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Starbucks invests in higher education, charitable initiatives

Starbucks will fund higher education for employees through Arizona State University's online degree program and donate to charities in the U.S. and Africa.

April 9, 2015

Starbucks Corporation and Arizona State University announced that the Starbucks College Achievement Plan will now offer 100-percent tuition coverage for every eligible U.S. Starbucks employee, according to a press release.

Starbucks developed this program in partnership with ASU in 2014 to create opportunities for its staff. Previously only juniors and seniors received full tuition benefits, but now all eligible part-time or full-time employees can receive the benefit to complete a bachelor’s degree through ASU’s online degree program. The company also moved its tuition reimbursement plan to take effect at the end of each semester.

"Everyone deserves a chance at the American dream," said Howard Schultz, chairman and CEO of Starbucks, in a statement. "The unfortunate reality is that too many Americans can no longer afford a college degree, particularly disadvantaged young people, and others are saddled with burdensome education debt. By giving our partners access to four years of full tuition coverage, we will provide them a critical tool for lifelong opportunity. We're stronger as a nation when everyone is afforded a pathway to success."

Although Starbucks is under investigation for billions of dollars of tax evasion in the EU, its intends to invest $250 million or more in the program.

The company's foundation also awarded Heifer International, a company helping impoverished coffee farmers, $750,000 in grant money to help fund the Mbozi Farmer Livelihood Improvement Project in Tanzania to help improve the livelihoods and quality of life of smallholder coffee-growing communities in the East African country, according to a company announcement.

The grant is part of Starbucks' ethical sourcing initiative, which has contributed $15 million in social projects to support farming communities around the world. The latest grant is earmarked for the East Africa Dairy Development Project in Tanzania and will assist at least 5,000 smallholder coffee farmers and their families, the company said.

Starbucks also recently raised $5 million for young people through Teavana Oprah Chai customer donations.

All proceeds were donated to the Oprah Winfrey Leadership Academy Foundation, which in turn provides further funding to Girls Inc., National CARES Mentoring Movement, Pathways to College and U.S. Dream Academy.

From April 9-11 customers will receive a free Teavana Oprah Cinnamon Chai Latte for every purchase of equal or lesser value from 2 p.m. to 5 p.m. Starbucks will pick up the ticket.