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Ideas for Impact

The Business of Popular Causes

January 22, 2025 By Nagesh Belludi Leave a Comment

Starbucks:Championing Progressive Causes, While Undermining Unionization Efforts Starbucks has long been celebrated for its progressive image and support of social justice causes. But when it comes to unionization and better benefits, the company’s actions tell a different story. Internal policies—like cracking down on union activities—raise doubts about how committed it truly is to the values it champions.

Starbucks is a prime example of a wider trend: companies quickly embrace progressive causes, but only when they don’t hurt the bottom line. This is Bandwagon Branding—when businesses latch onto the latest popular cause, whether it’s social justice, climate change, or equality, to align with dominant public values. They roll out hashtags, social media campaigns, and limited-edition products to show support. But once the spotlight fades, they quietly move on to the next issue. Remember when founder-CEO Howard Schultz launched the “Race Together” initiative, letting baristas at 12,000 locations write it on cups to spark conversations about race?

This cycle—big gestures, minimal change, quick pivots—reveals a harsh truth: corporations are profit-driven. Their true loyalty is to shareholders, not social causes. Corporate virtue-signaling often rings hollow.

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Filed Under: Business Stories, Leadership, MBA in a Nutshell Tagged With: Biases, Diversity, Entrepreneurs, Group Dynamics, Humility, Marketing, Persuasion, Starbucks

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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