2020 Report: People
Our aspiration is to be people positive — investing in humanity and the well-being of everyone we connect with, from our partners to coffee farmers to the customers in our stores and beyond.
ADVANCING RACIAL AND SOCIAL EQUITY
An Update on Our Progress
Goal: Advance racial and social equity on behalf of our partners, our customers and our communities.
Since the beginning, Starbucks has set out to be a different kind of company rooted in providing a third place where everyone is welcomed and respected.
Each day we reaffirm our responsibility to one another — to care for each other, to strengthen our communities and to ensure diverse perspectives are represented at the company’s highest levels. We are committed to furthering that work with intention, with transparency and with accountability. Some of those commitments in FY20 included:
- Commissioning our second Civil Rights Assessment, conducted by Covington & Burling LLP under the leadership of former U.S. Attorney General, Eric Holder, Jr.
- Launching a mentorship program to connect BIPOC partners to senior leaders. In its initial phase, the program pairs senior vice presidents and above with diverse directors and vice presidents in retail and non-retail. The program includes a mix of one-on-one sessions between mentors and mentees, mentorship circles with a 1:3 mentor-mentee ratio, and community events.
- Launching an internal series of courageous conversations to create a safe space for bold discussions addressing difficult topics and to help increase understanding.
- Investing in strategic partnerships with professional organizations who focus on the development of BIPOC talent, providing additional development opportunities for our BIPOC partners.
- Connecting inclusive and diverse team building to our executive compensation program.
- Providing more transparency on our current workforce diversity.
We know this work is a journey. Our partners, our customers and the communities we serve ground us in an open dialogue and a collective desire to create lasting change.
CULTURE OF INCLUSION
Human Rights Campaign’s Corporate Equality Index: 100%
Goal: Continue to be a top employer for LGBTQIA2+ workplace equality
In 2020, for the eighth consecutive year and eleventh year overall, we achieved a 100% rating from the Human Rights Campaign’s Corporate Equality Index based on corporate policies and practices for LGBTQIA2+ equality.
Disability Equality Index: 100/100
Goal: Continue to advance disability inclusion in the workplace
In 2015, 2016, 2017 and 2019, Starbucks scored 100 out of 100 on the Disability Equality Index (DEI) and was recognized as a “Best Place to Work.” We are a member of Disability:IN’s Inclusion Works program, a national forum for peer institutions to share best and evolving practices on Access and Disability Inclusion. Starbucks Retail Inclusion Academy, operating since 2017, prepares people with disabilities for retail jobs. This work is consistent with our commitment to access and disability inclusion.
69% Female, 47% BIPOC
- At least 40% BIPOC representation and 55% women in all retail roles, by 2025 in the U.S.
- At least 40% BIPOC representation and 30% women in all manufacturing roles by 2025 in the U.S.
- At least 30% BIPOC representation and 50% women for all enterprise roles, including senior leadership, by 2025 in the U.S.
Our approach to hiring, development and advancement of our partners is critical to our journey to advance inclusion, diversity and equity at Starbucks. As of August 2020, our U.S. partner base was 69% female and 47% BIPOC. Within BIPOC representation, partners are 8% Black, 27% Hispanic or Latinx, 6% Asian, 5% Multiracial, 0.6% American Indian or Alaskan Native and 0.6% Native Hawaiian or other Pacific Islander. As of August 2020, our senior leadership was comprised of 51% women and 19% BIPOC.
In looking at representation data, with more detail here, we have identified opportunities to improve career advancement for our BIPOC partners throughout the organization, and we’re using this data to help us focus our efforts to promote greater equity and inclusion among BIPOC partners at all levels.
5,221 Veterans in FY20, 2,620 Refugees to Date
- Hire 5,000 Veterans and Military Spouses in the U.S. annually
- Hire 10,000 Refugees globally by 2022
- Hire 100,000 Opportunity Youth in the U.S. by 2020
We remain committed to hiring 5,000 military veterans annually and 10,000 refugees globally by 2022. In FY20, we hired 5,221 U.S. veterans and military spouses; we were able to confirm hiring 520 refugees in the U.S., Canada and EMEA, bringing our cumulative total to 2,620. In FY20, we evolved our tracking of Opportunity Youth hiring targets to focus on our diversity goals established in FY20.
100% Gender and Racial Pay Equity in the U.S., 100% Gender Equity in Pay in China, Canada, Austria, Great Britain, Italy and Switzerland
- 100% gender and racial pay equity in U.S.
