Starbucks Real Estate Manager Project - Weebly

[Pages:51]Starbucks Real Estate Manager, An Ethical Analysis

Lori N. Comstock

Professor William Erwin BIS 345 Organizational Ethics

December 5, 2014

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Introduction

For this paper I have chosen to explore the ethical dilemmas I may face in my future career as a Starbucks real estate manager. Real estate manager is not by itself a job title, so for better explanation I can say that I would like to eventually join our corporate offices as a supervisor or manager of a real estate team. These real estate teams participate in the selection of new store locations, the management of lease negotiations, store build outs and lease renegotiation. With many thousands of Starbucks stores throughout the country this is a busy division at corporate.

In this paper you will find that I have reviewed six business case studies. They are included after this introduction with commentaries on each from me.

I have also completed two in-depth interviews with professionals in this field. The first, Danny Sheehan is a manager in the finance and real estate team at Starbucks corporate offices. The second, who I refer to as J.A., is a colleague and regional real estate manager for a large Fortune 500 quick-serve restaurant chain. J.A. has asked that I not include her name in my report because she doesn't want her stories tracked back to her or her employer in case this report is published somewhere. Her contact information is available to Professor Erwin upon request for confirmation of the interview. The results of these interviews detailed after the case reports and are preceded by a brief methods section.

This paper concludes with a discussion of what I learned from the interviews and what new perspectives this allows me to bring to my future as a real estate manager.

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Business Ethics in the News

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MOZILLA: Mozilla CEO Under Fire for Prop 8 Contributions

Monday, Mar. 31, 2014

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Source: Wikipedia

Mozilla, the makers of the popular web browser Firefox, is facing a media firestorm in protest of their recent promotion of Brendan Eich to CEO. Eich was an internal promotion for the company, having been CTO since 2005, but it's Eich's $1000 contribution to the 2008 anti-gay marriage "Proposition 8" that sparked the controversy. Mozilla, a nonprofit organization, is heavily committed to "keeping the web open" as well as values such as equality and inclusivity. In response to Eich's promotion a number of key employees and developer groups called for his resignation on Twitter and other social media sites. Eich responded in a personal blog post that he would continue Mozilla's effort of "commitment to equality in everything we do." Critics are largely unsatisfied by the response, demanding either a retraction and apology from Eich or his resignation. Complicating matters, three of Mozilla's six board members resigned this week, citing their desire to hire an outsider with expertise in mobile computing. Can a CEO have personal values that conflict with the values promoted by the organization?

Kirk: If Eich were anything but the CEO (or perhaps a C-level executive), this would be a nonissue. Employees are clearly entitled to have their own views on matters, regardless of whether they conflict with those of the company. The question is, when does one's personal values become inextricably linked to the identity of the company? It's safe to say that CEO is on the other side of that threshold. Eich's blog post reiterating his commitment to equality and inclusivity at Mozilla is a step in the right direction, but the critics' demands for a full explanation are not unwarranted.

Patrick: This is a tough one. In my book, Eich is entitled to his personal beliefs, but employees are well within their right to question the new CEO's ability to reflect the company's values. Like mixing Diet Coke and Mentos, some things just don't go together. It leaves me wondering what the CEO hiring committee expected to happen here, particularly given the desire to hire a mobile oriented CEO by half the board. This case also leaves us with an interesting question: does Mozilla's commitment to inclusiveness and openness demand that they embrace Eich and his views, despite disagreeing with them?

Objecting to new CEO, resignations sweep Mozilla board (CNET)

Inclusiveness at Mozilla (Eich)

A Framework for Thinking Ethically (Markkula Center)

NEXT STORY: Is Oculus Leaving Early Backers Out to Dry?

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Comments

Alexa said on Apr 6, 2014

I do not believe a CEO should add their own personal values and beliefs into their career. I believe a personal view and a professional view should be kept seperate for a number of reasons. One, this will cause controversy to the employees in the company that could potentially hurt the business. Two, consumers may disagree upon what employees of the company believe in, especially the CEO, and be influenced to walk away from the company. - Like javascript:ilike(4762,2) - 1 person likes this.

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Patrick said on Apr 6, 2014

Alexa, thanks for your comment. What do you think about Eich never publicly expressing his views on gay marriage? (It was only found out because people dug through his public records) - Patrick - Like javascript:ilike(4763,4) - 3 people like this.

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Top Stories of 2013 /ethics-

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Dave said on Apr 7, 2014

This truly concerns me. Eich didn't mix business and personal, and his coworkers report him as inclusive and a great choice for CEO. It concerns me that the current LGBT establishment doesn't seem to have any respects for personal beliefs. Should the 40% of the nation that opposes gay rights be automatically removed from the running for CEO positions? - Like javascript:ilike(4764,5) - 4 people like this.

