Starbucks Tragedy: A Case Study
Introduction
Being a famous company the world over, Starbucks has its share of triumphs and tragedies that help establish its reputation in the realm of business. One such notable tragedy occurred in the night of July 1997, when three employees of said coffee chain were shot dead after closing hours after a failed robbery attempt (Janofsky, 1997).
Howard Schulz, CEO of the Starbucks Corporation, did the unthinkable, yet remarkable deed: he flew to Washington, D.C., the state where the shooting occurred, and commiserated with the bereaved friends of family members of the victims. Through this, he demonstrated a great leadership quality—compassion for his constituents. Other leaders would instinctively veer away from such a messy situation in order to avoid potential entanglements that might endanger their name, but Schultz chose to sympathize and with that his and his company’s reputation increased favorably within the general public.
One of the greatest leadership qualities is knowing how to turn a bad situation into one that might benefit the company in one form or another. In order to do so, one must practice compassion and care for his or her subordinates in order to have a full and detailed analysis of the situation at hand. In addition, compassion can benefit the welfare not only of the company, but also the leader and thus his or her subordinates in general.
Compassion in Managerial Roles
Compassion in Companies
A company can be considered compassionate if it shows empathy and care to its employees. It means that they are involved in the daily lives of their employees, and they look out for their general welfare. This can be shown when they offer benefits and other advantages to their employees, and taking full responsibility for whatever mishap the company incurred instead of blaming it on the employees involved.
Compassionate managerial roles are becoming the trend today. Until recently, it was thought that putting pressure on employees will motivate them to work harder, thereby increasing productivity within the company. However, it was found that this tactic backfires in the long run, as it strains the relationship between the manager and its subordinates and it increases stress levels which is not healthy overall. Basically, compassion improves the workplace ethic, which improves the overall mood not only within the workplace, but also to the customers as employees are more likely to have positive interactions with the customers. It was also found out that when people experience an act of compassion being done, they experience an act of elevation and are more likely to act with compassion themselves. Managers who practice compassion towards their constituents are more likely to have loyal and committed subordinates, which will prove beneficial in the long run (Seppala, 2013).
Benefits of Compassion to Audiences
Now that the benefits of compassion in the workplace are discussed, it is time to apply its benefits to everyone involved in the Starbucks instead. Schultz recounted that his first instinct was to console the people who have suffered in the shooting because he is, first and foremost, a human being who can empathize with other human emotions. He also added that managers can be great while showing compassion, a statement which is contrary to the popular belief that managers should hide their caring so that they can be seen as more competent. Organizations in companies are, after all, made up of and geared towards people (Behar, 2008).
A benefit of Schultz’s act towards the internal audience, i.e. the employees of the company, is that it presents an image to them that the company that they are working for really cares for their welfare and it will motivate them to do harder and better. Aside from increasing the productivity, it also increases the morale of the employees, thereby benefitting the company in the long run. As mentioned earlier, if a leader shows compassion towards the people under it, then it will lead to loyalty and productivity, among others. The act also has a benefit on external audiences as it builds the company’s reputation is being humane and considerate on the situations of the general public, resulting in the company being seen in a more positive light and increasing the costumers. If Schultz had done what many other CEOs would have done like letting the PR team handle its mess, his company would be seen as a professional when it comes to issues but rather distant, and it may shy potential customers away. All in all, the act can be considered not only a humane but also a strategic one because it brings many benefits to the Starbucks Company.
Compassion and Leadership Roles
Compassion makes a good leader because it allows one to connect emotionally with the people they are leading, thereby fostering an environment wherein trust is encouraged. A leader without compassion can do things in a professional manner, but is overall feared. On the other hand, a compassionate leader incites warmth among his or her members.
References
Behar, H. (1 Apr, 2008). Java and Sympathy – a former Starbucks president tells how to succeed. In Character: A Journal of Everyday Virtues. Retrieved from http://incharacter.org/archives/compassion/java-and-sympathy-a-former-starbucks-president-tells-how-to-succeed-in-business-without-putting-peop/
Janofsky, M. (8 July, 1997). Three Workers Found Killed in Coffee Shop in Georgetown. The New York Times. Retrieved from http://www.nytimes.com/1997/07/08/us/three-workers-found-killed-in-coffee-shop-in-georgetown.html
Seppala, E. (15 April, 2013). Why Compassion in Business Makes Sense. Greater Good: The Science of a Meaningful Life. Retrieved from http://greatergood.berkeley.edu/article/item/why_compassion_in_business_makes_sense
