Costco Stands Firm Against Anti-DEI Wave, Rejects Shareholder Proposal
Costco is bucking the trend of companies abandoning diversity, equity, and inclusion (DEI) initiatives, standing firm against a shareholder proposal that would require the company to evaluate the financial risks of maintaining its DEI goals. The proposal was brought by the National Center for Public Policy Research, a conservative think tank that criticized Costco for possible “illegal discrimination” against employees who are “white, Asian, male or straight.”
The company’s board of directors unanimously recommended that shareholders vote against the proposal, arguing that DEI efforts help attract and retain a wide range of employees, improve merchandise and services, and create a “treasure hunt” shopping atmosphere. Costco also believes that its members want to interact with a diverse employee base.
The company’s DEI initiatives include a chief diversity officer, a supplier program that focuses on expanding with small and diverse businesses, and donations to organizations that serve minorities and underrepresented groups. Costco’s proxy statement to investors noted that a diverse group of employees helps bring originality and creativity to merchandise offerings, and that many members like to see themselves reflected in the people they interact with in stores.
The company accused the National Center for Public Policy Research of masking its true anti-diversity agenda under the guise of reducing risk, and said that the organization’s broader agenda is to abolish diversity initiatives. Costco’s stance is in contrast to other companies, such as Walmart, John Deere, and Tractor Supply, which are modifying or abandoning their DEI policies.
The shareholder resolution contends that Costco’s DEI practices are potentially discriminatory, but the company maintains that its policies are legal and non-discriminatory. Costco’s decision to stand firm on DEI initiatives comes at a time when such efforts are under attack from right-wing activists, legal groups, conservative customers, and the incoming Trump administration.