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Inside Starbucks’ Wildfire Relief Efforts · Communication Breakdown

• 0:00
  Welcome back to Communication Breakdown, a new podcast from the Observatory on Corporate
• 0:07
  Reputation.
• 0:08
  Thanks for joining us.
• 0:09
  I'm Steve Dowling in Silicon Valley.
• 0:12
  And I'm Craig Carroll in New York City.
• 0:14
  Each week, Steve and I take a look at strategies companies are using to shape headlines
• 0:18
  and sometimes save their skins.
• 0:21
  It's a post-game show for PR Pros.
• 0:23
  This week, companies pitch in for wildfire relief.
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  We hardly need to go through the background briefing for this one.
• 0:30
  It's been playing out in real time on your TV and in your timelines.
• 0:34
  Los Angeles, Altadena, Eaton Canyon, Pacific Palisades- thousands of acres, thousands of
• 0:40
  homes, incinerated by wildfire. Tens of thousands of residents displaced, many now homeless.
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  As we record this, on January 16th, the fires have claimed the lives of 25 people.
• 0:52
  Damages are estimated in the range of $250 billion, which would make it by that measure the
• 0:58
  costliest natural disaster in the US history.
• 1:02
  As the fires raged, major employers and Los Angeles, notably the entertainment industry,
• 1:06
  were quick to step up.
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  The Walt Disney Company pledged $15 million in relief aid and that figure was matched by
• 1:12
  Warner Brothers Discovery.
• 1:14
  YouTube later announced a $15 million donation as well.
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  Netflix, Amazon and Comcast have all pitched in $10 million a piece, Sony and the NFL, which
• 1:24
  has two franchises in the LA market, each pledged $5 million.
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  Several other companies and individuals have announced seven figure donations as well.
• 1:34
  Beyond cash, Airbnb is arranging free temporary housing for those seeking shelter from the wildfires.
• 1:40
  Planet Fitness made locker room showers available and countless restaurants served up free meals.
• 1:45
  Those are just a few examples of how companies both played their strengths and also got
• 1:49
  creative.
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  There's no debating the necessity or motivation for the spirit of corporate citizenship,
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  especially when it hits an entire industry so close to home.
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  Instead, this week we look at some of the more noteworthy efforts and take a deep dive
• 2:02
  on how one company in particular moved fast to support the LA community.
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  The company is Starbucks and if you've visited one of their stores or opened their mobile
• 2:11
  ordering app as millions of people do every day, you might have seen that they're using
• 2:15
  those ubiquitous marketing channels, not just to sell iced matcha lattes, they're encouraging
• 2:20
  customers to support wildfire relief, linking to a donation page in partnership with the
• 2:25
  American Red Cross.
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  And it's not the first time they've run appeals like this during natural disasters.
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  What stood out for us this time was how quickly Starbucks was able to mobilize.
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  The wildfires spread across Los Angeles on a Tuesday and Starbucks had the Red Cross
• 2:41
  donation campaign up and running in stores the following day and in their app the day after
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  that.
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  Steve and I checked in with our mutual friend Dominic Carr who serves as the Chief Communications
• 2:52
  and Corporate AffairsOfficer at Starbucks and he says they're able to swing an action thanks
• 2:57
  to an established playbook and cross functional processes ready to go when disaster strikes.
• 3:03
  Yeah, we wanted to understand how this came together at Starbucks because they executed
• 3:07
  so quickly.
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  From an outsider's point of view, you might think, Hey, there's a big fire, somebody turned
• 3:11
  on the Red Cross donations, what's the big deal?
• 3:14
  But there are some really key judgment points for any consumer facing company here.
• 3:18
  And from what we learned, Starbucks is early warning system, if you will, is usually their
• 3:23
  global security team, which they stress is focused on employee safety.
• 3:27
  That global security information feeds into a cross functional group, including comms,
• 3:33
  government affairs, the Starbucks foundation, their social impact team, as well as key
• 3:38
  operational leaders.