- 100% gender pay equity globally in company-owned markets
Starbucks has achieved and maintained 100% pay equity for women and men, and for people of all races performing similar work in the U.S. In 2018, when we first hit that milestone, we announced that we are committed to reaching 100% gender equity in pay for all partners in Starbucks company-operated markets globally. A year later, we reached the goal of gender equity in pay in China and Canada, and we maintained that in FY20 while achieving gender equity in pay in other company-owned markets: Austria, Great Britain, Italy and Switzerland.
In FY20, our licensed partners in Singapore, the Philippines and India announced they had achieved 100% pay equity for women and men. In India, women comprise 29% of the Starbucks workforce, a key gender diversity milestone toward the goal of 40% by 2022.
TO BE WELCOMING
Goal: Continued cultivation of inclusion, diversity and equity awareness
In FY20, the 15-course To Be Welcoming anti-bias curriculum grew from 5,688 enrollments to 54,740 enrollments. We made the curriculum publicly available and saw high levels of engagement from partners and non-partners, with Starbucks partners comprising 48.5% enrollees and non-partners comprising 51.5% of enrollees.
We also offer the Third Place Development Series, designed to equip store managers and store partners with new tools for reflection and to facilitate discussions about important and challenging topics related to mental health, equity, inclusion and bias.
COLLEGE EDUCATION BENEFIT
Goal: Graduate 25,000 Starbucks partners from Arizona State University (ASU) by the end of 2025
The Starbucks College Achievement Plan (SCAP) is helping benefits-eligible U.S. partners working part- or full-time complete their education by receiving 100% tuition coverage for a first-time bachelor’s degree through Arizona State University’s online program. As of FY20, nearly 4,500 partners have graduated with degrees since the program began in 2014, and the May 2020 graduating class was the largest ever at 700. More than 14,000 partners across the U.S. participated in ASU’s online degree programs in FY20, and more than 20% of those were first-generation college students.
Mental Health Expansion
Goal: Continued leadership in innovative, relevant benefits for full- and part-time retail partners
We’re proud that we have pioneered innovative benefits for full- and part-time partners around the world. In the U.S., eligible partners who work at least 20 hours a week receive a benefits package that includes comprehensive and affordable health insurance, 100% college tuition coverage, equity in the form of stock, paid parental leave, child and adult back-up care and more.
In FY20, we expanded our commitment to partner mental health in a number of ways, based on partner feedback:
- U.S. partners and eligible family members now have access to 20 no-cost sessions each year with a mental health therapist or coach through Lyra Health, so they can receive quality care that meets their specific needs.
- U.S. assistant store managers, store managers and non-retail partners are receiving Starbucks Mental Health Fundamentals Training, created in partnership with the National Council for Behavioral Health to help partners listen for, recognize and respond to signs of mental health and substance use issues.
- Partners in the U.S. and Canada can now sign up for a free Headspace subscription, taking advantage of the many research-based benefits of meditation.
Internationally, we customize our compensation and benefits packages to remain responsive to partners’ feedback and competitive in the marketplace. In China, for example, Starbucks has been named a top employer by Aon Hewitt.
SOCIAL IMPACT-DESIGNED STORES
29 Community Stores, 68 Military Stores, 9 Signing Stores
- Open 100 Community Stores by the end of 2025 in the U.S.
- Open 200 Military Family Stores by 2022 in the U.S.
In FY20, Starbucks increased its commitment in the U.S. to open Community Stores in traditionally underserved, diverse communities across the country. Community stores focus on creating pathways for those facing barriers to opportunity by hiring from within the community, creating dedicated space for communities to come together for events and working with diverse contractors for store construction and remodels. We have invested in 17 U.S. Community Stores, with the latest opening in the Watts neighborhood of Los Angeles in FY20. We plan to open 100 Community Stores in the U.S. by the end of 2025.
As of FY20, Starbucks had opened four Community Stores in Asia across three markets, with different areas of focus that include providing educational opportunities for children and supporting youth entrepreneurs and farming communities.
We also operated six Signing Stores in FY20 around the world to provide employment opportunities for Deaf and hard of hearing people and drive greater community connection. In FY20, our licensed partner in India opened two stores staffed entirely by women, creating a welcoming space for women to grow and develop their careers at Starbucks.
In the U.S., we have invested in 68 Military Family Stores as of FY20, which offer support for military communities, and plan to open 132 of them by 2022.
SERVING THOSE WHO SERVE
Goal: Create connections among partners, communities and those who serve
In FY20, we supported military veterans in our community in a variety of ways. Stores adopted military units to show gratitude and we continued our partnerships to support military communities, with a focus on mental health and well-being through the National Alliance on Mental Illness; Headstrong; Team Red, White & Blue; Blue Star Families and The Mission Continues. These activities were consistent with our longstanding commitment to supporting veterans and military families.