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Robert said on Apr 16, 2014

We now know that Eich's modest contribution supporting Prop 8 wasn't unusual for the California tech industry. We also have learned that his contribution was leaked by the IRS. While people may disagree with Eich's personal views, it seems to me that we need to reeducate our citizens about true tolerance, and seek to create an environment where public figures aren't denigrated (or asked to resign their job) for their personal views. Tolerance is a two-way street. - Like javascript:ilike(4776,4) - 3 people like this.

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Patrick said on Apr 16, 2014

To both Dave and Robert - I share the same concerns. Eich didn't get a fair hearing here. Then again, I do empathize with the employees who feel strongly about this issue spoke out. Ideally it would've led to a continued conversation as opposed to a witch hunt. - Like javascript:ilike(4783,2) - 1 person likes this.

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Greg said on Apr 22, 2014

Patrick, The employees are free to have a strong opinion, as does Mr. Eich. As Robert and Dave both point out, tolerance and respect is a two-way street. No person should be barred from employment solely based on their beliefs. Even their actions must be judged in the context of the agents purpose and intention, and all given the opportunity to explain and defend. - Like javascript:ilike(4798,3) - 2 people like this.

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Patrick said on Apr 22, 2014

Greg, I hear your point, but I think the statement "no one should be barred from employment" doesn't do justice to the situation; particularly, Kirk's point about the special role of the CEO. Again, I don't think Eich got a fair hearing, but I think we

have to distinguish general employment from occupying the head leadership role of the company. - Like javascript:ilike(4799,1)

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Greg said on Apr 23, 2014

The role of Eich in the company should not supercede his rights as a member of society to have, form, and express his opinion. If Mr. Eich actively prevented others from expressing a differing view point, there would be an issue. In this instance, Eich supported and promoted a variant perspective, but did not silence or impede others from stating and supporting their opinion. There are a multitude of reasons to support or prevent gay marriage. Without the variety of opinions being voiced, we trade one tyranical opinion for another. It could be a great example if the CEO and Mozilla simultaneously promotes or supports both side of the issue, beining a real example of tolerance and inclusivity. - Like javascript:ilike(4808,4) - 3 people like this.

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Nik said on Nov 20, 2014

Love it Greg! - Like javascript:ilike(5008,1)

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Case Study Commentary # 1 Commentary for: Kirk O. Hanson & Patrick Coutermarsh. MOZILLA: Mozilla CEO Under Fire for Prop 8

Contributions. Business Ethics in the News. Markkula Cetner for Applied Ethics, Santa Clara University, 31 Mar. 2014. Web. 5 Dec. 2014.

I chose this article because conflicts between personal views and politics can often conflict with the views of a big organization. For an organization the size of Starbucks, this is especially true, with 25,000 or more partners working at Starbucks, the views of the various partners and managers are bound to be different on different issues.

The authors of the case study talk about how such conflicts become more important the higher level the manager. As a store manager, I may frequently have views that are diametrically opposed to those of senior management and the shareholders. Right now it's not as big of a deal. Because I hope to move into a more senior management role and into the corporate headquarters, this changes.

While a senior manager is still definitely entitled to have different views, by choosing to accept a management role, they can't always share those views as publicly. If I post something about politics on my facebook page, that doesn't really get linked to Starbucks. If a senior manager does, it might. The same goes for the Mozilla guy's donations.

This is a really hot topic because the CEO of a major company was getting pushed out for an old donation. I suspect this also happens on the smaller level, with managers in the corporate office being called to task for posting things that the majority doesn't agree with.

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In the ethics class, this also poses a separate dilemma. Kant's teachings told us we had a certain duty to be honest with our peers. Here we see people punished an losing their livelihood for doing that. I think it is probably unethical to push the CEO out for his political views, especially if they were expressed long ago and don't show up in his running of the company.

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The Case of Due Diligence

Ethical principles and values are, of course, key to ethical decision making, but how should they be applied to actual business situations? Thomas Shanks, S.J., executive director of the Markkula Center for Applied Ethics, was asked to walk readers through a real-life case for The Monitor, the publication of the Investment Management Consultants Association. Here, he shows how ethics can guide the conduct of a brokerage firm rewarding sales representatives with trips for the sale of a particular fund. This case was presented at a workshop for Dean Witter.

When it comes to ethics, I often recommend that most of us need to develop an "ethics reflex," almost a second-nature ethical instinct that enables us to know the right thing to do well before the loss of business, reputation, or (self)respect that comes from making a moral mistake. We develop this reflex only by focusing on fundamentals. For example, when we bump into a questionable business practice (or

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