• 3:40
  And it sounds like in a case of a major emergency or natural disaster, once they know they have
• 3:45
  a good read on the situation from a security point of view, they can move quickly to what's
• 3:49
  going on in the community, what resources does Starbucks have that might be of help.
• 3:55
  And that's where their playbook kicks in. For situations like the LA wildfires, Starbucks
• 3:59
  can move quickly because first they have an existing relationship with the American Red
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  Cross as well as World Center of Kitchen.
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  And of course, on top of that, as we mentioned earlier, the marketing channels are a critical
• 4:10
  part of getting the word out to customers.
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  So Starbucks can spin up in-store signs, they can do outreach to tens of millions of people
• 4:18
  on their email list.
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  And they can implement this really critical app functionality that enables donations directly
• 4:24
  to the Red Cross.
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  It's not as simple as throwing a switch, but at some level, they do have it ready to go,
• 4:32
  so they can turn it on.
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  And clearly in this case, they did it very quickly.
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  And for those who are listening and looking to make a donation, we're going to include
• 4:41
  a link to that page in the liner notes for this episode.
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  I'll say for me, what was fascinating about this, I used the example of flipping a switch,
• 4:50
  is that, okay, sure, it's not as simple as flipping a switch, but the beauty of it is,
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  it sure feels like it's flipping a switch, right?
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  And it's about all the hard work, the preparation, the foresight, and being prepared.
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  Of course, the world can unfold so many different ways.
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  You can't respond to everything that you can anticipate and throw your resources in so
• 5:11
  many different directions.
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  But in this particular case, right, Starbucks was ready and "able to flip the
• 5:17
  switch."
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  But tied to that also was their ability here to -
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  It's not even right to say work through their employees because what was so powerful here
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  was that a lot of the work that was going on with Starbucks response was on the ground
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  for through the employees themselves driven by the employees, taking ownership, taking action,
• 5:37
  moving on their own.
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  And then Starbucks just not getting in the way and seeing the great things that their
• 5:43
  employees are doing and jumping it to support it, amplify it, and make it easier to flow
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  and it happened.
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  Yeah, one of the big questions in my mind going into this conversation was, is this a
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  top-down process as you would probably expect, or is it a bottom-up process or can it be?
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  And the way Starbucks described it, they're equipped for it to go in either direction thanks
• 6:03
  to this cross-functional organization.
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  Obviously, big donation or activating that red cross-relationship happens at the corporate
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  level.
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  But in identifying the need, to Starbucks credit, the stores and the employees, Starbucks calls
• 6:15
  them Partners, they do apparently have a voice.
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  And one, I thought really interesting proof point of this was that they're actually getting
• 6:23
  as much, if not more, or were last week getting as much attention anecdotally for a new policy
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  that was communicated to their stores saying, wildfire first responders can get a free cup
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  of coffee, which is just a nice gesture of thanks and acknowledgement to the work that's
• 6:41
  going on all around them.
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  And as Dominic told us that actually just formalized a practice that was already happening
• 6:48
  and started with store employees who were bringing coffee to fire houses or handing them
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  out to first responders and doing other community outreach that just seems neighborly, especially
• 6:59
  in a time of crisis.
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  I think that's a great way of looking at it.
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  I mean, often we talk about authenticity, but just this neighborly approach and being
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  there, being in the community, taking action and being engaged at the local level.
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  And right now, it's so critical given the severity of the crisis there.
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  Yeah, that is tricky, though, because putting anything in front of a customer,
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  let alone an audience of tens of millions of customers takes really serious consideration.
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  There's the messaging consideration, the placement, the positioning of it and the cadence
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  of it.
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  I mean, there are tragedies and hardships every day all over the world and nobody can address
• 7:42
  them all. You would like to.
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  But if you're doing, you hate to say too much, but if you're doing this all the time, then
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  it doesn't really stand out.
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  And of course, Starbucks does have an ongoing relationship, as we said, with the American
• 7:58
  Red Cross, World Central Kitchen.
