The success of any organization is dependent on the type of leadership. Many organizations which have realized their organizational goals are driven by decisive leaders with various qualities of leadership. Leadership and ethics remain crucial aspects of an organization because it determines the type of strategies and decisions made by a given company or organization. With different challenges in the world of business, firms need strong leaders who can make ethical decisions to propel progress of an organization. Starbucks Inc. established in 1971 is considered one of the leading coffee makers in the world. Besides, the company is recognized as one of the most successful organizations in the world. It is also one of the most preferred employers due to its employee relations programs. These successes are associated with good leadership and ethical decisions that the company has managed to apply and implement in running its affairs.
The Philosophy and Skills of leadership
As indicated earlier the style of leadership philosophy and skills demonstrated by Starbucks is the main reason behind its success. There are several sets of skills and principles of leadership that can be observed in the organization. Firstly, Starbucks has a strong sense of ownership. The firm fosters ownership sense which is relevant to all the workers' ranks from the lowest to the top position. This encourages staff to dedicate their responsibility and work so that they may have a share of a company’s success. Besides, Starbucks has been able to achieve its success through building greatness by empowering its employees to be kings. Starbucks principle is that to satisfy other stakeholders; the process must begin with employee satisfaction. Indeed, when the employees are not satisfied or happy, there is the likelihood that the same may be replicated among the customers due to poor services or attitude from the workers. Some of the skills used by the company include giving out adjustable working hours, a user-friendly work environment, and attractive compensation strategies (Behar, 2007). Hence, the firm is expected to lead by example to enhance its greatness.
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Listening is one of the leadership skills that is employed by the management of Starbucks Inc. The firm has created a culture where it listens to criticisms from employees and other stakeholders including the customers without prejudice. It has managed to instill the value into the minds of employees who fairly listen to the criticisms of the customers. They are often trying to set up dialogues to ensure that they may acquire what they seek to improve. Besides, it is expected that employees are given a listening hear to their ideas and criticisms because they all contribute to the improvement of the institution. Starbucks also believes in the fact that everything is important. Again, it is evident that the spirit of teamwork is part of the company’s leadership philosophy. It has developed various strategies and systems to promote a good relationship between workers of different ranks. For instance, the company uses the title “Partner” among its staff regardless of their ranking within the organization (Michelli, 2006). In this view, Starbucks establishes itself as a leading firm through the cooperation it initiates using its skills.
The company’s leadership is based on building trust and leading with courage. The leadership team of Starbucks international and the directors have always concentrated on promoting collaboration and respect among its partners. It is believed in Starbucks that courage drives innovation. With such a mindset and purpose, there is no doubt that the company has grown sustainably. The trust of the organization is drawn from its spirited efforts to enhance freedoms of employees and give them equal treatment. For instance, to bridge the gap between staff and the management, Starbuck also co-works with the basic level workers in the front line. As such, Starbucks has managed to maintain a proper management system and establish a closer atmosphere (Behar, 2007). Indeed, through these leadership skills, not only the employees find their time in the company enjoyable, but also the customers.
Tone, Mission, and Vision Evaluation
The mission statement of Starbucks is that ‘to inspire and nurture the human spirit: one person, one cup, and one neighborhood. The mission statement is quite precise but reflects the concentration the company puts in customers. There are two elements which are critical in the mission including the human spirit and oneness. These elements reflect the leadership values and principles held by the company. It is dependent on the human spirit to enhance oneness through a single cup of coffee. Hence, it shows that the organization is concentrated in enhancing the satisfaction on not only the customers but also the employees to attain the needed human spirit. Indeed, businesses are established for human society and, the company believes in promoting it (Kantabutra & Avery, 2010). In this view, the firm is focused on ethical sourcing, sustaining ethics and compliance in every part of the business and investing in empowerment and environment.
The vision statement of Starbucks states that, “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Starbucks) The vision statement has three main components which include becoming the marker of the best quality coffee, maintaining the company’s principles, and growth while maintaining the standards of the company. Based on these components one can deduce that Starbucks like any other organization aspires to grow over time and becomes the leading coffee maker in the world. Nonetheless, it believes in maintaining and staying true to its organizational culture in the process of growth. Hence, the company has established standards in product quality, service, and ethics which it expects to maintain as captured in the vision statement (Gibbons, 2011). Truly, the firm as so far provided the best quality coffee and developed a customer service culture. It offers its clients a place between workplace and home where they can relax and enjoy their coffee.
