Costco defends DEI program as other major retailers drop controversial diversity push
Costco’s board of directors is urging shareholders to vote against a proposal that would eliminate the wholesale retailer’s diversity, equity and inclusion (DEI) program.“Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers.Our efforts around diversity, equity and inclusion follow our code of ethics: For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected,” the board of directors wrote in a message to investors previously reported by The Hill.
“Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.
This capacity is critical because we owe our success to our now over 300,000 employees around the globe.”The message was sent ahead of Costco’s annual meeting of shareholders scheduled for Jan.23, 2025. Shareholders will vote on a proposal brought by the National Center for Public Policy Research challenging the legality of Costco’s DEI program after the Supreme Court’s ruling in SFFA v.
Harvard that discriminating on the basis of race in college admissions violates the equal protection clause of the 14th Amendment. The proposal cites how attorneys general of 13 states have warned Fortune 100 companies that the ruling implicated corporate DEI programs, and a number of lawsuits have been filed. Companies that have since rolled back DEI commitments and/or laid off employees from DEI departments include Alphabet, Meta, Microsoft, Zoom and John Deere, the proposal says, although Costco’s board says Microsoft later clarified that it had eliminated two redundant DEI roles, yet its focus on diversity and inclusion “remains unwavering.” “And yet Costco still has such a program, though it was apprehensive enough...