Starbucks
Starbucks is a multinational coffeehouse chain. Known for its ubiquitous presence in urban areas globally. The brand has faced labor disputes, as well as slavery, Israel, and child labor controversies.
Relation to Nestlé
In 2018, Starbucks and Nestlé formed the Global Coffee Alliance and became partner companies. This meant that all Starbucks products, such as capsules, instant coffee, and creamers, sold to grocery stores and restaurants are made and sold by Nestlé. Nestlé owns the rights to sell Starbucks coffee and tea in grocery and retail stores.
Israel & Its Genocide in Gaza
In late 2023, Starbucks sued its employees for making a social media post in solidarity with the Palestinian people during the genocide that they were facing. During this time, CEO Laxman Narasimhan wrote a year-ending letter to employees: "Our stance is clear. We stand for humanity.". Marking the company's stance on the sidelines as a tilt towards the genocidal entity and not in solidarity with people going through genocide.
Howard Schultz's Israel 50th Anniversary Tribute Award
In 1998, Schultz received the 'Israel 50th Anniversary Tribute Award' for "playing a key role in promoting a close alliance between the United States and Israel", helping build the state of Israel into what it is today.
Unethical Sourcing and Child Labour
Starbucks and its partner company, Nestlé, have faced multiple reports and allegations of unethical sourcing practices concerning its coffee and cocoa beans. The allegations include slave labor, child labor, sexual abuse, unethical sourcing, and customer deception. Despite frequently promoting programs to ensure "ethical sourcing" and introducing certification standards for farms, these initiatives often fall short. Reports indicate that as long as farmers are not fairly compensated, certification programs will remain ineffective, and issues like labor abuse and slavery will persist. In some cases, Starbucks and Nestlé have failed to adequately address concerns raised by workers and nonprofits working in the field.
There is a huge body of evidence showing that the mechanisms certifiers rely on to address issues like forced labor, child labor, and gender-based violence are deeply flawed and not working effectively.
Said Genevieve LeBaron, director of the School of Public Policy at Simon Fraser University, Canada.
According to Brasil Reporter, while certification programs implemented by NGOs and corporations have had some positive impact on coffee farms, they do not necessarily guarantee ethical practices or high product quality. The investigation uncovered a lack of sufficient oversight and monitoring by multinational corporations.
2024: Starbucks Sued Over Human Rights and Labor Violations
Starbucks is being sued by the National Consumers League, a US consumer group, for allegedly misleading the public about its ethical sourcing practices. The lawsuit claims that despite Starbucks' commitment to "100% ethical" sourcing, the company has been procuring materials from farms and cooperatives with labor and human rights violations.
The lawsuit references cases that happened in previous years and the report produced by Repórter Brasil titled "Behind Starbucks Coffee". The allegations include but not limited to the following:
- Significant human rights and labor abuses across Starbucks' supply chain.
- Slavery-like conditions and illegal trafficking of migrant workers in Brazil.
- Child labor use in Guatemala.
- Sexual abuse at a tea plantation in Kenya.
Starbucks claims that it takes such allegations seriously and that it has taken corrective action in Guatemala and Kenya.
2023: Starbucks' Child and Slave Labor
An exposé by Repórter Brasil titled "Behind Starbucks Coffee" investigated labor practices in the coffee supply chain for both Starbucks and Nestlé. The investigation uncovered that farms certified by Starbucks' own ethical sourcing program, C.A.F.E. Practices, have been violating labor laws. Instances of child labor and conditions akin to modern slavery were discovered on these certified properties. Some suppliers were found to be repeat offenders, continually failing to meet basic labor standards despite previous fines and inspections. The report highlights that these issues are not isolated to Starbucks; suppliers for other major corporations like Nestlé and McDonald's have also been implicated in similar violations.
Another report by Repórter Brasil revealed the widespread issue of slave labor across multiple industries in Brazil and beyond. Major companies, including Aurora, Garibaldi, and Salton wineries, fashion brands like Zara and Animale, construction giants such as MRV and OAS, and coffee brands like Nespresso and Starbucks, have been accused of direct or indirect involvement in these practices. When confronted, most companies claimed ignorance of the situations and often blamed third-party service providers.
