Costco shareholders stand firm on DEI

Costco shareholders have overwhelmingly rejected a proposal from the National Center for Public Policy Research (NCPPR) to assess the risks of its diversity, equity, and inclusion (DEI) hiring practices. The board argued that the proposal contradicted Costco’s “commitment to an enterprise rooted in respect,” with 98% of shareholders voting against it. The board emphasized that DEI initiatives are beneficial for business, stating: “Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our company the importance of creating opportunities for all.” While many corporations are scaling back DEI programs following the U.S. Supreme Court’s ruling in Students for Fair Admissions v. Harvard, Costco, along with Apple and Microsoft, has chosen to maintain its DEI efforts despite external pressures. The NCPPR’s proposal cited potential financial risks related to discrimination lawsuits, claiming that “the cost to Costco could be tens of billions of dollars.” Ahead of the vote, GlobalData managing director Neil Saunders commented: “I think people generally have confidence in Costco’s management, and there’s an attitude of ‘Why rock the boat? It’s sailing very nicely’.”