Costco’s Board of Directors has unanimously recommended that shareholders vote against a proposal from the National Center for Public Policy Research (NCPPR) which seeks a report on the risks associated with the company’s diversity, equity, and inclusion (DEI) policies. The board asserts that such a report would not provide meaningful information and emphasizes the necessity of DEI for fostering a diverse workforce that aligns with customer preferences.
“Our focus on diversity, equity and inclusion is to enhance our culture and the well-being of people whose lives we influence,” Costco announced in its response. “Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.”
This stance comes in stark contrast to other corporations that have retracted their DEI initiatives amid anti-DEI pressures. In 2024, major companies including Walmart, Lowe’s, Boeing, Jack Daniels, Molson Coors, Harley Davidson, Microsoft, and John Deere backed away from DEI initiatives following pushback from customers and online activists.
Costco argues that the proposal’s underlying agenda is not about risk reduction but rather the elimination of diversity initiatives.
Despite the increasing number of anti-DEI shareholder proposals, data indicates consistent shareholder support for diversity efforts, with anti-DEI proposals receiving minimal backing.
Overall, Costco’s commitment to DEI reflects a broader trend of companies attempting to reconfigure their approach to the subject, balancing sales and customer engagement with external criticism.
And for more on the *alleged* death of DEI in 2024, check out this video from Vauletainment’s “The Unusual Suspects.”
Connor Walcott is the lead writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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