Publications
Publications
- 2021
Starbucks: Opposing a Local Tax to Address Homelessness while Promoting Social Justice
By: Andrew J. Hoffman
Abstract
In 2018, the Seattle City Council unanimously voted 9-0 for a tax that would require companies whose annual revenue surpassed $20 million to pay the city $275 per employee per year. The tax money would then be used to combat homelessness in Seattle. In response, Starbucks Senior Vice President John Kelly released a statement: "There's no reason why one of the wealthiest cities in the world should have children sleeping in cars. But the solution is not to funnel more money through a city council that has thus far failed to show it can spend it effectively." Ultimately, Starbucks, Amazon, and other large Seattle-based companies mounted a campaign to put a tax-repeal referendum on the ballot. The controversy grew, and less than a month after unanimously approving the tax, the City Council voted 7-2 to repeal it. Starbucks has been very public in its commitment to being socially responsible and a good citizen of the communities in which it operates, so how would customers react to the company not wanting to pay local taxes to support social initiatives?
Keywords
Citation
Hoffman, Andrew J. "Starbucks: Opposing a Local Tax to Address Homelessness while Promoting Social Justice." William Davidson Institute Case 3-330-494, 2021.