Costco Board Rejects Attempt to Halt Diversity, Equity, and Inclusion Initiatives

Costco's Board of Trustees has rejected an attempt to halt the company's diversity, equity, and inclusion (DEI) initiatives. The board urged shareholders to vote against a proposal submitted by the National Center for Public Policy Research that called on Costco to eliminate its DEI programs.

The proposal claimed that DEI programs are discriminatory and put the company at financial risk, but the Board countered that the efforts enhance the company's capacity to attract and retain employees. The Board wrote in response: "Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers... Our efforts around diversity, equity and inclusion follow our code of ethics: For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected."

The proposal was supported by the National Center for Public Policy Research, which wrote in its letter: "It's clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders." However, Costco's Board disputed this claim, stating that its DEI programs are legally appropriate and do not violate any laws.

"We believe that our diversity, equity and inclusion efforts are legally appropriate, and nothing in the proposal demonstrates otherwise. As part of our obeying the law, all decisions regarding recruiting, hiring, promotion, assignment, training, termination, and other terms and conditions of employment will be made without unlawful discrimination on the basis of race, color, national origin, ancestry, sex, sexual orientation, gender identity or expression, religion, age, pregnancy disability, work-related injury, covered military or veteran status, political ideology or expression, genetic information, marital status, or other protected status," the Board said.