What Makes Starbucks a Great Place to Work Heather Blanchard, Marki Heape, Michael Johns, Isaac McDow

Employee Training Isaac

Where’s the Money At? Total Pay package is Your Special Blend and is driven by: You – your skills, performance, and personal choices The Market – comparing our Total Pay package to other companies where we compete for talent Starbucks – Our mission, values and company direction Heather Compensation Total Pay package is Your Special Blend and is driven by: You – your skills, performance, and personal choices The Market – comparing our Total Pay package to other companies where we compete for talent Starbucks – Our mission, values and company direction Benefits Partners become eligible for benefits on the first day of the second month after they have been paid for at least 160 hours by the last Friday of a two-month period. Partners may cover themselves and their dependents. Eligible dependents include a spouse, same- or opposite-sex domestic partner and eligible dependent children. Medical Dental Vision Reimbursement Accounts Health savings plan Employee Assistance Program (EPA) This program provides short-term counseling for stress-related issues, emotional difficulties, critical incidents in the workplace and other personal concerns, including financial, legal and daily living (a resource on childcare, eldercare, school information and more). Sick Pay For salaried partners Get 40 hours of Sick Pay per year Disability Short-term disability – provides partners with partial salary up to 26 weeks Long-term disability – provides partial income replacement after short-term disability ends Hourly workers may purchase this coverage!!! Life Insurance Starbucks provides basic life insurance coverage for benefits eligible salaried and nonretail hourly partners’ equal to one times annual base pay. Accidental Death and Disbursement (AD&D) Adoption Assistance Partners eligible for Starbucks benefits may receive reimbursement of up to $4,000 to help pay for qualified expenses related to the adoption of an eligible child. Partners are also eligible for the Adoption Allowance benefit, which replaces up to two weeks of pay for time off needed to travel to pick up an adopted child and/or to settle the child in the partner's home. Cup Fund (Caring United Partners) financial assistance program that helps Starbucks partners who experience a financial crisis resulting from an illness, the death of a partner or family member, being a victim of natural disaster or other extreme circumstances. Time Off Holidays - Starbucks observes New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Retail hourly partners are paid 11/2 times their base hourly rate of pay for any hours worked on these holidays. Personal Days - One paid personal day is awarded each July 1 and January 1 and must be taken within the following six-month period. Vacation GET GRAPH!!!!!   Tuition Reimbursement Starbucks tuition reimbursement program is available for partners who have at least one year of continuous service from the date of most recent hire, are eligible for Starbucks benefits at the time the course begins, earn at least a “C-” grade or “Pass” in “Pass/Fail” classes and are actively employed with Starbucks when reimbursement is processed by payroll. Accredited courses relating to Starbucks business that are part of a GED, undergraduate, post-baccalaureate or eligible certificate program will be considered for approval. The maximum calendar year reimbursement, based on a partner’s position and length of continuous service at the beginning of each calendar year, is outlined below: GET GRAPH!!!!!!

Benefits Medical Accidental Death and Disbursement (AD&D) Dental Adoption Assistance Vision Cup Fund (Caring United Partners) Reimbursement Accounts Employee Assistance Program (EPA) Time Off Holidays Sick Pay Personal Days Disability Vacation  Life Insurance Tuition Reimbursement Heather Benefits Partners become eligible for benefits on the first day of the second month after they have been paid for at least 160 hours by the last Friday of a two-month period. Partners may cover themselves and their dependents. Eligible dependents include a spouse, same- or opposite-sex domestic partner and eligible dependent children. Medical Dental Vision Reimbursement Accounts Health savings plan Employee Assistance Program (EPA) This program provides short-term counseling for stress-related issues, emotional difficulties, critical incidents in the workplace and other personal concerns, including financial, legal and daily living (a resource on childcare, eldercare, school information and more). Sick Pay For salaried partners Get 40 hours of Sick Pay per year Disability Short-term disability – provides partners with partial salary up to 26 weeks Long-term disability – provides partial income replacement after short-term disability ends Hourly workers may purchase this coverage!!! Life Insurance Starbucks provides basic life insurance coverage for benefits eligible salaried and nonretail hourly partners’ equal to one times annual base pay. Accidental Death and Disbursement (AD&D) Adoption Assistance Partners eligible for Starbucks benefits may receive reimbursement of up to $4,000 to help pay for qualified expenses related to the adoption of an eligible child. Partners are also eligible for the Adoption Allowance benefit, which replaces up to two weeks of pay for time off needed to travel to pick up an adopted child and/or to settle the child in the partner's home. Cup Fund (Caring United Partners) financial assistance program that helps Starbucks partners who experience a financial crisis resulting from an illness, the death of a partner or family member, being a victim of natural disaster or other extreme circumstances. Time Off Holidays - Starbucks observes New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Retail hourly partners are paid 11/2 times their base hourly rate of pay for any hours worked on these holidays. Personal Days - One paid personal day is awarded each July 1 and January 1 and must be taken within the following six-month period. Vacation GET GRAPH!!!!!   Tuition Reimbursement Starbucks tuition reimbursement program is available for partners who have at least one year of continuous service from the date of most recent hire, are eligible for Starbucks benefits at the time the course begins, earn at least a “C-” grade or “Pass” in “Pass/Fail” classes and are actively employed with Starbucks when reimbursement is processed by payroll. Accredited courses relating to Starbucks business that are part of a GED, undergraduate, post-baccalaureate or eligible certificate program will be considered for approval. The maximum calendar year reimbursement, based on a partner’s position and length of continuous service at the beginning of each calendar year, is outlined below: GET GRAPH!!!!!!

