The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Tuesday, April 26, 2022

Strategic CSR - Discrimination

The article in the url below tells a story that has been apparent for a while, but something that seems non-obvious to most businesses:

"While businesses across the U.S. struggle to find enough employeesBitty & Beau's coffee shops say their attrition rate is near zero and they're inundated with applications every time a location opens. That's because the chain primarily hires workers from a demographic advocates say has an unemployment rate above 80%: people with intellectual and developmental disabilities."

As noted by one of the co-founders of the company:

"'There's an untapped labor force of people with disabilities in every community,' says Amy Wright, who co-founded the company with her husband, Ben, six years ago. 'Most of our employees have never had a job before.'"

And, these employees dominate the business:

"Almost 90% of the 350-plus employees at Bitty & Beau's 11 locations have a disability, doing everything from working as baristas to helping plan strategy in the corporate office."

What is even more uplifting is that there appears to be strong demand for this business model:

"In 2020, Bitty & Beau's shifted to a franchise model. On their own the Wrights could open only about one location each year, and they were fielding requests from people across the U.S. who wanted a shop in their town. The company says it's on track to expand to 27 locations in more than a dozen states in the next year or so, and within a decade the Wrights aim to have at least one shop in all 50 states."

And the business is both competitive and successful:

"The cost of opening a location ranges from $350,000 to more than $700,000, including a $40,000 franchise fee (roughly in line with what big fast-food chains charge). In exchange, franchisees are given the right to use the name, along with training and detailed guidelines for furnishing and operating the shop. The Wrights say that given the number of requests they get, a big part of their job now is vetting potential franchisees to ensure they're going into the business with the right intentions and will abide by their rules for running a shop. 'We say no to people more than we say yes,' Amy says."

 

Everything about this is good:

 

"At the recently opened outlet in Bethlehem, Pa., one wall is packed with clothing, beach towels, mugs, and other merchandise bearing awareness-raising messages like 'radically inclusive' and 'not broken.' Even the Wi-Fi password—'abletowork'—underscores the chain's mission of providing jobs to people with disabilities. Every cup of coffee, pastry, and product sold comes with a handwritten note of gratitude."


The only thing I would do differently is not include the "note of gratitude." This is not a charity, it is a fully functioning business with an effective business model characterized by low employee turnover, and is differentiating itself in a very creative and successful way. In short, it creates value for all of its stakeholders. When I read this story, it reminded me of Dave's Killer Bread (see Strategic CSR – Dave's Killer Bread) that also deals with a population that is discriminated against in terms of job opportunities – felony convictions:


"One in three of our employee partners has a criminal background. At Dave's Killer Bread, we believe everyone is capable of greatness and that a second chance can lead to positive lasting change. In 2015 we introduced our non-profit, the Dave's Killer Bread Foundation, with the mission to inspire other businesses to become Second Chance Employers and affect positive societal change."


Take care

David


David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (5e)

© Sage Publications, 2020


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Building a Future for the Disabled, One Cup of Coffee at a Time

By Anna-Louise Jackson

April 11, 2022

Bloomberg Businessweek

https://www.bloomberg.com/news/articles/2022-04-11/bitty-beau-coffee-shops-put-disabilities-front-and-center