green LA girl

Shareholder activism at Starbucks, part II

Posted by Siel in caffeine,fairtrade,starbuckschallenge (Friday February 24, 2006 at 5:24 pm)

I’m just learning about this shareholder advocacy stuff, and dude, it’s seriously exciting! So exciting, in fact, that I just called Green Century Funds, where my IRA sits, to find out if any of my moolah was invested in Starbucks.

Sadly, it’s not working hours on the east coast anymore. Damn. I should’ve saved those pesky, tree-killing IRA fund annual reports for these curious moments ;)

Anyway — I’m impressed by the amount of response Greg, as a certified financial planner, has been able to get from Starbucks, especially since Cindy’s went MIA on the Starbucks Challengers without so much as a goodbye.

Not only did Greg and other socially responsible financial planners get a formal letter about the use of the phrase “fairly traded” from Starbucks, but we were also able to set up a conference call with the REAL higher ups.

Sue, the SVP of corporate social responsibility on the call, is Cindy’s boss, for ex. Also on the call were Andy, program manager for public affairs, and of course, Mary Ellen, the manager of investor relations who spoke at the SRI in the Rockies conference Greg attended.

The chat, in general, was very collegial and constructive. Greg’s really been an amazing person in terms of educating me about shareholder activism, even down to letting me know that words like “misleading” or “dishonest” might be too adversarial. He recommended “confusing” or “cloudy.”

His point: Everyone on the call’s hopefully on the same side. It only makes sense to be as constructive and non-adversarial as possible with the people who care about fair trade and sustainable issues within Starbucks, so that they can then work within Starbucks to hopefully shake things up a bit. Which may likely be what these Starbucks people want to do in the first place.

During the call, Greg and I gave some examples of some of the “confusing” and “cloudy” stuff — from employees and even speakers at conferences saying all of Starbucks’ coffee is fairly traded (when Starbucks’ corporate office admits it’s not, yet) to phone reps at the customer service center giving out misinformation when people call in to find out more.

The 3 Starbucks people on the call were all very attentive and kind — I did feel our concerns got heard.

What I’m less clear on is what exactly the outcome of the call was. I believe it was Mary Ellen who asked if we could name some concrete things Starbucks could do to remedy the situation. Greg named some really creative ideas, including an educational event about fair trade, arranged by Starbucks for its baristas.

My suggestion was more in-the-box. I suggested starting with a real training of the phone reps at the customer service centers, so that when a customer — who may’ve heard “we’re all fair trade” from a barista but wants to find out more — calls in for more information, that customer can be given some real, uncloudy info about where exactly Starbucks is in terms of fair trade.

Greg suggested another call a few weeks from now. I’ll let you know what happens. In the meantime, any suggestions are appreciated –

Share green LA girl
  • Facebook
  • Twitter
  • StumbleUpon
  • Google Bookmarks
  • Digg
  • FriendFeed
  • Technorati
  • Add to favorites
  • email

10 Comments

10 comments for Shareholder activism at Starbucks, part II »

  1. I was wondering if you had thought about entering something in the “Film Your Issue” 60 second film contest.
    http://www.clooneystudio.com/film_your_issue.html

    If not, would you be interested in being the subject of such a issue film or the advisor to such a film concerning one of your many causes?

    Comment by Josh — February 25, 2006 @ 2:19 am

  2. Hey Josh — No, I had not thought about this “Film your issue” thing, mainly because I’m not a filmmaker.

    That said, I believe film can be a powerful medium for social and political change, and would be happy to help out in any way I can if there are people working on creating films about fair trade, local politics, or the environment, whether as a subject, interviewee, or behind-the-scenes helper-person trying to bring timely and important projects to fruition. I certainly hope filmmakers reading this blog will take this opportunity as a call to develop a film on issues near and dear to their hearts and minds, regardless of whether or not their own interests converge with mine :)

    Comment by Siel — February 25, 2006 @ 4:10 pm

  3. Siel, I am so impressed with how you are continuing to be able to advocate for this issue with the company. A lot of people on the Internet talk the talk about their issues, but you are a real inspiration that we all should be pushing for our issues in other ways as well. Really interesting – please continue to keep us apprised of what’s going on.

