Costco is pushing back on a shareholder proposal that encouraged the company to evaluate whether its existing diversity, equity, and inclusion (DEI) programs posed financial risks, according to a report from the Associated Press.
A right-leaning think tank suggested that Costco’s DEI programs held not only financial risks, but reputational and litigation risks as well. Upon the National Center for Public Policy Research’s findings, shareholders insisted that Costco investigate its practices.
Costco’s Board of Directors voted unanimously against shareholder’s wishes and rejected the motion. The board claimed that having a diverse workforce and suppliers has led to greater customer satisfaction.
“Our commitment as an enterprise rooted in respect and inclusion is appropriate and necessary,” the board said. “The report requested by this proposal would not provide meaningful additional information.”
Costco’s continued commitment to DEI stands in stark contrast to a litany of companies, governmental agencies, and universities that are ending DEI programs. Walmart, McDonald’s, and John Deere are among the large corporations putting an end to DEI programming and practices.
Amazon has claimed it intends on rolling back its DEI policies as well after being criticized for being both ineffective and “woke.”
The adjustment comes after the Supreme Court outlawed affirmative action in college admissions. Conservative think tanks and organizations have been taking legal action to target such initiatives at a corporate level.
The report from the National Center for Public Policy claimed that at least 200,000 of the company’s 300,000 employees worldwide “are potentially victims of this type of illegal discrimination because they are white, Asian, male, or straight. If a fraction of those employees sued, the legal costs would make a deep cut in Costco’s business.
The move comes after President Donald Trump signed an executive order aimed at terminating DEI programs within federal agencies. He argued that such programs violated the Constitution by favoring race, gender, and sexual orientation.
