Costco Shareholders Overwhelmingly Reject Proposal on Diversity and Inclusion Risks
Costco shareholders voted nearly unanimously against a proposal requesting a report on the potential risks associated with the company’s diversity and inclusion initiatives. The vote, which took place at the annual meeting, sent a strong message in favor of the company’s efforts to promote diversity, equity, and inclusion (DEI) in the workplace.
The proposal, which was put forward by the National Center for Public Policy Research, a free-market think tank, asked the company to assess the potential legal, reputational, and financial risks related to its DEI policies. However, more than 98% of shareholders voted against the proposal, with the company’s board urging votes against it, stating that the report would not provide “meaningful additional information” to shareholders.
This vote is seen as an early test of investor views on corporate DEI programs, which have become increasingly prevalent in recent years. Many companies, including Meta, Amazon, JPMorgan Chase, and Boeing, have modified their initiatives, scrapped their DEI goals, or ended participation in the Human Rights Campaign Foundation’s corporate equity index.
Despite the intense scrutiny faced by DEI programs, investors have been largely supportive, with an average of less than 2% support for such proposals at US corporations last year. The result at Costco suggests that even in the current political environment, investors remain committed to supporting DEI initiatives.
As the company’s board noted, Costco has over 300,000 employees globally, with more than 219,000 based in the United States. The company’s efforts to promote DEI have become an integral part of its business operations, and it appears that shareholders are willing to support these initiatives.
