Costco Shareholders Reject Proposal to Report on DEI Risks
In a significant development, Costco Wholesale shareholders voted overwhelmingly against a proposal requesting a report on the potential risks of maintaining diversity and inclusion (DEI) initiatives. This vote serves as an indicator of investor sentiment towards such programs, which have gained prominence in recent years.
Over 98% of shareholders cast their ballots against the proposal at the company's annual meeting, reflecting the widespread support for Costco's DEI efforts. Notably, similar resolutions aimed at countering DEI programs received minimal support last year.
The proposal, put forward by the National Center for Public Policy Research, argued that DEI policies could pose legal, reputational, and financial risks to the company and shareholders. Costco's board, however, urged shareholders to reject the proposal, stating that it would not provide valuable information.
This outcome aligns with the trend of companies reassessing their DEI initiatives. Companies like Meta Platforms, Amazon.com, and JPMorgan Chase have modified or scrapped DEI goals, highlighting the ongoing debate surrounding the value and potential risks associated with such programs.
Costco remains committed to its DEI initiatives, which it believes foster a diverse and inclusive workplace. With over 300,000 employees globally, the company recognizes the importance of creating an equitable and welcoming environment for all.