Howard Schultz

  • Aired:  06/16/14
  •  | Views: 55,353

C.E.O. Howard Schultz describes Starbucks's plan to pay college tuition costs for all of its employees and discusses the human face of big business. (6:47)

[CHEERING AND APPLAUSE]>> Jon: WELCOME BACK.

MY GUEST TONIGHT IS THE CHAIRMANAND THE C.E.O. OF STARBUCKS.

PLEASE WELCOME TO THE PROGRAMHOWARD SCHULTZ.

SIR.

[APPLAUSE]HOW ARE YOU?

NOW, DO YOU HAVE A "DAILY SHOW"REWARDS CARD WITH US? OR IS

THAT? >> NO.

>>Jon: YOU CAN, IF YOU DO TENINTERVIEWS...

>> GOOD IDEA, THOUGH.

>> Jon: YOU CAN GET ONE OFTHOSE CASHEWS GLAZED WITH

CRANBERRIES OR WHATEVERTHE HELL YOU'RE SELLING

IN THERE NOW. HOW ARE YOU?

>> I'M GREAT.

TODAY WAS A BIG DAY FORSTARBUCKS.

WE HAD A BIG ANNOUNCEMENT.

>> Jon: NOW, TELL ME ABOUT THEANNOUNCEMENT. I HEARD ABOUT IT,

BUT TELL THE PEOPLE WHAT YOU'REDOING OVER THERE.

>> TODAY WE ANNOUNCED THATSTARBUCKS WOULD BECOME FIRST

U.S. COMPANY TO PROVIDE FREECOLLEGE TUITION FOR ALL OUR

EMPLOYEES.

[CHEERING AND APPLAUSE]THANK YOU.

THANK YOU.

>> Jon: IT IS MY JOB TO HATEEVERYTHING.

[LAUGHTER]I'M HAVING A VERY DIFFICULT TIME

WITH THIS.

THIS SOUNDS LOVELY.

WHERE ARE YOU SENDING THEM?

[LAUGHTER]>> WELL, LET'S START FROM THE

BEGINNING.

>> Jon: ALL RIGHT.

IS THIS GOING TO BE ABOUT YOUSTARTED WITH ONE SHOP IN

SEATTLE, BECAUSE I DON'T HAVETIME.

>> NO, NO.

>> Jon: ALL RIGHT.

>> UNFORTUNATELY, COLLEGETUITION ENDEBTEDNESS IS

TRILLIONS OF DOLLARS.

>> Jon: IT'S CRAZY.

>> THE AVERAGE COLLEGE STUDENTHAS $30,000 IN DEBT.

>> Jon: YEP.>> AND, WE'RE FALLING BEHIND.

WE ALL KNOW THAT.

SO, I THINK, WE CAN'T WAIT FORWASHINGTON.

WE'VE GOT TO STEP UP AS WE'VEDONE IN THE PAST AND DEMONSTRATE

TRUE LEADERSHIP.

SO WHAT WE'RE SAYING TO OUREMPLOYEES IS WE'RE GOING TO

PROVIDE YOU WITH SOMETHING YOUCAN'T GET ON YOUR OWN.

IT'S A PARTNERSHIP WITH ASU.

IT'S ONLINE.>> Jon: RIGHT.

AND I THINK IT'S TIME THAT WEALL RECOGNIZE THAT.

AND I KNOW YOU KNOW THIS, ANDYOU SPEAK ABOUT IT A LOT.

>> Jon: RIGHT.

>> THE COUNTRY'S HAVING SERIOUSPROBLEMS.

PEOPLE ARE BEING LEFT BEHIND.

>> Jon: THIS COUNTRY?

HOW DARE YOU, SIR.

YOU'VE GOT SOME VENTI BALLS, MYFRIEND.

[CHEERING AND APPLAUSE]NOW, HOW DID YOU END UP DOING

IT WITH ASU?

I'VE HEARD THAT ONLINE ASU ISPARTY SCHOOL.

>> YOU HEARD THAT?WELL, THE TRUTH IS THAT

ASU HAS THE BESTONLINE PROGRAM OF ANY UNIVERSITY

IN THE COUNTRY.WE'VE DONE A LOT OF HOMEWORK.

