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Starbucks Coffee Company Diversity Audit
Cindy Rizo and Robin Jones
Keller Graduate School of Management
In this paper, we will be discussing a diversity audit that took place with the Starbucks Coffee Company. The audit consists of the company’s background, what the team’s criteria for a diverse organization should be and the findings on what the organization diversity practices truly consist of based on research provided from interviews, company statements and news articles. The remaining of the paper will focus on the organization in terms of Thomas and Ely’s paradigms, building an inclusion breakthrough and a business case for diversity in the organization. Finally, recommendations for improvements will be discussed
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When organizations actively evaluate their handling of workplace diversity issues, develop and implement diversity plans, several benefits are reported. For example, increased adaptability, variety of viewpoints, and a diverse collection of skills and experiences that allows a company to provide service to customers on a global basis. For this reason, organizations need diversity to become more proactive and welcomed within an organization and its employees.
Managers must learn the managerial skills needed in a multicultural work environment. Managers must be prepared to teach themselves and others within their organizations to value multicultural differences in both employees and customers so that everyone is treated with respect. The organizations that manage diversity well will come out ahead in the competitive environment. Based on these key ideas and concepts, these will be the factors used to determine the level of diversity that Starbucks has reached as a company and how that plays into the everyday operations of each store.
Steve Ogo has been with Starbucks for fourteen years originally from Portland Oregon. He migrated from Portland to Chicago a few years back and has been one of the district managers for Chicago ever since. Mr. Ogo has been a part of the organization for over a decade and has been a part of many changes including changes in diversity. Unlike Chicago, Portland has a very different population which made it very hard to create a diverse work
Diversity is a wonderful asset to an organization and brings with it many benefits. Employees bring in their own personal experiences and knowledge to the team (Burns & Kerby, 2012). Having diverse teams allows for the possibility to fix a problem or perfect a process by using different employee’s experiences and past knowledge to find solutions. A diverse workforce can drive economic growth and capture a greater share of the consumer market (Burns & Kerby, 2012). With diversity as a core value, the recruitment pool is widened to find the most qualified candidate and reduces employee turnover as a result. An organization can be highly competitive with a diversity initiative by adapting to a changing environment (Burns & Kerby, 2012).
The purpose of this paper is designed to introduce, educate, and promote diversity within your company. Your company will be shown the merits of diversity and how diversity within your organization can be a benefit. This paper will be broken down into three main areas: Benefits of Diversity, Challenges of Diversity, and Recommendations for an effective diversity within your organization..
Starbucks was bought out by current CEO Howard Schultz in 1987. Since then, Andrew Harrer (2012) reports the company has grown to operate over “17,244 stores worldwide” (para. 1). Fortune (n.d.) reports in its yearly 100 Best Companies to Work for that Starbucks employs “some 95,000 employees”. From only a handful of stores in 1987 to a billion dollar franchise today, the success of Starbucks is due in great deal to their corporate culture, specifically how employees, or as Starbucks calls them, partners are treated. Joseph Michelli (2007) echoes this sentiment, “A great cup of coffee is only part of the Starbucks success equation” (p. 767).
As diversity and inclusion gain more attention in the society, more research has been done on their impact to organizations. Not too long ago, organizations implemented diversity management initiatives, such as affirmative action and equal employment legislations, just to fulfill their legal requirements (Jayne and Dipboye, 2004). However, diversity and inclusion have since then become a business imperative.
