Costco Urges Shareholders to Reject Proposal to Eliminate DEI Program

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Costco Urges Shareholders to Reject Proposal to Eliminate DEI Program
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Costco's board of directors is asking shareholders to vote against a proposal that would end the wholesale retailer's diversity, equity and inclusion (DEI) program. The board argues that DEI efforts are essential to the company's success, enhancing its ability to attract and retain employees. The proposal comes after the Supreme Court's ruling in SFFA v. Harvard, which raised concerns about the legality of race-based considerations in DEI programs.

Costco 's board of directors is urging shareholders to vote against a proposal that would eliminate the wholesale retailer's diversity, equity and inclusion program. "Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers.

" The foundation decried that Costco's renamed program still openly expresses a "commitment to equity," which it argues means equality of outcome, not opportunity – and that the company still employs a "Chief Diversity Officer," still has a supplier diversity program that picks suppliers based on their race and sex, still appears to factor in race and sex in hiring and promotion "and still contributes shareholder money to organizations that advance the...

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