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  But this one, given the scale, it seems like a no-brainer, but somebody does have to make
• 8:05
  that decision.
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  And to do it quickly, you need a really robust process to do it right.
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  Let's look at another aspect here about how Starbucks responded.
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  For me, in our discussion with Dominic, it was very instructive to hear how Starbucks
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  was working on the local level, not only letting employees take the lead and empowering their
• 8:26
  employees or really just supporting their employees, but also the response that they had in
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  terms of coordinating and aligning with the government.
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  That might be something that's always there, but I think given the say to this crisis,
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  it's super important.
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  This is not a moment where you want to be tripping over your toes or getting in anybody
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  else's way.
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  And that's something that a lot of governments talk about when companies try to help is
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  that they sometimes outshine by doing things their way instead of the way in which the local
• 8:57
  community or the government needs for things to be productive or to stay on track and to
• 9:03
  help everybody as a whole.
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  Yeah, it's interesting because this cross-functional group inside of Starbucks, as it was described
• 9:09
  to us, is not just communications and government affairs.
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  There's safety aspects of it.
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  There's the operational aspect of it and in a crisis, as it was described, they wear two
• 9:22
  hats.
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  Once something, this magnitude happens, the organization flips and everybody understands
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  what they're doing in that crisis situation and a lot of the response is the local team
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  or the local store and they're so close with they can help inform corporate decisions about
• 9:40
  what the community might need.
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  But I found it really encouraging that there was this listening aspect, because when you
• 9:51
  have, I think Starbucks has somewhere in the order of 400 stores in the LA area, that's
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  a phenomenal resource for a corporate affairs, corporate communications leader at corporate
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  headquarters in this case in Seattle, but could be even farther away.
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  And so I found that level of cross-functional coordination and having the, effectively,
• 10:16
  the listening post, whether it's listening to customers, listening to first responders
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  and local governments, but that, I thought, was really flexing the power of having this
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  huge distributed network of not just stores, but people and community members.
• 10:36
  Absolutely, right?
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  And when we think about cross-functional, we normally think about internally, but here's
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  an opportunity for thinking about it, not just internally, but externally, as they're coordinating
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  and cooperating with local government officials, right?
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  I mean, that's so important.
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  And certainly, in moments like this, where we have crises at this scale, this is probably
• 10:56
  the only time that we're going to see the importance of taking such action and having
• 11:00
  that.
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  So it certainly speaks to the need of having your government relations team connected to
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  your communications team.
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  And for me, it just shows, you know, from a corporate affairs perspective, right?
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  The importance of working together alignment.
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  And something we've not really talked about is the dexterity for being able to take action
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  quickly, right?
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  I mean, you've got to have the muscles, you've got to have the speed.
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  And it's not something that you can do in the moment.
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  You've got to be prepared for those moments to be able to move that fast.
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  And I don't mean just internally.
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  I mean, externally, as they work with local government officials, right?
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  And they work to cooperate, align and coordinate and recognize, okay, you know, they may have
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  had another plan.
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  But once they heard what was needed on the local level, they could take what they had planned
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  on doing and work through what was needed at the local level for what they needed, not
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  helping on their terms, but helping on the terms of the community there.
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  And put another way and simplifying it quite a bit.
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  We'd call that being part of a community, which I think is the goal that we're hearing from
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  Starbucks.
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  And I think in a lot of ways, seeing play out in this wildfire response.
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  Given the lack of response that I've seen, so we went out and looked at what other companies
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  were doing.
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  And we saw that like maybe 32 of the Fortune 100 had reported doing anything in the area.
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  And we just, noting the absence of what companies were doing publicly or at least saying what
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  they're doing publicly, maybe they are doing things privately.
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  As for companies who aren't taking action, I think the questions that companies face here
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  are what can a company do, what should a company do, and what form should that take?
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  You know, we were talking earlier about this bottom-up idea that turned into a Starbucks
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  policy of giving free coffee to first responders.
