Starbucks model
WAKE UP AND SMELL THE HEALTH INSURANCE: THE KEY TO TURNING AROUND STARBUCKS
Posted by John Geyman MD PNHP on August 4, 2008 - 10:25amStarbucks has been a model among U. S. employers for its social and
moral responsibility to its work force since its founding in 1982.
Howard Schultz, who founded the company, grew up in Brooklyn, New York
in a hard-working family without health insurance, and never forgot the
plight of working class people struggling every day to make ends meet.
He was determined to build a different kind of company—one that makes a
profit, builds shareholder value, but also has a social conscience
integrated back into the company. As he has said in his excellent book
Pour Your Heart Into It,
“From the beginning of my management of Starbucks, I wanted it to be
the employer of choice, the company everybody wanted to work for. By
paying more than the going wage in restaurants and retail stores, and
by offering benefits that weren’t available elsewhere, I hoped that
Starbucks would attract people who were well educated and eager to
communicate our passion for coffee. To my thinking, a generous benefits
package was a key competitive advantage.”

