Leadership structure and practices at Starbucks

Power and Influence

Nelson Mandela stands before the world as a symbol not only of overcoming apartheid but also healing a nation. When coming to power, he was given the unenviable task of assuming leadership of a divided nation: many whites had committed horrific acts of discrimination against blacks under the whole regime. Yet he began his reign by symbolically splicing together the old anthem of white South Africa with a new one sung at black protest rallies. Rather than attempting to exorcise all examples of white influence in South Africa, Mandela could be said to have observed the dictate to 'love your friends, but hug your enemies closer.' He was all too well aware of the potential for white right-wing terrorism in the newly-forged nation and attempted to set white anxieties at ease, rather than provoke them (Carlin 2014).

Mandela has been called South Africa's Lincoln and the comparison is apt, not simply because Mandela was a liberator of his people. Lincoln too was confronted by a divided nation and rather than punitive actions, he emphasized peace and healing. There has been all too much criticism, notes John Carlin in his article on Mandela "Nelson Mandela's Legacy" in the Cairo Review of Foreign Affairs, based upon the subsequent criticism of post-apartheid South Africa's corruption and scandal in higher office. This may be true, but when compared with the challenges that have faced other African governments, South Africa is noteworthy for the lack of ethnic violence and cleansing as it has struggled to a state of greater unity, peace, and healing, amongst all the participants of the new coalition ruling the nation.

Mandela's achievement is all the more remarkable when one considers the extent to which he spent so many of his years forming his political governing style in prison. It would be very easy for him to have become embittered as a result, but he did not. Mandela actively reached out to whites who had expressed hatred and prejudice and disarmed them with his congenial attitude. This illustrates how, rather than using his position for personal vengeance, Mandela always had a higher aim in mind, namely the creation of a new government. His higher purpose was not to avenge his imprisonment but to create a nation which was free. He was a charismatic leader who led from example in this respect, even while he was also pragmatic in his attitude regarding the need to sacrifice some principles (such as avenging those who had been treated so horribly by the white government) to create peace.

Thus Mandela's use of power changed the perspective of a white nation, putting the minority ruling group's mind at ease and demonstrating that the new South Africa would be more peaceful and unified for all, as the result of his efforts. Mandela stands as a great man in the history of South Africa for all, not simply whites. It is said that of those he encountered, he made them more virtuous by embodying these ideals rather than attempting to chastise them or rule by fear and rage although some might believe he and other South African blacks had every right to do so.

Section II: Leadership

The current CEO of Starbucks Howard Schultz has been celebrated for his achievement of not only creating a company which was successful, but also one which was morally upstanding in terms of how it treated its workers. Starbucks has been praised for offering health insurance to even its part-time workers (extraordinary for a 'fast food' chain) and selling such products as Fair Trade coffee. Schultz assumed leadership of the company when its fortunes were lagging in 2008. Not only was it hard-hit during the global recession but quality of the beverages had declined, a critical failing in a company that did not sell its product at an extremely low price point. It also had overstretched its boundaries domestically.

As he noted in an interview with HBS in 2010, one of Schultz's first actions was to have a conference for all store managers to reaffirm Starbucks' values for all (Ignatius 2010). To further underline company ideals, Schultz staged the conference in the still hard-hit and beleaguered location of New Orleans, rallying all who attended with a commitment to perform 50,000 thousand hours of community service (Ignatius 2010). As well as investing in the company and in good public relations, Schultz also maintained Starbucks' commitment to its own people, refusing to cut healthcare benefits to any of them, despite pressures from Wall Street to do so. This retained the loyalty of top workers, a critical component of Starbucks' success. Once again, for a company that sells itself upon ethics and quality, treating the workers well who are the first point of contact for most customers in terms of the product is essential. While it is true that Starbucks has branched out to sell its products in supermarkets, ultimately its retail stores are the 'face' of the company, something Schultz was all too well aware of as a CEO.