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Monday, January 30, 2017

Starbucks Risks Lawsuits With Refugee Hiring Push

The chief executive officer of Starbucks said Monday morning he will have his coffee chain hire 10,000 "refugees" in response to the Trump Administration executive order on certain majority-Moslem-nation refugees and visa holders.

I guess Americans will be wondering just where those unfilled jobs were all these years.

These are borderline discriminatory policies. The motives are clear. These companies either want to avoid the backlash from a Leftist-Marxist pro-open borders crowd, or they are catering to this growing and substantial segment of the consumer market. Thus, "virtue signaling" to this portion of consumers is seen as the way to grow -- more likely, to retain -- consumer sales.

Yet such blatant preferences -- for which the flip side is equally blatant discrimination -- violate a host of federal and state civil rights laws.

If one baker can be sued by a state attorney general for refusing to bake wedding cakes for a gay couple, surely Starbucks would be a clear target of an ideologically blind Department of Justice, Civil Rights Division, or state attorney general, would it not?

I would think Starbucks and companies following its lead would become prime targets for shareholder lawsuits as well. That's because essentially declaring war on much of the rest of your native "American" consumer population is eventually going to harm the bottom line. Implicitly criticizing a segment of the consumer base puts other revenue at risk. These political decisions are not guaranteed to be revenue net-neutral and may well become net negative. The risks are substantial enough to throw doubt on whether any cognizable "business judgment" argument can or will be made to justify such strategies.

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