Starbucks Investors Urged to Vote for Assessment of Workers’ Rights Commitments by New York City Comptroller Brad Lander and Coalition of Investors

New York, NY – New York City Comptroller Brad Lander and a coalition of investors are urging Starbucks shareholders to vote for the company to conduct an independent workers rights assessment. In a letter to Starbucks shareholders, filed with the U.S. Securities and Exchange Commission, the investors make the case for why the requested workers’ rights assessment is needed to enable the company’s board of directors to conduct informed oversight and provide shareholders with necessary transparency regarding management’s adherence to Starbucks’ human rights commitments.

The exempt solicitation letter was filed by the New York City Retirement Systems, PIRC on behalf of pension fund clients, SHARE on behalf of The Catherine Donnelly Foundation, and Trillium ESG Global Equity Fund. The proposal was included in the company’s proxy statement (proposal eight) for their annual general meeting of shareholders on March 23.

The National Labor Relations Board (NLRB) has issued dozens of complaints against Starbucks, raising investor concerns about the company’s interference with worker organizing.

Following months of no engagement from the company on the shareholder proposal, the shareholder coalition is concerned that Starbucks’ reported behavior may create reputational, legal and operational risks for the company and impact long-term value. The investors are concerned about Starbucks’ approach to upholding U.S. labor laws and that even if management’s alleged interference in worker organizing and refusal to bargain were deemed lawful, they may still violate Starbucks’ Global Human Rights Statement.

The proposal requests that the board commission and oversee a third-party assessment of management’s adherence to Starbucks’ stated commitments to workers’ rights to freedom of association and collective bargaining. It also requests that the assessment address management non-interference when employees exercise their right to form or join a trade union as well as steps to remedy any practices found to be inconsistent with Starbucks’ stated commitments.

In response to a similar shareholder proposal, Apple recently committed to disclose a third-party assessment on its efforts to comply with its Human Rights Policy as it relates to workers’ freedom of association and collective bargaining rights in the United States by the end of 2023.

In their letter to shareholders, the coalition highlights the Starbucks’ board’s responsibility to oversee management’s compliance with the company’s commitments and the risks posed by a lack of compliance.

“Starbucks has responded aggressively, and in some cases illegally, to worker organizing at their stores, raising concern from investors about reputational risks to a company that prides itself on a positive environment,” said Comptroller Brad Lander. “ Despite these concerns, Starbucks has failed to meaningfully engage with investors. I encourage investors to vote in favor of our proposal to let Starbucks board know that independent oversight of the company’s response to worker organizing is needed.”

“Incoming CEO Laxman Narasimhan has the potential to transform the company’s direction and engage in a positive dialogue with the organizing workers,” said Jonas D. Kron, Chief Advocacy Officer at Trillium Asset Management. “Regrettably, under the leadership of outgoing CEO Howard Schultz, the company has been found liable of numerous unlawful actions by the National Labor Review Board (NLRB), and Starbucks has demonstrated a confrontational stance towards the NLRB and its implementation of US laws. With a new CEO taking the helm, we are hopeful that Mr. Narasimhan will take a different approach, and we encourage him to do so.”

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