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[FONT='Arial','sans-serif']Executive Summary:[/font]
[FONT='Arial','sans-serif']The following report communicates the Strengths & Weakness of Coffee Beans & Tea Leaf company in comparison to StarBucks in terms of communicating its Sustainability aspects and draws a comparison with a Global giant. It further goes o to state the the past achievements of Coffee Beans and Tea leafs past achievements in line with Sustainability. The report then talks about the 10 principals of UN Global compact, to show the future for Coffee Beans & Tea leaf in terms of further strengthening its Sustainability projects and conduct of business. [/font]
[FONT='Arial','sans-serif']Company Introduction:[/font][FONT='Arial','sans-serif'] The Coffee Bean & Tea leaf: The Company was started by Herbert B. Hyman in 1963. The company has since grown into one of the largest privately owned coffee and tea companies in the world. The mission of the company is to create a spirit within the company that inspires the team members to provide the customers with the total quality experience that is Quality of Product, Service and Environment. [/font]
[FONT='Arial','sans-serif']Coffee Beans & Tea Leaf:[/font][FONT='Arial','sans-serif'] Social responsibility and giving back to the community is one of the aspects of Coffee Beans. They have several domestic and international projects in this regard. But with regard to corporate communications they lack. [/font]
[FONT='Arial','sans-serif']Strengths & Weakness, Coffee Beans & Tea Leaf: [/font]
[FONT='Arial','sans-serif']Corporate Governance: [/font][FONT='Arial','sans-serif']For example Starbucks board of directors hold management accountable for operate and manage the company, according to strong ethical and governance principals. The board has 11 members out of which meet the independence requirement of Nasdaq. The three committee of the board have independent directors and have specific Charters: Audit and Compliance, Compensation and Management development, and Nominating and Corporate Governance. [/font]
[FONT='Arial','sans-serif']Coffee Beans unlike Starbucks[/font][FONT='Arial','sans-serif'] hasn’t put too much emphasis on Corporate governance. The only information available with this regard is an introduction about the senior management on their website. As fas as their senior management is concerned they do not have any specific charter, nor are they a part of any Organization with regard to corporate governance. [/font]
[FONT='Arial','sans-serif'] Managing CSR: Starbucks ensures that CSR is managed it continues to evolve. It is ensured that the emerging issues are identified, priortized and intergrate in a systematic manner. Starbucks has a CSR group and also a cross functional team relating to CSR and governance.[/font]
[FONT='Arial','sans-serif']Coffee Beans does not publish a CSR report, though they do their part with society with domestic programs like supporting a Non profit organization, which looks into educating children in California and Arizona. They are know as Adopt A classroom and they encourage businesses for doing so by donating 500$. But interms of communication websites is the link they use. Coffe Beans communicates is intent of sustainable framing through their website. They have sections in the website as mentioned in the reference, which talk about better relationships with farmers and partnering with environmenatally and socially responsible paople. They mention the fact that the relationships are more personal in nature but nothing in terms of communication or publishing reports.[/font]
[FONT='Arial','sans-serif']Coffee Beans does have a press section on its website, wherin it states the news it has been involved in the past years. In recent times, on May 9th 2007, Coffee Beans was in the news for being the first chain of their size to be certified by Green Resturants Association (GRA) to have become energy efficient, water efficient and reducing the use of paper through recyclying. They also would implement this is all their 200 corporate owned resturants in the United States. [/font]
[FONT='Arial','sans-serif']Stakeholder Engagement: [/font][FONT='Arial','sans-serif']Starbucks has stakeholder communication as part of the CSR report. They include partners (employees), customers suppliers, shareholders, governments, community members, environmental groups, activist and others. Starbucks proactively looks to engange stake holders and those who are directly impacted by the business decisions. It held the following meeting in the fiscal 2006.[/font]
[FONT='Arial','sans-serif']a) [/font][FONT='Arial','sans-serif']Starbucks held a nutrition round table conference with regard to the health and wellness issues in October 2005, with its stakeholder to discuss the above in the food industry. The idea was to better understand the objective of the stakeholders, where the companies responsibilities with nutritional issues were concerned. The outcome of this was that Starbucks decided to form a health and wellness panel in fiscal 2007.[/font]
[FONT='Arial','sans-serif']b) [/font][FONT='Arial','sans-serif']Starbucks had a meeting with stakeholders in regard with the water related issues, with a point of view of both as a user and a supporter to improve access to clean water, specially oin developing countries. Stakeholders reccommended that starbucks assessed and clarify the water footprint of the company and formulate a corporate water strategy. They also urged to raise awareness about the water crisis, specially in developing countries.[/font]
[FONT='Arial','sans-serif']c) [/font][FONT='Arial','sans-serif']Starbucks held a meet with stakeholders in regard to the inputs on sustainable purhasing guidelines for Starbucks cocoa. This was held in september 2006 and would be piloted in fiscal 2007.[/font]
[FONT='Arial','sans-serif']Coffee Beans methods of Stakeholder engagement[/font][FONT='Arial','sans-serif'] is by investing back in communities they do business with, It is a socially responsible move, but not on Par with Starbucks, where corporate communication is concerned. Coffe Bean has several international programmes like Education for Coffee Growing Families (Colombia), through the non profit arm of Empresas de Narino, a famed coffe growing company they improve schools and education facilities. Then Bogawantalawa Community Centre (Sri Lanka), from where Coffee Beans puchases its teas. Here they funded and constructed education facility. They also have education facilities in Papua New Guinea. This is the way Coffee Beans & Tea Leaf(s), lokks at social investments and stakeholder engagement by investing back in societies and communities that are linked to ots business.[/font]

