As he returns as CEO to the company he founded, Howard Schultz is clear about short-term trade-offs in order to invest more in Starbucks employees. Hired back partly to manage growing union activity, Schultz told employees, “I am not in business, as a shareholder of Starbucks, to make every single decision based on the stock price for the quarter,” and “Those days, ladies and gentlemen, are over.”

To manage expectations, Schultz also said, “For all of you following the stock price today and that the stock is going down, that’s a short-term thing.” He knows that messages to employees will be made public.

His communication is direct and sounds harsh, but it’s rather expected. Primary issues facing the company are about staffing—the tight labor market, rising wages, and union activity. He demonstrates integrity by being transparent. In this case, reinforcing what people already know.

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