As other companies like Walmart, John Deere, and Tractor Supply retreat or reconsider their diversity, equity, and inclusion (DEI) policies, Costco is standing firm against the anti-DEI movement. The warehouse retailer rejected a shareholder proposal from the National Centre for Public Policy Research (NCPPR), which called for evaluating financial risks tied to its DEI efforts.
Costco’s board of directors unanimously recommended shareholders vote against the proposal, arguing it masked an anti-diversity agenda under the pretence of reducing risk. The proposal accused Costco of “illegal discrimination” against employees who are “white, Asian, male, or straight.” Costco countered that its DEI initiatives are legal, non-discriminatory, and integral to its success.
Costco stated that diversity strengthens its “treasure hunt” shopping experience by fostering creativity in merchandise offerings and enhancing member satisfaction. In its proxy statement to investors, the company emphasised that customers value interacting with a diverse employee base, which reflects their own communities.
“We believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact,” the statement read.
The retailer’s DEI efforts include a chief diversity officer, a supplier programme that partners with small and diverse businesses, and donations to organisations like the Thurgood Marshall College Fund that supports underrepresented groups. Costco said these initiatives help attract and retain talent while improving services and merchandise.
The board also criticised the NCPPR for imposing undue burdens on companies with its anti-DEI agenda. “The proponent’s broader agenda is not reducing risk for the company but abolition of diversity initiatives,” Costco stated.
The proxy, released earlier this month, drew attention on social media this week as debates over DEI intensify. While many companies have not entirely abandoned DEI, some are downplaying or rebranding their efforts in response to pressure from right-wing activists, legal groups, and conservative customers.
Costco’s stance comes at a time when DEI initiatives face mounting challenges. Despite these pressures, the company, known for its high wages and progressive employment policies, is standing behind its commitment to fostering diversity.