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  But I think that authenticity makes campaigns like these so impactful companies.
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  Each play a role in the market.
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  They each have their areas of expertise.
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  Sometimes unique areas of expertise.
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  Sometimes they are leaders of a commodity sort of market.
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  But when they have expertise, it makes sense for them to lend it in a time of need.
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  And I was struck by Disney's idea.
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  They have this incredibly creative team called the Imagineers who design theme parks among
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  other things.
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  And you know, Iger says maybe they'll help with urban design.
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  It's an application of their expertise.
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  It's something that makes sense.
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  Airbnb, they know where there's available housing.
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  Planet Fitness has a lot of showers.
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  And Starbucks makes coffee.
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  So as always, in crisis response like this, just in everyday corporate communications,
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  like authenticity is the coin of the realm.
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  And I think it's great to see companies leaning into that when they can be so impactful in
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  a time of need.
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  It's one of those situations when you say yes, them doing whatever they're doing, it just
• 14:10
  makes sense.
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  Yeah, I like the idea of starting with authenticity.
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  I think there's a little bit more there.
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  It's not just about being authentic.
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  It's about authenticity tied to their area of expertise or their zone of genius.
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  Right.
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  What are they known for?
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  What are they good at?
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  What are they doing the market and turning and flipping it to provide some type of community
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  need here?
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  I think that is huge because authenticity by itself is not enough.
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  If they're not connecting to the local need and to what needs to the needs of their community,
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  what has to happen now and here.
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  Right.
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  And let's say it without being cynical about it, it reinforces a leadership position.
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  It reinforces that level of expertise and it also shows the value that a company has in
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  giving back.
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  Yeah.
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  Right now, what I'm not seeing is a lot of self promotion, right?
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  All the examples that are going on, it's very clear that all the players are focused
• 15:06
  on the crisis, focused on helping employees, communities and their taking action and they're
• 15:12
  not drawing a whole lot of attention to themselves.
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  You see very little of companies promoting what they're doing.
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  I mean, that was kind of refreshing, right?
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  When you think about other crises and other moments, what do we think about, for example,
• 15:26
  during the George Floyd crisis during the pandemic or Russia's invasion of Ukraine, there
• 15:33
  were other moments when companies have spoken up or other disasters.
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  But this one here, certainly I would say it looks like many companies are publicly silent,
• 15:42
  right?
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  We're not seeing very much out there.
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  But that doesn't really matter as much as the people who are impacted and the people who
• 15:49
  are affected, getting the needs that they have met at the local level, right?
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  So whether it's companies simply, first and foremost, taking care of their own employees
• 15:58
  at the local level or working through their communities, it's very clear that they are
• 16:03
  not focused on this from a self-promotional aspect.
• 16:06
  And I think the unspoken message there is that the companies who are making these donations
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  or making these relief efforts, gestures, they are focused on the work, they're focused
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  on the results and helping people through this difficult time.
• 16:20
  I think it's important to note, maybe we should have earlier, that we reached out to Starbucks
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  about this.
• 16:24
  They didn't reach out to us, but beyond an Instagram post when the campaign kicked off, they
• 16:29
  haven't done any proactive PR about it.
• 16:31
  And I think that's the right way to handle it.
• 16:33
  They don't need to do it for reach if you're a Starbucks customer.
• 16:37
  It's not in your face, but it's also hard to miss.
• 16:39
  They sent an email to tens of millions of customers, mine arrived on the Saturday of the
• 16:44
  11th, and I had already seen the donation link in their mobile app.
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  The Balancing Act is that you want people to see it.
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  You want people to see it for the right reasons.
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  You're marketing it for that reason.
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  And yes, it has ultimately, in the long run, it has ancillary benefits for your reputation
• 17:03
  and maybe for sales.
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  But you don't want to push that to hard.
• 17:07
  And importantly, you don't want to be perceived as pushing it for that reason.
