Starbucks’ (SBUX) CEO is trying to set the coffee giant’s story straight in a memo to employees.
Laxman Narasimhan, who took the helm at the end of March, shared his concerns about current events and misinformation being spread about the company in an internal memo, which began with his thanks to workers for their accomplishments this year.
“While I am grateful for so much, I am concerned about the state of the world we live in,” Narasimhan wrote. “There are conflicts in many parts. It has unleashed violence against the innocent, hate and weaponized speech, and lies — all of which we condemn.” These events sparked protests “influenced by misrepresentation on social media of what we stand for.”
A Starbucks spokesperson, Reggie Borges, told Yahoo Finance examples of this misrepresentation include “inaccurate claims about the company’s support for the LGTBQ community.”
Earlier this year, the labor union Starbucks Workers United claimed that managers banned Pride Month decorations in stores. Starbucks subsequently issued a memo that it would provide “clearer” guidelines to stores for visual displays.
Starbucks also condemned the anecdote that it supported Hamas after Starbucks Workers United posted “Solidarity with Palestine!” on X, formerly known as Twitter. That was then interpreted that Starbucks supported Hamas as a whole, sparking a boycott.
Starbucks has filed a complaint against Starbucks Workers United, stating that they do not speak for the company. “To be clear, Starbucks respects Defendants’ right to express their viewpoints about the conflict in the Middle East and other political and social issues,” Starbucks wrote in the complaint.
“Instead, Starbucks brings this action to protect the safety of those working in its retail locations around the world, and to halt the damage to its business that has resulted from Defendants’ misuse of Starbucks name and logos when expressing their views,” the company said.
“We’ve seen our stores vandalized, our partners have been put in impossible situations with customers blaming, shaming, and berating them,” Borges told Yahoo Finance. “Our web properties were hacked and subsequently shut down in one of our international markets and our customer contact center has been flooded with angry people who are seeking an outlet for their understandable rage.”
On Nov. 16, unionized Starbucks workers protested the coffee chain’s Red Cup Day, dubbed Red Cup Rebellion, with plans to strike. It later resulted in claims that the boycotts hit Starbucks’ market valuation, which took social media by storm.
Narasimhan ended the letter saying that Starbucks’ goal is to “further reinvigorate our partner culture,” and to provide a place for people to come together.
On Dec. 13, the company said that it reaffirmed its commitment to collective bargaining.
“Starbucks claims to want a new relationship with workers and our union, but actions speak louder than words,” Starbucks Workers United member Michelle Eisen said in a statement to Yahoo Finance. The union also claims that the company continues to “illegally retaliate against workers who are organizing” and is challenging ongoing elections.
This is not the first time a Starbucks CEO has sent out to memo to wrap up the year. In 2021, then-CEO Kevin Johnson did the same.
