Starbucks re-elects all 11 directors to board, rejects proposal to disclose human rights policies
Business
The NLPC questioned Starbucks' strategy to grow its footprint in China
(Reuters) – Starbucks shareholders voted to re-elect all 11 directors to the company's board at its annual general meeting on Friday and also rejected measures asking the coffee chain to disclose details on human rights policies and discrimination against "non-diverse" groups.
In the run-up to the company's 2024 AGM, a coalition of labor unions called the Strategic Organizing Center (SOC) launched a boardroom fight, nominating candidates for three seats, in a push to make Starbucks reach an agreement with its unionized baristas over pay, benefits and worker treatment.
However, in a surprise move just days before the meeting, the SOC withdrew its three nominees to the 11-member board, following a joint announcement from Starbucks and its baristas' union that the parties have agreed to create a "framework" on unionization and collective bargaining.
Another Starbucks shareholder, the National Legal and Policy Center (NLPC), issued a proposal asking Starbucks to publish a report on human rights policies and how it adheres to those across its business, targeting the company's ambitious growth plans in China in particular.
The NLPC questioned Starbucks' strategy to grow its footprint in China in light of human rights controversies in the region. The proposal, though rejected, won 1.5% of votes cast.
Investors also rejected a proposal asking the coffee chain to disclose details on discrimination against "non-diverse" people, claiming Starbucks' diversity and inclusivity policies "alienate individuals who lack certain diverse qualities."
The proposal came from the National Center for Public Policy Research, a conservative Starbucks investor, which had previously sued the company for setting hiring goals for people of colour and tying executive pay to diversity.
A proposal represented by animal rights group PETA asking for disclosures on Starbucks' pricing of plant-based milk was also rejected by shareholders.
