1.

Hanife Dizliklioglu SN;22119746

2.Hillary I Kabba SN;22015838
3.Ahmad Reshad Bayat SN;22117548

Starbucks and HMSHost: addressing discrimination across organisational boundaries

Introduction – General Information
Starbucks is a multinational American coffee shop chains operating worldwide that is
established in 1971. Its headquarter is in Seattle in Washington city and known as the world’s
largest coffeehouse chain.
According to records in 2021, Starbucks operating with 33,833 coffeehouses in 80 countries
with 15,444 stores located in US. Out of the US based coffee shops, it has approximately
8,900 shops operated by itself and the remaining shops are licensees.
Referring to its mission statement Starbucks aim to provide a pleasant environment for every
single customer with a share value. The company always look for new ways of improving its
brand and achieve further expansion. One of its corporate aim is to focus on providing open
communication with its partners, compliance and creating good reputation. Starbucks overall
mission is to become better in every aspect and being responsible for its activities as a
corporate citizen.
Context of the Case – Main Issues
The given case provides information about customers and employees being treated unfairly,
subjected to inequality and discrimination. Today, discrimination can take place in many
forms in organisations such as harassment, victimisation and negative behaviours directed
towards individuals regarding their age, gender, sexual preference or cultural background,
ethnicity and religion.
The initial issue explained in the case is from a report called ‘One job should be enough:
Inequality at Starbucks’ published by New York City based Labour Organisation. The
outcome of the survey conducted reveals that employees working at HMSHost have been
exposed to assaultive and transphobic comments by managers and been harassed regarding
their gender.
Secondly, the incident of discrimination occurred in one of the Starbucks coffeehouse in
Philadelphia on 14th of April 2018 where two customers wanted to use the store toilets but
refused by a Starbucks staff as they did not buy anything from the store. The behaviour of the
staff was resulted in an argument and the police were involved asking customers to leave the
store as well as customers were charged with a trespass.
These incidents draw the attention of different stakeholders of Starbucks. One of the pressure
groups ‘The Philadelphia chapter of Black Lives Matter’ went on a protest outside Starbucks
coffee shop on the same day. Also several celebrities and politicians announced their protests
and contradictory comments on Social Media.
After these incidents Starbucks published a simple statement not explaining the issues clearly,
then detailed explanation was published stating fundamental steps Starbucks will take forward
to prevent such incidents happening again. One of the fundamental steps stated by the
company was Employee Training that will focus on standing against discrimination.
However, HMSHost did not acknowledge the allegations by saying that it is a strategy against
them by the labour organisation that aims to unionise its employees.

Main Facts
Existing laws in USA
According to United States legislation of ‘Title VII of the Civil Rights Act 1964
discrimination by employers is illegitimate. Therefore, individuals can file a charge with the
US Equal Employment Opportunity Commission if they believe they have been
discriminated.
Until today the Courts made significant clarity about what did or did not create
discrimination, yet many organisations still involved in multiple forms of discrimination
especially race, colour and sex.
Strengths and Weaknesses of Starbucks
Starbucks has a great history and a background of being committed to its stakeholders as well
as being corporate citizen through carrying out social responsibility projects. It provides
health benefits to employees, part-time staff has the chance to be involved in stock option
programme and tuition benefits at Arizona State University are given. By being socially
responsible organisation, Starbucks pursue ethical coffee sourcing activities.
As a result, Starbucks honoured by authorities as ‘The World’s Most Ethical Companies’ and
the ‘Most Admired Companies in America’ by Fortune. Such behaviours and recognition by
third parties provide strength for the organisation and help to develop stronger brand image
compared to rival firms.
However, some weaknesses can also be outlined in relation to incidents explained in the case.
One of these weaknesses could be the lack of training and educating the workforce on matters
relating to discrimination, inequality and customer service.
Secondly, the matter relating to licensees as there is a lack of control and monitoring
regarding organisational behaviour. Starbucks may have difficulties to deliver its core values
and aims to its licensees and this may result in unprofessional and non-standard service
provided in different shops.
Possible Alternatives / Solutions
To resolve the issue regarding discrimination and inequality against employees and customers
Starbucks should establish better training opportunities to its employees. These training
programmes may involve appraisal schemes to better understand employee needs and
customer charters for providing better standardised service in all coffee houses.
Starbucks must ensure that all licensees should attend to the training programmes with general
staff and managers working at higher positions.
Another alternative solution may be the implementation of diversity within the organisation.
Starbucks can do this by recruiting individuals from different cultures, ethnicity and
background.
Starbucks should introduce a strict policy that makes any type of discrimination unacceptable
at work place. The policy must state how employees / customers can report the incident. Also
the policy must explain how a report by an employee will be handled by the organisation.
Moreover, Starbucks can develop a cultural expectation and shared norms by ensuring a
workplace free of discrimination, harrassment and inequality.
Lastly, Starbucks could revise its mission statement and code of conduct and ensure that it is
delivered effectively to its employees. Core values and measures preventing discrimination at
workplace must be stated clearly in order to increase employee awareness throughout the
organisation.