• 17:13
  And I think the companies that I have seen are certainly earnest in that way.
• 17:17
  For me, another thing that we're seeing here is that this case certainly shows that there's
• 17:21
  a lot more than just communications, or it's certainly about how communication needs to
• 17:27
  be connected to other parts of the company and company's response to crises.
• 17:32
  So Dominic shared with us that they were very much aware of what the employees are doing
• 17:37
  on the ground floor and that they were able to respond and support what was happening
• 17:42
  at the local level.
• 17:44
  Second, from an audience perspective, it did look like they flipped the switch, but it's
• 17:48
  very clear there was a lot of work that had to be done ahead of time to prepare for that
• 17:53
  moment.
• 17:54
  But at the end, it's not just about communications, right?
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  It's not just about building awareness or getting the word out in terms of safety and security
• 18:03
  on the local level or building alignment here.
• 18:07
  It's also about connecting and cooperating, meeting the needs, being able to move quickly
• 18:12
  and swiftly, coordinating and cooperating here, right?
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  So this degree of being synchronized and in sync, not only internal with your team, but
• 18:24
  in sync with the community needs and in sync with government officials and others, other
• 18:30
  authorities that might have more insight or more or additional resources that you need
• 18:34
  to play into.
• 18:35
  Yes, and I think that's where you really see an effective cross-functional organization
• 18:42
  pay off because there's no one organization that can do all of these things.
• 18:46
  Or would you want them to because it touches so many parts of the organization and to be
• 18:50
  effective, you need that coordination, that cooperation internally and to your point externally
• 18:58
  as well.
• 18:59
  But I would not discount the impact that the communications function can have during this
• 19:05
  because I think flipping those marketing channels and aiming them at this effort is really
• 19:12
  powerful.
• 19:13
  This is the power of a mass consumer marketing operation harnessed for good between
• 19:19
  email, the mobile app, in-store signs, think of them as mini billboards with traffic like
• 19:24
  a Starbucks can have.
• 19:25
  They're reaching tens of millions of people and they're handing them off to the American Red
• 19:29
  Cross.
• 19:30
  And if there's an equivalent to a selfless act in digital marketing, I think it's sending
• 19:34
  someone to another website.
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  And of course, it's not entirely selfless, but it's a gesture that builds trust.
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  It conveys some humanity.
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  It shows priority over short term business goals.
• 19:45
  And when we talked to Starbucks, they said that they had already had just a few days after
• 19:49
  it, they had turned it on.
• 19:50
  They had already had thousands of donations and it can hopefully really have impact for
• 19:57
  people who are in need.
• 19:59
  Yeah.
• 20:00
  Well, for me, this is a great, this whole situation here is a great example of why we need this
• 20:06
  idea of corporate agency, right, of this, this ability to take action not only as a collective
• 20:13
  actor, but for them to say empower employees is not the right thing because their employees
• 20:19
  were taking action.
• 20:20
  It's not like they're allowing their employees to take action.
• 20:24
  Their employees took action and they simply supported what was occurring on the ground floor.
• 20:29
  Now, you could certainly say that this is a crisis and everybody's going to wake up and
• 20:33
  they look, you know, the house is on fire.
• 20:35
  We got to do something and be prepared to respond.
• 20:39
  But knowing how to respond and to take action and thoughtful, meaningful ways that are
• 20:44
  aligned with the community needs, that's huge and it's not something it's going to be done
• 20:48
  without worth thought because they're members of that community, right, because they're actually
• 20:53
  living, working, interacting with people in their community.
• 20:56
  And that, you know, is a gold star for any store in Starbucks or any other store network.
• 21:04
  I keep coming back to this idea of authenticity.
• 21:07
  You refer to it as the, their zone of genius, which I think, you know, makes total sense.
• 21:14
  And by coming at it in the way so many of these companies, I think are, which is let's
• 21:19
  look first at what the need is and then let's figure out where we can be most effective.
• 21:25
  They're coming at it in the right way.
