Fortune magazine has listed Starbucks as No. 23 among 51 companies making “a sizable impact on major global social or environmental problems as part of its competitive strategy.”
The list is meant to “shine a spotlight on companies that have made significant progress in addressing major social problems as a part of their core business strategy. It is based on our belief that capitalism should be not just tolerated but celebrated for its power to do good. At a time when governments are flailing, its powers are needed more than ever,” according to Fortune.
Fortune explained that Starbucks’ enormous reach, which includes 21,000 stores in 67 countries, hasn’t stopped the coffee giant from being intimately connected to its supply chain. Of the hundreds of millions of pounds of coffee Starbucks will buy this year, 99% will be verified as ethically sourced.
To assemble its list, editors of Fortune and FSG, a nonprofit social-impact consulting firm, reached out to dozens of business, academic and nonprofit experts around the world, asking for their recommendations.
Fortune and a joint team from FSG and the Shared Value Initiative then vetted more than 200 nominees.
In their evaluation, Fortune and FSG considered four criteria: the degree of business innovation involved, the measurable impact at scale on an important social challenge, the contribution of the shared-value activities to the company’s profitability and competitive advantage, and the significance of the shared value effort to the overall business.
A team of journalists from Fortune further vetted each of the nominees and reported on their impact. The final list of 51 was selected and ranked by the editors of Fortune based on the magazine’s own reporting and by the analysis provided.