In his first major speaking engagement as Starbucks Coffee Company’s president and chief executive officer, Jim Donald emphasized the importance of human connection, not only for Starbucks but for all companies. For Starbucks, he said, it’s part of the essence of the company. “It’s the human connection that helps us grow big and stay small,” he said. “That’s what makes us special.” Donald recounted the history of Starbucks, which began in Seattle’s Pike Place Market as a whole-bean roaster and producer. The feeling of human connection began there, he noted, connecting coffee farmers to consumers. “That store still reminds us of the importance of maintaining the intimacy of the human connection,” said Donald.

 “Intimacy” and “connection” are words Donald used frequently. Starbucks stores strive to maintain the intimacy of a neighborhood coffeehouse, he said, focusing on the human connection between the employees (whom Starbucks calls partners) and the customers. So close is this bond, sometimes, that employees have even accompanied regular customers to chemotherapy sessions or checked in on a customer who didn’t show up at his regular time, fearing that something had happened to him. Starbucks strives to “unleash the power of human connection” in its commitment to customers, said Donald. “We understand how long it takes to build a customer’s trust.”

Not only does Starbucks focus on its customers, it also has a relationship with its local communities. “Our customers become neighbors because we’re in their neighborhood,” said Donald. “We want stores to reflect the communities we’re in. We want to be a good neighbor and make a positive impact.” The human connection often leaves the store and goes out into the world. Starbucks employees and customers volunteer together in community projects through the company’s “Making Your Mark” program. The 90,000 employees and 9,000 stores in 35 countries make for lots of power for local communities, Donald noted.

Also of concern to the company is caring for the environment. “We’re all here on earth together,” said Donald. “We all share in the responsibility for protecting it.” Starbucks has begun using 10% post-consumer fiber in its cups, having engaged the FDA on this issue. As a result, Donald noted, the company is reducing virgin fiber by 5 million pounds. Starbucks also focuses on water and energy conservation. And of course, environmental stewardship is very important to the farmers.

The Starbucks founders, he said, wanted the company to be a reflection of their own values—values that have shaped the company culture. The founders had a belief, still alive today, that if the company upholds those values, success will follow. Driving the company’s success, said Donald, is the employees; to be successful, Starbucks believes that the company has to put its employees first, as in a family. Starbucks offers employee health benefits and stock options, among other benefits, with the result, said Donald, that the company’s employees feel valued. “The emotional connection with our partners,” he said, “allows us to create an emotional connection with our customers.”

Of course, customers won’t come if the product isn’t good. So Starbucks strives to deliver “the best coffee in the world.”  Donald said that Starbucks ensures that the coffee farmers receive premium prices and that standards of sustainability for farms are upheld. Continuing the human connection focus, Starbucks has made investments in coffee-growing communities and established relationships with the farmers.

“Starbucks has a culture focused on people,” said Donald. “Corporate citizenship must reflect a company’s values and be in the best interest of people.” But it’s also in the best interest of the business. Human connection provides a huge competitive advantage, Donald noted. This connection changes the way a company does business and changes the way a company is perceived. The moral: “You can have a good product and be a good company as well.”