One year after becoming CEO of Starbucks, Kevin Johnson faced a leadership test

when two black men were arrested in a Philadelphia Starbucks. The men were waiting

to meet a business associate, but they didnt purchase anything while they were waiting.

The store manager asked them to leave, and they refused, explaining that they were

there to meet someone. The manager called the police because the men refused to

leave, and the police arrested them.

Another patron at Starbucks recorded the arrest on her cell phone, and it quickly went

viral. In an interview after the arrest, the woman who took the video mentions that she

had been sitting there for a while, and she wasnt asked to leave even though she didnt

order anything. Additionally, the video shows the business associate of the black men

show up during the arrest, and he asks the manager and the police what the men had

done wrong. The general public and those who witnessed the arrest labeled it as

discriminatory and racist.

This happened on a Thursday and the following Monday, Johnson said that the manager

no longer worked at the store. The arrests led to protests and sit ins at the Philadelphia

Starbucks the days following the event.

In his apology statement and follow up video release shortly after the arrests, Johnson

said, The video shot by customers is very hard to watch and the actions in it are not

representative of our Starbucks Mission and Values. Creating an environment that is

both safe and welcoming for everyone is paramount for every store. Regretfully, our

practices and training led to a bad outcomethe basis for the call to the Philadelphia

police department was wrong.

Before the incident, Starbucks had no companywide policy about asking customers to

leave, and the decision was left to the discretion of each store manager. Because of this

flexible policy, Starbucks had become a community hub--a place where anyone could sit

without being required to spend money. Johnson mentioned this community in his

apology when he said Starbucks works to create an environment that is both safe and

welcoming for everyone.

Also in his apology, Johnson outlined the investigation he and the company would

undertake. The apology detailed actionable steps Starbucks leadership would follow to

learn from the situation, including meeting with community stakeholders to learn what

they could have done better. Johnson took full responsibility for the actions of his

employees, and he acknowledged that Starbucks customers were hurt by the arrests.

Johnson acknowledged that employees needed more training, including about when to

call authorities, and that the company needed to conduct a thorough analysis of the

practices that lead to this incident.

After issuing his apology, Johnson went to Philadelphia and met with the two men face to

face to involve them in dialogue on what Starbucks needed to do differently.

The week following the arrests, Starbucks announced it would temporarily close 8,000

stores to conduct unconscious bias training, which they did on May 29, 2018. A month

after the arrests, Starbucks released a new Use of Third Place Policy, which states that

anyone can use Starbucks and its facilities without making a purchase; it also explains

what managers should do if a customer becomes disruptive. Additionally, the policy says

that Starbucks seeks to create a culture of warmth and belonging where everyone is

welcome. This policy is intended to help maintain the third place environment in

alignment with our mission to inspire and nurture the human spirit one person, one cup

and one neighborhood at a time.

c.Showing Discipline in Ones Role: Does Johnson explicitly accept responsibility for the incident and provide direction for a course correction? Does he identify ways to collaborate with others when necessary? Does he show he understands what his role is in fixing this problem?