CASE STUDY: The CEO of Starbucks faces Violation of practices of Business ethics

 

Kevin Johnson faced a leadership test shortly after becoming CEO of Starbucks when two black men were arrested in a Philadelphia Starbucks. The men were waiting to meet a business associate, but they made no purchases while they waited. They refused to leave when the store manager asked them to, explaining that they were there to meet someone. Because the men refused to leave, the manager called the police, who arrested them.

Another customer at Starbucks videotaped the arrest, which quickly went viral. In an interview following the arrest, the woman who took the video stated that she had been sitting there for a while and had not been asked to leave despite the fact that she had not ordered anything.

Starbucks had no companywide policy regarding asking customers to leave prior to the incident, and the decision was left to the discretion of each store manager. Starbucks had become a community hub as a result of this flexible policy, a place where anyone could sit without having to spend money. In his apology, Johnson mentioned this community, saying that Starbucks works to create an environment that is "both safe and welcoming for everyone."

On the Following the arrests, Starbucks announced on May 29, 2018, that it would temporarily close 8,000 stores to conduct unconscious bias training. Starbucks issued a new "Use of Third Place Policy" a month after the arrests, stating that anyone can use Starbucks and its facilities without making a purchase.