Few companies are as visibly proactive as Starbucks in supporting charity groups, implementing progressive labor practices, and fostering good neighbor relations. And in China, where the coffee company hopes for great growth, keeping the company's ethical and corporate visions aligned is important.
Dr. Eden Woon, vice president, Greater China for Starbucks, covers government affairs, public relations and corporate social responsibility for the global coffee chain. Starting with an education in mathematics, Dr. Woon has been a teacher, a military officer, and a non-profit director over the years. Now in his role at Starbucks for about a year, his varied background provides him the discipline and insight into navigating through China's growing economic opportunities.
What does your role at Starbucks entail and how do you execute your duties?
I am responsible for Government Affairs, Public Relations, and Corporate Social Responsibility. As you know, in China, government affairs can affect store operations, finance, store development, human resources, public relations, and a number of areas that relate to our operation in China. So I spend quite a bit of time on government relations. And I also try to make sure that our voice is heard in the media on a range of issues that relate to Starbucks in China. For example, we just finished designing the very first unified website for Starbucks in China, and I welcome you to take a look at www.starbucks.com.cn!
But CSR is what I enjoy the most, from helping to oversee the national CSR China Education programs Starbucks has in China and also working with our stores on local CSR programs in the communities. Fortunately, we have very passionate store partners—we call our employees “partners�?—who are very enthusiastic about CSR work in their neighborhood, and that gives my job great pleasure. I also have a great team in CSR both here and locally who are truly dedicated to CSR in their heart.
What type of training programs does Starbucks provide its staff and how does the company give incentives to its employees?
For the store partners, they undergo several weeks of extensive training as well as apprenticeship on the job on both how to be a barista and to understand the core values of Starbucks. This is so that they understand what we are as a company and can delivery that “legendary Starbucks service�? with a passion and dedication to each other, to customers, and to the community. Then there is continuous on-going training to help them in their job.
For those that do not work in stores, we try to get as many as possible to work in a store for a few days to get a flavor of the store life, which is so central to our company. In addition, we have cultural immersion in Seattle for our management team to gain insight of Starbucks’ history and the values we represent. Also, the coffee master program is designed for partners to gain sufficient coffee knowledge. Our new training officer from Seattle came on board a week ago. We believe more training for our partners will be rolled out soon.
For health and safety audits, what types of mechanisms does Starbucks use to ensure quality is provided to the customer?
Starbucks takes very seriously all the standards and regulations in China which guarantee a healthy and safe product for our customers. Therefore, we have a dedicated Quality Assurance team which oversees food and beverage and store environment. They work closely with our store partners, our food and beverage experts, our own supply chain people, and our suppliers. We believe very strongly that nutrition and safety are of prime importance and we want to be a responsible citizen in this area.
As Starbucks grows in China, how are the community outreach programs being implemented throughout the company?
We have six CSR specialists representing different markets which include South China, North China, Southwest China, East China, Hong Kong and Taiwan. They actively identify store partner volunteer programs that would make a difference in the community. Also they help bring diverse local social needs to the attention of the Greater China office.
How is the company working with local governments and partners in China to ensure continual expansion?
We are growing steadily in China, but we always make sure that not only is there a business justification for any new store, but that we have the right partners with the right training to operate the stores to provide the legendary Starbucks service to the customers. Therefore, “people�? is our top priority in China. And as I mentioned above, Starbucks maintains a good relationship with local communities and local governments, and that is very important for retail “on the ground�?.
When you hire staff to work directly with Starbucks, what types of qualities do you look for?
As I always tell young people with whom I speak, passion and integrity are the most important qualities a person should have. Skill and knowledge can always be acquired through training if the person has a great heart and the passion towards what they are doing.
What type of advice do you have for other foreign or domestic retailers and franchisers who are looking to enter the China market?
Never forget the core values and the characteristics that make your brand famous in your home country or elsewhere globally, but always be flexible to adapt to the special Chinese environment. Too much flexibility at the risk of losing your core attraction will lead to failure. But too much close-mindedness in seeing that China does have some unique local characteristics that affect your business will also lead to failure.
Why is Corporate Social Responsibility an important part of Starbucks' DNA?
If you take a closer look at corporate Social Responsibility in Starbucks, it is everywhere. It is in “our DNA�? as we like to say. In Seattle, we have c.a.f.e. practices and fair trade coffee purchases to make sure we treat our farmers well. For example, Starbucks encourages small farmers to grow more quality coffees (such as organic coffee and black apron coffee) by providing financial aid to them through out years.
In China, we have a US$5 million China Education fund to help unprivileged children in obtaining basic education. So far 1.5mil US dollars have been committed to the China Soong Ching Ling Foundation for rural teachers training and scholarship and for poor students enrolled in Teachers’ universities in China. On Global Water day this year, we committed US$600,000 to China Women’s Federation for water education for women living in drought stricken parts of China.
Finally, our store partners are our real CSR representatives. They actively come out with creative ideas and organize meaningful volunteer programs to help local people who are in need around their community. To us, these activities are truly organic and this is why we say that CSR is in our genes — right from the first day of the founding of our company I might add.