>> Jon: DID YOU APPROACH, YOU

JUST APPROACHED THEM AND SAID,HEY, IF WE DO THIS WITH YOU,

BECAUSE IT'S GOING TO COST YOU,I READ SOMEWHERE, I THINK IT WAS

FORBES, IF 3% OF YOUR EMPLOYEESTAKE THIS OFFER UP, AND IT'S A

GOOD OFFER, IT'S $50 MILLION.

>> IT WILL BE MILLIONS OFDOLLARS PER YEAR, BUT I THINK

HERE'S THE THING: WE'RE A PUBLICCOMPANY.

WE HAVE TO BUILD LONG-TERM VALUEFOR THE SHAREHOLDER, BUT WE'VE

RECOGNIZED A LONG TIME AGO WHENWE PROVIDED HEALTH CARE FOR OUR

PEOPLE, OWNERSHIP AROUNDPEOPLE, THE ONLY

WAY TO BUILD A GREAT, ENDURINGCOMPANY IS BY LINKING

SHAREHOLDER VALUE WITH VALUE FOREMPLOYEES.

AND I THINK THIS IS ANOPPORTUNITY I THINK TO DO

SOMETHING THAT NO ONE'S DONEBEFORE, BUT ALSO...

>> Jon: BUT WHY IS IT THAT NOONE'S... IT SEEMS TO MAKE

PERFECT SENSE WHEN YOU TALKABOUT IT FROM A HUMAN...

YOU KNOW, CORPORATIONS AREPEOPLE, WE'VE LEARNED.

[LAUGHTER]BUT GENERALLY THEY'RE

SOCIOPATHS.

[LAUGHTER]WHY IS IT THAT YOUR CORPORATION

IS ABLE TO DO THIS AND TREATTHEM HUMANLY?

[APPLAUSE]BECAUSE LISTEN, THAT'S A TOUGH

GIG. WORKING AT STARBUCKS,YOU DO GET GOOD PEOPLE,

BUT THAT'S NOT AN EASY GIG FORPEOPLE.

IT'S CUSTOMER SERVICE.>> NO, IT'S NOW.

>>Jon: IT GETS BUSY AS HELL.

PEOPLE CAN BE VERY DEMANDING.

THESE ARE NOT EASY JOBS.

AND I IMAGINE RETENTION ISDIFFICULT.

>> WE HAVE THE LOWEST LEVEL OFATTRITION OF ANY COMPANY IN OUR

SECTOR, BUT I WANT TO JUST GOBACK TO SOMETHING YOU SAID AND

WHY.

WHY AREN'T COMPANIES DOING MOREOF THIS?

>> Jon: RIGHT.

>> AND THE ANSWER IS THAT THEREHAS BEEN A ZERO SUM GAME.

THAT THE ONLY THING THAT MATTERSIS PROFITABILITY. AND WHAT I'M

SAYING, AND I THINK ALOT OF PEOPLE BELIEVE THIS,

THEY HAVEN'T BEEN HEARD, ANDTHAT IS YOU CAN'T JUST FOCUS ON

PROFITABILITY.

AND AN ENDURING, GREAT COMPANYHAS TO BE BASED ON MORE THAN

THAT. NOW, STARBUCKS IS APEOPLE-BASED COMPANY.

AND WHAT I MEAN BY THAT IS...

>> Jon: OH MY GOD, THAT'S WHAT'SIN THE COFFEE?

I THOUGHT IT WAS A COFFEE-BASEDCOMPANY.

>> NO, WHAT I MEAN BY THAT,WHAT I MEAN BY THAT IS THAT OUR

PEOPLE HAVE CREATEDTHE EXPERIENCE.

>> Jon: OH, OKAY.

>> WE HAVE TO DO EVERYTHING WECAN TO EXCEED THEIR

EXPECTATIONS.>> Jon: RIGHT.

>> THEY DON'T HAVE ACCESS TO ACOLLEGE EDUCATION.

WE WANT TO PROVIDE IT. ANDTHE TRUTH OF THE MATTER IS

THAT THE COUNTRY IS NOTPROVIDING PEOPLE --

>> Jon: RIGHT. ANYTHING.

>> -- AT LOWER LEVELS OF OURSOCIETY WITH THE THINGS THAT THE

PEOPLE WITH PRIVILEGE HAVE.AND WE HAVE TO DO SOMETHING

ABOUT IT. AND WE CAN'T WAIT FORWASHINGTON.

