Costco, a wholesale corporation, has pushed back against a proposal by its shareholders to re-evaluate its diversity, equity and inclusion (DEI) program. The proposal, which was supported by some investors, claimed that the company’s DEI efforts could lead to “illegal discrimination” and create tens of billions of dollars in legal costs.
However, Costco’s board of directors unanimously rejected the proposal, stating that their commitment to an inclusive workplace is necessary for the company’s success. They noted that their diversity and inclusion initiatives have allowed employees from diverse backgrounds to contribute to merchandise offerings and provide a more personalized experience for customers.
The company’s response comes after several high-profile court cases challenged affirmative action practices and workplace DEI initiatives. Costco has stated that they regularly evaluate their practices to ensure compliance with the law, including evolving Supreme Court decisions.
At an upcoming shareholders meeting on January 23, only shareholders who submitted proposals prior to November 15 will be able to vote on the proposal. Some investors have praised Costco’s response as “socially responsible capitalism.”
Costco has been quiet about its DEI program recently, rebranding it from “Diversity and Equity Initiative” to “People and Communities.” The company believes that their focus on diversity and inclusion is not only for financial benefits but also to enhance their culture and promote the well-being of employees.
Source: https://www.newsweek.com/costco-board-shareholder-dei-hiring-2006717