Starbucks announces $100M community resilience fund

Starbucks has announced the creation of a community resilience fund to advance small businesses in underserved communities. CNBC's Kate Rogers reports on the decision. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
Starbucks is starting a $100 million fund aimed at investing in community development projects and small businesses in areas populated by Black, Indigenous and people of color.
The company’s Community Resilience Fund is part of a broader plan to step up its commitment to racial and social equity, particularly in the communities where it operates cafes. In June, as Black Lives Matter protesters took to streets to push for an end to racism and police brutality, the Starbucks Foundation pledged $1 million in neighborhood grants, joining numerous companies that said they would give money to fight against racism. The foundation ultimately ended up giving out an additional $500,000 in grants.
The coffee chain has also looked inward to make its workforce more diverse by setting targets for its management roles and tying executive compensation to those benchmarks.
Starbucks plans to use the new fund to invest $100 million over the next four years in 12 U.S. cities with populations that are Black, Indigenous or people of color.
The cities are Atlanta, Detroit, Houston, Los Angeles, Miami, Minneapolis, New Orleans, New York, Philadelphia, San Francisco Bay Area, Seattle and Washington, D.C. Philadelphia was where police in 2018 arrested two Black men who were waiting for a business meeting to start before ordering coffee, sparking boycotts and leading Starbucks to close down its company-owned cafes nationwide for one day of racial bias training.
The money will go to impact-focused financial institutions, like community development financial institutions, which provide financial services to low-income people. Small businesses and neighborhood development projects are ultimately supposed to be the beneficiaries of the program.
The goal is to help bridge the gap between the public and private sectors. Last year, many small businesses missed out on federal funding from the Paycheck Protection Program, which was intended to help them stay afloat during the coronavirus pandemic.
“We know these communities. These are some of our business partners, and in some instances, they may even be a small supplier to Starbucks,” Chief Operating Officer Roz Brewer said. “And so when you think about that, and you can’t help but have empathy for them, you want them to thrive as well, but also we understand what they’re going through.”
In 2019, Starbucks pledged to invest $10 million in CFDIs based in Chicago. Brewer said the company is working with Chicago Mayor Lori Lightfoot to make sure the money goes to what matters most, and Starbucks is already talking to the local governments of the areas that will benefit from the new fund.
Starbucks’ commitments to social causes, including racial justice and climate change, have made the company popular with investors who take into account environmental, social and corporate governance when picking stocks. Analysis from RBC Capital Markets found that Starbucks is the most popular restaurant stock on the S&P 500 with actively managed funds that are dedicated to ESG investing.
Shares of Starbucks have risen 16% in the last year as of Monday’s market close, giving the company a market value of $123 billion.
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评论 

  1. Ron HWAC

    Ron HWAC

    5 天 前

    The BIPOC acronym intended on erasing #ADOS people. Starbucks is continuing it's Racism.

  2. Danyaahl's Vision

    Danyaahl's Vision

    5 天 前

    Pass

  3. FritzVonErich

    FritzVonErich

    5 天 前

    Soybucks is virtue signaling again. Real breaking news there!

  4. VulcanTrixter27

    VulcanTrixter27

    5 天 前

    LOL so much for systemic racism!

  5. jennie henriksson

    jennie henriksson

    5 天 前

    Ms. Brewer, oh boy, that's all I can say!

  6. jennie henriksson

    jennie henriksson

    5 天 前

    why not send the $100M to your shareholders in a form of a special dividend!

  7. jennie henriksson

    jennie henriksson

    5 天 前

    $100M for this fund, $50M for Kevin Johnson, millions for for execs if they meet their "goals", that's why the latte is $7, forget it, I'm out!

  8. Money Host - Let's Talk Investing

    Money Host - Let's Talk Investing

    5 天 前

    They have the money, so they can afford to donate and write it off. As for Investing in Starbucks Stocks, I really think Starbucks is one of the most bullet proof stocks. People will continue to buy their $5 dollar coffee regardless.

  9. Kubush

    Kubush

    5 天 前

    Talk about wasting money,

  10. Cr8zystar

    Cr8zystar

    5 天 前

    So how is that not racist? 🤔

  11. Bill Cosby

    Bill Cosby

    5 天 前

    100 million for 6 cities isn’t really enough

  12. tini Andy Ivon

    tini Andy Ivon

    5 天 前

    10:43 has the best 😍💋 💝💖❤️

  13. mrpmj00

    mrpmj00

    5 天 前

    capitol riot means a covid19 petri dish; we need another lockdown. we have streaming and don't need to travel or go to a commercial theater and avoid covid19, mass shooting (gun sales doubled in 2020), police killing nonwhites like George Floyd, and exploding RVs like in

  14. James Wilhite

    James Wilhite

    5 天 前

    They could keep some of that money and speed up that drive through.

  15. Win Big with Lena & Mike

    Win Big with Lena & Mike

    5 天 前

    Watch as you see nothing change. Might as well throw it in the trash.

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