Which of the following is a guideline used by the Starbucks Coffee Trading Company (SCTC) for purchasing coffee?

Pricing transparency to promote reliability and stability is a key guideline used by the Starbucks Coffee Trading Company (SCTC) for purchasing coffee. This approach helps foster strong relationships with coffee producers and ensures that the transactions are equitable for both Starbucks and the farmers. By maintaining clear and open pricing practices, SCTC can build trust with growers, which is crucial for sourcing high-quality coffee sustainably.

Transparency in pricing also enables Starbucks to offer fair wages to farmers, encouraging them to invest in their crops and communities. This practice aligns with Starbucks’ commitment to ethical sourcing and supports long-term partnerships with coffee growers, ultimately leading to a more stable supply chain.

In contrast, the other options do not align with SCTC's ethical and sustainable purchasing practices. For example, using variable contracts that change yearly might lead to unpredictability and insecurity for farmers. Pursuing low-quality suppliers for cost efficiency compromises the quality of the coffee and doesn’t support sustainable practices. Lastly, while buying only from local farmers may sound beneficial, it would limit the variety and quality of the coffee available to Starbucks, which sources beans from various regions to ensure diverse offerings.