Introduction
Hobby Lobby Stores Inc (Hobby Lobby) is a specialty arts and crafts retailer. Tsuk (2021) notes that the company was founded on August 3, 1972, in Oklahoma City, Oklahoma, by David Green. The company, which started with a modest 300-square-foot store, now has over 900 stores in 47 states (Tsuk, 2021). The company has more than 43,000 workers. The company’s revenue is about $5 billion.
Mission Statement
Hobby Lobby’s mission statement is “offering customers exceptional selection and value. Serving our employees and their by establishing a work environment and company policies that build character, strengthen individuals and nurture families” (Comparably, n.d.). Thus, the organization’s mission contains three key aspects, including an exceptional product, the importance of employees, and a focus on customer satisfaction. First, the company strives not only to support creativity, but also to promote it. To do this, Hobby Lobby offers the broadest range of exceptional and valuable arts and crafts products. Secondly, the first part of the second sentence of the company’s mission reflects the importance of employees. The policy of Hobby Lobby is aimed at caring for its staff, which ensures a safe and friendly working environment for the team. Thirdly, the company aims to meet the needs of customers by offering unique products that will make people more creative and happy. Thus, the Hobby Lobby mission statement accentuates the significance of close relationships between the company and customers for business success.
The mission of the company has a significant impact on the attitude of employees towards the company. Thus, Comparably (n.d.) conducted a survey on the impact of the Hobby Lobby mission and its perception of the company’s staff. It was found that the mission is a motivating factor for 50% of Hobby Lobby employees. Moreover, 75% of respondents noted that the mission is a crucial aspect when looking for a job. In turn, 25% of employees indicated that the mission is the main reason for working in the Hobby Lobby. Therefore, the survey results show that mission is key to maintaining employee alignment.
Organization Structure
The organizational structure of the Hobby Lobby is of a hierarchical type, where management comes from bottom to top. The store manager, who is responsible for the operation of the company and the implementation of the head office strategy, is supervised by middle managers. The next managerial person is the managing director, who is managed by the executives and the CEO of the company. The key departments of the company include marketing, sales, purchasing, labor, and human resources. The chart below reflects the lead people of senior management:
Decision-Making Process
Biblical principles are a critical decision-making factor in the Hobby Lobby, which comes from the worldview of the chief executive officer of the company. Thus, a precedent was set in judicial practice when David Green filed a lawsuit against the US government for refusing to provide insurance coverage for contraception to company employees, which is recorded in the Affordable Care Act but contrary to his religious beliefs. In 2014, for the first time in practice in Burwell v. Hobby Lobby Stores, Inc. The US Supreme Court has ruled that business owners can use their personal religious beliefs to deprive their employees of the benefits they are guaranteed by law. The decision was widely criticized with regard to the fact that as a result of the satisfaction of the claim, employers were given the right to impose their religious beliefs on employees.
However, there is an alternative position on this issue. The decision of the Supreme Court is a testament to the solid political structure of the company. Thus, the satisfaction of the Hobby Lobby lawsuit can be regarded as a victory against government-imposed mandates that violate religious beliefs. The company’s insurance plan covers 20 different types of birth control, and in a lawsuit, Hobby Lobby objected to four on religious grounds. Thus, on the contrary, it can be noted that the company fought for equality and freedom of religion for its employees. Therefore, despite Hobby Lobby’s interpretation of this decision, the religious factor is nomadic in decision making.
Also, the Green religion significantly affects the company’s revenues. Hobby Lobby’s chief executive officer allocates considerable donations to various religious groups from the company’s budget. Hein (2021) notes that in 2012 Green donated half of Hobby Lobby’s total tax revenue to various evangelical Christian ministries. At that time, total donations amounted to about half a billion dollars. Thus, the decision-making process in the Hobby Lobby is entirely dependent on the religious beliefs of the leader.
Human Resource Practices
Hobby Lobby conducts a motivational policy toward employees in order to increase their productivity. Competitive salaries, as well as many perks are the main strategies for improving staff efficiency at Hobby Lobby. According to Hobby Lobby Career Center (n.d.), these include paid time off, medical, dental, and prescription benefits, personal hospital benefits, and life and LTD insurance. These benefits and compensations are awarded based on experience, education, and time spent in the Hobby Lobby. All this supports the motivation of staff for the growth and development of the business.
Since the religious factor is a critical factor in decision making, Hobby Lobby stores are closed on Sundays. Employees are also given a 15% discount. Thus, the motivational structure of the company is quite competitive in the market. Moreover, the company provides employees with training programs to improve their qualifications and knowledge. The main direction is working with clients and increasing their satisfaction. Training is vital for the development of employees and the increase in organizational performance with improved employee productivity.
When hiring new employees, a personnel reserve of potential candidates is created. HR matches personal qualifications, and the needs of the organization determine the new hire and the specific position. Nowadays, more than 43,000 employees work at the Hobby Lobby. The critical areas of work of the HR department are professional skills, motivation, satisfaction, and knowledge management, which directly affect the performance of employees. The company monitors and ensures equal employment opportunities. The recruitment process is transparent, and there is no bias or stereotyping throughout the entire process.
Social Responsibilities
When considering social responsibility, the religious factor appears again. According to Carpenter (2014), Hobby Lobby is a socially responsible corporation based on the deep religious convictions of its chief executive officer. One of the company’s activities is working with charitable organizations, donations to which are provided in the form of various public projects. Furthermore, national charities, churches, and schools receive a 10% discount at the store.
The above-mentioned Burwell v. Hobby Lobby Stores, Inc. case also testifies to the high level of social responsibility of the company. When the Hobby Lobby chief executive officer was pressed to provide benefits for certain contraceptive methods to employees that were contrary to his faith, he decided to fight it. By providing four specific methods of contraception, Green believed it would violate his religion in order to facilitate access to contraceptive drugs that work after that point. Thus, the leader fought for the equality of the rights of his employees and the freedom of their religion.
Conclusion
The company’s mission, which focuses on consumers and employees, also reflects the high level of social responsibility of Hobby Lobby. The values of the company are the key stimulus and the basis of activity. The company’s management intends to focus on the long-term sustainability of the business. However, in a market economy and increased competition, commitment to values and a focus on long-term sustainability can have negative short- or medium-term financial results. However, this is not a condition for changing the direction of activity. Tsuk (2021) asserts that Hobby Lobby leaders note that they may restrict the sale of products that appear to be inconsistent with the company’s values, despite the prospect of profiting from sales of that product category. Moreover, management can revise the company’s policy so that in the long run, it is as beneficial as possible, despite the current benefits. An equally significant statement is that leaders are developing alternative policies to reduce the company’s environmental impact, despite the high cost of such alternatives compared to current practices. Thus, the commitment to values rather than profit also indicates Hobby Lobby’s high degree of social responsibility.
References
Carpenter, D. (2014). A liberal’s second thoughts about Hobby Lobby. The Washington Post.
Comparably. (n.d.). Hobby Lobby mission, vision & values. Comparably.
Hein, M. (2021). Hobby Lobby: What to know about controversial founder David Green. Popculture. Web.
Hobby Lobby. (n.d.). Comparably.
Hobby Lobby Career Center. (n.d.). Why choose Hobby Lobby. Hobby Lobby Stores, Inc.
Tsuk Mitchell, D. (2021). Business as usual: Hobby Lobby and the purpose of corporate rights. Columbia Business Law Review, 1, 243-295.