**
Costco Wholesale shareholders have overwhelmingly rejected a proposal urging the company to reassess its diversity, equity, and inclusion (DEI) initiatives. This decision came after President Trump’s executive order aimed at dismantling DEI nationwide.
The proposal, submitted by a conservative think tank, argued that maintaining Costco’s DEI efforts poses significant legal risks due to a Supreme Court ruling outlawing affirmative action in college admissions. The Think Tank suggested that such policies expose Costco to litigation and financial instability for shareholders.
In response, Costco’s board of directors unanimously recommended rejecting the motion. “We believe our commitment to respect and inclusion is appropriate,” the board stated, emphasizing that the requested report would offer minimal information to shareholders.
Analysts have expressed cautious optimism about the situation, noting that while the political environment around workplace inclusion shifts, investors’ support for anti-DEI resolutions remains unchanged.
The executive order also directs federal agencies to investigate private companies and compile a report outlining measures to deter DEI practices. This could lead to legal action against companies with such initiatives, including potential lawsuits targeting DEI in the workplace.
This decision highlights a broader tension between corporate values and political influences on workplace policies. As Trump’s administration continues its push for accountability, the implications for diverse businesses like Costco remain significant.
Correction: Trump’s executive order rescinded federal rules related to the Equal Employment Opportunity Act, which previously prohibited discrimination based on race, gender, religion, or national origin.
Source: https://www.newsweek.com/costco-donald-trump-dei-2020128