Creativity and innovation in company values can drive both social impact and business success.
Investing in employee happiness, such as providing health insurance and involving parents, can contribute to business growth and retention in the Chinese market.
Deep dives
Groupon's Success with Digital Red Pockets in China
Groupon expanded into China and partnered with WeChat to launch a Digital Red Pockets campaign, offering extra money in virtual envelopes. The campaign quickly crashed WeChat's online platform, but once it was up and running, it became hugely successful and continues as an annual event during the lunar celebration.
Uber's Challenges in China
Uber faced tough competition in China from a local competitor integrated with WeChat. In an attempt to match the competitor's advantage, Uber launched a messaging platform called Yobo Bay and required its drivers to use it exclusively. When the Chinese government realized Uber was competing with WeChat, they shut down Yobo Bay. Uber eventually sold its China operations to its competitor and pulled out of the market.
Starbucks' Success in China through Employee Benefits
Starbucks faced initial struggles in China, but turned their fortunes around by focusing on employee happiness. They extended health insurance to every Chinese employee and their parents, and started inviting employee parents to annual company meetings. These initiatives boosted employee and customer retention, contributing to Starbucks' success in China.
Howard Schultz's Philosophy of Balancing Profit and Conscience
Howard Schultz, the founder of Starbucks, has always believed in balancing profit with conscience. From the beginning, he wanted to invest in his employees and provide comprehensive health insurance and stock options. He emphasizes the importance of building a company that focuses on people and values, which ultimately leads to both profitability and a positive social impact.
You can make your social impact and your bottom line work hand-in-hand. But you'll have to be as creative and innovative about your company's values as you are about the business itself. Howard Schultz, chair and former CEO of Starbucks, not only changed how America wakes up, but set new standards for employee benefits. From offering college tuition to American employees to providing health care for employees' parents in China, Howard has always been one step ahead of the social impact curve.