In a 1-2 page policy memo, drawing on the readings and lecture, address issues of policy definition based on the case study: ‘Starbucks: Opposing a Local Tax to Address Homelessness while P

Andrew Hoffman

Starbucks: Opposing a Local Tax to Address Homelessness while Promoting Social Justice

Published by WDI Publishing, a division of the William Davidson Institute (WDI) at the University of Michigan.

© 2021 Matthew Boelens, Douglas Ely, and Jessica Halter. This case was written by University of Michigan graduate students Matthew Boelens, Douglas Ely, and Jessica Halter, under the supervision of Andrew Hoffman, Holcim (US) Professor of Sustainable Enterprise, a position that holds joint appointments at the University of Michigan’s Ross School of Business and School for Environment and Sustainability. The case was prepared as the basis for class discussion rather than to illustrate either effective or ineffective handling of a situation. The case should not be considered criticism or endorsement and should not be used as a source of primary data. While most of the data in the case is factual, the opening situation in the case is fictional in order to provide a more robust student learning experience.

In June 2018, Robin Clawson,i Starbucks’ director of public and government affairs, stared out her office window at the Seattle skyline. It was a calm and warm evening, a welcome feeling after a hectic month for Clawson and her team.

On May 14, the city government had instituted a new employee hours tax on large businesses, aimed at supporting affordable housing and homelessness services. Starbucks was known for social concern, but had decided to be a leader in opposing the tax. John Kelly, senior vice president, global public affairs and social impact, had said, “There’s no reason why one of the wealthiest cities in the world should have children sleeping in cars.” But, he said, the solution is not to funnel more money through a city council that had thus far failed to show it could spend it effectively. Kelly added that the cost of the tax to the company was of secondary importance.1 Seattle corporations felt they were being penalized for creating economic growth.

Seattle was known as one of the most progressive cities in the United States, with a local government active in ensuring citizens’ rights, especially related to the homelessness crisis in the area. Clawson had not been surprised when the Seattle City Council voted 9-0 to pass the controversial tax. It required companies located in the city whose annual gross revenue surpassed $20 million to pay a $275 tax per employee per year.2 Supporters of the tax argued that the city needed the funding to combat a homelessness epidemic. Opponents called it a counterproductive tax on job growth.

The day after the council vote, Kelly issued a statement: “This city continues to spend without reforming and failing without accountability, while ignoring the plight of hundreds of children sleeping outside. If they cannot provide a warm meal and safe bed to a five-year-old child, no one believes they will be able to make housing affordable or address opiate addiction. This city pays more attention to the desires of the owners of illegally parked RVs than families seeking emergency shelter.”3 Clawson noted that Kelly’s

i Robin Clawson is a fictional character.

Unauthorized reproduction and distribution is an infringement of copyright. Contact us for permissions: [email protected].

case 3-330-494 March 31, 2021

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Policy Memo

Definition of Genre

Policy memos are not like other academic papers. Their main purpose is to provide analysis and/or

recommendations regarding a certain issue, and they are written for a specific, often limited, audience. Because of

the need for quick, accurate information in the policy world, policy memos are written so that readers can

efficiently access fact-based information in order to make an informed decision. Memos should, therefore, try to

inform the audience in a concise, organized, and professional manner, while still including the most relevant

content.

Writing criteria for policy memos

An effective memo will do its job if the reader comprehends the main points after one quick read or even after

reading just the first sentence of each section. To ensure that the memo gets the intended results, pay close

attention to the following: (1) content, (2) structure, (3) organization, (4) word choice, and (5) clarity.

Content

Content, of course, is the most important determinant of a good policy memo. Weak or illogical ideas, no matter

how well-presented, do no one any good. Therefore, a memo should provide both accurate and relevant

information, while also acknowledging the limitations of certain recommendations or analysis. Any

recommendations should include honest and realistic alternatives. Here are some things to keep in mind:

 Present the most relevant information and state your main ideas and any recommendations clearly.

 Make sure to present opinions as opinions and NOT as facts. Opinions presented should also be

substantiated.

 Use logic and facts to support each of your main points and/or to refute opposing points. When citing

facts in-text, be accurate.

 Avoid logical fallacies such as appeals to authority, slippery slope arguments, hasty generalizations, and

faulty causation.

Structure

1. Header

Structure, simply put, means how a memo looks. Most memos take the general form of an email, and the first

page has “To:,” “From:,” “Date;” and a title that starts with “RE:.” Consider the following example (with bolding

used to identify the parts):

To: Timothy Geithner, Secretary of Treasury (Writer’s Audience)

From: Michelle (Min Eun) Jeon, Policy Advisor (Writer’s name and title)

Date: 2/20/2012 (Date)

RE: Overcoming the Obstacle: House Speaker John Boehner (Title/Main Idea)

The header as formatted above comes at the beginning of a memo. With the header, the reader will know to whom

the writer is writing, what authority the writer has to address the audience, and the most critical message of the

memo.

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2. Executive Summary

Below the header, a memo generally includes an executive summary, a single paragraph that summarizes the

entire memo. After reading the memo just once, the reader can understand what the rest of the memo will explain.

The executive summary can stand alone and allow the reader to look at the first paragraph and identify the main

points of the rest of the memo.

