As you likely already know, the newly established Trump cabinet has been voraciously slashing DEI requirements for businesses across the nation. Thanks to a day one executive order from the sitting president and 34-time convicted felon, companies have been emboldened to strip diversity, equity and inclusion measures from their hiring practices, bonus structures and more. A laundry list of major companies such as Amazon, Google and McDonald’s have already begun slashing DEI, with many others on pace to join them in the coming months. Since so many of these companies have been in the news lately, mindful consumers have started toying with the idea of boycotting businesses that don’t offer support to marginalized communities, prompting many to ask about their favorite institutions. As you can imagine, this leaves all eyes on businesses such as Starbucks, which have been mostly quiet about their plans for DEI moving forward.
In order to get a full understanding of what the Seattle-based coffee chain plans to do regarding DEI in their corporate hierarchy, it’s important to look into their finances, controversies and recent public statements. Luckily, we’ve got you covered, with a comprehensive look into Starbucks’ DEI policy, which may be in jeopardy now that the Trump administration is rolling back a wide array of corporate rules and regulations. With no further preamble, let’s unpack the whole affair, and see what we can find out about the next four years of Starbucks in Trump’s America.
What Is DEI?
Though the acronym has become a major political buzzword in recent months, DEI policies have existed in some capacity for decades now. The term, which stands for diversity, equity and inclusion, is a simple framework designed to ensure that members of marginalized communities have access to gainful employment. This could mean requiring massive conglomerates like Starbucks to hire a certain number of BIPOC or disabled people in their 17,000 locations across the United States. It could also mean incentivizing businesses to revel in cultural celebrations like Black History Month, Pride Month and Juneteenth. DEI measures have been rolling out under this three-letter title since the early days of the Biden administration, as corporate America continued to tangle with the fallout of the George Floyd protests and ensuing social reckoning.
Unfortunately, fringe far-right conservative groups have made an effort to demonize DEI hiring structures as part of a broader culture war against minority groups and the political left. This includes calls to strip DEI completely from all corporate guidelines, as part of a backwards insistence that the measures prevent companies from hiring employees on merit. Trump himself even nonsensically blamed DEI for the tragic plane crash that took place in Washington DC on Jan. 29, which resulted in 67 untimely deaths. Despite having gutted the FAA only days before the crash took place, the president nebulously claimed that a DEI hire was responsible for the incident and refused to elaborate further.
Starbucks’ Take On DEI, Historically
Like several major chains across the United States, Starbucks has navigated a number of touchy social and political issues in the past decade or so, including diversity, equity and inclusion in regard to both their hiring practices and customer experiences. In 2018, the coffeehouse launched an “open door” policy as part of a bid to make the popular chain a hangout spot, as much as it is a cafe. This allowed members of the general public to come inside and loiter with impunity without having made any purchases. The policy was designed both to appeal to an array of BIPOC and disabled youths and to establish the chain as the so-called “third space,” where members of the public can meet and be social without any financial pressure. Crucially, it also allowed anyone to use the Starbucks bathroom, correcting some of the inherent racial biases in the previous model.
While the policy was largely revered by the public, it opened Starbucks up to a host of problematic encounters. 2022 specifically saw a spike in interpersonal issues with members of the public, many of whom created a threatening atmosphere for employees and customers alike. Such is the nature of America’s rough and rugged society. Last month, just before Trump’s inauguration, reps from Starbucks announced that they would be removing their open door policy from their code of conduct, and returning to a “paying customers only” model for the foreseeable future.
Examining the Company’s Corporate Shuffle
On the corporate side of things, Starbucks has also seen a series of intrinsic changes. Back in September 2024, the company abruptly replaced their sitting CEO Laxman Narasimhan with former Chipotle CEO Brian Niccol. Narasimhan was blamed for a number of structural issues with the Starbucks business model, including major dips in share prices, declining sales and a multi-billion dollar drop in market cap over the course of his brief tenure. Niccol, by contrast, was known for his ability to rejuvenate Chipotle and send profits skyrocketing. While Niccol’s appointment may sound like a no-brainer on paper, it should be noted that one of his first acts as CEO was to immediately adjust the Starbucks Code of Conduct to tone down DEI hiring practices and worker protections. This echoed the demands of Starbucks’ shareholders, who near-unanimously voted to reduce DEI standards during a March 2024 investors meeting.
Niccol currently serves on the board of directors for Walmart, and previously served on the board for motorcycle manufacturer Harley Davidson. Both of these companies are notable for having completely gutted their DEI programs in the immediate aftermath of Trump’s executive order, so it’s not hard to guess where Niccol’s heart may rest on this issue. Starbucks, by comparison, has been significantly less outspoken about stripping DEI measures than either of the aforementioned businesses, though the insidious changes to their Code of Conduct could be seen as the first steps. So, if you’re questioning whether Starbucks will be supporting DEI moving forward, the short answer is – probably not. They certainly aren’t rallying for DEI like Apple, Costco and others in the wake of Trump’s attacks. Even though Starbucks is being quiet about their lack of DEI support, it still seems clear that the business is not committed to supporting Black, LGBTQ and disabled communities the way that those communities support Starbucks.
