Starbucks Gets It
Starbucks Gets It
Howard Schultz, CEO of Starbucks was featured in the December issue of Fortune as the 2011 Businessperson of the Year. Schultz joined what was then called Starbucks Coffee, Tea and Spices in 1982 as its marketing leader when there were only four stores in the Seattle area. He developed a vision to model the stores after the many small espresso bars he saw across Italy, essentially selling not just coffee but the experience and environment. While skeptics laughed at him, he was easily able to sell coffee at a price greater than his competition, and create a new coffee (and tea) culture in the U.S.
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But to me, more significant than the success of his business are his business values. Starbucks provides health care and equity grants to all employees who work more than 20 hours each week, and rebuffs investors who try to persuade him to reduce such coverage. To him, it’s just doing the “right thing for it’s own sake”. He’s concerned about his entire supply chain, and through Starbucks Foundation he has given to people in third world countries to better their standard of living. He believes “there needs to be a balance between commerce and social responsibility…The companies that are authentic about it will wind up as the companies that make more money.” (more…)