Monday, October 24, 2011

Starbucks Australia - Making CSR work

http://www.ceoforum.com.au/article-detail.cfm?cid=6326&t=/Charlie-Baker-Starbucks-Coffee-Australia/Making-Corporate-Social-Responsibility-Work-Starbucks-Australias-Charlie-Baker


INTRO :
The article includes a great interview with Starbuck's Australian Managing director regarding CSR with in Starbuck's organization. It discusses how Starbucks approaches CSR, what the CSR role should be, and how CSR has been implemented into the organization. In many of ways, the leaders of Starbucks are using the components of the Hill's Leadership Model in Chapter 11 to guide an effective team and company.

HOW THE HILLS MODEL IS USED EFFECTIVELY :
First off, the leaders realize that they have to continually take action to fulfill their corporate social responsibility. The leader in this cases decided totake action both internally and externally. " You also need to clarify and define the framework and objectives of why you want to take CSR initiatives and what you hope to accomplish," stated Baker. This is a huge action that Baker sees needed internally. The task performance is increased in subordinates because he is clarifying goals and structuring for results. He also puts in place recognition programs to let all be aware of the initiatives going on. Baker creates a strong vision and inspires motivation amongst his workers and teams to continue the CSR of Starbucks.
Relationally, Baker does a really nice job taking action with in his teams as well. " I see my job as being very much an advocate and an example." This goes to show how Baker is satisfying individual needs by advocating how vital the CSR is to all and supporting them each step of the way while modeling principled practices. Baker even allows workers to take a day off work to volunteer for a charity of their choice which is rewarding to team members. " I also sometimes participate in the actual planning sessions so that I can understand what their thinking is." Involving is another huge action Baker takes to get team effectiveness in which he collaborates well with his 12 member team.
Externally, Baker realizes he has to take action in order to improve the environmental interface with the team. The team looks out into the environment and analyzes ways to remain a top competitive company and continually sustaining their CSR. Baker is constantly networking with other like Plant Ark, Balmain Hospital, and other charities to help increase influence while at the same time advocating their cause. Their "Green Team" or CSR team, helps develop annual programs on how they can contribute in a positive way to the environment such as recycling or donating efforts to charities.

In conclusion, Baker seams to be acting appropriately internally and externally to really get great team performance and development, thus creating the team effectiveness needed to sustain Starbucks CSR. Baker monitors the team and intervenes or takes action when needed. Are there any other actions he may need to take to help out, that are not mentioned? Also, according the Larson and LaFesto's or Hackman and Walton research on pg 252 of the Leadership book by Northouse, do you see any group effectiveness or excellence indicators that may be displayed from this article? Lastly, can you pinpoint any personality types shown by Baker and the pros or cons associated with them?

- Kyle

2 comments:

  1. There are definitely many characteristics of team excellence throughout Starbucks' CSR team. Clearly the team as clear, elevating goal from the recognition programs and Baker's constant reminders to the team of what they can do. It also seems that the CSR team has standards of excellence. This is a team that seems very driven to do the best they can, and also as much as they can for their community. They are constantly looking for new ways to help. The team also seems to have a clear, engaging direction. Baker seems to be very clear about the teams goals, and what he expects of them.

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  2. I'm going to start by going over some of the characteristics the team has that prove team excellence.

    Clear, Elevating Goal-There is a clear goal. One can tell whether the performance objective has been realized by partners "giving back" and taking one day off to contribute to any charitable organization.Giving back to the community at a store level can be measured. If there is a situation like the bushfires at the store level they need no permission to take coffee to the firefighters and help out.

    Collaborative Climate- As in Northouse, "team members have specific and unique roles, where the performance of each role contributes to collective success." It is not all top down. The top does not make all of the decisions or do all of the work. At the store level they contribute to their smaller communities. The Green Team is asked to contribute what they think the company should focus on. "A very big issue for us is recycling, as you can imagine the amount of plastic that we go through, for example plastic milk jugs, cups, paper napkins and so on. The Green Team acts as an informal advisory board, to me and my leadership team, on what programs we should be supporting as a company."

    External Support and Recognition- The Managing Director participates in actual planning sessions so he can understand what the teams' thinking is.

    One problem I see is with a Unified Commitment. Baker says he participates with the Green Team and about 40% of their partners in tree planting with Planet Ark. I think that all members should be involved in this aspect. I do not think a sense of unity can be fully achieved without getting this percentage higher.

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