Starbucks pledges to spend $ 1.5 billion with various suppliers by 2030

More than a year after committing to making its workforce more racially diverse, Starbucks has pledged to nearly double the amount it spends with minority-owned vendors.

The company said on Tuesday that it plans to increase the money it spends with various vendors to $ 1.5 billion per year by 2030, a jump from the nearly $ 800 million it spent with various vendors in fiscal 2021.

At the same time, Starbucks said it will devote 15% of its advertising budget over the next year to minority-owned and oriented media companies, as part of an effort to expand its audience. Many advertisers and businesses have announced plans to take similar action in response to calls from activists advocating for social and racial justice in the summer of 2020.

Fairness issues and anti-Black biases in the business came to the fore in 2018, when two black men were arrested at a Starbucks store in Philadelphia while waiting to buy coffee. Starbucks responded to a boycott threat by promising to change its corporate culture, promises tested in an Equal Employment Opportunity Commission investigation, which was settled last March.

Also on Tuesday, the Seattle-based coffee giant outlined a broader initiative to advance social and racial equity in the business, including plans to launch a leadership accelerator program this summer to connect black employees. , Indigenous and Colored with senior management and by announcing the first round of funding to individuals in businesses of color through its Community Resilience Fund.

“We haven’t always done it right and we’ve had setbacks, but we’ve taken those setbacks and turned them into opportunities for growth and improvement,” wrote Dennis Brockman, Global Head of Inclusion and of diversity, in a letter. to employees.

“It’s not enough to just share these words in a message, our work has to be done through action,” said Brockman.

The most recent announcement builds on a previous commitment to increase the diversity of its workforce, from baristas to regional directors to senior vice presidents, and a plan to link executive compensation to its success.

In October 2020, Starbucks announced an initiative to increase the percentage of people of color represented in company operations to 30% by 2025 and to increase the number of people of color in retail and 40% manufacturing over the same period.

Starbucks said at the time, and again on Tuesday, that the compensation of CEO Kevin Johnson and 42 other senior executives would depend on his ability to meet those goals, but the company did not share further details.

A year later, Starbucks increased the percentage of female workers from 69% in 2020 to 71% last year. The representation of people of color also increased by a few percentage points to 48% in 2021.

In Starbucks cafes and coffee stands, the number of black employees working as regional managers fell from 12% in 2020 to 16.7% in 2021. The ratio of regional vice president positions tended the opposite way: workers blacks made up 17.6% of vice presidents in 2020 and 10% in 2021.

About 6% of regional vice presidents in 2020 were Hispanic or Latino. This number rose to 10% in 2021.

In corporate roles, 9.8% of senior vice presidents were black in 2021, up from 11.6% in 2020. The percentage of Hispanic or Latino senior vice presidents remained stable, from 2.3% in 2020 to 2.4% in 2021.

“We have the power to reframe and normalize diversity,” said Brockman. “I don’t take this job lightly – we’ve made great strides, but we can’t lose momentum and need to move faster to accelerate the change that is necessary and imperative to ensure Starbucks is the brand of choice by being the more diverse, inclusive, equitable and accessible business.

The announcement comes at a time when some Starbucks workers are pushing to organize. Starbucks workers on Broadway and East Denny Way in the Capitol Hill neighborhood filed a petition with the National Labor Relations Board in December to hold a union election.

Earlier this month, unionized workers at a Starbucks store in Buffalo, New York, quit their jobs due to health concerns while working amid rising COVID-19 cases.

In his letter to over 200,000 partners, Brockman cited the company’s mission to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

To hold itself accountable, Starbucks is committed to sharing regular updates on its diversity goals.

Starbucks donated $ 21 million to seven community development financial institutions to support the growth of small businesses and community development projects, fulfilling part of a $ 100 million commitment for its Community Resilience Fund.

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