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Starbucks' confused "community culture" contributed to the arrest of two black men





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Starbucks has tried to be open to the community, but that may have been a factor in the past week.

Starbucks Corp. not only sells coffee. It sells the idea that this is a common room where people are invited to find out whether or not they are consuming Starbucks products all the time.

This community culture could be the basis for the company's recent public relations crisis ̵

1; the arrest of two black men in a Philadelphia café.

"Part of what has solved the puzzle for them and the opportunity to make those stupid mistakes is that they want to be a community center so that people do not always have what they have bought," said Mark Lipton Professor of Management at New School, Author and C-Level Business Consultant. "There are consequences that they need to be aware of." Certainly, nobody with whom MarketWatch spoke, including Lipton, discounted racism in this case.

"This is not new, blacks have been thrown far more out of restaurants for decades than whites," says Lipton. Even Starbucks

SBUX, + 0.32%

CEO Kevin Johnson affirmed in one of his statements at the weekend the firm's firm stance against "discrimination or racial profiling."

See also: Starbucks cited concerns over competition for premium coffee

In addition, the experts said that social media and the tireless efforts of groups such as Black Lives Matter spread not only information about these incidents, but also the Attention turned to her.

"Black Lives Matter does a good job of preventing these events when they happen," said Lipton.

Data from Sprout Social, a social media marketing management and intelligence tool, shows that 46% of consumers have used social media to "pull out" brands, and four out of five think that social media is the most powerful Increased accountability.

But according to Lipton, the problem here is "contextual". Starbucks has an open environment in its stores, and front line managers are responsible for making decisions in those locations.

"If you want to be a community, you'll find better within the boundaries of the store which community means and what it takes to maintain a safe, comfortable community," Lipton said. @powerinterfaith will sing in some center city #Starbucks places and chant until the end of the time in two hours. #StarbucksBoycott pic.twitter.com/JGdCa5XA1F

– KYW Newsradio April 16, 2018

He emphasized Johnson's call for more training to "unconscious bias" during One to avoid interview this morning at ABC News "Good Morning America". Lipton said he thinks the bigger problem is that a manager is responsible for making decisions, and companies need to be sure that they have the right people for the job [19659004] "Maybe it's not just Johnson's approach, more implicit prejudices but in choosing who to have in a leadership position in their store, "said Lipton. He suggested that companies ask, "We've investigated all dimensions of their human interaction skills, and if we have to pay more to get these [qualified] people, we'll do that."

Faced with so many consumer workers – Johnson said that there are "28,000 stores around the world" during his interview – it's difficult, if not impossible, to control everything.

Read: Starbucks tried and failed to make this the next Unicorn Frappuccino

"To expect a company to have absolute control over its employees is not only unrealistic, it is also in conflict "What Starbucks Is Going for Is Endeavor," said Greg Portell, lead retail practice partner at AT Kearney, a global strategy management consulting firm

Both Portell and Lipton, as well as the "GMA" anchors, said they think that the company has responded well. In addition to the Monday morning interview, Starbucks made three statements, including one from Johnson, who apologized and described the incident as "reprehensible" on Saturday and Sunday.

Further coverage of "GMA" said the manager, who called the police on the two men "no longer works for the company." MarketWatch was in contact with Starbucks for further comments or an update, but received no response by the time of publication.

Matt Rizzetta, executive director of the North 6th Agency, a public relations and social media organization, said he said Starbucks is reacting too slowly.

"The incident happened with Starbucks on Thursday and the first statement was not until Saturday," he said. "This is a serious incident and there is a nefarious act that took place in one of your places that smells of racial insensitivity, which is unacceptable."

However, companies may want to slow down to make sure there are systems in place Avoid incidents. He said communication broke down somewhere between the enterprise level and the franchise level.

"There is an exaggerated premium on speed and sometimes they do not think about common sense," he said. More than once in his comments with MarketWatch, Rizzetta emphasized the need for "common sense."

"Obviously, any company of any size worth anything has to embrace diversity and an inclusive workforce," he added.

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In recent months, there have been other racist incidents that have sparked both anger and outrage Consumers, as an ad from H & M Hennes & Mauritz AB

HMB, + 1.08%

with a black kid wearing a sweatshirt with the words "coolest monkey in the jungle" and a Heineken ad reading "sometimes lighter is better."

Experts "You've called these incidents" flat "and downright" stupid. "But they also differentiate between these incidents and the youngest at Starbucks.

" [It] is a pathetic failure of the management that made these products / Advertising somehow went through the design process, "said Lipton of The New School on the examples of H & M and Heineken." It speaks volumes about the advertising agencies and the designers who are hired. "

On the other hand, the experts said Starbucks' recognition that on various fronts they wanted to be a good actor and even try to tackle races in the past. [19659004] Events like these can ultimately have a negative impact on the bottom line: customers call for boycotts, protest and some make decisions Cases no longer for the upcoming company.

"The brand's behavior is the brand," said Lipton. "In my ko pf, I have renamed what these organizations stand for. I have to assume that tens of thousands feel that way.

Starbucks' stock closed 0.3% on Monday, up 3.5% year-to-date, the S & P 500 Index

SPX, + 0.81%

increased by 0.2% in 2018.


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