|[April 11, 2017]
Starbucks Redefines Partner (Employee) Benefits with a Critical Illness Insurance Plan for Aging Parents in China
Starbucks Coffee Company (NASDAQ: SBUX) today established a new
precedent for the role and responsibility of a public company leading
through the lens of humanity in China - its largest and fastest-growing
second market. Beginning June 1, 2017, Starbucks will offer a critical
illness insurance plan for the parentsi of its eligibleii
full-time partners (employees) in company-operated stores across
Mainland China. This industry-leading investment will benefit over
10,000 parents of its Chinese partners.
The 'Starbucks China Parent Care Program' was announced by Howard
Schultz, executive chairman, Starbucks Coffee Company, and Belinda Wong,
ceo, Starbucks China, at a Starbucks Partner Family Forum in Beijing,
the latest in a series of family forums the company has held with its
Chinese partners and their families since 2012.
"Our core purpose and reason for being has always been driven by a set
of beliefs steeped in humanity and I'm extremely proud to be able to
support our Chinese partners and their parents through the Parent Care
Program," said Schultz. "Supporting critical illnesses for aging parents
exemplifies what we believe is our responsibility as a global public
company and honors the family values deeply-rooted in the Chinese
Addressing a key concern of partners
In 2010, the company introduced Starbucks Caring Unites Partners
(C.U.P.) Fund in China which provides financial assistance to partners
and their families in times of need. An analysis of the C.U.P. Fund
requests over the past seven years, as well as conversations with
partners revealed that more than 70 percent of Chinese partners are
concerned about the health of their parents as they age. Those who are
single, making up 80 percent of retail partners in China, are
specifically concerned about their financial ability to provide for
their parents' long-term care should a critical illness occur.
"Culturally, parents play an important role in the lives and career
choices of our Chinese partners and they are a natural extension of our
Starbucks family in China. Through this new investment, we are stepping
up on our responsibility to help our partners take care of their aging
parents by alleviating the financial costs that may arise during a
family emergency," added Wong. "Starbucks success in China is directly
attributed to the passion and dedication of our partners as well as the
unwavering support from their family."
Redefining health care benefits i China
The 'Starbucks China Parent Care Program' is a unique, innovative plan
created in collaboration with one of the top insurers in the country to
complement the current China Social Medical Insurance Program. The plan
leverages Starbucks considerable partner base in China to create a
tailored program to alleviate health care and treatment costs associated
with a critical illness for its partners.
"The active participation by the private sector is critical to China's
efforts to further enhance the social security system to support our
aging population. Starbucks has responded positively to the Government's
call to elevate the commercial health insurance industry, our social
security network and to promote a 'Healthy China.' It is also a firm
demonstration of Starbucks social responsibility efforts to give back to
the community in a meaningful manner," said Mr. Jiang Chongguang, Deputy
Secretary-General of the Insurance Society of China.
Li Ling, 29, a Starbucks store manager and Coffee Master in Deyang,
Sichuan Province, and her family experienced the financial burden when
both her mother and grandmother fell ill at the same time.
"I've always been concerned by the financial responsibility of caring
for my family and now I have my Starbucks extended family here to
support me," said Ling. "It's a great relief to me, and all of my
Chinese partners, that Starbucks has taken a leadership position to
support the health and care of our aging parents. I'm incredibly
grateful to be with a company that understands our hopes, dreams and
aspirations for the future."
With more than 2,600 stores across 127 cities, and nearly 40,000
partners across the country, the 'Starbucks China Parent Care Program'
builds on Starbucks health insurance coverage available to both full-
and part-time partners, their spouses and children across the country
and its unparalleled, locally-relevant partner benefits, including: the
Starbucks China University, Starbucks China Talent Exchange Program, a
housing allowance subsidy for full-time baristas and shift supervisors,
and a Career Coffee Break (sabbatical).
Starbucks has a long history of providing industry-leading benefits.
Since 1988, Starbucks has offered comprehensive benefits, including
affordable and comprehensive health care to eligible part-time and
full-time partners in the U.S. To address the growing cost of higher
education in the United States, Starbucks created the Starbucks College
Achievement Plan in 2014 for eligible U.S. partners to earn bachelor's
degrees through Arizona State University with full tuition
reimbursement. Announced in 2015, the innovative Home Sweet Loan
programme in the U.K. provides an interest-free loan to help partners
pay rental deposits when moving into a new home and, last year,
Starbucks Korea introduced its College Achievement Plan to provide
tuition support for partners who want to finish their four-year college
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with stores
around the globe, the company is the premier roaster and retailer of
specialty coffee in the world. Through our unwavering commitment to
excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in the
experience please visit us in our stores, online at Starbucks.com
and through the Starbucks
i Parents of Starbucks partners must be below the age of 75
to qualify for the insurance program. Other conditions may apply based
on pre-existing health requirements stipulated by the insurance coverage
provider. It will cover the medical treatment of 30 common critical
illnesses among the elderly in China.
ii Fully sponsored critical illness insurance program will be
extended to partners who have served at least two years in company's
company-owned markets. The parents must also currently be residing
within Mainland China.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170411005541/en/
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