Costco’s board of directors adamantly urged shareholders to vote against efforts to limit the company’s commitment to diversity, equity and inclusion (DEI) after receiving a proposal included in their annual notice to shareholders from the National Center for Public Policy Research to strike “discriminatory practices.”
The conservative think tank requested that Costco evaluate and publish a report on the risks of the company maintaining its current DEI roles, policies and goals amid a wave of corporations slashing all references to the organizational framework.
Earlier this year, Lowe’s, Harley Davidson and Walmart announced the repeal of DEI practices after facing similar pushback from conservative groups despite opposition from some lawmakers.
“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the right-leaning organization wrote in its proposal to the company, citing the Supreme Court’s decision to overturn affirmative action at college institutions in its reasoning.
The National Center for Public Policy Research stated Costco’s “rebrand” of DEI to be titled “People and Communities” does not protect the company from the alleged risks associated with the “discriminatory practices” of the initiatives.
“With 310,000 employees, Costco likely has at least 200,000 employees who are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight,” the group stated, arguing the demographics could sue and cost Costco billions of dollars.
In its response to the proposal, Costco called out the group for “inflicting burdens” on companies through “policy bias” and said their proposal did not aim to address financial risks but to strike down DEI efforts.
“The proponent’s broader agenda is not reducing risk for the Company but abolition of diversity initiatives,” the board of directors added.
The annual meeting where shareholders will vote on the matter will take place in late January.
The Hill reached out to Costco and the National Center for Public Policy Research for further comment.
