Starbucks & Lenovo: making a difference

Welcome to part two of a series on my favorite topic, Bleeding Heart Capitalism.

For years now, I have been studying corporate giving. It fascinates me: how companies do it, what causes they support, and more than anything, how much of the pie they share with those who could really use the help.

For instance, it’s probably no surprise to anyone, but I’m a huge fan of Starbucks. I wrote at least half of my first book in their stores, most notably the one in Canton, Massachusetts. Quite recently, I’ve been using various Starbucks around Naples for meetings and to access the Internet when out of the office. I am most often found in the location on 41 and Central Avenue or 5th Avenue South.

I like the coffee, of course, but what keeps me coming back to Starbucks is the touchy-feely component: the spirit of do-gooderism is genuine, at least among a large number of front-line employees and managers. Jane’s mommy job* is at another of their locations, so I’ve benefited from an inside look at this firm for several years now.

According to the company, Starbucks gave 4% of its pre-tax profits to charity in 2006. They gave 1.7% in 2007.

“Pre-tax:” that’s good. If you’re disappointed that their percentage dropped by more than half, remember that they are in a world of hurt at present, due to the confluence of over-rapid growth and this unfortunate economy we’re in now. They’re still growing, though, so buy their stock. As the economy recovers, you’ll be glad you did.

Another firm I’m crazy about is Lenovo, makers of the ThinkPad notebook computer. According to their own advertising,

“Lenovo dedicates 1% of its corporate income to help entrepreneurs in distressed communities around the world put their ideas to work. This home-grown development approach has resulted in thousands of new businesses, helping people transform their lives and communities.”

That’s cool. If my next computer isn’t a Mac, it just may be a Lenovo.

Only one percent, though, huh? I find that interesting. Lenovo is able to brag about giving one penny per dollar of its “corporate income” to help others. For this marketing gimmick to work, it means that most companies don’t even give one percent. One percent is clearly very, very special. (Either that, or the marketing types at Lenovo are very, very brazen.)

I need to research what they mean by “corporate income.” Is that gross revenue or net? Pre-tax or post? That make a whole lot of difference. I promise to get back to you on this.

In my next entry, I’ll share more about corporate giving, including one local firm that’ll knock your socks off: Tithe & More.

http://www.starbucks.com/sharedplanet/index.aspx
http://www.lenovo.com/social_responsibility/us/en/social_investments.html


*Is “mommy job” a patronizing term? I hope you don’t think so. Jane used to be a top manager with an esteemed firm up in the Boston area. Then she founded a very successful company with me, and then she wrote a book on business excellence. But somewhere in there, we realized that if she didn’t get out of the house and home office for at least a few hours each week, she might end up killing me. Jane chose to be a barista at Starbucks because she liked the company as a customer, and also to take advantage of the part-timer health insurance (another very, very good sign that this company is the real deal).

So what makes it a “mommy job,” and not just a “job?” I think it’s all about intention. Jane has resisted promotion at every opportunity. Dealing with the public, making drinks, working alongside teenagers, Jane is in heaven. No pressure, no ambition, just something to let you have a life. This is the definition of a “mommy job” – or a “grandpa job” if you’re retired, or a “daddy job” if you were born with a trust fund, I suppose.