Values play a critical role in Starbucks. Hence, it has developed various core values which it expects to guide relationships and interactions within the organization. Firstly, it seeks to create a culture of belonging and warmth, whereby everyone is always welcome. Secondly, it believes in acting with courage to challenges the status quo and determines the new ways to grow each other and the firm. Thirdly, it also concentrates on dignity and respect, connecting with transparency and being present. Fourthly, the company seeks to deliver its best in everything it does and holds itself accountable for the results. Fifthly, the firm is performance drive with the consideration of humanity. Some things are evident in these core values of Starbucks (Starbucks). The partners, especially the suppliers and the customers are a critical part of the organization. Besides, culture specifically is a significant element of the business. In this view, Starbucks has established a culture of collaboration and empowerment where everyone feels welcomed and included. On the other hand, dignity, respect, and transparency are all associated with accountability and ethics to show that Starbucks is focused on promoting accountability and ethics in its practices. Besides, it is clear that the business emphasizes humanity as a key element of management.
Ethical Concepts Application
Business as a Corporate Citizen
Starbucks is a legal corporation in the United States considered as a person with similar liabilities and rights and individuals who are citizens. The company, therefore, has the responsibility to develop moral standards which may be regarded as reasonable. Such standards ought to be justifiable and logical. Besides, they must be accepted and applied in different firms of decisions and choices that the organization must make in different circumstances on a daily basis (Ferrell & Fraedrich, 2015). Starbucks insists on equal treatment of its partners and satisfaction of the customers. In this case, the standards set by Starbucks are considered logical and justifiable.
Concept of Justice
Justice and judgments are based on the principles that establish fair forms of distribution burdens and benefits in an institution and society. It is the moral obligation of any business to equally share the benefits and burdens accrued by the business. In this case, Starbucks is expected to equally share its benefits and losses with its partners in an equitable manner. For instance, the profits earned by the company must be shared with all partners including the employees and society. Based, on the analysis of the vision and leadership of the company it is evident that the Starbucks believes in equity and equality (Baggini & Fosl, 2015). Hence, it already practices the ethics concept of justice
The Concept of Rights
The concept of rights entails determining the explicit rights of individuals in an organization or society. A right often imposes requirements or prohibitions on others not to directly or indirectly interfere, and it is such prohibitions and requirements that enhance the abilities of individuals to choose freely which activities or interests to pursue. Starbucks, therefore, is expected to enforce different rights of its partners (Hartman et al., 2011). However, based on the vision and leadership of the company, one can demonstrate that the company pays attention to the concept of right. The workers are provided with freedom of expression and are treated fairly within the organization. Besides, the rights of the customers and other individuals in the society are strictly upheld by Starbucks.
The Concept of Good Business Ethics
Good business ethics entails adhering to a standard and code of conduct which places the expectations and rights of people above the profit motives of the company. Despite profit generation being the main aim of a business, it is critical to enhancing the human rights of all the stakeholders. Hence, Starbucks is expected to practice good business ethics and moral business ethics (Crane & Matten, 2016). Good business entails giving customers the expected quality of coffee without any adulterations. It also necessitates enhancing appropriate compensation of workers and creating a safe and healthy working environment for Starbucks employees. Furthermore, it is about giving the investors and other stakeholders their rightful shares without doctoring the books of accounts to increase or decrease the amount of profit an organization earns. In this case, Starbucks treats its customers well through the services and finest coffee it offers. Besides, the company compensates its workers very well and gives them a safe and healthy working environment guaranteeing them individual growth and development.
Ethics as a Guide to Overcome Challenges
While Starbucks has been seen as a leading and one of the most prosperous firms in the world, it also experiences a fair share of challenges. The company has faced numerous challenges in the past, but it has managed to overcome them by using ethics as a guiding principle. Firstly, the constant increase in wages has always placed the firm in an ethical dilemma. As the federal minimum wage increases, the compensations of Starbucks is also expected to increase to ensure that it retains its competitive labor. The greatest challenge with such an increase is the rise in operations costs which affect the marginal profits of the company. Nonetheless, since the company has established its standards and swore to adhere by them in the discharge of the responsibilities, the company is always obligated to increase the wages of its workers when the federal minimum wage rises. Such an act is ethical since the wages and salaries of Starbucks are often higher compared to the federal minimum wage (Starbucks). Hence, the company may have a choice to increase with the increase in federal requirement or maintain its wages at the same level as long as it meets the requirement.
