Case Study 8: Starbucks: A Socially Responsible Firm and a Diversity Crisis
Written by Denis Collins
Case Summary
This case provides an overview of Starbucks corporate social responsibility and how Howard
Schultz, founder of Starbucks, prioritized the company involvement with the community, as
on the importance of creating a welcoming coffee shop
environment, Starbucks recognized that much had to be done to eliminate potential bias and
discrimination in the stores. The case focuses on the racial discrimination incident that occurred
in 2018 in a store in Philadelphia. Two Black men sat down but did not order anything. One of
them requested to use the restroom and the manager refused the request and asked the men to
Case Analysis
The case focuses on the analysis with a focus on
an incident of workplace racial discrimination (L.O. 8.3.) and how the company responded to
Critical Thinking Questions and Suggested Answers
1.
Why?
Howard Schultz wanted Starbucks to differentiate itself from other coffee shops as a
employees.
2. What socially responsible policies do you find most impressive? Why?
1)
2) Engagement with the local community: Starbucks creates job opportunity for the
3) Diversity, equity, and inclusion: Starbucks hired a Chief Inclusion and Diversity
Officer, achieved 100% gender pay equity, and provided greater transparency and
3. What do you think of Starbucks decision to close its stores for a half day and give
employees anti-bias training? Does it seem like a publicity stunt or a genuine effort
to make its stores more inclusive spaces? Why do you think so?
Starbucks needed to immediately address the racial incident and closed 8,000 stores for a
4. What do you think of the training curriculum the activities, reflection exercises
and videos that employees watched to learn about unconscious bias and the history
of racism in the United States? How does it compare with what you have learned in
school?
Starbucks made its training curriculum Team Guidebook available on the webpage,
which sets a higher standard for public accountability. The training was tailored to
5. Do you think all Americans should receive some sort of anti-bias training like this?
Why? If so, where and when should people learn about prejudice, unconscious bias,
and racism: In school, at their jobs, from their families or elsewhere? What should
they learn and why?
Systemic racism is a reality in the United States and anti-bias training is necessary to
promote a truly diverse, equitable, and inclusive society. Effective anti-bias trainings
6. Should Starbucks continue to operate based on a Stakeholder Statement on the Purpose
of a Corporation? Do you think more companies should follow their lead? Why?
Starbucks should continue to operate based on a Stakeholder Statement on the Purpose of
a Corporation, joined by other 200 global companies which also made the public
