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Conservative think tank says Starbucks’ diversity policies are racially discriminative

By Nagasunder in US business news, posted September 2, 2022

A Conservative think tank claims Starbucks' diversity policies are racial discrimination and is taking the coffee giant to court.

The National Center for Public Policy Research objected to Starbucks setting hiring goals in a complaint filed on Tuesday, August 30.

The think tank objected to Starbucks' setting hiring goals for people of color, awarding contracts to "diverse" suppliers and advertisers, and tying executive pay to diversity.

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The plaintiff, a Starbucks shareholder, claimed that the company's policies force it to make race-based decisions that benefit minorities, which violates federal and state civil rights laws.

The defendants include 35 current and former Starbucks executives and directors, including interim CEO Howard Schultz.

According to the complaint, the diversity push "benefits them personally by allowing them to pose even as it harms the company and its owners."

Starbucks did not immediately respond to requests for comment on Wednesday.

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Starbucks announced in October 2020 that it would aim for black, indigenous, and other people of color to hold at least 30 percent of U.S. corporate jobs and 40 percent of US retail and manufacturing jobs by 2025, and that executive pay would be tied to its diversity efforts.

Then, in January, Starbucks announced plans to nearly double its annual spending with diverse suppliers and vendors to $1.5 billion by 2030, as well as allocate 15 percent of this year's advertising budget to minority-owned and "targeted" media companies.

Source: Business Today

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