The Refusal of Starbucks to Send Coffee to Troops
In 2018, Starbucks was making headlines after turning down a request from Operation Gratitude, an organization that sends care packages to troops abroad. Operation Gratitude asked Starbucks to donate coffee for their care packages, but the company refused, sparking backlash from many people in the US. Starbucks defended their decision by stating that doing so would be in violation of US laws. In this article, we will go over the background of this refusal, examine the opinion of experts on the matter, and explore the consequences of this decision.
Background
Operation Gratitude is an organization that was founded in 2003 with the mission of making armed service members and veterans feel appreciated. It has a large network of volunteers who gather and package useful items and ship them overseas to those who are deployed abroad. In 2018, the organization requested that Starbucks send coffee for the care packages, and the company refused. This sparked a big outcry primarily from American customers.
Expert Opinions
Starbucks’ refusal to donate coffee to troops abroad was criticized by many experts from across the US. According to one expert, this decision was a “gross affront to the bravery and sacrifice of the members of the armed services abroad, who daily risk their lives for our country.” Another expert was quoted as saying it was “utterly inexcusable for a company like Starbucks to refuse such a simple request and to do so without any reasonable explanation.”
Consequences
The consequences of Starbucks’ refusal to donate coffee were twofold. The first was a significant decline in the company’s public perception, as many customers felt a sense of betrayal towards the company. This was reflective in their dwindling sales figures towards the end of 2018. The second was a wave of donations from other companies. Several companies, such as Dunkin’ Donuts and Caribou Coffee, stepped up to make the donations in Starbucks’ stead. As a result, Operation Gratitude was still able to ship out the care packages with the required coffee.
Analysis
From an outside perspective, Starbucks’ refusal came off as heartless and short-sighted. Ignoring the goodwill generated by donating their products, the company could have gained an immense amount of positive recognition for supporting the US troops abroad. The law in question does not outright forbid companies from donating products, although it does suggest that those responsible for such donations should carefully examine their donations. Additionally, the law does not prevent companies from making profits from these donations.
Alternatives
The law that Starbucks cited as a reason to refuse the donation does not forbid companies from donating coffee to the troops abroad. Instead, it suggests that due diligence should be done to ensure that the donations are made with no profit. This is what several companies, including Dunkin’ Donuts and Caribou Coffee, did when they took up starbucks’ cause. These companies donated coffee for free with the knowledge that any profits made would not exceed the cost of production. This ensured that the donations satisfied the law and ensured that Starbucks would not be held accountable for any legal action.
Questions to Address
It is perhaps worth asking if Starbucks was aware of the law they were citing as the reason for their refusal. Did they turn down the donation in an attempt to maximize their profits? Would they have refused the same donation if it had come from an organization outside the US? Was its refusal made in a calculated attempt to beef up its military-friendly image? If so, was this as successful as they had intended? It is difficult to answer these questions without firsthand knowledge of Starbucks’ decision-making process.
US Department of Defense View
The US Department of Defense strongly recommends that companies consider donating products or services to US military organizations. Publication DoD 4500.36-R, the Policies and Procedures for Giving Gifts to the United States Department of Defense states that companies should be encouraged to “donate or provide free services or products in support of US armed forces, to include US military installations.” All donations that comply with this policy are “in the public interest and shall be therefore recognized and accepted subject to the terms and conditions involved.”
Starbucks Statement
In response to the backlash and criticism, Starbucks released a statement expressing their appreciation for the organization’s mission. They clarified that the refusal was based on a misunderstanding of US laws which do not allow companies to profit from donations made to US armed forces organizations. They also promised to continue to work with Operation Gratitude to find legal and feasible ways to donate coffee to troops abroad.
Political Repercussions
The refusal of Starbucks to donate coffee to the US troops abroad was met with a wave of criticism from both the general public and in political circles. Several high-profile politicians publicly criticized the company’s decision, and some even threatened to introduce legislation that would disallow companies from refusing donations to US armed forces organizations for economically motivated reasons. These threats did not result in any new legislation, however, the political pressure spearheaded by certain individuals did result in a public apology by Starbucks.
Alternatives to Military Donations
In light of the controversy, Starbucks began to focus its resources on finding alternatives to providing donations to US military-related organizations. In 2018, the company pledged to donate $1.3 million to organizations working to support active duty military service members, veterans, and their families. This pledge was part of a larger philanthropic focus by the company which saw them provide $10 million in donations to charitable organizations across the US over the course of 2018.
Corporate Contributions
Beyond donations to military-related organizations, Starbucks has a long and consistent history of corporate philanthropy. The company actively supports several causes including education, hunger relief, and disaster relief. In 2018, the company proudly reported that more than 30% of its total donations went to charitable causes in the cities in which its stores are located, creating a better and more equitable society.
Global Reach
Finally, Starbucks Business Practices Program (SBPP) has had a global reach in terms of its philanthropic efforts. For example, the company has made significant investments in coffee farms in South America and Africa, creating jobs and financial security for workers in those regions. Additionally, the company has actively helped to create a better global environment by reducing its water and energy consumption, increasing its use of recycled and renewable materials, and investing in green initiatives.
