Analysis
Starbucks Inc. is a brand with a significant reputation and is successful in different markets. A brand hinges its pride on progressive values. The company needs help with fair labour practices through employee union representation. The idea that employees want to join unions proves that the company has to live up to its responsibilities relating to fair labour practices. The company brand itself is a company that values diversity, inclusion, and equity (Starbucks, 2023, para. 3). The brand is facing challenges from employees who want higher pay and want to negotiate through the union. Similarly, the employees’ desire to join the league is also instigated by the desire for better working conditions and a more excellent voice in decision-making. The situations were analyzed using the 3Rs agenda (Responsibility, Resilience, and Regeneration), systems thinking, and considering the business context.
Responsibility
Based on the current scenario, the brand’s approach is reflected in the CEO, Howard Schultz, who announced new staff benefits that did not include unionized employees. This decision generated strikes and an unfair labour practice grievance. Starbucks calls its staff partners, and for such, it values them as partners (Starbucks 2023, para. 1). The brand must recognize its responsibility to its staff and the values it claims to uphold. In this feature, it is recommended that the company implement an inclusive employee benefit package that caters to all employees irrespective of their union status. This will show that the company is committed to fair and equitable treatment of employees. To avert the strike, the company leadership should engage the union in a transparent dialogue to address issues raised and jointly improve the working conditions for employees.
Resilience
Under this item, the stakeholders’ approach shows a need for more resilience to solve employee dissatisfaction. The company leadership needs to understand that employee resilience is synonymous with business growth and the wellbeing of the employees as the brand ambassadors (Dramali et al., 2023, para. 1). In this perspective, it is recommended that the company should develop a framework to enhance ongoing communication with staff guaranteeing that their concerns are solved immediately. The company should develop a resilient work practice that resonates with changing situations and avert the strike.
Regeneration:
The current approach shows that Starbucks still needs to fully incorporate the regenerative aspect, especially regarding social sustainability within its staff. Considering such a case scenario, the company needs to implement regenerative practices in staff relations by nurturing a culture of continuous work conditions improvement and employee branding (Dramali et al., 2023, para. 2). Again, the leadership should engage in dialogue, listen to staff feedback, and create an environment that regenerates trust and cooperation.
Systems Thinking
The company’s concerns are beyond individual incidents and involve a complex system that forms the organizational community. The scenario affects the company’s policies, communication, and actions, affecting the satisfaction and wellbeing of the company staff. The decision not to award unionized employees benefits has prompted a nationwide rejoinder and strikes, signifying systemic dissatisfaction (Wiener-Bronner, 2023, para. 1). To comprehend and address the interconnectedness of the problems at Starbucks, a system map can be created. A well-designed system map will highlight the issues’ interconnectedness, the prevailing relationship between the company, its employees, and labour practices, and the impact of these dynamics on the general business performance.
System Map Analysis
The main components of the systems map include employee relations, corporate values, and business resilience. Elements of business resilience include labour practices and employee satisfaction. Corporate values include Starbucks’s values and corporate communication, while the aspects of employee relations include benefits policy, strikes, unionization, and employee demands. The interconnections show that any form of compromised resilience, for instance, because of employee dissatisfaction, will result in compromised business operations. Any unfulfilled requests by employees will result in strikes and joining the unions to seek protection (Wiener-Bronner, 2023, para. 1). This may result in compromised operations that negatively affect the brand reputation and customer loyalty. Employees will become discontented if the corporate values do not align with practices. Such misalignment may cause other organizational problems, including strikes, employee go-slow, and increased employee turnover, affecting consumer satisfaction, loyalty, and brand image.
Business Context
Starbucks functions in a competitive sector where consumer discernment and brand image are crucial and interlinked. Mitigating the current problem within the 3Rs framework resonates with the sprouting expectations of socially responsible companies, ensuring long-term sustainability. Similarly, the company must know that employee wellbeing and fair labour practices are not an option but a responsibility. The pandemic and the acts of the company CEO have highlighted the essential nature of the work done by Starbucks staff, making their demands for more hours, higher pay, and better safety protections sensible in the current business landscape (Wiener-Bronner, 2023, para. 4). Therefore, Starbucks cannot run away from its responsibilities but ensure fair labour practices and provide the employees with better working conditions as required by labour laws.
Conclusion
Considering the dynamics at Starbucks, the company should prioritize responsibility by executing inclusive benefits, resilience through efficient communication and adaptable labour practices, and regeneration by nurturing a culture of unceasing improvement in employee relations and pay. These actions will mitigate the current challenges and donate to Starbucks’ long-term success as an accountable and resilient business.
References
Dramali, B., Morgan, A., & Khaliq, A. (2023). How can employees shape brand reputation? Www.linkedin.com. https://www.linkedin.com/advice/1/how-can-employees-shape-brand-reputation-skills-branding-dlcle
Starbucks. (2023). Culture and Values: Starbucks Coffee Company. Starbucks; www.starbucks.com. https://www.starbucks.com/careers/working-at-starbucks/culture-and-values/
Wiener-Bronner, D. (2023, November 6). Starbucks announces higher pay, but union workers must bargain for it | CNN Business. CNN. https://edition.cnn.com/2023/11/06/business/starbucks-wages-union/index.html
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