Starbucks Linked to Kenyan Tea Farm Exploitation Scandal
An investigation by BBC Africa Eye and Panorama has revealed widespread sexual exploitation on Kenyan tea farms that supply major brands like Starbucks and Tesco—the farms owned by British companies Unilever and James Finlay & Co.
More than 70 women working on these tea plantations came forward with accounts of sexual abuse by their supervisors. The women describe a culture of fear and coercion, where sexual favors are demanded in exchange for job security or better working conditions. In one particularly distressing case, a woman reported contracting HIV after being pressured into a sexual relationship with her supervisor.
BBC sent an undercover reporter to work on the plantations. In one instance, a long-time recruiter attempted to sexually assault the reporter during what was supposed to be a job interview in a hotel room. At a Unilever farm, a divisional manager was caught on camera pressuring the undercover reporter for sex mere hours after giving a speech about the company's zero-tolerance policy towards sexual harassment.
2022: Starbucks' Certified Coffee Farm Exploits Workers in Brazil
It was revealed that in 2022, a farm with Starbucks' "ethical coffee sourcing" certification required temporary workers to pay over 30% of their average monthly income for essential harvesting equipment called derriçadeiras. This practice occurred at a farm in Brazil that supplies coffee to Starbucks. The farm attempted to circumvent labor laws by instructing workers to pay a contractor for the machines after being warned by labor inspectors. Additionally, workers reported poor living conditions, including inadequate housing and bathing facilities.
2021: Coffee Supply Chain Labor Exploitation
In 2021, Labor inspectors found the farm that a farm owned by the family of the president of Cooxupé—the world’s largest coffee cooperative, which supplies brands like Nespresso and Starbucks—illegally deducted nearly one-third of workers' wages for equipment and fuel as well. The Farm, located in Brazil, was found to be violating workers' rights. Despite Cooxupé reporting record profits of R$5 billion in 2020, 19 migrant workers from one of Brazil’s poorest regions saw R$500 deducted from their bi-weekly pay.
This case is not isolated. Investigations have shown that even certified coffee producers with evidence of slave labor continue to operate within the supply chains of major European retailers. A report titled "Certified Coffee, Workers Without Rights 2" exposed farms with labor violations, including three cases of slave labor between 2018 and 2019, that supplied coffee to global giants such as Carrefour, Coop, Jumbo, Lidl, Metro, and Tesco. One particularly notable case involved a Starbucks C.A.F.E. Practices-certified farm where 15 workers, including a teenager, were found in slave-like conditions.
2020: Starbucks Implicated in Child Labor & Workers Displacement
An investigation by Channel 4's Dispatches has revealed evidence of child labor within the supply chains of Starbucks and Nespresso. Children as young as 8, with many between the ages of 11 and 12, were discovered working on coffee farms in Guatemala that supply both companies. These children were found working up to 40 hours per week in harsh conditions, facing dangers such as insect bites and snake encounters.
Child laborers typically earn less than £5 per day, with some making as little as 31p per hour. The investigation uncovered child labor on all 12 farms visited (7 supplying Nespresso and 5 supplying Starbucks). A human rights lawyer commented that the findings suggest both companies may be violating international labor regulations.
It was revealed in the same year that a businessman with Starbucks certification is involved in a process that led to the eviction of 14 families and threatens to displace around 450 other families of the Landless Workers Movement who have lived on disputed land in Brazil for 22 years. A bankrupt sugar mill formerly occupied the land. João Faria da Silva, whose operations have Starbucks CAFE Practices certification, has a future lease agreement for the area, which is being used to justify the evictions.
2019: Slave Labor Exposed on Starbucks-Certified Farm
A Nespresso and Starbucks-certified farm in Brazil was discovered to have used slave labor, subjecting workers to 17-hour shifts and housing them in substandard, unhygienic conditions. As a result, the farm was added to the Brazilian government's biannual "Dirty List" of employers engaged in slavery-like labor practices. In response, both Starbucks and Nestlé-owned Nespresso announced they would stop sourcing coffee from the farm.
2018: Slave-Like Conditions Found on Starbucks-Certified Farms in Brazil
In 2018, Brazil experienced its worst labor conditions in 15 years, despite ethical sourcing claims by companies like Starbucks and Nespresso. Workers were often forced to pay for their own food, tools, and equipment, creating debt bondage situations that trapped them on farms due to mounting debts.
