Collins, Business Ethics 3e
SAGE Publishing, 2021
Test Bank
CASE STUDY 8: STARBUCKS: A SOCIALLY RESPONSIBLE FIRM AND A DIVERSITY
CRISIS
Multiple Choice
1. Howard Schultz’s goal for all Starbucks stores was that they would be ______.
a. community meeting spaces where people could bond
b. the most successful coffee shops in any community
c. places where employees could earn a living wage with minimal education
d. contributors to the global financial market
2. Howard Schultz believes that Starbucks locations should hire ______.
a. the best educated people in the community
b. only students and young adults
c. people that reflect the makeup of the community
d. older adults who need part time work
3. Starbucks was among the first organizations in the 1990s to ______.
a. hire adults over 65 for part time work
b. demonstrate that people will pay more for a quality product
c. become a Fortune 500 company as a food-based establishment
d. demonstrate a commitment to climate change and other environmental issues
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SAGE Publishing, 2021
4. Why did Starbucks stock lose half its value in 2008?
a. Howard Schultz was no longer CEO.
b. Starbucks had shifted their attention globally too quickly.
c. The Philadelphia Diversity incident occurred.
d. The internet bubble burst and developed nations faced a recession.
5. What did Starbucks ask customers to do after several people were killed via gun
violence in Newtown, Connecticut?
a. donate money to the victims’ families
b. send free coffee vouchers to law enforcement officers in that town
c. leave their guns elsewhere while visiting a Starbucks location
d. open Starbucks locations in honor of the victims
6. What do employees receive as part of the Starbucks College Achievement Plan?
a. Employees receive a $5/hour raise if they complete their Bachelors’ degree at a
reputable institution.
b. Starbucks pays for all of the books employees need for their college level courses.
c. Starbucks’ human resource managers facilitate college application completion for
employees.
d. Employees receive free tuition to Arizona State University’s online degree program.
7. Which is an example of how Starbucks showed its commitment to social justice after
a police-involved shooting in Ferguson, Missouri?
a. Starbucks donated $500,000 to gun violence initiatives in Ferguson.
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. Starbucks opened a store in Ferguson to provide jobs and services to a struggling
community.
c. Starbucks funded lobbyists that pushed government officials to promote anti-gun
legislation.
d. Starbucks raised money for the victim’s family and their expenses.
8. In March 2015, Starbucks published an 8-page insert in USA Today designed to
spark dialogue about ______ in the United States.
a. unemployment
b. the cost of higher education
c. racism
d. sexual assault
9. Why did the manager of the Philadelphia Starbucks become upset with the two men
during the Philadelphia Diversity incident?
a. They called her a name.
b. They complained about the product quality at her store.
c. They were being loud and disturbing other customers.
d. They wanted to use the restaurant’s spaces (tables, restroom) without making a
purchase.
10. Two Black men were arrested for ______ in a busy Philadelphia Starbucks, which
eventually sparked Starbucks to take swift action and started Starbucks executives on
an “apology tour” for the incident.
a. robbery
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SAGE Publishing, 2021
b. assault
c. trespassing
d. embezzlement
11. Why did all Starbucks stores close for a half day three days after the Philadelphia
diversity incident?
a. An employment fair was held to hire minority group members as Starbucks
employees.
b. All current employees were required to participate in anti-bias, diversity training.
c. Starbucks hosted a nationwide discussion on racial profiling at local parks and
common areas.
d. The closure enabled Starbucks employees to reflect on the Philadelphia diversity
incident.
12. Which of the following was part of the Philadelphia Diversity incident settlement?
a. free diversity training to any Philadelphia resident who wanted it
b. free education donated to all members of the community who wanted it
c. $1 million dollars for each of the men arrested
d. $200,000 invested by the city to fund a high school student pilot entrepreneur project
13. The two men involved in the Starbucks Philadelphia diversity incident received
______.
a. a fully funded college education from Arizona State University
b. free coffee for a lifetime
c. managerial positions within the Starbucks organization
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SAGE Publishing, 2021
d. $200,000 each, as part of a cash settlement
14. What happened to the store manager who called the police on the two men during
the Philadelphia Diversity incident?
a. She was arrested and put in prison.
b. She was asked to leave the company.
c. She was asked to lead the company’s diversity and inclusion division.
d. She stayed with the company and implemented several policy changes.
15. “The Third Place: Our Commitment Renewed” was the name of Starbucks’ ______.
16. Why did Starbucks hire Eric Holder, the former U.S. Attorney General, after the
Philadelphia Diversity incident?
a. They wanted to ensure that they would not be sued in the future for racial
discrimination practices.
b. They wanted Holder to conduct a civil rights assessment for the company.
c. They wanted their policies to become more in line with the policies of the U.S.
government.
d. They wanted Holder to provide training to their higher-level employees nationwide.
Collins, Business Ethics 3e
SAGE Publishing, 2021
17. How did Starbucks further solidify antibias training into its company culture in the fall
of 2019?
a. hired veterans and military spouses to lead the training in communities and at
schools
b. added its antibias training curriculum as a required course to its online undergraduate
program
c. made its antibias training available to the public through its website and mobile app
d. shared its antibias training with other similar organizations in the communities it
serves
18. The 2019, the Starbucks social impacts performance report focused upon goals set
in three areas, including creating meaningful opportunities, strengthening communities,
and leading in ______.
a. coffee sales
b. sustainability
c. sexual assault prevention
d. equity and inclusion
19. The Starbucks “Code of Conduct for Suppliers” ensures that production inputs are
______ sourced.
a. ethically
b. sustainably
c. inexpensively
d. quickly
Collins, Business Ethics 3e
SAGE Publishing, 2021
20. How did Starbucks handle their employees after the severity of the Covid-19
pandemic became apparent?
a. Employees were allowed to stay home and earn catastrophe pay through the end of
May, 2020.
b. Employees had to follow sanitary cleaning procedures or lose their jobs immediately.
c. Employees who did not come to work would lose their childcare and health benefits.
d. Starbucks shut all of their locations down and employees received full pay amidst the
pandemic.
True/False
1. Originally, the Starbucks board rejected Howard Schultz’s ideas about how to run the
company.
2. Starbucks follows the standard food and coffee franchise model.
3. Starbucks has achieved 100% pay equity within their company.
Collins, Business Ethics 3e
SAGE Publishing, 2021
4. According to current Starbucks policies, only people who make a purchase may use
their spaces.
5. Starbucks has agreed to uphold the United Nations Global Compact’s 10 principles in
every country in which they do business.
Essay
1. Discuss three ways in which Starbucks showed its commitment to social
responsibility as a company.
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SAGE Publishing, 2021
2. What benefits arose for the participants of the 8- to 10-week retail excellence training
program? What benefits did sponsoring that program provide for Starbucks?
3. Discuss the policy changes that evolved at Starbucks after the Philadelphia diversity
incident. How did those policy changes support Starbucks’ ideal of becoming
community gathering places where people bond?
4. Discuss the ways in which Starbucks created a welcoming environment for patrons,
as evidenced within the domains of sustaining the “third place,” community
engagement, fostering an internal culture of equity and inclusion, and issue advocacy.
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SAGE Publishing, 2021
5. How did Starbucks act on its values of employee appreciation and social
responsibility during the Covid-19 pandemic?