Missouri sues Starbucks over its diversity programs

[ResidentialBusiness]

The fight over businesses’ diversity, equity, and inclusion (DEI) programs is heading to the courtroom. This week, a lawsuit was filed against coffee giant Starbucks over DEI practices, which the suit claims, break the law.

That lawsuit, filed by Missouri Attorney General Andrew Bailey, a Republican, says the chain is allowing race discrimination. “Starbucks ties compensation to racial and sex-based quotas, discriminates on the basis of race and sex in training and advancement opportunities, and discriminates on the basis of race and sex with respect to its board membership,” the suit reads. “All of this is unlawful.” 

The lawsuit comes amid a major federal crackdown on DEI policies that has erupted since Trump’s inauguration. On January 21, the president signed an executive order called Ending Illegal Discrimination And Restoring Merit-Based Opportunity, which instructed all federal agencies to “take all appropriate action with respect to the operations of their agencies to advance in the private sector the policy of individual initiative, excellence, and hard work.” 

The action called for the termination of DEI programs, policies, and funding. After the order, it was reported that federal buildings were raided and swept of any DEI materials. Federal employees were also barred from using their pronouns in the email signatures. “Pronouns and any other information not permitted in the policy must be removed from CDC/ATSDR employee signatures by 5 p.m. ET on Friday,” Jason Bonander, the CDC’s chief information officer reportedly wrote. “Staff are being asked to alter signature blocks . . . to follow the revised policy.”

Much like Trump’s response to the recent plane crash over the Potomac River that killed 67 people, in which he blamed, without evidence, DEI hiring, the suit alleges that DEI policies at Starbucks created problems at the chain. Not only did it allege that Starbucks bases hiring on race, it said employees made “more mistakes” on the job. “Missouri’s consumers are required to pay higher prices and wait longer for goods and services that could be provided for less, had Starbucks employed the most qualified workers,” regardless of their race, gender or national origin, the lawsuit said.

Starbucks is, of course, pushing back on the claims in the suit. The chain told CBS News, “We disagree with the attorney general, and these allegations are inaccurate. We are deeply committed to creating opportunity for every single one of our partners (employees). Our programs and benefits are open to everyone and lawful.”

Other companies, such as Target, McDonald’s, Ford, Amazon, Meta, and Walmart, were quick to get on board, post-election, with Trump’s push to eliminate their DEI policies. Although last month, nearly three dozen Walmart investors sent a strongly worded letter to Walmart CEO Doug MacMillon, questioning its DEI-initiatives rollback.

Starbucks seems to be holding firm. As stated on its website, “We are expanding workforce diversity to bring new perspectives and experiences that improve our business and workplace. To do this, we reach a broader pool of candidates and talent by prioritizing inclusivity in our recruitment practices, in partner engagement, and by continuing to foster inclusive leadership. We work hard to ensure our hiring practices are competitive, fair and inclusive and that we hire the best person every time.” 

Likewise, Costco recently doubled down on its diversity practices, when at an annual meeting, the company’s board of directors unanimously voted down a shareholder proposal, which asserted that diversity initiatives are “discriminatory.” JPMorgan also isn’t caving to the new administration’s pressure. In a visit to Columbus, Ohio, this week, CEO Jamie Dimon expressed his view on how massively important the company’s DEI initiatives remain. “We bank cities, schools, states, hospitals. We reach out to veterans. We fought for [the] disabled,” Dimon said. “We have programs for a million different things.” 

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