Starbucks Case
Starbucks Case
Starbucks Case
3 The Incident
About
Racial Discrimination
On April 12, 2018, Two black men
named Rashon Nelson and Donte
Robinson were arrested at one of the
Starbucks store in Philadelphia after
the store manager called the police
and accused them of trespassing.
Video footage of the incident went
viral on social media which led to
controversial public relations and
brand image crisis for the world’s
biggest coffee retailer
The Fallout/Consequence
It lead to serious threat to Starbucks ' reputation and
customer loyalty, as many customers and stakeholders
questioned the company ' s commitment to diversity
and inclusion
This incident also highlighted the need for Starbucks
to address social issues in a responsible and effective
way, and to take action to prevent similar incidents
from happening in the future.
Concerns about employee morale and the company ' s
ability to attract and retain diverse talent, as many
employees and potential employees questioned the
company ' s commitment to diversity and inclusion
The incident also had a negative impact on Starbucks '
financial performance, with the company ' s stock price
dropping and sales declining in the weeks following
the incident
Revise policies and procedures to ensure the use of facilities so
1 that they do not disproportionately affect particular groups
Further Steps
Diversify their workforce in leadership and management
2 positions so that the company can understand the needs better