Lobbying Expenditures Disclosure

Resolution Text

RESOLVED: Starbucks shareholders, including James McRitchie, request preparation of a report, updated annually, disclosing:

Company policy and procedures governing lobbying, direct, indirect, and grassroots lobbying communications.
Payments by Starbucks used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.
Starbucks’ membership in and payments to any tax-exempt organization that writes and endorses model legislation.
Description of management’s and the Board’s decision-making process and oversight for making payments described in sections 2 and 3 above.

For purposes of this proposal, a “grassroots lobbying communication” is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation, and (c) encourages the recipient of the communication to take action concerning the legislation or regulation. “Indirect lobbying” is lobbying by a trade association or other organization of which Starbucks is a member.

Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state, and federal levels.

The report shall be presented to the Public Policy and Strategy Committee and posted on Starbucks’ website.

SUPPORTING STATEMENT

Full disclosure of Starbucks’ lobbying activities and expenditures is needed to assess whether Starbucks’ lobbying is consistent with its expressed goals and shareholder interests. Starbucks spent $12,490,000 from 2010 – 2022 on federal lobbying. This does not include state lobbying, where Starbucks also, for example, spent over $1.3 million in California from 2010 – 2022 and drawing attention for spending millions to oppose a California wage law.[1]

Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity. These groups may be spending “at least double what’s publicly reported.”[2] Starbucks does not disclose its payments to trade associations and social welfare groups (SWGs) or the amounts used for lobbying and only discloses four trade association memberships, including the Business Roundtable (BRT), National Restaurant Association (NRA) and Retail Industry Leaders Association (RILA). The disclosure leaves out trade associations like the National Retail Federation, which reports Starbucks is a member,[3] and all SWGs.

Starbucks’ lack of disclosure presents reputational risks when its lobbying contradicts the Company’s public positions. For example, Starbucks believes in putting “our partners (employees) first.” Yet, the RILA spends millions lobbying against union and worker rights,[4] the NRA and Starbucks lobbied to block state wage laws,[5] and the NRA and RILA contribute to anti-union SWGs like the Job Creators Network.[6] Starbucks states it is committed to cutting its climate footprint in half by 2030. Yet, the BRT opposed the Inflation Reduction Act and its historic investments in climate action.[7]

Reputational damage stemming from these misalignments could harm shareholder value. Starbucks should expand its lobbying disclosure.

Enhance Shareholder Value, Vote FOR

Lobbying Disclosure – Proposal [4*]

[1] https://www.restaurantbusinessonline.com/workforce/restaurant-chains-pour-money-kill-californias-fast-food-wage-act.

[2] https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/.

[3] https://nrf.com/blog/8-retailers-keeping-earth-day-alive-through-commitment-sustainability.

[4] https://inthesetimes.com/article/union-busters-starbucks-labor-buffalo.

[5] https://www.fastcompany.com/90819939/the-fast-food-industry-just-proved-how-easy-it-is-to-hijack-californias-referendum-process.

[6] https://truthout.org/articles/longtime-astroturf-firm-obscures-funders-as-it-targets-starbucks-union/.

[7] https://www.theguardian.com/environment/2022/aug/19/top-us-business-lobby-group-climate-action-business-roundtable; https://popular.info/p/corporations-versus-the-climate