Like many other companies that got their start in the Pacific Northwest, Starbucks (SBUX) -) makes little secret of its political leanings.
The Seattle coffee chain touts its interest in social responsibility, taking care to mitigate waste, securing fair-trade practices in its coffee-supply chain, and donating extra food to those in need.
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More recently, Starbucks has been outspoken about social justice and human rights. In 2021, the coffee chain pledged $100 million to black and underserved groups and communities following the Black Lives Matter protests across the U.S. It also committed to strengthening abortion access for employees following a leaked draft of the Supreme Court's decision to overturn Roe v. Wade.
In 2023, Starbucks ruffled feathers with its annual release of its reusable Pride coffee cups to support LGBTQ+ advocacy.
"Starbucks strives to create a culture of inclusion and is a proud ally of the LGBTQIA2+ community, affirming every way people may choose to identify," the site wrote on its artist cup collaboration page. "Starbucks has a long history of supporting its LGBTQIA2+ partners and communities, from advocating to providing broader health-care coverage for procedures and services that support gender affirmation."
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— Islander Dining (@islanderdining) June 12, 2023
Our Starbucks Pride 2023 cups are here to brighten your day. Hurry and grab yours before they vanish like rainbows in the sky! 🌈✨
•••#TAMUCC #Pride #IslanderDining #FuelYourMomentum #Starbucks pic.twitter.com/COt2FeY1UN
Starbucks notches a major win in woke debate
Now that we're more than halfway into 2023, it should come as no surprise that Starbucks prides itself in its social causes.
But that did not stop the National Center for Public Policy Research, a right-leaning advocacy group, from bringing a case against Starbucks for its progressive agenda.
About a year ago the Delaware-based nonprofit brought a suit against the company and some of its directors, claiming that Starbucks' Diversity, Equity and Inclusion policies violated the American Civil Rights Act of 1965. The lawsuit, National Center for Public Policy Research v. Howard Schultz et. al, No. 22-2-02945-32, was filed in in the State of Washington Spokane County Superior Court on Aug. 30, 2022.
In 2020, Starbucks vowed that by 2025 at least 30% of its corporate employees and 40% of its retail and manufacturing workers would identify as Bipoc (black, indigenous, people of color).
“We know that a more inclusive environment will create a flywheel that leads to greater diversity, and thereby greater equity and opportunity for all,” then-Chief Executive Kevin Johnson said in a statement after announcing the pledge.
"Today, we are outlining additional actions we will take on our journey. Each of the actions lines up with our Mission and Values, and so we know they are not just fleeting initiatives, but rather woven into the fabric of Starbucks," he added.
Research group: SBUX violates civil-rights laws
The National Center for Public Policy Research, which owns $6,000 in Starbucks shares, argued the "policies violate state and federal civil rights laws, creating material corporate liabilities."
“Starbucks has set goals for the number of ‘diverse’ -- meaning not-white -- employees it hires, and those goals are tied to executive compensation. That is outright racial discrimination,” said Scott Shepard, the policy-research center's Free Enterprise Project director.
“All Americans have the same civil rights. Making employment decisions based on race violates those civil rights. Officers and directors who act on such discriminatory policies are violating their fiduciary duties to their shareholders and should be held accountable for those actions," the complaint reads.
At a hearing on Friday. U.S. District Judge Stanley Bastian in the Eastern District of Washington dismissed the suit.
"If the plaintiff doesn't want to be invested in 'woke' corporate America, perhaps it should seek other investment opportunities rather than wasting this court's time," Bastian said.
Starbucks, for its part, said it was pleased with the decision.
"Through our commitments to inclusion and diversity, we continue to strive to make Starbucks a welcoming place for our partners (employees) and customers around the globe."
Starbucks has a 4.1 out of 5 star diversity-equity-inclusion rating on Glassdoor.
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