Costco Shareholders Reject Anti-DEI Proposal From Conservative Think Tank

LOADINGERROR LOADINGNEW YORK (AP) — Costco shareholders rejected a proposal urging the wholesale club operator to evaluate any risks posed by its diversity, equity and inclusion practices.According to preliminary results shared by Costco executives at its annual meeting Thursday, more than 98% of shares voted against the proposal.Advertisement The National Center for Public Policy Research, a conservative think tank based in Washington, had submitted the proposal, arguing that Costco’s DEI initiatives hold “litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.”The think tank has made a similar proposal to Apple, and like some American companies that already scaled back or retreated from their diversity policies, cited a U.S.Supreme Court decision in July 2023 that outlawed affirmative action in college admissions.But Costco’s board of directors voted unanimously to ask shareholders to reject the motion.

The board said it believes “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.The report requested by this proposal would not provide meaningful additional information.”Advertisement The directors’ message to shareholders details how having diverse employees and suppliers has, in their view, fostered “creativity and innovation in the merchandise and services that we offer” and led to greater customer satisfaction among Costco members.In advance of the meeting, Neil Saunders, managing director of consulting firm GlobalData’s retail division, said Costco can be confident the proposal will be rejected.“I think people generally have confidence in Costco’s management, and there’s an attitude of ‘Why rock the boat? It’s sailing very nicely,’” Saunders said.Advertisement Costco’s public stance in support of diversity, equity and inclusion programs contrasts with the positions taken in recent months by other big consumer bran...