Brazilian labor inspectors rescued 18 workers from slave-like conditions at a farm that held multiple international certifications, including Starbucks' C.A.F.E. Practices seal. Workers lived in collective housing without access to clean drinking water. Starbucks denied purchasing coffee from the farm but confirmed the farm has been certified under their program since 2016.
2017: Labor Abuses on Starbucks Certified Coffee Farms
Repórter Brasil uncovered cases of undocumented labor, irregular use of pesticides, and complaints of payments below half the minimum wage on coffee farms certified as following good practices. These farms were part of sustainability programs run by companies like Nestlé and Starbucks. According to the report, in July 2015, the Brazilian Ministry of Labor found 13 seasonal workers harvesting coffee without proper documentation at a farm certified by Rainforest Alliance and participating in Nestlé's and Starbucks' sustainability programs.
Union Busting
In 2022, Starbucks terminated more than 85 workers in the United States who had been actively involved in organizing worker unions to address unfair labor practices within the company. These actions sparked accusations against Starbucks, with workers claiming the company fostered a culture of fear and surveillance within its stores. The National Labor Relations Board (NLRB) has accused Starbucks of illegally withholding rasses and other benefits from its unionized workers. The company permanently closed stores that were unionized or were in the process of doing so.
During the HELP Committee Hearing in the U.S. Congress, Starbucks have been accused with wagging:
the most aggressive and illegal union busting campaign in the modern history of our [U.S.] history
The CEO and founder of Starbucks Howard Schultz has been personally accused of fostering a Anti-Union culture.
The National Labor Relations Board (NLRB) has taken action against Starbucks, filing over 80 complaints for breaching federal labor laws. Additionally, the company has faced more than 500 charges of unfair labor practices, with judges ruling against Starbucks 130 times across six states. These violations, which began when workers started organizing in fall 2021, include the unlawful termination of over a dozen Starbucks employees simply for unionizing. An administrative law judge found Starbucks guilty of "egregious and widespread misconduct," including illegal retaliation against unionizing employees.
the HELP committee accused Starbucks Starbucks it's CEO:
Starbucks and its multi-billionaire owner have acted as though those laws do not apply to them.
Sources:
- Starbucks Starbucks and Nestlé Form Global Coffee Alliance to Elevate and Expand Consumer Packaged Goods
- Nestlé Starbucks Coffee at Home
- The Guardian You might think Starbucks is a ‘progressive’ company. You’d be wrong
- U.S. Senate Committee on Health, Education, Labor & Pension NEWS: HELP MAJORITY STAFF REPORT ON STARBUCKS
- HELP Committee Hearing: The Need to End Illegal Union Busting at Starbucks
- Jewish Virtual Library Howard Schultz
- Repórter Brasil Café certificado, trabalhador sem direitos
- Repórter Brasil Fazenda de café certificada pela Starbucks é flagrada com trabalho escravo
- Repórter Brasil Condições de trabalho nos cafezais são as piores dos últimos 15 anos
- Repórter Brasil Slave labor found at second Starbucks-certified Brazilian coffee farm
- Repórter Brasil Nespresso e Starbucks compraram café de fazenda flagrada com trabalho escravo
- Channel 4 Dispatches: Starbucks and Nespresso: The Truth About Your Coffee
- Repórter Brasil Starbucks deu selo de boas práticas a produtor que pode ser beneficiado por despejo de sem-terra em MG
- Repórter Brasil Starbucks supplier farm ignores law and fails to provide coffee harvesting machine, workers say
- Repórter Brasil Labour inspectors fine leader of cooperative that supplies coffee to Nespresso and Starbucks
- Repórter Brasil Certified Coffee, Workers Without Rights 2
- Repórter Brasil Cafés vendidos em supermercados da Europa estão ‘contaminados’ por violações trabalhistas
- Repórter Brasil Starbucks: slave and child labour found at certified coffee farms in Minas Gerais
- Repórter Brasil Behind Starbucks Coffee
- Repórter Brasil O que Aurora e Salton agora têm em comum com empresas como Zara e Odebrecht
- BBC True cost of our tea: Sexual abuse on Kenyan tea farms revealed
- The Guardian Starbucks sued over claims of labor and human rights violations in making of products
- Superior Court Of The District Of Columbia Natioanl Consumer League V. Starbucks Corporation