Despite a number of large corporations retreating from diversity, equity, and inclusion (DEI) initiatives due to consumer backlash and criticism from anti-woke activists, Costco is doubling down on its commitment to such programs.
The company’s board of directors unanimously urged shareholders to vote against a proposal aimed at limiting its DEI initiatives. The proposal, brought by the National Center for Public Policy Research (NCPPR), called on Costco to conduct a report assessing potential risks associated with its DEI policies.
“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the proposal stated, according to CNN. “And yet Costco still has such a program, though it was apprehensive enough to recognize this as it recently and quietly rebranded its DEI program to ‘People and Communities.’ But sticking a new label on discriminatory practices does not protect Costco and its shareholders from these risks.”
However, Costco rejected these claims and argued that DEI policies are necessary to create a diverse workforce that aligns with customer preferences.
“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said in a proxy statement to investors. “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.”
Additionally, Costco accused the conservative group requesting a report of not actually caring about reducing risk but of trying to eliminate diversity initiatives.
“The proponent’s broader agenda is not reducing risk for the Company but abolition of diversity initiatives,” the corporation said. “Our Board has considered this proposal and believes that our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.”
Costco’s refusal to withdraw its DEI policies comes as other companies have had to, due to reporting that has shed light on these policies, which are often viewed as discriminatory. In recent days, companies like Walmart, Lowe’s, Boeing, and more have all announced they would be repealing or restructuring their DEI policies.
This piece first appeared at TPUSA.
