Costco has urged its shareholders to vote against efforts to reduce diversity, equity, and inclusion (DEI) commitments. The move comes as Costco received a proposal about eliminating the policies.
The National Center for Public Policy Research requested that Costco publish a report about the risks presented to the company should it continue its DEI initiatives, The Hill reported.
“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the proposal stated. “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.”
The program declares its “commitment to equity,” employs a “Chief Diversity Officer,” and has a “supplier diversity program.”
“All of these practices are staples of corporate DEI programs and are consistent with Costco’s DEI program prior to its rebranding,” the proposal states.
The Board of Directors responded to the proposal by stating that their “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.”
“For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected. Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,” the response noted. “We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed. This capacity is critical because we owe our success to our now over 300,000 employees around the globe.”
“Having diversity in our supplier base, including appropriate attention to small businesses, is beneficial for many of the same reasons diversity benefits our Company. We believe that it fosters creativity and innovation in the merchandise and services that we offer our members,” they added.
Other companies, including Walmart, Toyota, and others, have reduced their DEI efforts.
