Proposal to Probe DEI Practices Defeated
Costco shareholders decisively rejected a proposal questioning the company’s diversity, equity, and inclusion (DEI) initiatives. During a shareholder meeting on Thursday, 98% of voters opposed the measure, which was introduced by the National Center for Public Policy Research (NCPPR), a conservative think tank. The proposal suggested that Costco’s DEI policies could expose the company to financial risks from potential discrimination lawsuits, particularly involving white, Asian, male, or straight employees.
The NCPPR linked its concerns to a June 2023 U.S. Supreme Court ruling that ended affirmative action in college admissions, arguing that the decision could pave the way for increased litigation against corporations over DEI practices. Costco’s board of directors, however, characterized the proposal as a bad-faith effort to undermine its DEI commitments. In a regulatory filing, the board stated, “We believe that our diversity, equity, and inclusion efforts are legally appropriate, and nothing in the [NCPPR] proposal demonstrates otherwise.” They also emphasized that fostering a diverse and inclusive workplace is critical to the company’s success.
Pushback Against Broader Anti-DEI Trends
Costco Shareholder rejection of the proposal places the company among major corporations resisting a broader backlash against DEI initiatives. While companies such as Walmart, Amazon, and Meta have scaled back DEI programs, others, including Microsoft, JPMorgan Chase, and Apple, continue to uphold these commitments.
Microsoft, for example, clarified its position after reports falsely claimed it had dismantled its DEI team. In July, the company stated that only two roles unrelated to its DEI team were eliminated. “Our focus on diversity and inclusion is unwavering,” said spokesperson Jeff Jones. Similarly, Apple’s board urged shareholders to vote against an NCPPR proposal targeting its DEI initiatives. JPMorgan Chase CEO Jamie Dimon echoed this sentiment in a recent CNBC interview, affirming the bank’s dedication to diversity efforts despite external criticism.
This trend of anti-DEI proposals has been part of NCPPR’s broader campaign targeting companies such as American Express, Intel, and General Electric. The organization has also opposed corporate decarbonization and disarmament policies.
Labor Tensions Loom Over Costco
Amid the Costco Shareholder meeting, the company faced a separate challenge as members of the Teamsters union rallied outside its Issaquah headquarters. Representing over 18,000 Costco employees, the union demanded a new industry-leading contract ahead of the January 31 expiration of the current agreement. Teamsters members voted this week to authorize a strike if their demands are not met.
The union criticized Costco’s handling of contract negotiations, stating that the company’s record-breaking profits should be reflected in worker compensation. Costco reported $254 billion in revenue and $7.4 billion in profit in the last fiscal year. The Teamsters argued that the company must deliver a contract that aligns with its “pro-worker” reputation and financial success.
With high stakes in both its DEI policies and labor negotiations, Costco Shareholder faces mounting pressure to balance its corporate values with operational and workforce priorities in the coming weeks.