Diversity in the organization can affect the employees and their behavior in many ways. The effect can be positive and negative in the same time. The positive effect is, it will wider employee knowledge, skills, and attitude which will allow the organization to become more competitive globally. Higher diversity of employees mean higher diversity of knowledge, skills and abilities. Sharing experience inspires innovative thinking (Claudia Quaiser-Pohls, 2013, p. 41). Today in the modern workplace, most organizations will have
Diversity and inclusion are hot topics in today’s business world. While treating individuals fairly and equally is a social imperative, it is also extremely important to the success of a business. With the changing demographics of society and its affect on the American workforce, organizations must truly embrace diversity and inclusion. “For companies to succeed in the global marketplace, they must make the most of the full range of their people. Companies must attract and retain the right skills, the best minds, all the required resources – and that means diversity” (Royal Bank of Canada, n.d.). There are a number of compelling reasons companies should adopt the core values of diversity and inclusion. This paper sets out to
Many employers are unaware of the benefits of and ways to achieve workplace diversity. This Diversity and inclusion training plan provides this information. This plan is designed to be presented by an individual who is knowledgeable in diversity and business strategies and who is familiar with the company’s strategic business plan. By the end of this training the employee should be able to provide a clear understanding of what diversity is and what it is not, to raise a greater awareness and sensitivity to diversity issues that go well beyond
Many people think that Starbucks is just a company that sells coffee. Beginning our diversity audit, that’s what our group thought as well. As we began our research we uncovered a company that we could not have imagined. Starbucks has embraced diversity, and in many ways, is a trailblazer. Starbucks is involved in a plethora of diversity efforts, both in achieving diversity and managing diversity within their corporation. Starbucks becomes deeply involved in promoting diversity by creating Partner Networks (“Diversity and Inclusion”). A partner is an employee of Starbucks, and Partner Networks are support systems created and supported by Starbucks to help their diverse staff feel included and welcome. Partner networks include Starbucks Access Alliance Partnership, which promotes increased accessibility and use of Starbucks facilities for customers and Partners with disabilities (“Diversity and Inclusion”).
Diversity is what makes people different, not just culturally but in human differences. Having a multitude of differences in the workforce gives an organization the ability to use many ideas to reach a common goal. A person could say that a diverse group of people together in one room can accomplish greater achievements than a room filled with the same types of individuals. Managers understand the concept of diversity, and how important diversity is to the success of a company’s ability to implement programs that continue to develop a harmonious and diverse workplace. The recognition that diversity is a reality in the workforce has generated an enormous amount of activity over the years among leaders in business, government, and civil
This diversity audit begins with a background about the company, as well as some important information about key Diversity executives. What will be addressed in the audit are what efforts Johnson & Johnson made to foster diversity competence and understand, what efforts were made in furthering the knowledge or awareness about diversity, what strategies were used to address the challenges of diversity and how will you ensure that your leaders and managers will be committed to the diversity initiative. The audit concludes with a quote from the vice president of recruiting at Johnson and Johnson, as well as
The general line of reasoning is that if we learn to incorporate each other’s diverse traits and characteristics in the workplace, we can then use these differences to foster an innovative environment, which will give the company a competitive advantage over the competitors that do not accept workforce diversity. According to the Allied Academies International Conference, “Diversity is rapidly becoming a common practice among companies due to the increasing number of minorities entering the job market today. As these groups become more prevalent throughout companies, upper-level employees are facing numerous challenges when determining what changes must take place to create a positive working environment for everyone. Management is responsible for the development and implementation of effective policies directly relating to diversity to ensure the acceptance of minorities into the workplace and to aid in minorities’ success through equal opportunities and treatment.” (Marcia L. James, 2001, Academy for Studies in International Business Proceedings)
From our research, we identified three different perspectives on workforce diversity that people embrace, each with different implications for a work group’s ability to realize the benefits of its cultural diversity. We use these observations here to examine critically some of the themes and basic assumptions of previous research and to propose new directions for both researchers and practitioners interested in diversity (Ely &Thomas, 2001). When organizations have a diverse economy, it makes the company strong. Once our nation has embrace the changes from the demographics that reap the economic benefits of a diverse and inclusive workforce. Burns et al. (2012) stated in their investigation that:
With the changing demographics of the U.S. workforce (Ng & Burke, 2005) and the need for organizations to continually innovate their products and services to remain competitive, embracing diversity and the benefits its brings is going to be key to driving a successful organization
The company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.
Diversity in workforce “include, but are not limited to: age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational background, geographic location, income, marital status, military experience, religious beliefs, parental status, and work experience”(Thomas 1992). Diversity in the workforce is initially perceived as a response toward the increasing diversity of the consumers in the market (Agocs & Burr, 1996). From there, it has been observed that capitalizing on existing differences among the employees provide benefits to the organization. Diversity in workforce fosters and encourages