Abstract

This article analyzes the company's ultimate decision to sell Fair Trade coffee and subsequently work with other NGOs to ensure that small farmers receive a living wage, in an effort to live up to the standards Starbucks set for itself in the area of social responsibility. This article provides a brief overview of the changing environment for corporations and NGOs. It discusses the battle between Global Exchange and Starbucks over Fair Trade, including factors that led to the confrontation between Global Exchange and Starbucks, Starbucks' alternatives in the face of Global Exchange's threat, Starbucks' decision, and ensuing events. This artcle also presents collaboration as a growing and important alternative to confrontation in business-NGO relations and offers seven lessons managers can take away from Starbucks' experience.