Wednesday, April 27, 2016

Chobani: A New Shared Value Success Story

For a very long time Google has been the poster child of shared values. Both in media and in literature it has been consistently hailed for all the services it provides for its employees such as free hair cutting, free organic food, and spaces for recreational activities. Overall the verdict states that it is its relaxed and positive work environment that constructively inspires it employees.

However, recently, albeit one, through a significant step Chobani- greek yogurt manufacturers have given a new perspective to shared value. Business Insider reports that the company’s CEO- Hamdi Ulukaya, distributed 10% of the company shares within its employees. According to news analysis once Chobani goes public these shares may gain significant worth ranging anything from thousands to millions. As the CEO states that is not a gift that he is bestowing on his employees. Rather he wants to set an environment of shared purpose and responsibility. By this move the CEO has assured the future of its employees thus giving them more incentive towards working for the growth of the company. Also due to its responsible image the company may now be able to attract new consumers and retain loyalty of its existing ones.


Further this action goes beyond the company and the employees by showing the depth of its commitment towards the overall American economy. Previously Chobani has been known to pay its employees well above the minimum wage. The positives of these actions are reflected in the overall economy when the employees invest in assets such as homes and cars. Stemming from this the distributed 10% going to enter the market in various methods to be reinvested thus creating more opportunities.

References:
http://money.cnn.com/2016/03/31/news/economy/chobani-minimum-wage/
http://www.bbc.com/news/business-36146335
http://www.businessinsider.com/chobani-ceo-hamdi-ulukaya-gives-shares-to-employees-2016-4

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