    Comment by jen maiser — February 26, 2006 @ 9:14 pm

  4. So sweet of you jen. Will do my best.

    Comment by Siel — February 27, 2006 @ 11:18 pm

  5. Firstly, it’s great that you’re all socially conscious. re FILM YOUR ISSUE (www.filmyourissue.com) an issue film can be as short as 30 seconds, up to a minute. With all the new digital equipment out there, that’s easy to use, you can find an inventive way to put forward your issue. Anyway, glad for your activism, in general.

    Comment by HeathCliff — March 5, 2006 @ 6:30 am

  6. Siel,
    Again, I’m amazed at how you get things done. However, with that said, it sounds like you & Greg were had. For at least 10 years Starbucks has – periodically – convinced activists that they’ve been heard in situations like the one you’ve described. I really have to tip my hat to them. They not only have it down to an art, they’ve mananged to institutionalize it so that the ability gets passed down from one VP to another.
    You can imagine how it works, back in ’95 it was GLEP (Guatemalan Labor Education Project), in the late ’90′s & later it was Global Exchange. More recently they’ve been fending off USFT and you.

    Their MO seems to be s–l–o–w–l–y offer a little bit here, a little bit there, engage in some dialogue, explain how long it takes do these things, (quitely open another 1,000 cafes), roll out there own feel-good-sounding & well-marketed initiatives, and dangle the promise of reforms “later this year”, etc. All the while they’re counting on the media to bore of the story &/or buy the spin, while the activists to get tired, frustrated, go broke, or otherwise move on.
    I don’t mean to be a wet blanket. Rather I just want to make sure you know how the story played out the last 2 times around.
    Of course, from ’95 to now we should acknowledge that STBX has gone from 0 to maybe 12,000,000 FT pounds – which means real $ for many farmers. But, in the same time their NON-FT poundage has also gone from something like 40,000,000 to 340,000,000.
    Just food for thought.

    Comment by Rodney North — April 13, 2006 @ 6:59 pm

  7. Wow — And I considered you an eternal optimist! :P

    One thing I think we should all work on is constructing a more comprehensive, more easily accessible history of these types of issues in fair trade. Like you said, a group does some stuff, gets pushback, then disappears. A new group springs up — with the same results.

    But unless we can point to a more solid history of these types of tactics taken by big corps, it’s somewhat difficult to 1. take different routes that may be more fruitful in achieving certain goals, 2. prepare for and respond to those same tactics in the future, and 3. call people/companies on their bullshit (“You said that last time” type stuff).

    Right now, there is historical material out there — but it’s uncollected and difficult to make sense of….

    Comment by Siel — April 15, 2006 @ 3:59 pm

  8. Well, I am optimist, otherwise I wouldn’t even be a part of this effort. For example, I also believe that those of us on this side of the fight can learn from history, and, poco a poco, continue to steer people & institutions in a healthier direction.

    And, yes, it would be great for someone to round up a collection of the various campaigns, corporate responses, & the eventual outcomes. Maybe something organized like Naomi Klein’s “No Logo”. I volunteer you for the effort.

    Comment by Rodney North — April 24, 2006 @ 5:19 am

  9. I was searching for examples of shareholder activisim and love this about “Starbucks”. The issue about “Fair Trade Coffee” is very important as well as the fact that they use MILIONS of PLASTIC LIDS (which can not be recycled)that are thrown away and shipped overseas and harming others in foreign countries.
    I am not a filmaker but would be interested in getting people together for a documentary on their claims of “social resposibility”. My friend and I are env. sustainability and social justice majors. We were in the process of moving recently and a truck pulled up at our apts. with “Starbuck supplies”, because they were renting an apt. and storing the supplies until a new one opened! Please contact us.

    Comment by Pamela — October 3, 2007 @ 7:16 pm

  10. Strange about storing supplies in an apt! Best of luck with the docu; let me know if there’s a way I can help –

    Comment by Siel — October 4, 2007 @ 5:07 pm

RSS feed for comments on this post.

CommentLuv Enabled



Advertise with green blogs!

Advertise with Blogs of LA