Costco is pushing back against a shareholder proposal that calls for an evaluation of the business risks associated with its diversity, equity, and inclusion (DEI) initiatives. The company's board of directors believes its commitment to DEI is essential and has recommended shareholders reject the proposal.
Costco is facing pressure from a conservative think tank to evaluate the potential risks of its diversity, equity, and inclusion ( DEI ) practices. The National Center for Public Policy Research submitted a proposal urging the wholesale club to assess any business risks associated with its DEI initiatives, arguing that these programs could expose Costco to litigation, reputational damage, and financial losses for shareholders. This proposal comes amidst a broader trend of U.S.
companies scaling back or retreating from their DEI policies, partly fueled by a recent U.S. Supreme Court decision that outlawed affirmative action in college admissions.However, Costco's board of directors has unanimously recommended that shareholders reject the proposal. They maintain that their commitment to diversity and inclusion is essential to the company's values and success, fostering creativity, innovation, and customer satisfaction. The board argues that the requested report wouldn't provide any meaningful additional information. Costco's stance contrasts with recent actions taken by other major consumer brands, including Walmart, McDonald's, and John Deere, which have scaled back their DEI programs. Conservative groups, emboldened by the Supreme Court's affirmative action ruling, have filed lawsuits against corporations with similar arguments, targeting initiatives like employee resource groups and hiring practices that prioritize historically marginalized groups. Even prominent technology companies like Amazon and Meta have rolled back DEI initiatives, anticipating pushback from the Trump administration. The president himself has signed an executive order aimed at terminating DEI programs within federal agencies and directed that all federal DEI staff be put on paid leave and eventually laid off. Trump has labeled these programs as 'discrimination' and advocates for strictly 'merit-based' hiring practices
Costco DEI Shareholder Proposal Conservative Think Tank Diversity Equity Inclusion Business Risks Supreme Court Affirmative Action
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