[FONT='Arial','sans-serif']Reporting:[/font][FONT='Arial','sans-serif'] Starbucks reporting is in accordance with Global reporting Initiative (GRI) 2002 Sustainable guidelines in determining the relevent content. This is further detailed with starbucks reporting standard.[/font]
[FONT='Arial','sans-serif']Transperancy and Reporting: [/font][FONT='Arial','sans-serif']Starbucks in its attempt to be a socially and environmentally friendly company, has published a CSR report as part of its broader communications effort to provide transperancy about their CSR activities. The fiscal report for 2006 and previous reports, they have used the Global Reporting Initiative (GRI) 2002 guidelines, which is an international reporting standard. Starbucks also reviewed the GRI G3 guidelines for defining content and quality. The brief description along with which Starbucks addressed them are as follows[/font]
[FONT='Arial','sans-serif']a) [/font][FONT='Arial','sans-serif']Materiality – To includes issues that are of most significance and make an impact and are of most importance to the stakeholders.[/font]
[FONT='Arial','sans-serif']b) [/font][FONT='Arial','sans-serif']Stakeholder inclusiveness – Defining stakeholder and showing how their reccommendations have been addressed.[/font]
[FONT='Arial','sans-serif']c) [/font][FONT='Arial','sans-serif']Sustainability context – Starbucks discusses CSR related measures and performance in a broader context. It defines the topics to be included and show how they support the sustainability issues.[/font]
[FONT='Arial','sans-serif']d) [/font][FONT='Arial','sans-serif']Completeness – To make sure that the report is comprehensive, and to inform what is included in the report and what is not, giving a clear scope and coverage of the report.[/font]
[FONT='Arial','sans-serif']e) [/font][FONT='Arial','sans-serif']Balance – Starbucks include multi year performance data through out the report.This gives a self assessment. They also include case studies and stakeholders comments to give a better objectivity obout the challenges faced by Starbucks[/font]
[FONT='Arial','sans-serif']f) [/font][FONT='Arial','sans-serif']Comparability – Starbucks compares the previous reports, before making new ones each year. They also give follow up information regarding the plans that were previously stated. This help’s stakeholders and concerned people to see the progress over time.[/font]
[FONT='Arial','sans-serif']g) [/font][FONT='Arial','sans-serif']Accuracy- The content and data in the report have been internally reviewed by subject experts and senior leaders of Starbucks. The information has also been externally verified by Moss Adams LLP, an independent accounting and consultancy firm.[/font]
[FONT='Arial','sans-serif']h) [/font][FONT='Arial','sans-serif']Timeliness - Starbucks makes sure the release of the CSR report by the end of September 30th, their years end. It is released from the shareholders meet. Which is held usually within six months after the end of the fiscal year.[/font]
[FONT='Arial','sans-serif']i) [/font][FONT='Arial','sans-serif']Clarity – Starbucks each year makes their report more concise and user friendly. They also attempt to make it understandable and there is more data available online, rather than he printed reports. [/font]
[FONT='Arial','sans-serif']j) [/font][FONT='Arial','sans-serif']Reliability - The external verification of Starbucks data and statements in their CSR reports is made by Seattle based Moss Adam LLP, the 12th largest accounting and consultancy firm in the United States. [/font]