• 21:28
  And for companies who have a large employee base in that area, it makes sense to be writing
• 21:36
  large checks because, you know, they want to have a broad impact.
• 21:40
  I think it's hard to knock a company right now for not making a massive donation and we
• 21:45
  could argue, you know, what is the right amount given the company's role in the community
• 21:51
  or their resources that they have.
• 21:54
  But I think it can be tough to look around and go, we would really like to help, but it don't
• 21:58
  really know where we fit in.
• 22:00
  And that's the type of thinking that I think has to happen prior to a situation like this.
• 22:07
  But I think it really does come from what is our expertise, what is our role in the community,
• 22:12
  what is, how do we serve the market on a day to day basis?
• 22:15
  And how would that fit in if the community, you know, were in need?
• 22:19
  And for the companies who are writing checks, I think if you're only coming to the realization
• 22:23
  that you need to do something because your competitor or your peer is already doing something,
• 22:27
  that's a problem.
• 22:29
  But it's broader than how you're organized around any given crisis.
• 22:34
  Well, that's a problem, but hey, at least they're doing something.
• 22:36
  It might be for the wrong reasons, but if they're able to help people, you know, we shouldn't
• 22:42
  discourage them from doing that.
• 22:44
  I think this situation also gives us an opportunity to think about a major change that's
• 22:49
  occurring right now.
• 22:51
  And I think the last time that I really thought about it at this level was, you know, during
• 22:55
  the pandemic.
• 22:57
  But what I see here is an opportunity here is for companies not to think not only about
• 23:02
  their situation and their employees, but look, there is a part here for the larger community.
• 23:08
  And you know, it used to be that we would say, you know, groups organizations exist to accomplish
• 23:13
  goals that only that individuals can accomplish on their own.
• 23:17
  And this case shows us that's not good enough.
• 23:19
  That doesn't scale anymore, right?
• 23:21
  This case shows us that it's about how organizations and their communities, right, cooperating
• 23:28
  and working together can accomplish goals larger than what a company can accomplish on
• 23:35
  their own or what the community can accomplish on their own.
• 23:38
  And I think, you know, we see some, you know, this with the Starbucks example that we just
• 23:42
  kind of went through here.
• 23:44
  And some of the other examples from the media industry, the tech industry, the NFL and
• 23:49
  the auto industry, NLA gives us some other examples here.
• 23:53
  But that's something I want to leave us with is that, you know, it looked certainly got
• 23:58
  to take care of your employees first, make sure that they're taking care of, but when
• 24:02
  crises like this happen, we've got to be able to think about how we can connect, not only
• 24:07
  cooperate and collaborate with government officials, community officials, but think about
• 24:12
  how working together and cooperating, we can accomplish something larger that no
• 24:17
  part can do on the road.
• 24:19
  Couldn't have put it better myself.
• 24:20
  And Craig, you've lived and worked in Southern California like so many folks, we each have people
• 24:25
  we care about in L.A. and our hearts go out to everybody that's been affected.
• 24:28
  And again, for those who are looking for a way to give, we're including a donation link
• 24:32
  in the liner notes for this episode of the podcast.
• 24:37
  That's our show for this week.
• 24:38
  Our thanks to Dominic Carr at Starbucks for insight on Starbucks wildfire
• 24:42
  relief efforts. And as always, our podcast would not be possible without the support of the
• 24:47
  PeopleForward Network and our producer, Shawn P Neal.
• 24:50
  If you have feedback for us or a topic you'd like to suggest for our show, we'd love to
• 24:54
  hear from you.
• 24:55
  Our email address is podcast@ocrnetwork.com or feel free to hit us up on LinkedIn.
• 25:01
  Communication breakdown is some production of the Observatory on Corporate Reputation.
• 25:04
  I'm Craig Carroll and I'm Steve Dowling.
• 25:07
  Thanks for listening.
• 25:08
  Hang in there, L.A. We'll be back next week.
• 25:09
  [MUSIC]