Posts tagged with: Starbucks

starbucksWhen most people think of Starbucks they think of overpriced coffee, free wifi, and omnipresence. Starbucks are everywhere. The company was founded in 1971 and since 1987 they’ve opened an average of two new stores every day. In the U.S. alone there are 12,973 locations.

When most people think of “big business”, though, they don’t often think of the Seattle-based coffee company. But they should. Starbucks has 151,000 fulltime employees, $15 billion in annual revenues, and three times as many locations as Walmart. Starbucks is one of the biggest of big businesses. And, not surprisingly, a big proponent of cronyist policies.

Cronyism occurs when an individual or organization colludes with government officials to create legislation or regulations that give them forced benefits they could not have otherwise obtained voluntarily. Those benefits come at the expense of consumers, taxpayers, and everyone working hard to compete in the marketplace. A prime example is minimum wage laws. Almost without fail, big businesses tend to support higher minimum wages.

Since they could just choose to pay higher wages, why would they support federal mandated wage floors? One reason is because it helps to eliminate the competition from small business who don’t have the size and scale to absorb higher-than-market wage increases.

In a recent interview with CNN, Starbucks CEO Howard Schultz said he supports an increase to federal minimum wage even though he admits the $15 wage in Seattle could have “traumatic effects” on small business owners and employees.
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BrendleIn his article today Anthony Bradley asks, “When Did College Education Reduce To Making Money?

Our country’s narcissistic materialism has created a neurotic obsession with disparities between the incomes of individuals resulting in an overall devaluing of the learning goals and outcomes of what colleges exist to accomplish. There is a major disconnect here. I wonder if this explains why many parents do not want their children studying the humanities in college.

While I completely agree with Anthony about what the purpose of college should be (“a place where men and women are educated and formed into more virtuous citizens”), I think he’s overlooking how we got into this situation: College is priced like a luxury good but treated as a prerequisite for most forms of employment.

Unfortunately, the types of degrees that best fulfill the primary function of a college (e.g., liberal arts) are also the most likely to lead to underemployment.

A couple of years ago, Andy Whitman wrote an article for Image, “Starbucks and the Liberal Arts Major”, that highlighted the problem:
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Blog author: ehilton
Wednesday, August 14, 2013
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james madisonWhat do vegans, Catholics, and Starbucks have in common? According to attorney Mark Rienzi they all share the right to “decisions of conscience.”

Starbucks has ethical standards for the coffee beans it buys. Vegan stores refuse to sell animal products because they believe doing so is immoral. Some businesses refuse to invest in sweatshops or pornography companies or polluters,” Rienzi said in an Aug. 11 opinion essay for USA Today.

“You can agree or disagree with the decisions of these businesses, but they are manifestly acts of conscience, both for the companies and the people who operate them,” he said. “Our society is better because people and organizations remain free to have other values while earning a living.”
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closed-businessThe Obama administration and several courts have effectively said that religious freedom doesn’t apply to money-makers — at least, not when it comes to purchasing abortion-inducing drugs for your employees.

In a recent piece for USA Today, Mark Rienzi, author of a marvelous paper on the relationship between profit-making and religious liberty, argues that drawing the line on “for-profit” vs. “non-profit” is a mistake for anyone who believes “conscience” belongs in business.

Offering a brief summary of the more recent demonstrations of “conscience” among money-makers, Rienzi invites us to imagine a world where values and business are separated:

We regularly encounter businesses making decisions of conscience. Chipotle recently decided not to sponsor a Boy Scout event because the company disagreed with the Scouts’ policy on openly gay scoutmasters. It was “the right thing to do,” Chipotle said.

Starbucks has ethical standards for the coffee beans it buys. Vegan stores refuse to sell animal products because they believe doing so is immoral. Some businesses refuse to invest in sweatshops or pornography companies or polluters.

You can agree or disagree with the decisions of these businesses, but they are manifestly acts of conscience, both for the companies and the people who operate them. Our society is better because people and organizations remain free to have other values while earning a living. Does anyone really want a society filled with organizations that can only focus on profits and are barred from thinking of the greater good?

Yet the persecution we see is quite selective. (more…)

star1In an effort to foster goodwill amid fiscal cliff negotiations, Starbucks aimed to send a message to Congress by instructing its D.C.-area employees to write “Come Together” on every cup of coffee sold.

Critiques abound, with this post from Mickey Kaus grabbing much of the attention, asking, “Is Starbucks a cult?”

From Kaus:

“Room for smarm in your latte?”Isn’t there something creepy about Starbucks’ CEO Howard Schultz having [in Politico's words] “asked his Washington-area employees to write ‘Come Together’ on each customer cup today, tomorrow and Friday, as a gesture to urge leaders to resolve the fiscal cliff”? Did Schultz take a poll of his employees–sorry, “partners,” he calls them–before ordering pressuring asking them to join in this lobbying effort? What if he were, say, the CEO of Chick-fil-A and he “asked” his “partners” to write “Preserve the Family” on the outside of cups and containers?

…if you go to work for a HuffPo outfit like AOL or Patch, that’s the sort of thing you’d expect. But Starbucks?  Maybe Schultz’s baristas came for the (admirable) health benefits, not because they wanted to join him in some mushy Tom Brokawish corporate budget crusade.

Over at the Hang Together blog, Greg Forster says not so fast, arguing that although many businesses “don’t currently do a good job of stewarding their cultural role,” it’s largely because “we’ve spent more than half a century trying to teach businesses to pretend they’re not moral and cultural.”

For Forster, we should “set businesses free to be culture makers,” not tie them down. As cheesy, ineffective, or “creepy” as the Starbucks campaign may be (it’s all of the above, in my opinion), only when we’re comfortable with the inherent cultural purpose of business will we be able to “re-humanize” companies accordingly. (more…)