Costco Shareholders Reject DEI Risk Assessment Proposal

Costco shareholders decisively rejected a proposal from the National Center for Public Policy Research to assess potential risks of the company's diversity, equity, and inclusion (DEI) initiatives, with 98% voting against it. This decision aligns with Costco's board's commitment to 'respect and inclusion', arguing that the DEI efforts foster creativity and innovation. Unlike Costco, other major U.S. companies such as Walmart and Lowe’s have scaled back their DEI policies due to perceived legal and reputational risks. The proposal's rejection came amidst broader debates on corporate diversity policies following the U.S. Supreme Court's 2023 ruling against affirmative action in college admissions. Costco's firm stance contrasts with President Trump's recent directives to end DEI initiatives in federal agencies, which complicates the landscape for private-sector vendors. Despite the controversy, experts believe Costco's management enjoys strong shareholder confidence, as reflected in the voting outcome.