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.”

Which brings me to the question….

Should companies make money to do good, or do good to make money?

In other words, what should come first, profits or giving? Obviously you can’t give unless you have a profit resource from which to draw, but where’s the primary focus?

Companies generally strive to increase profits by discovering and tapping into new markets, developing and marketing new products, increasing market penetration and price. Profits may be funneled back into research and development or growth strategies. Employee compensation and benefits are set at a thin margin of what is necessary to remain competitive, retain employees, and to reward the most valuable ones. Suppliers are challenged to provide high quality and service at low prices; and shareholders pressure boards of directors to increase their return on investment. Somewhere along the way, companies may recognize a sense of social responsibility to give to worthy causes, but doing so is a result of their successes, because their overriding purpose is to increase profits.

Instead, what if companies existed to give?  What if their overriding purpose of making money was to give to worthy causes? Would this level of social responsibility form the basis for greater customer loyalty, employee pride, or supplier quality? Would they make more money because they’re giving more money away? 

Howard Schultz also said “…If your sole goal is to maximize profit, you’re on a collision course with time.” Witness some of the companies that have imploded in the past decade, ceasing to exist largely due to the decisions of a management team that became embroiled in unsavory tactics to accumulate more money and exert more control over others; failing to follow proper accounting rules, guidelines and procedures; exuding an arrogance that their continued existence was guaranteed. Some would consider this a “reap what you sow” result. 

So do customers like Starbucks because they enjoy the product, the purchase experience, and sense of community, or because of their business values?  I admittedly simply enjoy the environment and the product (especially chai tea with soy). I wasn’t aware of their level of corporate benevolence until I read the article.  But now as I reflect on my purchase experience, I can see how their values come through in the environment of their stores. Their baristas even seem to have a greater cachet than the normal fast food store servers.  

The Answer

So here’s my answer to the question….do both. Obviously companies cannot exist or give without making a profit, but given the choice of existing primarily to make a profit, versus being profitable to help others, the latter brings greater benefits to the company and its stakeholders. Companies who care about their employees, care about others too. Employees who feel good about their company’s giving, share a part in it as well. This drives greater commitment and trust, stronger relationships, and overall benefits society….which all contribute to increased revenues.  Again, you reap what you sow.

 “Give away your life, you’ll find life given back, but not merely given back—given back with bonus and blessing. Giving, not getting, is the way. Generosity begets generosity.” (Luke 6:38 The Message Bible) 

To read the Fortune article on Howard Schultz click here.

Copyright 2012 Priscilla Archangel

Forgetfulness and Fruitfulness

Think of a time when you had an experience that was so negative that you wanted to just forget about it.  Maybe it was a bad relationship, a challenging job, a chaotic family experience, or an insurmountable burden of debt.  It may have happened many years ago, or very recently.  In any event, the myriad of emotions that you went through during that period continues to stick with you. You may have been treated unfairly, abused, disrespected or bullied, because even adults are victims of bullying. You may have made a bad decision that you can’t undo, so it sticks with you and haunts you. Possibly you never shared your experience with anyone because it was too painful or embarrassing. 

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Unfortunately, now that experience lives on with you.  You can’t shake it. It seems like it occurred just yesterday. It defines how you act and think, your responses to situations, and your perspective of yourself.  You wish you could move on. You try to push it into the deep recesses of your mind, but at the seemingly strangest moments, it pops out again.

Everyone else around you seems to be carefree.  No one else seems to have such a horrible memory.  No one could imagine what you’ve been through.  You want to shake it, yet you can’t seem to figure out how to do that.  How can you forget?  How can you move forward like it never happened?

A Time For Forgetfulness

There was a man named Joseph who had a similar experience.  For no good reason, his jealous brothers threw him into an empty pit, and left him to die.  Then they changed their mind and sold him to some strangers, who sold him again to a powerful and wealthy man.  He lacked the freedom to get home to his father; and even if he could, feared his brothers’ wrath if he ever showed up again.  So he stayed where he was, working day and night to please his boss, hoping that one day he’d be freed from his situation.  He was successful in his work until one day he got in trouble with his boss’s wife.  He had seen her looking at him when he was in her vicinity, and he always hurried through his work to get out of her presence.  He knew better than to get involved with her. But one day, she caught him alone in the house and she went after him.  He ran in fear, but in his haste he literally ran out of his clothes, and left them there in her hands.  When he realized how she would then set him up, it was too late to do anything about it.  Her husband, his boss, came home, listened to her lie, and threw him in prison for trying to rape his wife.  

