Starbucks Corporation: A Bittersweet Reputation Recovery (Digital Learning Experience)

In April 2018, following an in-store incident in Philadelphia that resulted in the unwarranted arrests of two Black men, Starbucks Corporation (Starbucks) faced a severe public relations crisis. A video of the incident, posted on Twitter, quickly generated widespread attention, online criticism, and in-person protests from people who accused the coffee giant of having exhibited racial bias. Within a few days, Starbucks shared press releases that featured its chief executive officer personally apologizing and taking responsibility for the incident, which had resulted from a single employee's actions. The chief executive officer also announced that US Starbucks stores would close for an afternoon, for racial bias training and education. Although many public relations experts and customers commended Starbucks for its response, others continued to criticize Starbucks, claiming that its response wasn't genuine but merely an attempt to protect reputation and avoid losing business. Further, while the training may have yielded positive education for employees, was it enough to prevent similar incidents from occurring in the future? What could Starbucks do to demonstrate its intentions were genuine? How could it correct its mistake, address the root cause to keep customers' trust, and thrive as the world's largest coffee retailer?