Costco’s shareholders have rejected a proposal to review the company’s diversity programs. The rejection comes amid growing investor concerns about the firm’s efforts to expand women’s leadership roles and broaden its board representation. The proposal, which faced opposition from some members of Costco’s board, was floated as part of broader discussions on corporate governance and ESG (Environmental, Social, and Governance) initiatives.
Ross Kerber, U.S. Sustainable Business Correspondent for Reuters News, reported that the rejection reflects investor skepticism about the effectiveness of Costco’s diversity initiatives and its alignment with ESG principles. Kerber, who has covered similar topics such as proxy voting and corporate responses to social movements like Black Lives Matter, noted that while some executives have expressed support for greater gender diversity, the shareholder vote signals a lack of widespread buy-in.
The decision by Costco’s shareholders underscores growing pressure from investors to align companies with ESG criteria, including efforts to promote diversity and inclusion.
Source: https://www.reuters.com/business/retail-consumer/costco-shareholders-vote-against-proposal-report-diversity-programs-2025-01-23