>> Jon: WHAT IS, LET ME TO TALKTO YOU ABOUT MINIMUM WAGE AS

WELL, BECAUSE IN SEATTLE, WHEREYOU'RE BASED, THEY'RE

THE FIRST CITY TORAISE IT TO $15. RIGHT?

>> YES.

>> Jon. SO, HAS THAT TAKENEFFECT?

>> NO. THAT HAS NOT, THAT HASNOT TAKEN EFFECT.

>> Jon: WHEN IT DOES, WILL ITRAIN CATS AND DOGS?

WILL DAY BE NIGHT?

WILL THE EARTH SPIN IN ANOPPOSITE DIRECTION?

BECAUSE FROM WHAT I UNDERSTAND,IF YOU PAY PEOPLE A WAGE THAT

ALLOWS THEM TO LIVE LIKE HUMANS,MEPHISTOPHELES RISES.

THAT'S WHAT I'VE HEARD. I DON'TKNOW IF THAT'S TRUE.

>> WELL, UH, HOW I DO ANSWERTHAT?

SEATTLE HAS APPROVED $15 ANHOUR.

IT'S GOT TO GO TO THE VOTERS.>> Jon: RIGHT.

>>I DON'T KNOW IF THAT'S THERIGHT NUMBER OR NOT.

>> Jon: RIGHT. >> WE'LL FOLLOW THE LAW.

I THINK THERE WILL BE UNINTENDEDCONSEQUENCES OF SMALL BUSINESSES

NOT BEING ABLE TO SUPPORT THAT.>> Jon: RIGHT.

>> BUT THAT'S NOT THE ISSUE. THEISSUES IS THAT

WE HAVE TO PROVIDE NOT ONLY AGOOD WAGE, BUT WE'VE GOT TO

PROVIDE TOTAL COMPENSATION. WHATI MEAN BY THAT

IS NOT ONLY COLLEGETUITION, OWNERSHIP, HEALTH CARE,

COMPANIES NEED DO MORE FOR THEIRPEOPLE.

THE COMMUNITIES THEY SERVE.

AND THAT'S THE ONLY WAY TOBUILD...

>> WHAT DO OTHER COMPANIES SAYTO YOU THEN?

ARE THEY, ARE THEY ANGRY WITHYOU?

LIKE WHEN YOU GO TO, YOU KNOW,CORPORATE BRUNCH OR

WHATEVER HAPPENS, LIKE ARE THEGUYS FROM WAL-MART LIKE

THEY SEE YOU AND THEY'RELIKE, ARE THEY MAD?

>> I THINK STARBUCKS HAS ALWAYSTAKEN A LITTLE BIT DIFFERENT

TRACK TO BUILDING A COMPANY.>> Jon: RIGHT.

>> AND I THINK WE'VE TRIED TOEMBRACE HUMANITY AS A CORE

COMPETENCY.

AND I THINK MOST COMPANIES HAVENOT BEEN ABLE TO DO THAT.

BUT, HERE'S THE THING, BECAUSEOF SOCIAL MEDIA AND THE FACT

THAT THERE'S SUCH TRANSPARENCY,THE CONSUMER TODAY KNOWS

EVERYTHING. AND THEY AREMAKING DECISIONS

NOT ONLY ON WHAT THINGS SELL ANDFEATURES AND BENEFITS,

BUT YOUR VALUES AND YOURSENSE OF PURPOSE.

AND IF YOU DON'T DO THE RIGHTTHING, THEY'RE GONNA REJECT YOU.

AND THAT'S WHY I THINK MOREPEOPLE WILL DO THE RIGHT THING.

>> WELL, I'M IMPRESSED BY IT.

I THINK IT'S A REALLY NICEINITIATIVE.

AND TO SHOW SUPPORT, I AM GOINGTO GO TO STARBUCKS.

I'M GOING TO BUY A COFFEE ANDEVEN ONE OF THOSE INDY FOLK ROCK

THINGS THAT I DON'T KNOW ANYBODYON THE ALBUMS.

>> THANKS, JON.

[CHEERING AND APPLAUSE]HOWARD SCHULTZ.

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