Topic is: Starbucks has found itself in the middle of another turbulent tweetsto
ID: 411873 • Letter: T
Question
Topic is:
Starbucks has found itself in the middle of another turbulent tweetstorm.
The coffee giant on Sunday made major news when outgoing CEO Howard Schultz pledged that the company would look to hire 10,000 refugees in its stores worldwide, including some who have helped the U.S. military, in response to President Donald Trump’s executive order to bar entry of refugees from several predominantly Muslim countries. The statement from Schultz—who also sought to reassure his employees after Trump’s immigration ban—was one of many public statements made by high-profile CEOs. The tech industry has been especially vocal and executives from other industries are just now starting to weigh in.
People gather at Terminal 4 during a protest against Donald Trump's travel ban at John F. Kennedy International Airport in Queens, New York, U.S., January 29, 2017. Tens of thousands of people rallied in U.S. cities and at airports on Sunday to voice outrage over President Trump's executive order restricting entry into the country for travelers from seven Muslim-majority nations.
But Starbucks (SBUX, +0.67%) found itself in a tweetstorm that could have been seen from a mile away. #BoycottStarbucks was the highest trending topic on Twitter (TWTR, +4.48%) on Monday morning. As usually with these divisive topics, a group of Twitter users are pledging to stop supporting Starbucks, while those supportive of the refugee hiring news say they will buy coffee and food from the restaurant chain to support the move.
Starbucks, it should be noted, is already in the process of hiring 10,000 veterans and active duty spouses—part of a pledge it made back in 2013 to achieve that goal by 2018. And in the statement Starbucks issued on Sunday, it said the following: “And we will start this effort here in the U.S. by making the initial focus of our hiring efforts on those individuals who have served with U.S. troops as interpreters and support personnel in the various countries where our military has asked for such support.”
The coffee company already found itself the target of a social media boycott last year, as a #TrumpCup protest surfaced for a few days after a viral video showing a white male Trump supporter yelling at a barista for unfair, anti-white discrimination fueled that campaign. #BoycottStarbucks has been a hashtag that has floated around on social media channels for some time now.
And while other consumer brands have found themselves in the midst of social media boycotts—including shoemaker New Balance and Big Food makers like PepsiCo (PEP, +0.38%) and Kellogg (K, -1.96%)—Starbucks seems to be a perennial target. That could be because Schultz has never demurred when it comes to talking about issues and topics that could be seen as divisive to some. Some cultural stances he has backed include support for marriage equality and a call for open discussions about race at Starbucks stores (the latter movement was quickly scrapped).
The boycotts aren’t exactly working—at least not yet. U.S. sales at Starbucks keeps rising even amid a tough competitive environment for restaurant chains.
Part 1: For Part 1, select a relevant and topical leadership issue from current news media that revolves around ethics and ethical decision making. Topics must be approved by your instructor. Once approved, research the situation and gather data in order to evaluate the dynamics of the situation. Write an evaluation (500-750 words) of the situation that addresses the following: The power bases used by the leader. The influence tactics used by the leader. The leadership style of the leader. The outcome (or potential outcome) of the situation. Conclude by justifying whether or not you think this leader supports the values of conscious capitalism. Is the leader's leadership style effective? Do you believe the leader acted ethically in the situation? Be sure to consider each tenet of conscious capitalism in your leader evaluation. Next, imagine yourself as a practitioner of servant leadership. You have been appointed into the leadership role in this same circumstance. Explain how the situation would be different. Address the four criteria listed above in your discussion and incorporate the principles of conscious capitalism by explaining how your personal values and style are influenced by each tenet.
Explanation / Answer
Problem : High turnover rate at Amazon
As per the reports the biggest problem being faced by Amazon is that it is not able to retain its employees for a longer period of time and is not able to hold them with them. This may be due to weak leadership policies being followed by the company. In order to hold back the employees it is important to lead them in an effective manner and direct them towards the goals without neglecting their individual interests. The CEO of Amazon is Mr Jeff Bezos and he aims at leading the company in the right direction following the right techniques.
At Amazon the concept of magnetic leadership is followed which aims at leading the employees by attracting them towards the leader. It is assumed that the employees here do not work for the company but they work for the welfare of the customers so as to serve them best. A magnetic leader is one towards which the employees will be attracted automatically and then will listen to him effectively. This type of leadership aims at transforming the leadership styles from push to pull, or form repel to attract. It means that the employees will be attracted automatically and there will be no need to lead them from time to time.
Another type of leadership style followed to retain the employees is to expect more from the employees and help them learn, grow and prosper. It aims at setting the goals or objectives along with the employees, doing this will help the employees feel at home and they will want to work with the company for a longer period of time. Amazon also works to improve on its salary incentives and promotion policy. Following a fair way to evaluate the employees and then deciding on their promotions, incentives accordingly will result into an increase in the moral of the employees and increase in the level of satisfaction at workplace.
Another techniques used by Jeff to lead the employees is by directing their attention towards the customers. The employees at Amazon work not for the company but for the customers, so doing this will increase the sense of belongingness and responsibility in the employees and they will work hard so as to serve the customers properly. And as a result they will not leave the company within a short span of time.
The leadership style of either using the charisma to attract the employees or by influencing them by directing them towards the welfare of the customers is effective in its own way. It is so because one cannot force anyone to stay with the company and loyalty towards the company, the only way to retain the customers is by leading them using different effective approaches as done by Jeff, as stated above.
The outcome of the situation is that more employees are now working with the company for longer period of time. According to Jeff, it is very important to maintain quality in company’s leadership. By doing so effective, skilful and quality employees are now attracted and retained with the company. And if I were appointed as a leader in the above circumstance then the situation would not be much different. Only a slight change would occur in the sense there would be very less turnover issues with the company, right from the very beginning. As I would have employed these styles of leadership right from the very beginning and by following ethical practices would think of the welfare of the employees as well. Every leader would work for the welfare of the employees, involve the employees in decision making as well as goal setting and directing them towards the welfare of the customers.