Video Overview Video Overview SHRM Foundation’s 5th DVD Filmed at Starbucks Headquarters, Seattle Featuring Wayne Cascio, Ph.D. Comprehensive Interviews Officers, Managers and Employees SHRM Foundation’s 5th DVD Filmed at Starbucks Headquarters, Seattle Featuring Wayne Cascio, Ph.D. Comprehensive Interviews Officers, Managers and Employees

Video Synopsis Video Synopsis Introduction A Business of People Description of Starbucks’ Business Mission and Guiding Principles Corporate Social Responsibility Working Environment and Trust Health Benefits and the Relationship with Partners The Role of HR Advice for Small Companies

Company Overview Company Overview United States: United States: 50 States + D.C. 6,281 Company-Operated Stores 3,533 Licensed Stores International: 39 Countries 1,553 Company-Operated Stores 2,361 JV & Licensed Stores United States: 50 States + D.C. 6,281 Company-Operated Stores 3,533 Licensed Stores International: 39 Countries 1,553 Company-Operated Stores 2,361 JV & Licensed Stores

Company Overview Company Overview Products Products 30 Blends of Coffee Handcrafted Beverages Merchandise Fresh Food Starbucks Entertainment Global Consumer Products Starbucks Card Brand Portfolio (Tazo, Ethos, Seattle’s Best) Products 30 Blends of Coffee Handcrafted Beverages Merchandise Fresh Food Starbucks Entertainment Global Consumer Products Starbucks Card Brand Portfolio (Tazo, Ethos, Seattle’s Best)

Company Overview Company Overview Headquarters: Seattle, WA IPO: 1992, 165 Stores 2006 Sales: $7.8 billion Employees: 140,000 Headquarters: Seattle, WA IPO: 1992, 165 Stores 2006 Sales: $7.8 billion Employees: 140,000

Discussion Questions

How can companies build a relationship based on trust with their employees? • Provide support • Share success • Extend ownership • Provide support • Share success • Extend ownership

How does a company live by its guiding principles? • Use them as a point of reference • Make decisions based on them • Embed them in interactions with customers and partners • Use them as a point of reference • Make decisions based on them • Embed them in interactions with customers and partners

What does workforce diversity mean for an organization? • Diverse leadership • Different styles • Impact on value • Diverse leadership • Different styles • Impact on value

How does a company remain faithful to its mission? • Audit management decisions • Survey employees • Act based on frontline feedback • Audit management decisions • Survey employees • Act based on frontline feedback

With whom does the company interact through Corporate Social Responsibility? • Customers • Suppliers • Communities • Customers • Suppliers • Communities

How do companies create a “Top-100” environment? • Put people first • Accessible top management • Homogeneous organizational environment • Put people first • Accessible top management • Homogeneous organizational environment

What should companies know about trust? • Trust is earned • Trust is fragile • Trust needs to be nurtured • Trust is earned • Trust is fragile • Trust needs to be nurtured

How can health benefits contribute to build trust? They safeguard employees’ well-being They create engagement They are valuable for the employee, for the company and for the community They safeguard employees’ well-being They create engagement They are valuable for the employee, for the company and for the community

What is the role of HR in a business made of people? Provide strategic input Assist the organization’s line managers Promote organizational culture Provide strategic input Assist the organization’s line managers Promote organizational culture

Financial History Financial History Compound Annual Growth Rates 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 Q1’07 Q2’07 Q3’07 Annual Sales

Comparison Comparison

Five Important Lessons

5 Lessons 5 Lessons Trust is the foundation of performance Trust is fragile Communicate often in ways that support core values Involve employees in decisions that affect them Survey employees regularly about how leaders’ behavior supports the company’s mission and values