Supervising a Diverse Workplace One Cup At A Time

Ana Barrera Principles of Management Professor Dr. Cassandra TherameneMarch 24th 2016

Today’s Presentation will focus on:

Chapter 12: Supervising a Diverse Workplace as applied to Starbucks Coffee

Diversity Case Study

Introduction to Diversity – Case Study 04

Calvert Investment ranks companies commitment to diversity based on 10 criteria:

Equal Employment Opportunity (EEO) Policy Internal Diversity Initiatives External Diversity Initiatives Scope of Diversity Initiatives Family Friendly Benefits EEO-1 Disclosure Highest-Paid Executives Board Representation Director Selection Criteria Overall Corporate Commitment

Calvert Investments provides mutual funds that invest in socially and environmentally responsible companies.

Introduction to Diversity – Case Study 05

Best company in the S&P 100 with a score of 95

Two of the company’s highest paid position are occupied by minorities

Company publicly supports the ENDA (Employee Non- Discrimination Act)

Ranks has most transparent company in the world with its EEO-1 data

95

SCORE

Introduction to Diversity – Case Study 06

Worst company in the S&P 100 with a score of 5

Company has explicitly stated it does not consider diversity when directors and board members are selected

No C-level employees at Warren Buffet’s enterprise are woman or minorities SCORE

5

Company History

Building Starbucks One Cup At A Time 08

-

- Starbucks was founded in 1971

- It was the first roaster and retailer of whole bean and ground coffee, tea and spices with a single store

- Today, Starbucks connects millions of customers with exceptional products

- Currently has over 22,000 stores in 67 countries

- Starbucks mission is “to inspire and nature the human spirit, one person, one cup and one neighborhood at a time”

Section 1: Managing Diversity is the

Bottom-Line Concern

Starbucks Philosophy on Diversity 10

- They seek to inspire and nurture the human spirit - understanding that each person brings a distinct life experience to the table.

- Their partners are diverse not only in gender, race, ethnicity, sexual orientation, disability, religion and age, but also in cultural backgrounds, life experiences, thoughts and ideas.

- Embracing diversity only enhances their work culture, it also drives their business to success.

- It is the inclusion of these diverse experiences and perspectives that creates a culture of empowerment, one that fosters innovation, economic growth and new ideas.

How does Starbucks Manage Diversity 11

Aside from extraordinary coffee, Starbucks had a made a business out of human connections, community involvement and the celebration of

cultures Starbucks manages diversity in the form of an equation:

Diversity Inclusion Equity

Human connection

Engagement

Ease of Use

Barrier Free

Fairness

Justice

Accessibility

Protected Group Employees and Supervising Diversity 12

Diverse Partner Networks: Starbucks

Access Alliance Partner Network

Starbucks Armed Forces

Partner Network

Starbucks Black Partner

Network

Starbucks China & Asia

Pacific Partner Network

Starbucks Hora Del Café Partner Network

Starbucks Pride Alliance

Partner Network

Starbucks Women’s

Development Partner Network

Starbucks India Partner

Network

Classifications of Protected- Group Employees 13

Workers include: - African Americans - Asians - Hispanics - Native Americans- Indians

40 % 18

%

What Makes Starbucks A Diverse Company & Stand Out 14

- Partners (Employees) – Focusing on partner development by educating and engaging their partners

- Customers – Recognizing and responding to their unique preference and needs by connecting with customers in a culturally relevant way

- Communities – Support and invest in local neighborhoods and global communities

- Suppliers – Trusted and welcoming company for suppliers through supplier diversity program

Standing Out!

With a presence in over 50 countries, Passion for great coffee,

genuine service and community connection transcends language

and culture.

Watch Video

Protected Group Employees and Supervising Diversity 15

- 100,000 young African-American and Hispanic employees within the next 3 years

- 100,000 low-income, 16 to 24 year olds as apprentices, interns and part/full-time employees by 2018

- 10,000 veterans and military spouses by the end of 2018

- Starbucks scored a 100 out of 100 on a new Disability Equality Index

Starbucks incorporate different groups by:

Section 2: Supervising Racial and

Ethnic Minorities

Supervising Racial and Ethnic Minorities 17

Starbucks Best Practices to Manage Diversity:

- Managers must understand discrimination and its consequences

- Managers must recognize their cultural biases and prejudices

- Strive that diversity is not about differences among groups, but rather about differences in individuals

- Each individual is unique and does not represent or speak for a particular group

