Costco Defends Diversity Policies Amid Shareholder Pushback

Costco is rejecting a shareholder proposal to evaluate potential business risks associated with its diversity, equity, and inclusion (DEI) policies, Anne D’Innocenzio reported for the Associated Press (AP).

Costco’s board of directors unanimously urged shareholders to vote against the NCPPR proposal. I Photo: Costco Facebook

The proposal, submitted by the National Center for Public Policy Research (NCPPR), argued that DEI initiatives expose the company to legal, reputational, and financial risks.

However, Costco’s board of directors unanimously urged shareholders to vote against the motion, stating that their commitment to respect and inclusion drives innovation and customer satisfaction.

“Our focus on diversity among employees and suppliers has been instrumental in fostering creativity and improving the services we offer,” the board said. Retail analyst Neil Saunders suggested that Costco shareholders are likely to support management, commenting, “Why rock the boat when things are going so well?”