Case 2 Starbucks Practice Ethical Leadership One Year Becoming Ceo Starbucks Kevin Johnson Q36204542

Case #2 Starbucks and the Practice of Ethical Leadership Oneyear after becoming CEO of Starbucks, Kevin Johnson faced anethical issue when two black men were arrested in a PhiladelphiaStarbucks. Both men sat down in Starbucks store without orderinganything. The store manager was annoyed that they used the storewithout buying any Starbucks items. He immediately asked them toleave. Both men refused to leave claiming that they were waitingfor a third friend. The manager called the police they wereinstantly arrested. See videohttps://www.youtube.com/watch?v=xWBVxTEgoYk In his apologystatement shortly after the arrests, Johnson said, “The video shotby customers is very hard to watch and the actions in it are notrepresentative of our Starbucks Mission and Values. Regretfully,our practices and training led to a bad outcome—the basis for thecall to the Philadelphia police department was wrong.” Before theincident, Starbucks had no companywide policy about askingcustomers to leave, and the decision was left to the discretion ofeach store manager. Johnson took full responsibility for theactions of his employees, and he acknowledged that Starbuckscustomers were hurt by the arrests. After issuing his apology,Johnson went to Philadelphia and met with the two men face to faceto involve them in dialogue on what Starbucks needed to dodifferently. The week following the arrests, Starbucks announced itwould temporarily close 8,000 stores to conduct unconscious biastraining, which they did before the incident. Case Analysis: • Whatare the relevant facts in this case? • Who is involved? • Did themanger violate Starbucks policy? • What the manger should have donedifferently? • Why both men did not leave peacefully? • Was itreally a racist case or bad judgement? • How was the reaction ofCEO? • Was the CEO genuine in his reaction or it was publicrelations move? • What are the ethical issues in this case?