Secondly, the constant increase in input, particularly the coffee beans. The prices of coffee beans have significantly risen in the recent past. Since the beans are the primary raw material for the company, the increase in prices and shortages may affect the margins of the business. Ethics becomes a crucial element in making a decision at such a point where the revenue margins of the business are adversely affected due to the rise in the cost of input which increases the operations costs. In this case, Starbuck had to make an ethical decision to ask all its stakeholders to continue producing the finest and high-quality coffee regardless of the prices of the input. The decision would help ensure that the company fulfills its moral duty of delivering products as promised and to the expectations of the customers. Thus, despite the rise in input prices, Starbucks has a moral duty to purchase the highest quality beans and sell products of the highest quality.
Thirdly, the increase in prices of Starbucks products has been a challenge. With the increase in the cost of production due to the rise in prices of inputs and labor, Starbucks is constantly faced with the need to transfer the cost to the customers and maintain its profit margins. Determining the correct strategy for the firm to regulate and maintain its revenue is an ethical question as it is based on the concept of justice. It is the question of how the firm distributes its benefits and burdens among the stakeholders which include customers. Is it ethically correct for the customers to bear all the increased costs? Indeed, when the company uses the utilitarian theory, it is an ethical decision for Starbucks to increase the prices of its products (Szmigin et al., 2009). This is because it helps continue producing high quality and retain the workers. Besides, the company often targets the high and prime areas which may not feel the effect of the increased prices as long as they are guaranteed high-quality products and services.
Personal Leadership Qualities
Leadership is an aspect of being able to lead others and drive success through collaboration and teamwork. In this view, I consider myself a leader with various qualities that can enhance success through fostering trust and loyalty among my team members. I believe I am decisive. I have the ability to make decisions when in the position of leadership since I am willing to take risks and hold myself accountable if the action taken happens to be wrong. Besides, I consider myself a team player. I acknowledge the need to work with different people in the organization to promote prosperity. My style of leadership entails engaging everyone in the decision-making process. Furthermore, I consider myself charismatic. In this case, I am in a position to engage individuals and convince them to believe in my vision since I demonstrate sincere care for others. I am approachable and friendly. As a leader, I have faith in the ability to develop other people because I need them to act with autonomy. Such a trust comes with the belief and trust that members are up to any challenge they may face.
Leadership is also about promoting good ideal which may be emulated by others and can also influence the realization of a common vision. As such, I believe I have sincere enthusiasm for the things I engage in. I believe in integrity, and I hold mine up high. This is demonstrated in various ways including in giving credit for accomplishments and recognizing mistakes. I also believe in loyalty as a key personal attribute to become a successful leader. Team members can only be loyal to a leader if the leader accords them the same level of loyalty. I am visionary in the sense that I engage all parties in a given scenario to develop long-term goals of a business or anything that I am tasked to work on. I often believe that with decisiveness and precision one can develop something whose results can be enjoyed for a lifetime. Hence, these qualities of leadership are my guiding principles as a person.
Conclusion
In conclusion, Starbucks Inc. exhibits a good quality of leadership which has propelled its success in the world. Since its inception, the company has always implemented different strategies which depict strong leadership skills and philosophy. It has given its employees the name ‘partners’ to bridge the gap between the management and the staff. The firm also shows its leadership in crafting of the mission, vision, and values which reflects ethics and leadership. Starbucks’s success as the leading coffee maker in the world is a result of decisive, inclusive, and ethical leadership. The company focuses on satisfying its employees to ensure that the same can be transferred to the customers. Indeed, one of the pride of Starbucks is the finest coffee and quality service. Besides, ethics have been a critical guide in making key decisions in the firm. Hence, leadership and ethics are critical components of organizational success.
References
Baggini, J., & Fosl, P. S. (2007). The ethics toolkit: A compendium of ethical concepts and methods.
Behar, H. (2007). It's not about the coffee: Leadership principles from a life at Starbucks . Penguin.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization . Oxford University Press.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases . Nelson Education.
Gibbons, P. (2011). Notes from the field: Transforming the Starbucks experience. Journal of Enterprise Transformation , 1 (1), 7-13.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2011). Business ethics: Decision making for personal integrity and social responsibility . McGraw-Hill/Irwin.
Kantabutra, S., & Avery, G. C. (2010). The power of vision: statements that resonate. Journal of Business Strategy , 31 (1), 37-45.
Michelli, J. A. (2006). Starbucks experience . Tata McGraw-Hill Education.
Szmigin, I., Carrigan, M., & McEachern, M. G. (2009). The conscious consumer: taking a flexible approach to ethical behaviour. International Journal of Consumer Studies , 33 (2), 224-231.
Starbucks. Retrieved from https://www.starbucks.com/about-us/company-information/mission-statement
