In our recent article, we highlighted that a key element of brand authenticity lies in a company's unwavering commitment to its values, even when it comes at a cost. True integrity means upholding these core principles in every situation, especially when it’s difficult or inconvenient. While being authentic may lead to missed opportunities or tough decisions, it ultimately reflects a brand's dedication to honoring the promises made to its customers, employees, and stakeholders.
Let’s examine Starbucks’ recent decision to allow its newly appointed CEO, Brian Niccol, to live in Newport Beach, California, while commuting to the Seattle headquarters by corporate jet. This case highlights a growing trend of flexibility for top executives, but it also raises questions about authenticity, especially when viewed through the lens of the brand’s commitment to sustainability, fairness, equality, and consistency.
In this context, we must explore the deeper dimensions of brand leadership and governance. Authenticity involves not just the integrity of the brand's core values but also how these values are reflected in leadership practices. This includes examining the openness or exclusivity of leadership decisions, the balance between transparency and privacy, and the acknowledgement of hierarchy in decision-making. Leadership must demonstrate consistency between the brand’s promises and its actions, particularly regarding environmental stewardship and social responsibility.
The environmental impact of decisions, like commuting arrangements for top executives, must align with the company’s public commitments to sustainability. Additionally, the brand’s governance should reflect a clear identity that resonates with both internal and external stakeholders, fostering trust and a sense of shared purpose. These essential considerations highlight how brands navigate the tension between operational realities and their values, pushing discussions beyond idealized notions of a perfect, universal brand.
Starbucks’ Brand Values
Starbucks has long positioned itself as a values-driven company, with sustainability, community involvement, and employee (partner) well-being at the core of its brand promise. The company takes pride in fostering a culture of equality and fairness, offering benefits like healthcare and education support even to part-time employees—setting it apart in the retail industry. However, the decision to allow its CEO to live far from headquarters while commuting via corporate jet seems to contradict the very values of fairness, equality, and, most notably, sustainability.
While Starbucks employees are required to work at least three days a week in the office, Brian Niccol’s arrangement grants him the flexibility to work remotely, splitting his time between Seattle and Newport Beach. This discrepancy raises important questions: Is this decision consistent with Starbucks' values of fairness and equality? Does it reflect authentic leadership, or is it an instance of bending the rules for senior executives?
Moreover, the frequent flights between Newport Beach and Seattle raise concerns about Starbucks' true commitment to sustainability. The brand has pledged to cut its carbon footprint by half, as stated on its website, but such a travel arrangement appears to contradict this goal, prompting doubts about how seriously Starbucks is taking its environmental promises.
Authenticity Means Consistency
One of the cornerstones of brand authenticity is consistency — remaining true to your values in all situations. Starbucks’ brand values emphasize community, environmental responsibility, and treating employees fairly. Allowing a top executive to have greater flexibility than the average employee may be seen as inconsistent with these values, which can weaken the perception of authenticity.
The decision to allow Niccol’s commuting arrangement is justified by the company as a way to attract and retain top talent, and indeed, Niccol’s track record is impressive. His leadership at Chipotle resulted in a remarkable turnaround, making him a desirable candidate. However, the authenticity of this move can still be questioned when considering how it aligns with the expectations set for all Starbucks employees.
The Cost of Authenticity
Brand authenticity often comes at a price. Sometimes being true to your values means making tough decisions, like losing a client, declining a lucrative opportunity, or taking actions that might not be immediately beneficial for the bottom line. Starbucks’ choice to offer its CEO such flexibility in this case might be seen as pragmatic from a talent acquisition perspective, but it also sends a message to employees and stakeholders about the company’s priorities.
If Starbucks is truly committed to environment, fairness and equality, it would need to justify how this decision aligns with those values. Authenticity in this context might have meant sticking to the same hybrid work policies it has enforced for other employees, even if it meant risking losing Niccol as a candidate. This is the kind of sacrifice that demonstrates genuine commitment to values, which in turn builds trust and loyalty among employees and customers alike.
Risk of Eroding Trust
Allowing different standards for executives can erode trust within an organization. Trust is a key component of authenticity, and when employees see that the rules are different for leaders, they may start questioning the company’s commitment to its stated values. Authenticity, therefore, is not just about the external brand image but also about how a company operates internally. When leaders are held to different standards, it creates a gap between the brand’s message and its practices, potentially leading to employee disengagement and dissatisfaction.
Employees are increasingly looking for authenticity in their workplaces. They want to work for companies whose values align with their own and whose actions reflect the promises they make. When employees see discrepancies, such as a CEO having flexibility while they do not, it can lead to frustration and a feeling that the company isn’t truly practicing what it preaches.
Is Starbucks Hypocritical?
Given the gap between Starbucks' stated values and the flexibility granted to its CEO, it's worth asking: Is Starbucks hypocritical? The brand has built a reputation for its commitment to sustainability, equality, and fairness, yet allowing a top executive to commute by corporate jet while enforcing stricter in-office policies for regular employees sends a conflicting message. This divergence raises concerns about whether Starbucks is genuinely living up to its promises or selectively applying its principles when convenient. Authenticity requires consistency, and when exceptions are made for senior leadership, it risks eroding the very trust that the company has worked hard to build. By appearing to prioritize executive privileges over the values it promotes, Starbucks may be undermining its own credibility, making employees and customers question whether the brand’s values are truly at the heart of its decisions.
Conclusion
Starbucks’ decision to allow CEO Brian Niccol to live in Newport Beach while commuting by corporate jet, despite stricter in-office policies for other employees, raises questions about the brand’s commitment to its core values of sustainability, fairness, and equality. Authenticity demands that a company uphold its values consistently, but selective application risks eroding trust and damaging its reputation. Starbucks must ensure that its values apply equally to all employees, from entry-level workers to top executives, to maintain its credibility.
Inconsistent policies, particularly around work and travel, can create a cultural divide within the workforce. When executives receive greater flexibility than regular employees, it fosters a sense of inequality and disillusionment. Trust is essential for employee engagement, and when it is undermined, motivation and productivity decline. Starbucks’ workforce may become less loyal, and the company could struggle to retain talent if these inconsistencies persist.
Moreover, Starbucks’ sustainability commitment is also in question. While the company pledges to reduce its carbon footprint, frequent executive air travel contradicts these goals, potentially weakening consumer trust.
As flexible work arrangements become increasingly important in the post-pandemic era, Starbucks must reflect its values consistently across all levels of the organization. Allowing exceptions for senior leadership while enforcing stricter policies for others risks creating disengagement and higher turnover. Authentic leadership requires that values like fairness and sustainability are reflected in every decision. By applying its principles universally, Starbucks can foster trust, build employee loyalty, and maintain long-term success in an evolving work environment.
About the authors:
John Lam and Amer Bitar are collaborating on a personal reflection and book titled The Authenticity Formula: Cultivating Brand Integrity in Global Markets. Both are recognized as global cultural experts, with Amer contributing his extensive experience in brand licensing and cultural integration, and John offering profound insights into culture through a human-centered design lens. Their research delves into how intricate cultural interventions can create meaningful value in a fast-paced and ever-evolving global landscape.
Disclaimer: The ideas and concepts presented here are still in their initial stages and are intended to encourage discussion and feedback as we continue to develop our upcoming book. They are not yet fully refined, and we welcome your thoughts and perspectives to help shape the final content.
Source: LinkedIn
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