Members of the Costco board of directors rebuked an effort to examine the risks taken by the big-box retail club as they choose to maintain diversity, equity, and inclusion initiatives.
Costco shareholders will vote on a resolution to “conduct an evaluation and publish a report” about the risks of maintaining the diversity programs at their shareholder meeting later this month. The resolution was proposed by the National Center for Public Policy Research, a conservative think tank which noted the legal ramifications of keeping such programs.
“It's clear that DEI holds litigation, reputational, and financial risks to the company, and therefore financial risks to shareholders,” the resolution submitted by the conservative nonprofit said.
The resolution noted that almost two-thirds of employees at Costco are at risk for discrimination because they are “white, Asian, male, or straight.” The document cited the Supreme Court decision against affirmative action as evidence that the legal system sees diversity programs as discriminatory, noting that other companies have since downsized or eliminated such programs.
Costco board members nevertheless unanimously recommended voting against the resolution, claiming that their “commitment to an enterprise rooted in respect and inclusion is appropriate.”
“Our efforts at diversity, equity, and inclusion remind and reinforce with everyone at our company the importance of creating opportunities for all,” they said. “We believe that these efforts enhance our capacity to attract and retain employees who will help our business.”
The board members also said that the National Center for Public Policy Research has an agenda centered on the “abolition of diversity initiatives” rather than “reducing risk for the company.”
The resistance to the shareholder resolution comes even after Walmart, a competitor of Costco and the largest private employer in the country, ended several diversity, equity, and inclusion initiatives last year following the efforts of conservative activists who drew attention to the programs.
