Costco Defies Trend, Upholds DEI Initiatives Amid Scrutiny
Costco (COS) has successfully defended its diversity, equity, and inclusion (DEI) efforts against a shareholder challenge, bucking a trend among corporations facing increased scrutiny over such policies.
Investors overwhelmingly rejected a proposal from the National Center for Public Policy Research (NCPPR) that would have forced Costco to assess risks associated with its DEI practices.
Costco's Chairman Tony James emphasized the company's long-standing commitment to non-political workplace culture and valuing a diverse workforce.
Despite the defeat, NCPPR officials attributed their loss to alliances between Costco and asset managers/proxy advisers profiting from DEI and ESG initiatives.
The decision comes as many companies distance themselves from DEI policies due to heightened criticism in Washington, D.C. President Trump has actively opposed DEI programs, issuing an executive order to abolish them in the federal sector.
However, Costco stands firm alongside other organizations like Apple (AAPL) in maintaining their DEI commitments. Apple will hold a vote on a similar NCPPR proposal next month.
Large banks, such as JPMorgan Chase (JPM) and Goldman Sachs (GS), also remain committed to DEI despite facing pressure from activist groups. Jamie Dimon, JPMorgan Chase's CEO, has stated that the bank will continue reaching out to underrepresented communities.
Texas Attorney General Ken Paxton and other Republican-controlled states have sent inquiries to Wall Street firms regarding their DEI programs, hinting at potential legal challenges.