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  • Starbucks Case Study - Group 5

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    Abishek Jayaseelan
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    Two African American men were sitting in a Starbucks waiting for a friend without making a purchase. A store manager asked them to leave, and when they refused, called the police who arrested them for trespassing. This sparked outrage on social media over racial profiling. Starbucks then closed 8000 stores for racial bias training, changed their policies so purchases are no longer required, and settled with the men. Going forward, Starbucks should have trained staff to avoid racial bias, diversified their employees, and ensured policies prevent racial discrimination.

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    StarBucks

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    Two African American men were sitting in a Starbucks waiting for a friend without making a purchase. A store manager asked them to leave, and when they refused, called the police who arrested them for trespassing. This sparked outrage on social media over racial profiling. Starbucks then closed 8000 stores for racial bias training, changed their policies so purchases are no longer required, and settled with the men. Going forward, Starbucks should have trained staff to avoid racial bias, diversified their employees, and ensured policies prevent racial discrimination.

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    14 views7 pages

    Starbucks Case Study - Group 5

    Uploaded by

    Abishek Jayaseelan
    Two African American men were sitting in a Starbucks waiting for a friend without making a purchase. A store manager asked them to leave, and when they refused, called the police who arrested them for trespassing. This sparked outrage on social media over racial profiling. Starbucks then closed 8000 stores for racial bias training, changed their policies so purchases are no longer required, and settled with the men. Going forward, Starbucks should have trained staff to avoid racial bias, diversified their employees, and ensured policies prevent racial discrimination.

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    © All Rights Reserved
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    of 7

    STARBUCKS CASE STUDY

    VASUDHAVAN (D21AD19)
    ABISHEK J (D21AD21)
    RAJKUMAR V (D21AD14)
    SIVASANKARI S (D21AD31)
    STARBUCKS

    ● Starbucks is an American multinational chain of coffeehouses.


    ● Founder of starbucks are Gordon Bowker, Jerry Baldwin, Zev Siegl.
    ● Starbucks was started in the year 1971 at Pike Place Market in downtown Seattle, in
    the U.S. state of Washington.
    ● It has around 32660 employes all over the world.
    ● Starbucks uses 2.3 billions cups per year.
    WHAT HAPPENED?

    ● In April 2018, Rashon Nelson and Dante Robinson from Philadelphia visited a local
    Starbucks outlet. They were waiting for their friend to arrive. Since they had not
    made any purchase, the Store Manager requested them to vacate the premises.
    ● When they refused to leave the premises, the One of the employee called the police.
    ● The two African-American men were wrongfully arrested for trespassing.
    ● Nelson and Robinson were released from the jail after 9 hours and the prosecutor
    decided to not press any charges.
    ● This incident gained a massive traction on social media and a Hashtag
    #BoycottStarbucks started to trend on Twitter.
    HOW THEY HANDLED THE SITUATION?
    ● The CEO Kevin johnson issued an apology video stating that”I WILL FIX THIS”.
    ● Starbucks issued a new policy on 19 may 2018 states that “the patrons no longer
    need to make a purchase to sit in cafe or to use the restroom”.
    ● Rashon Nelson and Donte Robinson both settled with Starbucks for an
    undisclosed amount of money.
    ● The Philadelphia government and Starbucks made an agreement to fund a $200,000
    grant program for high schoolers wishing to be entrepreneurs.
    ● In response to the accusations of racial discrimination, Starbucks closed 8000 stores
    all of U.S which has employees around 175,000 on the afternoon of May 29 for
    racial bias training to all its employees.
    ● The police department says the new “Defiant Trespass” will guide officers when
    called to investigate and enforce defiant trespass complaints .
    HOW SHOULD HAVE THEY HANDLED IN THE FIRST PLACE?

    ● Starbucks should have trained their staffs to treat people of all races equally.
    ● Starbucks employees should have personally apologised to the victims instead of
    giving a statement in Social media.
    ● Starbucks should have employed people from various cultural and racial
    backgrounds.
    ● Starbucks should have ensured that policies and regulations are framed in a way the
    racial bias is balanced.
    THANK YOU

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