The Human Spirit - Howard Schultz

I grew up in federally subsidized housing in Brooklyn. I was part of a generation of families that dreamed about the American dream. My dad had a series of blue-collar jobs. An uneducated man, he was kind of beaten by the system. He was a World War II veteran who had great aspirations about America, but his dream was not coming true.

At the age of seven, I came home one day to find my dad sprawled on the couch in our two-bedroom apartment in a full-leg cast; he had fallen on the job and broken his leg. This was way before the invention of Pampers, and he worked as a delivery driver for cloth diapers. He hated this job bitterly, but on this one day, he wished he had it back. In 1960 in America, most companies had no workers' compensation and no hospitalization for a blue-collar worker who had an accident. I saw firsthand the plight of the working class.

That experience had a significant effect on how I see the world. When I got into a position of responsibility at Starbucks, what I wanted to try to do was build a kind of company that my father never got a chance to work for.

We at Starbucks have been trying to create an industry that did not exist, and a kind of brand that was very unusual. One real anomaly is that we have spent very little on advertising. We've had corporate executives try to understand how a brand could become so powerful and ubiquitous with so little promotion. The truth is we had no money to advertise, so we had to figure out a different way. We said to ourselves that if we wanted to build a large enterprise and a brand that had meaning, relevance and trust for all its constituencies, then we first had to build trust with our employees. So we tried to co-author a strategy in which those who worked for the business were really part of something. As a result, in 1989 we began to provide equity in the form of stock options to our employees.