Just when he thought his life was bad enough, here he was in a dungeon. The smells were worse than he had ever experienced. The food was moldy and rotten, if you could keep the rats from it. Many of the prisoners seemed almost delirious from their time there.  How would he ever get out?  There was no one to advocate for him.  Once again, he had done nothing wrong, yet he was being unfairly attacked. But once again he found whatever work his hands could do, and helped the prison warden.  He became so successful that the warden entrusted him with everything in the prison.

One day two of the King’s senior assistants were thrown into prison. He couldn’t imagine what they must have done to deserve such treatment, but there they were.  Feeling sorry for them, he tried to be nice.  One morning, both of them woke up from startling dreams.  They remembered vividly everything that happened and shared it with Joseph.  At that moment, God gave Joseph the interpretation of the dreams…a good outcome for one and, sadly, a bad outcome for the other.  Each of the dreams came to pass just as Joseph predicted they would.  But would the one who was restored to his former job with the king remember him? 

Two years passed, and nothing, no change to his circumstance.  He cried out to God in frustration and confusion.  Why me? I haven’t done anything to deserve such treatment?  Then one day, the guards came and hastily dragged him out of the prison.  He didn’t know whether to be afraid or hopeful.  They cleaned him up, washing the prison stench from his body and hair; shaved him and put clean clothes on him.  Then they brought him before the king.  What happened? The king had a troubling dream the night before, and no one among all his wise men could provide an interpretation; until the king’s assistant remembered Joseph.  So here he was, asked to interpret another dream.  Would God also provide this interpretation?  

A Time For Fruitfulness

Once the king shared his dream, Joseph instantly knew what to say.  It was so clear. He quickly shared the meaning of the dream with the king; that the people in that country would experience a period of plenty followed by a famine; then he continued to give him some advice on what to do.  The king marveled at Joseph’s ability to interpret the dream and determined that Joseph’s wisdom would be effective in managing the entire situation.  Thus in a matter of hours, Joseph went from the dungeon to the throne room.  He went from one of the lowest positions to one of the highest positions. 

The king gave him a wife, who in the course of time gave him two sons.  Joseph named the first son Manasseh, which means “to forget”.  He named the second son Ephraim, which means “to be fruitful”.  These names represented Joseph’s life experience.  He wanted to forget all the unfair treatment, all those who lied and cheated on him, all the deplorable living conditions he’d endured.  He chose not to let those memories be a part of his future, and purposely left them in his past.  As a result he truly “forgot” about it.  Sure, he could still recall it, but he lived as if it had never existed. He lived in the present, because his present day was now fruitful.  His present time was now bountiful.  He had a beautiful home, a huge wardrobe, his choice of transportation, more than enough money to provide for his family, the finest delicacies to eat, and a position second only to the king. Joseph chose to forget the ugliness in his past and instead concentrate on the beauty in his present. 

What About You?

So what decision will you make?  Will you continue to concentrate on all the negative experiences of your past, or will you instead leave them in the past, and focus on your present and your future? Several years later when Joseph was reunited with his brothers he treated them kindly and didn’t hold a grudge against them. He recognized the hand of God had prepared him for the position he was now in. And throughout all of this, Joseph never cursed God.  He didn’t understand why things happened this way, but he continued to trust in God, and to be diligent and trustworthy in his work.  In the midst of his hard times those around him recognized that the hand of God was continually upon him, giving him favor even in the worst of circumstances.

I challenge you to purposefully choose to forget your past. Forgive yourself and anyone else who may have harmed you, and walk forward, letting the chains that bound you to that past fall away.  Choose to focus on a positive future, defined by who you want to be, not by who you were. Step up into your future of fruitfulness, and embrace all the good things that God has promised you and desires to bless you with.  

Copyright 2012 Priscilla Archangel