Starbucks CEO’s ability to blend activism, business acumen, and leadership reveals valuable lessons for today’s leaders.
The return of Howard Schultz to the top of Fortune magazine’s ranking of top executives comes as no surprise. Under his leadership, Starbucks—once a fledgling company he helped reinvent—has become a global powerhouse. Just this past year, Starbucks posted record revenues and profits, proving that customers are still willing to shell out five bucks for a latte, even during times of uncertainty.
However, what’s truly fascinating about Schultz’s journey isn’t just the company’s impressive financial performance (though that certainly plays a role). What stands out is his ability to navigate the delicate balance between business leadership, political activism, and community engagement. As businesses increasingly find themselves at the intersection of government regulation, social responsibility, and environmental sustainability, Schultz and Starbucks have positioned themselves as leaders in this area. Their sustained success uncovers a few key lessons for business leaders:
1. A Strong Point of View Matters More Than Ever
In today’s polarized political climate, simply staying neutral is no longer an option for many companies. Schultz has demonstrated this through his vocal stance on major political issues. For example, when Congress and the President nearly caused a government shutdown over the debt ceiling debate, Schultz took a firm stand. He called for a boycott of politicians who adopted obstructionist views, a move that was as controversial as it was bold. At a time when most companies hedge their bets by making contributions to both sides of the aisle, Schultz made a calculated decision to speak out against the status quo.
This wasn’t just a PR move—it was a principled stand. Schultz didn’t have to speak out, but he chose to, believing that such actions were necessary for meaningful change. In doing so, he set a powerful example for leaders and businesses alike: If more CEOs followed this model, perhaps the “change we believe in” could become a reality.
2. Taking a Stand on Unpopular but Right Business Practices Can Pay Off
Another area where Schultz excels is in making difficult decisions that prioritize long-term sustainability over short-term financial gain. One example is Starbucks’ commitment to offering healthcare benefits to both full-time and part-time employees. While this practice involves significant costs, Schultz has repeatedly stated that this will never change. The payoff comes in the form of loyal employees with lower turnover rates, which results in consistent service and, ultimately, increased revenues and profits.
This philosophy—investing in your business by taking a stand for what’s right, even if it’s unpopular—seems like a lost art in many industries today. But Starbucks’ success proves that the long-term rewards of such a strategy can be substantial. Businesses that focus too much on short-term financial outcomes may miss out on the kind of loyalty and consistency that leads to long-term profitability.
For a deeper dive into Schultz’s leadership style, you can read the original Fortune profile here: Fortune Profile of Howard Schultz.
Closing Thoughts:
As we look ahead to the challenges and opportunities of the coming year, there’s much to learn from Howard Schultz’s leadership journey. In a world that often values speed and convenience, his approach reminds us that standing firm on principles—whether political, ethical, or business-related—can lead to sustainable success.
Here’s to a year where more leaders choose to act with both purpose and vision. Happy New Year!