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How Starbucks gains reputation by talking about races

How Starbucks gains reputation by talking about races by HaojunYu

Business ethics is widely applied to different fields of business running, from internal to external, from management to sales.

One of the most influential business ethics case happened in recent years is Starbucks talking about the race.

In December 2014, Starbucks CEO Howard Schultz made a big decision: to call a meeting of the company’s partners, passing around the microphone and talking about the state of American race relations. Meanwhile, the #racetogether campaign took place in every Starbucks across the United States, which unsurprisingly became an explosion.

starbucks-race-together-hed-2015

http://www.adweek.com/adfreak/internet-united-despising-starbucks-race-together-cup-campaign-163540

To put such a controversial topic on the table is difficult to any large corporation, even to Starbucks who enjoys a reputation in high standard business ethics. Though numbers of customers felt offended to the campaign, Starbucks gained appreciation and respect from the majority.

Race, as an everlasting sensitive topic, has been a concern to many large companies since our society is becoming more and more multicultural. Instead of setting a “multicultural day” or just silently avoiding it, Starbucks’ campaign definitely works better and helps to build its brand. By openly discussing race, Starbucks has exemplified in the marketplace with its true concern with social issues, which helps differentiate it in the minds of customers, existing employees (with 40% from racial minorities), and prospective employees as well, with no doubt. The campaign increased people’s loyalty to the brand, especially to whom regard race important, both for the employees and for the customers. Imagine you were black and walked into a Starbucks store, receiving a #racetogether cup from your barista, how would you feel like? As for the employees, according to study, diverse teams are likely to be more creative, more resilient and more productive, which are significant elements for a company.

Howard Shultz’s action is a groundbreaking leap in both business ethics and leadership, which makes good business sense by caring social concerns. It provides new opportunities for the company and builds positive business brand, and last but a not the least, makes a difference to the world.

 

More info below

http://www.canadianbusiness.com/innovation/starbucks-race-together-howard-schultz/

http://fortune.com/2015/03/16/starbucks-baristas-race-talk/

 

Word Count: 341

Story written by HaojunYu

 

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