Costco Board Backs Diversity Policies Amid Shareholder Pushback

Costco's board of directors has firmly rejected a proposal from shareholders urging the company to limit its commitment to diversity, equity, and inclusion (DEI) initiatives, arguing that the proposal undermines the principles of respect and inclusion that are foundational to the company’s operations. The proposal, submitted by the National Center for Public Policy Research, claimed that maintaining DEI policies could expose Costco to significant financial and legal risks, citing concerns over potential discrimination against certain employee demographics. In response, the board emphasized the importance of DEI for fostering creativity, innovation, and a positive workplace environment for over 300,000 employees, dismissing the proposal as an effort to abolish DEI initiatives rather than genuinely address risks. Costco's leadership reiterated their commitment to inclusive practices, which they believe contribute to the company's success and customer engagement. The upcoming annual shareholder meeting will present an opportunity for stakeholders to vote on the proposal, but the board is advocating for a stance that supports continued investment in DEI. This stance has positioned Costco as a leader in inclusive corporate practices amidst a broader national debate on DEI initiatives.