Starbucks is a well-known company that has developed a negative reputation simply by being a major corporation. However, the Starbucks website and an Economics and Business Week article provide detailed information on its ethical sourcing practices in developing countries.
Starbucks’ most recent initiative with small-scale coffee farmers in Africa, Asia and South America is the increase in its loan program. Starbucks, previously offering $12.5 million in loans to its coffee suppliers, has now partnered with Fairtrade Labeling Organizations and TransFair USA to increase that amount to $20 million by 2015. The loans will help farmers improve the quality and harvest of their coffee, allowing them to charge more competitive prices.
As well as the loans, Starbucks has implemented Farmer Support Centers in various communities. These centers provide trained agronomists who work with the farmers to help improve their coffee growing practices.
Starbucks’ Ethical sourcing is a win-win situation. Starbucks can ensure that the coffee they buy is of good quality while contributing to the development of third world businesses. Starbucks is just one example of how making profits doesn’t always have to involve unethical shortcuts; success requires creative ideas to establish win-win situations.