[FONT='Arial','sans-serif']Coffee Beans and Tea Leaf(s) does not follow[/font][FONT='Arial','sans-serif'] any international standards of reporting like Starbucks does. Niether does it publish CSR reports or has any specific way of corporate communication but for its website.[/font]
[FONT='Arial','sans-serif']Situation analysis: [/font][FONT='Arial','sans-serif']Coffee Beans and Tea Leaf(s) curently does not foolow the Principals in line with the UN global Compact. It needs to develop proper procedure in terms of communicating COP i.e. Communicaion in of progress on sustainability to Stakeholders( Customers, employees, [/font][FONT='Arial','sans-serif']organized labor, shareholders, media, government). [/font]
[FONT='Arial','sans-serif']The Steps it needs to take in line with the UN Global compact system is shown in the following paragraphs but before we get to that, following is a look at the past achievement and Milestones for Coffee Beans & Tea leafs.[/font]
[FONT='Arial','sans-serif']Past Mile Stones & Practices: [/font]
[FONT='Arial','sans-serif']EDUCATION FOR COFFEE GROWING FAMILIES (COLOMBIA)[/font][FONT='Arial','sans-serif']This nonprofit arm of the famed coffee growing company, Empresas de Narino, builds and improves schools for the children of coffee-growing families in the Narino region of Colombia. To help support this meaningful effort, The Coffee Bean & Tea Leaf® donates a portion of the sales for every one-pound bag of Colombian coffee (Colombia Supremo, Colombia Dark, and Decaf Colombia Supremo) sold in our domestic company-owner stores[/font][FONT='Arial','sans-serif']
[FONT='Arial','sans-serif']BOGAWANTALAWA COMMUNITY CENTER (SRI LANKA)[/font][/font][FONT='Arial','sans-serif'][/font][FONT='Arial','sans-serif']
[FONT='Arial','sans-serif']We purchase all of our Ceylon teas from the Bogawantalawa tea estate in Sri Lanka. In 2003, The Coffee Bean & Tea Leaf® funded construction of the estate's first community center and education facility. We are raising funds to build a toddler daycare center for the estate workers' children, as well as a library. Specifically, we are donating a portion of the sales of all brewed cups and tea tins including Estate Ceylon, Vanilla Ceylon, Apricot Ceylon, English Breakfast, and any limited edition Ceylon teas. [/font]

[FONT='Arial','sans-serif']AID LANKA KIDS (SRI LANKA)[/font]
[FONT='Arial','sans-serif']In response to the devastating 2004 tsunami in Asia, The Coffee Bean & Tea Leaf® helped support the Aid Lanka Kids Foundation. Since early 2005, in addition to an initial donation, we proudly contribute a portion of the sales of every Ceylon tin and Ceylon brewed tea sold. Foundation funds have been directed primarily to provide care and education to orphaned girls at the Jeevanie School For Girls. [/font]

[FONT='Arial','sans-serif']KIMSSA SCHOOL SELF-HELP PROJECT (ETHIOPIA)[/font]
[FONT='Arial','sans-serif']In 2003, The Coffee Bean & Tea Leaf® began a philanthropic relationship with the Kidane Mhret Students' Self-Help Association (KIMSSA), an Ethiopian nonprofit organization based in Addis, the region from which we import our Ethiopian coffees. For each pound of Ethiopian Yirgacheffe green coffee purchased, we are helping to provide library services, tutoring, school supplies, and educational facilities. [/font]

