RESOLVED: We believe Starbucks’ human capital mismanagement is materially damaging the way customers and employees perceive the Company by exposing the business to reputational risk and potential financial harm over the long-term.
In fact, the Company recently experienced significant stock price declines following weakening sales, with the ongoing labor issues, related litigation and staff walkouts also cited by outside observers as negative factors for the share price.2
Notably, at the 2023 Annual Meeting of Shareholders, a majority of shareholders who voted at the meeting voted in favor of commissioning an independent assessment of its worker rights practices – reflecting what we see as the deep unease investors feel around the Company’s handling of these issues. When the report was released, the auditor concluded that the Company did not understand or give consideration to its labor rights commitments in the context of recent organizing.