Costco Defies Trump-Era Backlash, Defeats Shareholder Resolution Against Diversity Initiatives
In a rare victory for corporate diversity efforts in the Trump era, Costco (COS) successfully resisted a challenge to its diversity, equity, and inclusion (DEI) practices. The retail giant urged its shareholders to defeat a shareholder resolution from the conservative think tank National Center for Public Policy Research (NCPPR). The measure was soundly defeated, with 98% of investors supporting Costco.
Costco's position on diversity is unwavering, according to its board chairman Tony James. He emphasized the company's long-standing commitment to a welcoming workforce as a core tenant of its culture and values.
NCPPR officials attributed Costco's victory to support from asset managers and proxy advisers with vested interests in DEI and ESG policies. However, many companies are reconsidering their DEI initiatives amid increased scrutiny in Washington, D.C. President Trump signed an executive order abolishing federal DEI programs and targeting private sector DEI actions.
Despite the backlash, several major companies continue to defend their diversity initiatives. Apple (AAPL) has also urged investors to reject a shareholder proposal from NCPPR that seeks an assessment of its DEI programs.
Some big banks, including JPMorgan Chase (JPM) and Goldman Sachs (GS), are also maintaining their focus on DEI, despite pressure from activist groups. JPMorgan Chase CEO Jamie Dimon remains committed to outreach efforts to diverse communities.
However, Texas Attorney General Ken Paxton and nine other Republican-controlled states have requested information from big Wall Street firms about their DEI programs, hinting at a potential legal confrontation.