Costco Rejects Proposal to Eliminate DEI Policies

Costco's board of directors is urging shareholders to reject a proposal from the National Center for Public Policy Research, which seeks to eliminate the company's diversity, equity, and inclusion (DEI) policies. The board argues that such policies are crucial for fostering a diverse workplace, which enhances creativity and customer service, and that claims of financial risks related to DEI are unfounded. The proposal highlights potential litigation risks for employees who are white, Asian, male, or straight, asserting that DEI practices could lead to discrimination claims. In contrast, Costco maintains that its DEI initiatives are legally sound and beneficial for the company’s success. The shareholders will vote on this proposal during the annual meeting on January 23. Amid a trend of major companies rolling back DEI commitments, Costco remains steadfast in its support for these policies, citing positive feedback from its members.