsible guidelines for coffee purchases through C.A.F.E. Practices; the African Wildlife Foundation, with whom it has worked since 2005 to protect wildlife and conserve natural resources in Africa and promote high-quality coffee, while improving farmer livelihoods; and, of course, fair trade.

It has also partnered with Earthwatch, with whom it has worked since 2001 to help partners and customers participate in expeditions to replant rainforests and learn about sustainable farming practices, and the U.S. Green Building Council which has been helping Starbucks since 2000 to design LEED-certified retail stores, plants, and offices.

Results

Starbucks is an excellent example of a company that has been able to turn sustainability and social initiatives into quantifiable returns on investment, whether they are in the form of growth and profits, brand loyalty, reputation, or employee attraction and retention.

Starting with six Seattle-based stores in 1987, Starbucks has over 16,000 units and currently commands 52% of the coffeehouse sales in the United States. Long a fixture on Fortune’s top 500 companies, Starbucks counts among its numerous accolades and awards for its sustainability and corporate social responsibility work being named on both Fortune’s “Twenty Most Admired Companies in America” and Fortune’s “100 Best Companies to Work For” lists. They have also been counted among the Financial Times’ “World’s Most Respected Companies,” “Most Admired for HR” company by Human Resources Magazine, one of Business Ethics Magazine’s “100 Best Corporate Citizens” every year since 2000, and First Magazine’s “International Award for Responsible Capitalism.” In 2009, Starbucks was also named one of the ten “Greenest Big Companies in America” by Newsweek and “Most Ethical Coffee Company in Europe” by Allegra Strategies.5

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