November 28, 2011 in Region

Starbucks exec who urged halt in campaign donations ignored

Mike Baker Associated Press
 

Schultz
(Full-size photo)

OLYMPIA – If Starbucks chief Howard Schultz wants voters to withhold campaign cash from federal politicians, he may need to start with trying to halt the flow of donations coming from the people who work for him.

Starbucks leadership, employees and the company’s lobbying firm have continued to contribute thousands of dollars to federal officeholders despite Schultz’s urging, according to campaign records reviewed by the Associated Press. He had invited Americans to join him in withholding campaign contributions until politicians could reach a bipartisan deal to stabilize the nation’s fiscal situation – an appeal that Fortune magazine cited in naming Schultz its “Businessperson of the Year” last week.

There’s no evidence the “withhold” movement has had any impact on the flow of money in politics, as third-quarter donations to congressional campaigns were actually higher than during the last election cycle. In just the six weeks after the coffee guru announced his pledge with the support of dozens of other business executives, the donations continued among many of those companies, including AOL, Juniper Networks and Nasdaq.

Walter Robb, the co-CEO of Whole Foods and a top supporter of the movement, gave an in-kind donation to a congressional campaign in September after taking Schultz’s vow. He said through a spokeswoman that he had committed to providing food and beverage to Jared Huffman, a candidate in California’s 2nd Congressional District, earlier in the summer and that he decided to stick with it even though it had been delayed until after the Schultz pledge.

The lobbying firm that handles much of Starbucks’ work in the nation’s capital, K&L Gates, has continued to donate through its political action committee to current and prospective members of Congress – some $40,000 from the start of the pledge through the end of September.

Meanwhile, two members of the company’s board of directors, which Schultz leads as chairman, also gave donations after the vow was announced. Mellody Hobson, a Starbucks board member who donated $1,500 to U.S. Rep. Steny Hoyer, said she has not signed the pledge. Sheryl Sandberg, a Facebook executive who serves on the Starbucks board and recently gave donations to House Minority Leader Nancy Pelosi and Sen. Kirsten Gillibrand, declined comment through a spokesman.

Schultz himself donated campaign cash in the months before his announcement, giving $5,000 to U.S. Sen. Maria Cantwell, D-Wash. He has not given since, according to campaign records. Arthur Rubinfeld, one of Schultz’s closest aides as president of global development at Starbucks, gave a $500 donation to Cantwell just a few days before Schultz went public with his plan.

Jim Olson, a Starbucks spokesman, said Schultz fully respects the personal decisions of employees and board members.

“Howard’s pledge was a personal request, not a company initiative,” Olson said.

In mid-August, after Congress struggled for a compromise plan to raise the debt ceiling, Schultz said in a public letter that elected officials from both parties had failed to lead and threatened the economy. He sought to encourage elected officials to act with civility and seek a deal on debt and spending long before the fall supercommittee deadline that last week ended in failure.

© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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