Costco Wholesale’s board of directors has rejected a proposal from shareholders to drop the company’s diversity, equity, and inclusion (DEI) policies. The proposal, which was met with resistance by the board, suggested that the DEI program could lead to “illegal discrimination” claims and tens of billions of dollars in legal expenses.
The board responded by stating that its commitment to respect and inclusion is necessary for the company’s success and that it has considered the risks associated with maintaining DEI efforts. The board emphasized that its focus on diversity, equity, and inclusion is not only driven by financial performance but also by a desire to enhance its culture and improve the well-being of its employees.
Costco’s DEI policies aim to create a workplace where all employees feel valued and respected, regardless of their background or identity. The company believes that a diverse workforce brings creative insight and innovation, which can lead to better products and services for customers.
The board also noted that it regularly evaluates the procedures used to comply with the law, including evolving Supreme Court decisions. They stated that they believe their diversity, equity, and inclusion efforts are legally appropriate and are not driven by financial performance alone, but rather by a commitment to respect and inclusion.
A vote on the proposal will take place during the annual shareholder meeting, which is scheduled to be streamed live on January 23 at 5 p.m. E.T. Only shareholders who have been part of the company since before November 15 will be eligible to participate in the vote.
Source: https://www.independent.co.uk/news/world/americas/costco-wholesale-dei-policies-b2670762.html