Starbucks accused of turning DEI into a 'mandatory hiring and promotion system based on race'
Accusations that diversity, equity, and inclusion (DEI) policies are discriminatory continue to hit organisations, with global coffee house chain Starbucks being the latest firm to face a lawsuit over its DEI policies.
Florida's Office of the Attorney General has sued Starbucks, alleging that it is implementing and enforcing race-based quotas for hiring and advancement.
"Starbucks made DEI more than a slogan. They turned it into a mandatory hiring and promotion system based on race. The coffee empire set numerical racial targets for their workforce and they tied executive bonuses to those targets," said Attorney-General James Uthmeier in a video statement.
"That is brazen discrimination and it is against the law. DEI can never be an excuse to violate someone's civil rights."
The complaint filed by Uthmeier alleges that Starbucks has "openly maintained racially discriminatory employment policies and practices over the past five years."
It accused Starbucks of admitting on its website and in public statements that it:
- Hires applicants because of their race, including by establishing hiring quotas and goals based on race
- Pays employees different wages because of their race or ethnicity
- Ties executive compensation to those executives' participation in mentorship programmes open only to persons of certain favoured races and those executives' retention rates of employees who belong to certain favoured races
- Excludes people of certain races from networking and mentorship opportunities
Starbucks disagrees with allegations
But a spokesperson for Starbucks told Bloomberg Law that they disagreed with the accusations.
"We are deeply committed to creating opportunity for every single one of our partners (employees)," the spokesperson said as quoted by the news outlet.
"Our programmes and benefits are open to everyone and lawful. Our hiring practices are inclusive, fair and competitive, and designed to ensure the strongest candidate for every job, every time."
Starbucks' webpage on belonging states that it is expanding its workforce diversity to bring new perspectives and experiences that improve its workplace.
"To do this, we reach a broader pool of candidates and talent by prioritising inclusivity in our recruitment practices, in partner engagement, and by continuing to foster inclusive leadership," it said.
"We work hard to ensure our hiring practices are competitive, fair and inclusive and that we hire the best person every time."
A breakdown of the company's workforce as of 2024 revealed that nearly half (47.8%) of its employees are White. Nearly a third (31.7%) are Hispanic or Latinx, while 8.1% are Black.
Attack on DEI policies
The case against Starbucks comes in the wake of growing pushback against DEI policies in the US and across the world.
Organisations in the past years have begun pulling back on their DEI policies amid backlash from some of their customers. They include Google, Amazon, Walmart, McDonald's, and Accenture.
Even some firms headquartered outside the US but with a strong presence in the country have announced DEI withdrawal.
Angelica Hunt, head of marketing at Australia-based TDC Global, previously noted that there are also "polarisation across the market" when it comes to DEI policies.
"What we're seeing for the organisations that we work with year-on-year is not necessarily a scaling back in terms of effort, but I would say, a redistribution of resources across the DEI efforts that they have," Hunt previously told HRD.
According to Hunt, there has been a "messaging shift" on DEI following the backlash in the US.
"Organisations are moving away from focusing on diversity as a pillar and more towards inclusion because it's easier to defend," she said.
