Costco, one of the largest retailers in the US, is defending its diversity, equity and inclusion (DEI) program after other major companies rolled back their diversity initiatives amid controversy over the practice. The company’s board of directors has asked shareholders to vote against a proposal that would eliminate Costco’s DEI program.
According to Costco’s board, its success is built on its commitment to inclusivity and diversity. They argue that these efforts enhance their ability to attract and retain employees who contribute to the company’s success. However, the National Center for Public Policy Research, which proposed the shareholder resolution, claims that Costco’s DEI practices are discriminatory and may lead to costly lawsuits.
The proposal cites a recent Supreme Court ruling that found discriminating on the basis of race in college admissions violates the equal protection clause of the 14th Amendment. Attorneys general from 13 states have warned Fortune 100 companies about the implications of this ruling, leading some companies to roll back their DEI commitments or lay off employees from DEI departments.
Despite Costco’s assurances that its DEI practices are legally appropriate, the proposal claims that the company still employs a Chief Diversity Officer and has a supplier diversity program that picks suppliers based on their race and sex. The National Center for Public Policy Research argues that this approach is not about promoting equality of opportunity, but rather about achieving a specific outcome through discriminatory means.
The controversy surrounding DEI initiatives has led some companies to rebrand or phase out their programs, citing concerns over the potential costs and risks associated with these practices. However, Costco remains committed to its DEI efforts, which it believes are essential for attracting and retaining top talent and fostering creativity and innovation in the workplace.
Source: https://www.foxbusiness.com/economy/costco-defends-dei-program-other-major-retailers-drop-controversial-diversity-push