Conservative Starbucks investor fails in diversity contest

A recent development reveals that a lawsuit brought forth by a conservative activist investor against Starbucks has been dismissed by a U.S. judge. The legal action, which targeted the coffee giant’s diversity, equity, and inclusion initiatives, was ruled as frivolous and devoid of merit. The National Center for Public Policy Research (NCPPR) filed the lawsuit in August 2022, asserting that Starbucks’ policies, such as establishing hiring targets for individuals of color, awarding contracts to diverse suppliers and advertisers, and linking executive compensation to diversity, forced the company into race-based decisions that allegedly violated federal and state civil rights laws.

Chief U.S. District Judge Stanley Bastian, presiding over the case in Spokane, Washington, stated that the lawsuit revolved around public policy concerns that are more appropriate for deliberation by lawmakers and corporations rather than the courts. He suggested that if the plaintiff, NCPPR, was discontent with Starbucks’ “woke” corporate direction, they should explore alternative investment opportunities instead of burdening the court’s time. Starbucks’ legal representative, Gregory Watts, contended during the hearing that NCPPR’s criticism of “woke” corporate America indicated motives that extended beyond Starbucks’ business interests.

The dismissal of this lawsuit aligns with similar legal actions initiated by conservative activist groups opposing corporate diversity and inclusion endeavors. It is reminiscent of a June Supreme Court ruling that invalidated race-conscious student admissions policies employed by Harvard University and the University of North Carolina. Despite the decision, NCPPR expressed disappointment and intention to pursue action against what they view as illegal discrimination affecting shareholders and employees.