Starbucks’ chief executive treads where other corporation leaders fear to go. A couple of years ago, Howard Schultz voiced his frustration with the way politicians were acting by challenging other corporations to withhold their political contributions until there was more collaboration and compromise and less divisiveness and inaction in political arenas. In full-page ads in national publications, Schultz wrote that withholding contributions was the position Starbucks was taking.
The campaign received some media attention, and it was admirable. But it appeared short-lived and, apparently, had little effect.
In March of this year, Schultz and Starbucks instituted what was called a “Race Together” campaign to elevate the topic of race in public dialogue in response to racial tensions and inequalities that continue to plague this country. It was ended after a few weeks, earlier than planned, after some criticism from consumers and the business community that it was financially driven and clumsy.
Corporations usually support good causes at local and national levels with cash and publicity, and certainly make political contributions for their own economic benefit; but it is unusual for a member of the business sector to play such an obvious role in addressing social – and political – issues.
Schultz is an unusual CEO. Starbucks is flourishing, with growth in same-store sales, the size of customer purchases and in its position in China. The company is particularly environmentally conscious, and it is employee-friendly. Most recently, it is partnering with its employees to aid them in acquiring college degrees. Imaginative stuff.
Last week, according to The Wall Street Journal, Schultz said that the company will continue its “Race Together” initiative, although in what form is not clear. Schultz also said, according to the Journal, that the company would be establishing Starbucks outlets in lower-income neighborhoods and in Ferguson, Missouri. That speaks well for the company.
While there is much to admire in the way Starbucks does business, in the communities of Southwest Colorado, there are several locally owned coffee shops that do a very good job of meeting the need for coffee during the day and for providing a place to gather for social and business conversations. Supporting and enjoying local is our bias.
We hope that Schultz continues his activist ways.
His company is a particularly visible brand, and the country’s issues and needs should be approached from multiple venues, driven by forums created by a variety of sources. Nonprofits, churches and government agencies historically play the role of convener, but there is plenty of room for the corporate world, too, if there is no tie to financial gain. Schultz is clearly willing to make a statement from his pulpit, and he may have the necessary sensibilities.