Steamed Up About Starbucks' Donations to Extremist Group
Why is the biggest name in coffee supporting groups that advocate for puberty blockers?
We've been in dialogue with Starbucks for over a year about the company's charitable giving. We asked the company if it disclosed a complete list of its charitable donations. The head of ESG wrote back and sent me a charitable giving report which did not remotely list all of its donations. I wrote and pointed that out and she admitted they do not reveal that information.
That's how it almost always is in dealing with these companies. We ask a clearly stated, straightforward question, which they typically ignore. We ask again… and often again, making clear we will not be giving up. Eventually they send some copied and pasted boilerplate language and sometimes a link, none of which answer the question. We ask them the question again and then they finally admit they don't actually reveal that information.
But that doesn’t have to be the end of it. There are rules that allow shareholders to go over the head of corporate managers and take their case directly to the board and to the other shareholders. We know those rules and how to use them. If we have a shareholder who is willing to work with us, we can kick things up a notch by placing a proposal on the ballot to make the issue harder to ignore.
And that's what's happening with Starbucks. A shareholder at a firm we work with on corporate engagement has come forward to let their shares be used to propose a resolution to be voted on at Starbuck's next annual meeting.
It deals with the company's troubling history of support for the Human Rights Campaign, that activist group that advocates for puberty blockers for minors, pressuring companies not just to support the idea, but to use shareholder money to pay for it. It also advocates policies that weaken religious liberty and free speech. It fights states' attempts to keep biological men (which is to say, men) out of women's sports and showers. It is an extremist group and that is why a dozen or more companies in the past couple of months have severed ties with it. Starbucks, unfortunately, is not among them.
We want to know why, and I think you do, too.
That's why we have teamed up with Alliance Defending Freedom to put this proposal before fellow shareholders. They deserve to know what's going on.
The text of the proposal can be found below. Starbucks may fight against it, but ADF, with its history of involvement in over 70 Supreme Court victories, has assured us they will fight back.
Proposal Text:
Report on Charitable Giving
Supporting Statement:
Corporations routinely use their platforms to voice support for humanitarian causes and human rights. Some of the most fundamental are the rights to free speech and religion, which are recognized by the First Amendment to the United States Constitution and the UN Declaration of Human Rights[1]. Unfortunately, many companies are supporting organizations that are undermining these freedoms.
The 2024 edition of the Viewpoint Diversity Score Business found that 62% of some of the largest companies in America support non-profits that are influencing public policy by actively attacking free speech and religious freedom.
Groups like the Human Rights Campaign have led coalitions calling on major social media platforms to censor “hate speech and harassment” that includes many mainstream views on parental rights and human sexuality.[2] The HRC in particular has advocated for legislation like the Equality Act, which would pose serious threats to religious freedom, free speech, and the progress women have made toward equality in law and culture.[3] And its Corporate Equality Index requires companies to provide “puberty blockers for youth” in their healthcare plans[4] even though nearly 70% of Americans oppose the practice and has induced corporations like Anheuser-Busch[5] and Target[6] into marketing decisions that have severely and permanently harmed their brand value.
Many companies, including John Deere, Jack Daniels, Harley Davidson, Lowes, Home Depot, Ford, and Coors, have already taken affirmative steps to refocus their charitable giving to serve their diverse customers.[7] Many have also explicitly cut ties with the Human Rights Campaign as a part of this effort.
But Starbucks is a Bronze-level National Corporate sponsor for the HRC.[8] As per Starbucks’ Supplier Code[9] of Conduct, “Starbucks does business with suppliers from many countries of diverse cultural, social, and economic circumstances. We strive to work with suppliers that are committed to our universal principles of operating their business in a responsible and ethical manner, [and] respecting the rights of individuals.”
Starbucks needs to assure its shareholders that it is following through on these promises of equality for employees of diverse backgrounds, including diversity of political beliefs and religious practice, and that it is promoting fundamental freedoms that benefit every American.
Resolved: Shareholders request that Starbucks report to shareholders annually, at reasonable expense and excluding confidential information, an analysis of how Starbucks’ contributions impact its risks related to discrimination against individuals based on their speech or religious exercise.
[1] https://www.un.org/en/about-us/universal-declaration-of-human-rights
[2] https://deadline.com/2023/06/glaad-letter-human-rights-campaign-social-media-policies-letter-hate-speech-1235425983/; https://www.hrc.org/press-releases/new-research-hateful-and-abusive-speech-towards-lgbtq-community-surging-on-twitter-under-elon-musk
[3] https://www.heritage.org/religious-liberty/commentary/misguided-fairness-all-act-would-undermine-religious-liberty
[4] https://hrc-prod-requests.s3-us-west-2.amazonaws.com/2023-CEI-Criteria-Toolkit-FINAL.pdf
[5] https://www.newsweek.com/anheuser-busch-stock-drops-20-percent-bud-light-sales-struggle-1803680
[6] https://nypost.com/2023/05/28/target-loses-10b-following-boycott-calls-over-lgbtq-friendly-clothing/
[7] https://www.dailymail.co.uk/news/article-13812241/american-brand-dei-rules-backlash.html
[8] https://www.hrc.org/resources/buyers-guide/starbucks-corp.-3
[9] https://content-prod-live.cert.starbucks.com/binary/v2/asset/137-70079.pdf
