Starbucks was sued on Tuesday by the US state of Missouri, which accused the coffee chain of using a commitment to diversity, equity and inclusion as a pretext for systematic racism, gender bias and other factors.
In a complaint filed in St. Louis federal court, Missouri accused Starbucks of tying executive pay to the company’s achieving racial and gender-based hiring quotas. Starbucks was accused of targeting certain groups for extra training and job opportunities, and using a quota system for diverse representation on its board of directors.
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“All of this is unlawful,” and violates federal and state civil rights laws, according to the complaint from Missouri Attorney General Andrew Bailey.
Bailey, a Republican, argued that Missouri consumers pay higher prices and wait longer for services at Starbucks than they would if the Seattle-based chain employed the most qualified workers.
“We disagree with the attorney general and these allegations are inaccurate,” Starbucks stated. “We are deeply committed to creating opportunity for every single one of our partners (employees). Our programmes and benefits are open to everyone and lawful.”
US President Donald Trump, also a Republican, has tried to shut down policies promoting diversity, equity and inclusion inside and outside the federal government. Some companies have taken action.
For example, the Wall Street bank Goldman Sachs on Tuesday cancelled a policy to take companies public only if they had two diverse board members, generally defined as people from underrepresented demographics.
It’s Not Just Starbucks
Last week, meanwhile, Google scrapped diversity-based hiring targets, Amazon.com removed a reference to inclusion and diversity from its annual report.
Tuesday’s lawsuit challenged Starbucks policies adopted since 2020, after the murder of George Floyd, a Black man, by a Minneapolis police officer triggered unrest nationwide.
Missouri said Starbucks’ alleged endorsement of quotas “should come as no surprise,” citing new Chief Executive Brian Niccol’s support of environmental, social and governance goals while leading the Chipotle burrito chain.
Starbucks employs about 211,000 people in the U.S. and 361,000 people worldwide.
In August 2023, a federal judge in Spokane, Washington dismissed a shareholder lawsuit challenging Starbucks’ diversity policies, saying the case addressed public policy questions best decided by lawmakers and companies, not courts.
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