Costco defends its diversity policies as other US companies scale theirs back
Share:
Costco is pushing back on a shareholder proposal that urges the wholesale club operator to conduct an evaluation of any business risks posed by its diversity, equity and inclusion practices. Investors were expected to vote on the recommendation during the company's annual meeting Thursday.
The National Center for Public Policy Research, a conservative think tank based in Washington, submitted the proposal, arguing that Costco's DEI initiatives hold “litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.”.
The think tank has made a similar proposal to Apple, and like some American companies that already scaled back or retreated from their diversity policies, cited a U.S. Supreme Court decision in July 2023 that outlawed affirmative action in college admissions.
Costco officials could not be reached for comment on the DEI proposal. But Costco's board of directors voted unanimously to ask shareholders to reject the motion. The board said it believes “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information.”.
The directors' message to shareholders details how having diverse employees and suppliers has, in their view, fostered “creativity and innovation in the merchandise and services that we offer” and led to greater customer satisfaction among Costco members.
