Costco, a multinational retailer, has pushed back against efforts by some companies and organizations to end diversity, equity, and inclusion (DEI) initiatives. The company’s Board of Trustees recently voted unanimously to urge its shareholders to reject a proposal submitted by the National Center for Public Policy Research, which claims that DEI programs are discriminatory and financially risky.
The National Center for Public Policy Research argues that companies like Costco face financial risks due to litigation, reputational damage, and other consequences associated with their DEI efforts. However, Costco’s Board of Trustees disputes this claim, stating that their diversity initiatives enhance employee attraction and retention, which is critical to the company’s success.
Costco cites the Supreme Court decision in 2023 (SFFA v. Harvard) as a basis for their stance, arguing that their DEI policies are legally appropriate and compliant with federal law. The company emphasizes its commitment to treating all employees fairly and without discrimination based on protected characteristics such as race, gender, or national origin.
Costco’s position is supported by the board’s statement: “We believe that our diversity, equity and inclusion efforts are legally appropriate, and nothing in the proposal demonstrates otherwise.” With the shareholders’ vote set for January 23, Costco’s stance against ending its DEI initiatives marks a notable pushback against the trend of companies rolling back their diversity programs.
Source: https://www.scrippsnews.com/business/company-news/costco-board-decries-effort-to-end-its-dei-programs