Donated food available from 74% of U.S. company-operated stores
Goal: Rescue food available to donate from 100% of U.S. company-operated stores by the end of FY21
The Starbucks FoodShare program in the U.S., which launched in 2016 in partnership with Feeding America, donates eligible, unsold food to food banks and mobile pantries. In FY20, the program redirected food from 74% of U.S. company-operated stores. We also doubled down on investments in successful, long-term strategies like mobile pantries, which help overcome transportation and access barriers by bringing food to families where they are. As a result of these initiatives, Starbucks donated more than 8.9 million meals in FY20, as well as $1 million to mobile pantry programs.
As the needs of food banks increase, we continue to learn from the many logistical challenges of ongoing perishable food delivery so we can increase the scale of this program. Internationally, similar food donation programs exist in several markets, including a FoodShare program in Canada and food waste diversion programs in 14 countries across EMEA markets.
INCREASED STORE SUPPORT
Launch of Outreach Worker Pilot in Five Cities
Goal: Provide store partners support to address customers with critical needs
In FY20, Starbucks launched a one-year Outreach Worker pilot program with United Way Worldwide. The program began in five U.S. cities (Seattle, Chicago, Los Angeles, Washington D.C., Philadelphia). It supports store partners in high-incident stores by connecting them to outreach workers who bring expertise in hyper-local social work and can support customers with critical needs, while decreasing non-critical reliance on law enforcement. With initial success and impact in FY20, we have committed to expanding the program into additional cities, adapting from pilot learnings and broadening our partnership to include other outreach organizations.
Resources, Information, Lyft Rides
Goal: Support partners and customers in having safe and accessible ways to vote
No partner should have to choose between work and having their voice heard. In FY20, Starbucks continued to promote the importance of voting – including making sure partners had the tools and time to vote and encouraging government at all levels to make sure Americans have safe and accessible ways to vote. Through a campaign that included using the Starbucks app and a partnership with a non-partisan coalition of businesses, Civic Alliance, we provided partners and customers with resources and information about how and where to register to vote. We also provided all U.S. partners with a free Lyft ride worth up to $75 so they could travel to the polls to vote, volunteer as a poll worker or drop a ballot at a post office, ballot box or other official ballot drop location.
We formed partnerships in FY20 with the NAACP, Hispanic Federation, Iraq and Afghanistan Veterans of America and the Lawyers Committee for Civil Rights to create opportunities for our partners to volunteer in civic-related activities in their local communities.
SUPPLIER DIVERSITY AND INCLUSION
$600 Million in FY20
Goal: Stimulate economic development in the communities Starbucks serves while delivering high-quality products and services
Starbucks Supplier Diversity and Inclusion program drives inclusion of qualified businesses that are at least 51% owned and operated by a U.S. or Canadian citizen or legal resident and certified as minority, woman, LGBTQ, veteran, person with a disability, or socio-economically disadvantaged small businesses classified as HUB Zone or 8(a). The program’s current emphasis is to focus on suppliers of all sizes and facilitate mentorships to support suppliers’ success.
Starbucks has spent nearly $8 billion with diverse suppliers since 2000. In FY20, we spent more than $600 million with diverse tier-one suppliers, which was 8.1% of the company’s total spend in the U.S. and Canada.
SUPPORTING HUMAN RIGHTS
Goal: Further the respect for human rights globally
In FY20, Starbucks published an update to our global human rights statement to outline our company’s commitment and expectations of our partners, supply chain and business partners to uphold human rights throughout our global operations. In this update Starbucks committed to respect the Women’s Empowerment Principles, Children’s Rights and Business Principles, and Framework Principles on Human Rights and the Environment. Our policy also reiterates our respect for the crucial work done by Human Rights Defenders who work individually or with others to promote or protect human rights. As part of our commitment to this work, throughout the last fiscal year as allegations of human rights abuses throughout our supply chain have been raised, Starbucks has investigated and remediated when appropriate.
COMMUNITY ECONOMIC DEVELOPMENT FUNDING IN CHICAGO
$8 Million Invested in FY20
Goal: Invest $10 million into Chicago CDFIs
In FY20, we invested $8 million of our $10 million commitment into Community Development Financial Institutions (CDFIs) in Chicago for small business and community development loans with a focus on the city’s underserved communities. Of the $8 million investment, $225,000 was in the form of grants to support capacity-building in the CDFIs. One example of a project funded by this investment is Green Era, which has been raising funds to construct a sustainable campus in the Auburn Gresham neighborhood of Chicago. The campus will include a two-acre clean energy generation facility, an urban farm, green houses, an outdoor fresh produce market, a visitor center with classrooms for community activities and a STEM education center. Among other positive impacts to the community, Green Era is expected to create 247 construction jobs and 25 permanent jobs.
Read more and see fiscal 2021 updates on our progress in the full report.