C.A.F.E. Practices third-party verification and transparency.
When we developed C.A.F.E. Practices with Conservation International, we put measures in place to help ensure the integrity of the program. We believe that having farm evaluations completed by third-party organizations and requiring price transparency are essential to a system that can provide our customers assurance that the products they buy meet certain criteria.
Verification ensures integrity.
Since launching C.A.F.E. Practices in 2004, Starbucks has worked with Scientific Certification Systems (SCS) to develop and oversee the third-party verification system. Inspectors working for a diverse group of third-party organizations based in the Latin America, East Africa/Arabia and Asia Asia/Pacific coffee-growing regions receive training from SCS before they are approved to conduct C.A.F.E. Practices verifications.
SCS trainings focus on teaching inspectors how to evaluate coffee suppliers against C.A.F.E. Practices criteria. In addition to offering these trainings, SCS oversees reporting by the organizations, utilizing periodic audits to confirm the accuracy of reports submitted to Starbucks.
Becoming a C.A.F.E. Practices-verified supplier.
When suppliers apply to become C.A.F.E. Practices verified, they hire an independent third-party organization to evaluate the degree to which their practices are aligned with our comprehensive set of criteria in the areas of social responsibility, coffee growing and coffee processing. Evaluations involve field inspections, worker interviews, field observation and document review.
When the evaluations are completed, the verifier organization first sends the report to the supplier and then to Starbucks for review. The evaluations in the report determine the supplier's approval status in C.A.F.E. Practices.
Suppliers are verified on an on-going basis, generally every one to three years to continue their participation in the program. Continuous improvement through the implementation of additional sustainable practices (a main objective of the program) can be measured through evaluations on a regular basis.
A hurdle and a solution.
To be verified for C.A.F.E. Practices, a supplier or farmer must have an independent inspection conducted of their supply chain. As with other verification or certification programs, there is a cost involved for an audit, which may make it unaffordable for some farmers. This challenge can be addressed if suppliers plan in advance, and prepare materials to make the inspection process more efficient.
Ensuring farmers and workers are paid equitably.
To help ensure that farmers receive an equitable share of the purchase price paid by Starbucks, a requirement for economic transparency is included in most of our coffee contracts, including those contracts with suppliers who aren't yet participating in C.A.F.E. Practices. This provision requires our suppliers to provide proof of payments made and prices paid throughout the coffee supply chain, often going to the farm level. Although we make an effort to ensure we have such documentation for our contracts, the structure of the coffee markets in some countries makes this difficult.
What we've been doing.
Building on the release of our updated C.A.F.E. Practices scorecard and a new online verification reporting system in March 2007, SCS continued training on verification and reporting procedures to continually strengthen the verification process. Five new verification organizations were trained to work in the C.A.F.E. Practices program, including three in Latin America, one in East Africa, and one in Asia/Pacific.
At the end of fiscal 2008, the verification system involved 29 different organizations with a combined network of more than 150 inspectors who conducted verifications for Starbucks in 18 countries around the globe.
C.A.F.E. Practices checks and balances
Inspectors
Conduct inspections of farms and mills using the C.A.F.E. Practices scorecard.
Verification Organizations
Oversee inspectors' work and provide organizational capacity to administer the C.A.F.E Practices verification process.
Scientific Certification Systems (SCS)
Provides training and performs yearly audits of approved verification organizations checking that they have robust processes in place to ensure the quality of inspectors and their reports.
Starbucks Global Responsibility Department
Reviews the quality of SCS services by reviewing the audits of verification organizations and soliciting feedback on SCS from verification organizations and suppliers.
Moss Adams: Certified Public Accounting Firm
Independently verifies the key performance data included in Starbucks Global Responsibility Annual Report, including C.A.F.E. Practices purchases and progress statements. See Moss Adams independent assurance report for more information.
The list of verifier organizations we've worked with.
The following third-party organizations were some of the organizations that were part of our global network of approved verification organizations for C.A.F.E. Practices at the end of fiscal 2008. They evaluate coffee suppliers for performance against C.A.F.E. Practices guidelines and help us ensure that coffee is being produced in an environmentally and socially responsible manner.
Africert
Aires de Cambio S.C.
Gagas DinamiGa Aksenta
BIOCert
Bio Latina Certificadora Latinoamericana
BIOTROPICO S.A.
CERES GmbH
CONTROL UNION CERTIFICATIONS, LATIN AMERICA
CONTROL UNION CERTIFICATIONS, Indonesia
Eco-LOGICA S.A.
Fundación Interamericana de Investigación Tropical (FIIT)
IMO Control Latinoamérica
Koffee Seedz Guatemala S.A.
Latcert S.A.
MACS Guatemala
María Regina Barillas
Mayacert, S.A.
Programas Sustentables para Certificación
SalvaNATURA
Sistemas Empresariales de Mesoamerica (SEM)
Søren Knudsen Group/Vaering Corp.
Suárez Solórzano S.A.
Tanzania Organics Limited