Partner Perks Future Roast 401(K) Savings Plan Stock Investment Plans (SIP) Bean Stock Partner Recognition Partner Connection Program In-Store Discount Partner Coffee and Tea Markout PerksCard Program Starbucks Coffee Gear Elite Athlete Program Heather Savings Future Roast 401(K) Savings Plan Starbucks Matching Contributions - Starbucks matches a percentage of the first 4% of pay a partner contributes via payroll deduction. Stock Stock Investment Plans (SIP) Bean Stock Partner Perks Thrive Partner Recognition Partner Connection Program Links groups or teams of three or more partners who share common interests, from reading to sports to other activities. In-Store Discount Coffee, tea or milk-based beverages partners consume while on a work break are free of charge. Starbucks partners also enjoy a 30% discount on purchases of beverages, merchandise and food. Partner Coffee and Tea Markout While employed, partners are eligible for a partner “markout,” a term used for coffee and tea products that partners may receive free of charge each week. PerksCard Program Starbucks Coffee Gear Elite Athlete Program  

Diversity Michael

View on Diversity “We view the richness of our diverse workforce as an asset that encourages creativity and innovation, helps us recruit and retain top talent and makes us more attractive as an inclusive employer, ultimately enhancing our success. “ From annual CSR Report Inclusion + Equity + Accessibility = Diversity Starbucks calls all of their employees partners, because it's not just a career, it's the company’s passion. Together, partners embrace diversity to create a place where each of us can be ourselves. And we always treat each other with respect and dignity.

You Better Recognize! 40 Best Companies for Diversity 15 Best in Senior Management Diversity 15 Best in Corporate Board Diversity 100% Corporate Equality Index Corporate Award The chart depicts Starbucks’ persons of color in Executive positions (VP and up) as compared to the average US workforce. According to the 2007 Fiscal CSR Annual Report, Starbucks has been recognized for the following awards surrounding diversity Black Enterprise magazine recognized Starbucks as one of their “40 Best Companies for Diversity” in the U.S., 15 Best in Senior Management Diversity, and 15 Best in Corporate Board Diversity. Corporate Equality Index: In 2007, Starbucks achieved a score of 100 percent on the Human Rights Campaign Foundation’s Corporate Equality Index, a nationally recognized measure of gay, lesbian, bisexual and transgender workplace equality. The Disability Rights Legal Center honored Starbucks with its “Corporate Award” for nurturing an environment of respect and sensitivity to people with disabilities.

Partner Networks Starbucks Access Alliance Starbucks Black Partner Network Starbucks Emerging Workforce Network Starbucks Hora del Café Starbucks Pride Alliance Starbucks Armed Forces Support Network Our Partner Network program is designed to capitalize on the energy, passion, and experience of our partners in the advancement of Starbucks diversity and inclusion strategy. Built on a model of shared accountability, the program empowers partners to foster inclusion, develop solutions that contribute to business success, and enhance personal and professional development. Starbucks Access Alliance increases disability competence and helps ensure access to physical locations, communication tools and information sharing. Starbucks Black Partner Network strengthens community connections and aids professional development for partners of African descent. Starbucks Emerging Workforce Network offers flexible workplace solutions to help partners succeed while honoring their personal commitments. Starbucks Hora del Café helps Latino partners develop professionally and builds awareness of Latino culture. Starbucks Pride Alliance provides an equitable, dynamic and supportive environment for lesbian, gay, bisexual and transgender(LGBT) partners. Starbucks Armed Forces Support Network supports Starbucks veterans, current service members and their families.

Supporters of: National Urban League NAACP National Hispanic Corporate Council National Council of La Raza US Hispanic Chamber of Commerce Catalyst Human Rights Campaign United States Business Leadership Network U.S.B.L.N. Multicultural Food and Hospitality Alliance

Corporate Social Responsibility Marki Starbucks’ mission statement & guiding principles: The foundation for everything Starbucks does is their Mission Statement and Guiding Principles. The mission statement is: to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. They have set in place the six Guiding Principles to help measure the appropriateness of their decisions. They include: Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.