Sample of an executive summary:

Secretary Geithner’s China currency bill depends on House Speaker John Boehner’s support since the Speaker chooses

which bill to debate in the House of Representatives. Mr. Boehner will only debate the bill after pressure from his

financial supporters, security and investment corporations and their lobbyists; and his electoral constituents, Ohio State

citizens and the Republican Party.

A few things become obvious after reading this example. First of all, the audience, Secretary Geithner, will

understand that he will get a certain bill passed only through pressuring House Speaker John Boehner. Also,

Secretary Geithner will be able to predict that the rest of the memo will elaborate on Mr. Boehner’s “financial

supporters, security and investment corporations and their lobbyists; and his electoral constituents, the Ohio State

citizens and the Republican party,” the people who will have the most influence on Mr. Boehner. We can assume

that the writer will provide statistics on why such groups hold the most power over Mr. Boehner’s decision

making process as well as a logical recommendation on how to get these groups to pressure Mr. Boehner. If the

reader finds the main point to be very direct and clear in an executive summary, then the writer will have done

his or her job well.

3. Subheading

The rest of the paper will have several sections elaborating on the points indicated in the executive summary.

Those sections will start with a subheading, usually in bold-font to make the title eye-catching for the reader. A

subheading should generally be a summary of the section, so the reader will not necessarily have to read the

rest of the section to understand the most important information the section contains.

Example: Speaker Boehner: Greatest challenge for the currency bill

Example: Mr. Boehner’s pro-business interests

Organization

Memo writers should employ a common skill in journalism, called the “inverted pyramid style of writing.” This

means memos should place the most important information at the top and have the less significant details

follow in order or importance.

In an academic paper, you would mix up the order, usually having the most important point come last. But in a

memo, the most important fact should always come first. To visualize, this is what it would generally look like:

Academic Paper Memorandum

2 1 (most important)

3 (least important) 2

1 (most important) 3 (least important)

Such prioritization should always occur in every section of the memo, from the general large structure to small

sub-sections.

Word Choice

Word choice plays a critical role in making a memo clear and concise. Consider eliminating vague theoretical

words and replacing them with more concrete, specific terms. Here are a few examples:

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Vague More Concrete

facilitate help/assist

indicate say/show

concept idea

Clarity

Policy memos must be clear and direct so that readers can understand the main points quickly. If the memo writer

has focused on building strong content that is well organized, and if the writing exhibits well-chosen language,

then the result is a clear argument.

One way to understand the type of clarity that is required in a policy memo is to compare a memo to a typical

history paper. While academic papers focus more on gradually building a solid argument, a memo delivers the

important facts in order of priority as concisely as possible. Let’s consider the introduction of a history paper as

an example.

A True Friendship?:

James and the Nature of the Toussaint-Laveaux Relationship

In his groundbreaking book, The Black Jacobins (1963), C.L.R. James traces the history of the Haitian Revolution

by analyzing the events as they occurred in light of happenings in France, particularly the French Revolution,

abolition, and the rise of Napoleon. To accomplish this task, James focuses much attention on the biography of

Toussaint L’Ouverture and his relationship with the French government as represented by various white and mulatto

leaders. As the reader follows Toussaint’s life story, she learns that Toussaint trusted only one man in all his life:

Governor-General Etienne Laveaux (James 161). Laveaux was a French nobleman under the old regime, and his life

trajectory differed drastically from that of Toussaint. Based on a critical reading of Toussaint’s letters to Laveaux,

this brief essay explores the nature of the two leaders’ relationship and the problem that James’s interpretation of

their friendship poses.

In this example, the author builds her argument by first presenting the topic and then providing background detail.

She then ends her introduction with a sentence that explains what the essay will address. While this type of

introduction would work for a history paper, it would not work well for a memo because it lacks a central claim

and provides too much detail in the beginning. Instead, memos should lead with central claims in order to ensure

clarity. Let’s consider another example of a memo executive summary:

Demands for a Solid Economic Policy Towards China

The demand for a policy to resolve the undervalued Chinese Yuan (renminbi) is increasing since the US public

attributes the US’ economic problems to the depreciation of the Chinese currency. The President and his new trade

unit’s immediate focus should be to get China to appreciate its artificially undervalued Yuan. Correcting the value of

the Yuan will ultimately increase both on-shore jobs and US exports.

In this example, the author gets right to the point. The context she provides is limited to the first sentence. She

also presents a recommendation in the second sentence. The reader will expect that the author will provide further

context and statistics to support this recommendation in other sections of the memo.

Other Points to Clarify

Because professors and Teaching Assistants (TAs) teaching public policy might have different expectations,

clarify the following with each potential grader:

1. Should the titles of sections be in full sentences?

2. Should the paragraphs and sections be divided into several parts or is only a handful better?

3. Do I have to include an executive summary?

4. Is the usage of words such as “But” or “Because” or “However” discouraged?

5. Should I not write any lengthy sentences?

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* Make sure you read the prompt carefully! The prompt will have a lot of the answers to the questions above,

since the prompt will reflect the grading criteria. Bringing the prompt with you to the Writing Studio when you

have an appointment will also help the tutors understand how to help you.

Good luck on memo writing!