[FONT='Arial','sans-serif']EDUCATIONAL FACILITIES (PAPUA NEW GUINEA)[/font]
[FONT='Arial','sans-serif']The Coffee Bean & Tea Leaf®[/font][FONT='Arial','sans-serif'] buys some 350,000 pounds of green coffee from plantations throughout Papua New Guinea. Educational facilities in many of these areas are sorely lacking. To help address this urgent issue, we are donating a portion of each pound of green coffee purchased by The Coffee Bean & Tea Leaf.[/font][/font]
[FONT='Arial','sans-serif']Future sustainability Report According to the UN Global Compact: [/font]
[FONT='Arial','sans-serif']The Ten Principles [/font]
[FONT='Arial','sans-serif']The Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from: [/font]
· [FONT='Arial','sans-serif']The Universal Declaration of Human Rights [/font]
· [FONT='Arial','sans-serif']The International Labour Organization's Declaration on Fundamental Principles and Rights at Work [/font]
· [FONT='Arial','sans-serif']The Rio Declaration on Environment and Development [/font]
· [FONT='Arial','sans-serif']The United Nations Convention Against Corruption[/font]
[FONT='Arial','sans-serif']The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment, and anti-corruption:[/font]
[FONT='Arial','sans-serif']
Human Rights[/font]
· [FONT='Arial','sans-serif']Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and [/font]
· [FONT='Arial','sans-serif']Principle 2: make sure that they are not complicit in human rights abuses. [/font]
[FONT='Arial','sans-serif']Labour Standards[/font]
· [FONT='Arial','sans-serif']Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; [/font]
· [FONT='Arial','sans-serif']Principle 4: the elimination of all forms of forced and compulsory labour; [/font]
· [FONT='Arial','sans-serif']Principle 5: the effective abolition of child labour; and [/font]
· [FONT='Arial','sans-serif']Principle 6: the elimination of discrimination in respect of employment and occupation.
[/font]
[FONT='Arial','sans-serif']Environment[/font]
· [FONT='Arial','sans-serif']Principle 7: Businesses should support a precautionary approach to environmental challenges; [/font]
· [FONT='Arial','sans-serif']Principle 8: undertake initiatives to promote greater environmental responsibility; and [/font]
· [FONT='Arial','sans-serif']Principle 9: encourage the development and diffusion of environmentally friendly technologies. [/font]
[FONT='Arial','sans-serif']Anti-Corruption[/font]
· [FONT='Arial','sans-serif']Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. [/font]
[FONT='Arial','sans-serif']Conclusion: [/font]
[FONT='Arial','sans-serif']Coffe Beans & Tea leaf should communicate its progress as per the above mentioned principals for further Developing its sustainability aspects and communicating it to showcase transperancy in implementing these principals.[/font]





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live case study:

SEATTLE: Starbucks Corp said Tuesday it will close 600 company-operated stores in the next year, up dramatically from its previous plan for 100 closures, a sign the coffee shop operator continues to struggle with the faltering US economy and its own rapid expansion.

Seventy per cent of the stores slated for closure had opened after the start of 2006, the company said in a statement.

To put it another way, Starbucks is closing 19 per cent of all US company-operated stores that opened in the last two years, Chief Financial Officer Pete Bocian said during a conference call.

About 12,000 workers, or 7 per cent of Starbucks' global work force, will be affected by the closings, which are expected to take place between late July and the middle of 2009, spokeswoman Valerie O'Neil said.

O'Neil said most employees will be moved to nearby stores, but she did not know exactly how many jobs will be lost. Starbucks estimated $8 million in severance costs.

In total, the company forecast up to $348 million in charges related to the closures, $200 million to be booked in the fiscal third quarter ended June 30. Starbucks reports third-quarter results at the end of July.

The company had previously planned to shut 100 stores. The 500 more that will be closed had been on an internal watch list for some time. They were not profitable, not expected to be profitable in the foreseeable future, and the "vast majority" had been opened near an existing company-operated Starbucks, Bocian said.

Some analysts had wondered whether Starbucks' explosive growth in the US would come back to haunt it as the market became saturated.

But before Tuesday, the company avoided acknowledging that saturation was an issue, and pinned weak financial results and adjustments to new store openings on the economy.

During the call, Bocian said that between 25 per cent and 30 per cent of a Starbucks shop's revenue is cannibalized when a new store opens nearby, and that the closures should help return some of that revenue to the remaining stores.

Bocian said there aren't a material number of stores left on the watch list, but that the company will hold remaining stores to the same standards.

Starbucks still plans to open new stores in fiscal 2009, but on Tuesday it cut that number in half to fewer than 200. The company did not adjust its plan to open fewer than 400 stores in 2010 and 2011.

"We believe we still have opportunities to open new locations with strong returns on capital," Bocian said.
During the conference call, the CFO echoed concerns about the economy expressed by Chief Executive Howard Schultz in May, when the company attributed a 28 per cent drop in profit to less traffic from US consumers who were feeling the pinch of higher food and gas prices.

At the end of March, there were 16,226 Starbucks stores around the world. The company operates 7,257 of those stores in the US and 1,867 abroad; the remaining 7,102 locations are run by partners who license the Starbucks brand.