Costco is strongly defending its diversity, equity, and inclusion (DEI) initiatives, resisting a growing wave of opposition led by activist shareholders and conservative groups. The retailer is facing a challenge from the National Center for Public Policy Research (NCPPR), a conservative think tank, which has introduced a shareholder proposal urging the company to assess and report on the financial risks tied to its DEI policies. The NCPPR has raised concerns about potential discrimination against employees based on race, gender, or sexual orientation, particularly targeting white, Asian, male, or straight workers.
In response, Costco’s board of directors has unanimously recommended that shareholders reject the proposal, highlighting the importance of DEI in fostering an inclusive and innovative work environment. Costco argues that DEI initiatives help to create the “treasure hunt” shopping experience that is a hallmark of the company’s success, and that customer feedback reveals a preference for seeing diversity reflected in the workforce. The company also asserts that DEI programs attract and retain a broad talent pool, enhance creativity in product offerings, and improve customer service.
Costco’s DEI efforts are not limited to internal programs but also extend to its supplier network, where the company works to support small and diverse businesses. Additionally, Costco has a history of charitable contributions to organizations like the Thurgood Marshall College Fund, which supports minority and underrepresented groups.
Despite the push from conservative activists, Costco stands by its DEI policies, stating that they are legal, non-discriminatory, and beneficial for both the company and its members. The company has accused the NCPPR of attempting to undermine these initiatives by framing their opposition as a concern for legal and financial risk, rather than a genuine effort to reduce corporate risk. Costco believes that the true goal of the NCPPR is to eliminate diversity programs altogether, rather than address concerns related to company performance or legal compliance.
In the broader context, while some companies have backed away from DEI initiatives or scaled them back in response to mounting pressure from right-wing activists and legal challenges, Costco remains resolute in its commitment to diversity. The retailer’s proactive stance on DEI is consistent with its reputation as a progressive employer, offering competitive wages and advocating for inclusivity within its workforce. While some companies are retreating from prominent DEI campaigns, Costco is choosing to defend its approach, even as the national conversation around diversity and inclusion continues to evolve.
