Question

In its recent annual report and related Global Responsibility Report, Starbucks provides information on company performance on several dimensions. Indicate whether the following items best fit into the financial (label your answer “Profit”), social (label your answer “People”), or environmental (label your answer “Planet”) aspects of triple bottom line reporting.

1. Sales revenue totaled \(16.5 billion.

2. 96% of coffee was purchased from suppliers certified for responsible farming and ethics.

3. Reduced water consumption by 4%.

4. Reduced energy consumption.

5. Operating income totaled \)119.2 million.

6. Increased purchases of energy from renewable sources.

7. All new stores are built using certified green building techniques.

8. Decreased amounts of packaging materials.

9. Discontinued working with factories that did not meet standards for their working conditions.

Short answer

All the activities are categorized as required in the question.

Step-by-step solution

Sales revenue totaled $16.5 billion (1)

The sales revenue will come under the financial dimensions of the performance of the company as its sales revenue will tell how the company is performing on the basis of finances. Hence, it will come under the profit.

96% of coffee was purchased from suppliers certified for responsible farming and ethics. (2)

The purchase of coffee from suppliers certified for responsible and ethics will come under the social dimensions of the performance of the company as it will come under people. It has an impact on people.

Reduced water consumption by 4% (3)

The reduction of water consumption by 4% will be environmental as this will reduce the wastage of water, which will have an impact on the planet. So, it will come under the planet.

Reduced Energy Consumption (4)

The reduced energy consumption will impact the planet, as it will come under the environmental dimensions of the performance of the company.

Operating income totaled $119.2 million (5)

The Operating income will come under the financial dimensions of the performance of the company as its operating income will tell how the company is performing on the basis of finances. Hence, it will come under the profit.

Increased purchases of energy from renewable sources (6).

The increase in the purchases of energy from renewable sources will also come under the economical dimension of the performance of the company. So, it will be a profit.

All new stores are built using the certified green building techniques (7)

The new stores built using certified green building techniques will have a positive impact on the environment. So, it will come under the planet.

Decreased amounts of packaging material (8)

The decrease in the amount of packaging material will reduce the expenses of the company and increase its profit. So, it will come under the financial dimension of the performance of the company.

Discontinued working with factories that did not meet standards for their working conditions (9)

The discontinued working with factories that did not meet standards for their working conditions will come under the social dimensions of the company’s performance.