Costco Wholesale shareholders overwhelmingly rejected a proposal calling for a report on the potential risks of maintaining the company’s diversity and inclusion initiatives. The vote, which saw over 98% of shareholders vote against the proposal, sends a strong message in favor of corporate diversity, equity, and inclusion (DEI) programs.
The proposal was put forth by the National Center for Public Policy Research, a free-market think tank, which argued that DEI policies could pose legal, reputational, and financial risks to companies. However, Costco’s board urged shareholders to vote against the proposal, stating that it would not provide “meaningful additional information” to investors.
The vote is seen as an early test of investor views on the value of corporate DEI programs, which many companies added or beefed up in response to the Black Lives Matter movement. The result suggests that even as the political environment surrounding inclusion in the workplace may be changing, investors remain largely supportive of DEI initiatives.
The outcome is also significant given the recent scrutiny faced by corporate DEI programs. U.S. President Donald Trump has issued an executive order aimed at dismantling DEI policies in the federal government and private sector, and some companies have modified or scrapped their initiatives in response.
Costco, which has over 300,000 employees globally, has maintained its commitment to DEI initiatives and has not indicated any plans to alter its policies. The company’s strong rejection of the proposal sends a message that its shareholders value the importance of diversity and inclusion in the workplace.
