Costco Board Rejects Anti-DEI Shareholder Proposal

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. This stance comes in stark contrast to other corporations that have retracted their DEI initiatives amid anti-DEI pressures. 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 a 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 recognizing its importance for business and customer engagement, despite external criticism.