Section 3: Supervising Women

Supervising Women 19

Women at Starbucks: - Approximately 65% of Starbucks partners are

women - Of their 50+ Top leader 26% are women - Of Vice President 48% are women

Starbucks Aspirations: - By 2020, increase female (& minority)

representation at the Top Leadership level by 50-60 SVP’s and higher

Supervising Women 20

Balancing Work-Life Issues:

- Starbucks provides Employee Assistance Program - Child Care - Elder Care - School information - Counseling for stress-related issues &

emotional difficulties

Supervising Women 21

Sexual Harassment and Sexual-Sterotyping Issue:

Starbucks Standard of Business Conduct states that all partners are entitled to work in an

environment that is free of harassment, bullying and discrimination

Partners are directed to make contact with their - Manager - Partner Resources

Representative - Business Ethics and Compliance

Supervising Women 22

Training and Development Opportunities: - Starbucks partners with Catalyst who is a

leading non-profit and provides membership to women.

- Starbucks Partners – Women’s Development Network

Pregnancy and Family Care: - Starbucks provide maternity leave for 8 weeks

and an additional 4 weeks of “bonding time” - FMLA - Helpline available

Section 4: Supervising Employees with

Disabilities

Supervising Employees with Disabilities 24

Starbucks Commitment to Access and Disability Inclusion

- Partner Training and Understanding- Customer Accessibility and Resources - Disability Community Engagement and

Recognition

Section 5: Supervising Older Workers

Supervising Older Workers 26

Starbucks ideology on hiring older workers is that they have more experience.

Advantages: - Dedicated- Pride in a job well done - Maturity - Communication Skills - Less risky hire

Section 6: Accommodating Different Religious

Beliefs

Accommodating Different Religious Beliefs 28

Starbucks is very accommodating to different religious beliefs

- Managers are to treat partners equally and without prejudice

- Managers are made aware of laws and regulations

- Partners should not be forced to do activities or speak in a manner that would contradict their vaules

- Starbucks builds relationships between the partner and manager

Section 7: Managing Employees

Around the World

Managing Employees Around the World 30

Managing Employees Around the World 31

- In China, families play a tremendous role in life and career choices

Global Starbucks Difference between China and U.S.

- In China, partners are mainly college graduates

- While in the U.S. many customers order coffee to go, customers in China tend to linger, therefore stores are larger

- Unlike in the U.S. where Starbucks cafés are busiest in the morning, in China store busiest hours are in the afternoon and evening

- China embraces the Starbucks culture and training as the U.S.

Managing Employees Around the World 32

Hofstede Culture Map

Power Dist

ance

Individuali

sm

Masculin

ity

Uncerta

inty Avo

idance

Long-T

erm Orie

nation

Indulgence

s

40

91

62

46

26

6880

20

66

30

87

24

USA vs ChinaUSA China

Section 8: Protected-Group Supervisors

Protected-Group Supervisors 34

Starbucks has the same guidelines that they do for employees to Supervisors

Section 9: Understanding Reverse

Discrimination

Understanding Reverse Discrimination 36

Starbucks regulations require that they take affirmative action to employ and advance employment for:

- status as protected veterans- individuals with disabilities- race- color- religion- sex- national origin

Section 10: Supervising Well:

The Overriding Consideration

Supervising Well: The Overriding Consideration 38

Cultural Competence is essential for Starbucks

- Starbucks started Café Practices to explains to managers: - Basic social criteria - Environmental criteria - Quality Criteria

Synopsis

Synopsis 40

- Important factors is for managers to be patient and understanding of their employees diverse background

- Starbucks provides training programs for all employees by mixing the age, minorities, disability of work teams in the stores to balance their skills and experiences

- Wise leaders will focus on performance regardless of any gender bias, race, religion or sexual orientation in order to increase company competitiveness

References

References 42

1. Jessica Newton – Starbucks – 1-877-309-3180 – JessicaNewton@starbucks.com

2. http://www.starbucks.com

3. http://www.starbucks.com/responsibility/community/diversity-and-inclusion

4. http://www.calvert.com/perspective/women-and-investing/examining-the-cracks-in-the-ceiling-2015-diversity-supplement

5. http://www.investopedia.com/articles/professionals/072815/best-and-worst-companies-workplace-diversity.asp

6. http://www.huffingtonpost.com/2013/05/06/berkshire-hathaway-diversity_n_3222455.html

7. http://geert-hofstede.com/united-states.html & http://geert-hofstede.com/china.html

Thank you!

Questions?