Running contrary to the paths some other major national corporations have chosen recently, Costco shareholders voted overwhelmingly to keep the company’s diversity, equity and inclusion (DEI) practices in place.
The shareholder vote was in response to a proposal submitted by a conservative think tank based in Washington, D.C. The National Center for Public Policy Research suggested that Costco’s DEI policies hold “litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.”
In response to the proposal, Costco’s board of directors unanimously voted to ask that shareholders reject the proposal at their annual meeting, stating, “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information,” according to the Associated Press.
They also argued that the initiatives helped to foster “creativity and innovation in the merchandise and services that we offer” as well as a higher rate of customer satisfaction.
The result: More than 98% of shares shot down the motion.
That result was a rare loss for conservative groups who have fired off litigation and proposals at corporations and institutions of higher learning since the Supreme Court overturned affirmative action protections.
Companies like John Deere, McDonald’s and Walmart have shuttered their DEI programs in the wake of the decision, and upon retaking office this week, President Donald Trump also killed off the federal government’s DEI initiatives.
As for the National Center for Public Policy Research, they are undeterred by Costco’s rebuke and plan to submit a similar proposal next month at the annual shareholder meeting at Apple.