Title: Starbucks CEO Apologizes for Racial Profiling Incident

Author: Kate Taylor

Date: April 15, 2022

Summary:

Starbucks CEO Kevin Johnson apologized on Wednesday for the arrest of two black men at a Philadelphia store, calling it “completely wrong” and saying the company would take “significant actions” to address racial bias in its stores.

The incident, which was captured on video and widely shared on social media, showed two men being handcuffed and arrested by police after a Starbucks employee called 911 to report that they were trespassing. The men, who were waiting for a friend at the store, said they were never asked to leave and that they were simply waiting to order food.

The arrest sparked outrage and protests, and Starbucks was forced to close 8,000 stores nationwide for an afternoon of racial bias training. Johnson said in a statement that the company was “deeply sorry” for the incident and that it would be “reexamining our policies and procedures” to ensure that “all customers are treated with respect and dignity.”

Communication Tactics Used by the Organization

Starbucks used a variety of communication tactics to address the crisis, including:

• issuing a public apology from the CEO
• closing 8,000 stores nationwide for racial bias training
• creating a new position of “Chief Diversity and Inclusion Officer”
• launching a new “Race Together” campaign to promote racial understanding

Jack’s and Warren’s Guidance for Dealing with Crises

Jack Welch and Warren Buffett both offer guidance for dealing with crises. Welch suggests that organizations should “get out ahead of the story” and be transparent with the public. Buffett, on the other hand, advises organizations to “be humble” and to admit when they have made mistakes.

In the case of Starbucks, the company followed both of these pieces of advice. The company issued a public apology from the CEO, which was seen as a way of getting out ahead of the story. The company also closed 8,000 stores nationwide for racial bias training, which was seen as a way of being transparent with the public and admitting that the company had made mistakes.

Effectiveness of the Organization’s Crisis Communication Plan

The effectiveness of Starbucks’ crisis communication plan is difficult to assess. On the one hand, the company was able to quickly contain the crisis and avoid further damage to its reputation. On the other hand, the crisis still sparked outrage and protests, and it is unclear whether the company’s actions will be enough to prevent similar incidents from happening in the future.

If I were a senior leader in the organization, I would have responded differently in a few ways. First, I would have ensured that the company had a more robust crisis communication plan in place before the incident occurred. Second, I would have been more proactive in reaching out to the two men who were arrested and their families. Finally, I would have made sure that the company’s racial bias training was more comprehensive and effective.

Conclusion

The Starbucks crisis is a reminder that even the most well-respected organizations can be vulnerable to crises. However, it is also a reminder that effective crisis communication can help to contain the damage and protect a company’s reputation.