How Starbucks avoided accountability for racial discrimination

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How Starbucks avoided accountability for racial discrimination
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Ask yourself if the following three rules constitute good corporate governance.

First, shareholders who believe that corporate racial discrimination is a problem that threatens the company’s well-being — because, among other things, it’s illegal — are not proper representatives of a corporation’s best interests.

NCPPR, where I work, was represented in this case by the American Civil Rights Project and the Ard Law Group. There is a critical element missing in this analysis, however. For NCPPR’s concerns about DEI to conflict with the interests of Starbucks and its shareholders, the court would have to conclude that illegal discrimination under the guise of DEI poses no risk to Starbucks’ bottom line. Otherwise, our concerns about DEI in corporate boardrooms align perfectly with the interests of Starbucks and its shareholders.

Rather than doing what courts are supposed to do — provide venues for claims of illegal discrimination — Judge Bastian told shareholders to sell their shares if they don’t like their corporations illegally discriminating on the basis of race: “If Plaintiff remains so concerned with Starbucks’ DEI … programs, the American version of capitalism allows them to freely reallocate their capital elsewhere.

The reader might be tempted at this point to agree that the judge was wrong to dismiss NCPPR’s claim and hope that this error can be corrected on appeal. However, at oral argument, Judge Bastian expressly invited Starbucks to seek Rule 11 sanctions in the case .

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