Starbucks defines CSR as conducting business in ways that produce social, environmental and economic benefits for the communities in which we operate and for the company’s stakeholders, including shareholders. Marki So what does this mean to Starbucks? It means “conducting business in ways that produce social, environmental and economic benefits for the communities in which we operate and for the company’s stakeholders, including shareholders.

Tangible benefits include: Attracting and retaining our partners (employees) Customer loyalty Reducing operating costs Creating a sustainable supply chain License to operate Marki Tangible benefits for Starbucks include: Attracting and retaining our partners (employees): CSR contributes to overall retention and higher-than-usual levels of partner satisfaction and engagement. Customer loyalty: studies show that customers prefer to do business with companies that are socially responsible and is directly responsible for the growth of the company Reducing operating costs: Many investments deliver long-term environmental and cost-saving benefits Creating s sustainable supply chain: ensure that the suppliers of today will have the capacity to supply Starbucks business tomorrow License to operate: having a strong reputation as a socially responsible company makes is easier to be accepted in a local community

Products Building long-term relationships with coffee farmers and suppliers. Having a sustainable pricing model that is focused on paying the higher prices that premium quality coffee commands. Clearly defining and communicating the company’s coffee production sustainability criteria of C.A.F.E. (Coffee and Farmer Equity) Practices, and maintaining the integrity of performance against this criteria through verification and transparency. Purchasing sustainable coffees that are third-party–certified. Investing resources to enhance the sustainability of coffee farms and their surrounding communities. Seeking continuous improvement to strengthen our supply chain into the future. Marki Coffee is the heart and soul of Starbucks. Starbucks states: “We know that our customers’ loyalty and trust must be earned. Our uncompromising commitment to high-quality coffee is one reason our customers are loyal to Starbucks. They also trust us to have ethical business practices, be good environmental stewards, and, especially, to be respectful of the people who grow and supply Starbucks coffee.” Over the years, Starbucks has received input from a broad range of stakeholders, and evolved a holistic model for coffee sustainability, one that underscores the importance of: Building long-term relationships with coffee farmers and suppliers. Having a sustainable pricing model that is focused on paying the higher prices that premium coffee commands. Clearly defining and communicating the company’s coffee production sustainability criteria of C.A.F.E. (Coffee and Farmer Equity) Practices, and maintaining the integrity of performance against the criteria through verification of transparency. Purchasing sustainable coffees that are third-party-certified. Investing resources to enhance the sustainability of coffee farms and their surrounding communities. Seeking continuous improvement to strengthen our supply chain into the future.

Society Starbucks presence in local communities, and continuing global marketplace evolution Being respectful of community concerns and local relevancy Contributing to local economic development, and building civic partnerships Being responsive to our customers Being locally relevant Marki Starbucks also monitors its role in society and the relationships it has with the communities and customers. They examine the following: Starbucks presence in local communities, and continuing global marketplace evolution Being respectful of community concerns and local relevancy Contributing to local economic development, and building civic partnerships Being responsive to our customers Being locally relevant

Environment Our Climate Change Strategy Understanding and Improving our Environmental Footprint Footprint of a Typical Starbucks Store Sustainable Packaging and Paper Initiatives Starbucks Long-term Commitment to Environmental Responsibility – Future Goals Marki Starbucks understands that environmental responsibility is necessary if we hope to preserve our world for generations to come. The principle to contribute positively to the environment is a Guiding Principle of the company. In 2007, the initiatives include: a Climate Change Strategy (Starbucks greenhouse gas emissions, renewable energy, energy conservation, collaborating and advocating), understanding and improving our environmental footprint (greening our store through design; water conservation; recycling, reusing and waste reduction initiatives; involving our partners; engaging our customers), footprint a typical Starbucks store, sustainable packaging and paper initiatives (paper hot beverage cups plastic cup beverage cups: lifecycle assessment, packaging reductions, paper) and Starbucks long-term commitment to environmental responsibility and their future goals. Starbucks also includes the workplace and diversity in the CSR, but we have already covered these topics. =)

CSR Awards One of “Twenty Most Admired Companies in America” by Fortune each year from 2003-2007 Fortune’s list of “The 100 Best Companies to Work For” nine times Ranked ninth on the list of “100 Best Corporate Citizens” by Business Ethics magazine in 2007 and has been on the list since 2000 Included as one of the “100 Best Corporate Citizens” by Corporate Responsibility Officer magazine since 2000 Marki Starbucks has won many awards for their CSR including: One of “Twenty Most Admired Companies in America” by Fortune each year from 2003-2007 Fortune’s list of “The 100 Best Companies to Work For” nine times Ranked ninth on the list of “100 Best Corporate Citizens” by Business Ethics magazine in 2007 and has been on the list since 2000 Included as one of the “100 Best Corporate Citizens” by Corporate Responsibility Officer magazine since 2000