Costco Shareholders Vote Against Rolling Back DEI

metroweekly.com:

On Thursday, January 23, the wholesale goods retailer considered a shareholder proposal – put forth by a right-leaning advocacy organization, the National Center for Public Policy Research – asking the company to issue a report outlining the risks associated with keeping DEI policies in place.

One such risk is the threat of boycotts from conservative consumers, many of whom claim that DEI initiatives disregard merit and disadvantage whites, males, and heterosexuals, as well as others who are not part of historically marginalized communities.However, 98% of shareholders ultimately voted against the measure, reports Fox Business.Costco’s board of directors had previously – and unanimously – come out against the proposal, arguing that efforts to diversify the company’s workforce, as well as its suppliers, help the company offer consumers a wider range of products while also enhancing their interactions with employees who reflect the surrounding community.The National Center for Public Policy Research had argued that the company could potentially be sued over DEI initiatives, citing a Supreme Court ruling finding that race-based preferences in college admissions are unconstitutional and violate the Equal Protection Clause of the 14th Amendment.

But Costco’s board of directors, in a proxy statement responding to the proposal, argued it did not believe its pro-diversity efforts cross the line into discrimination.“Consistent with our commitment to ‘obey the law,’ we regularly evaluate our practices concerning compliance with law, including evolving Supreme Court decisions,” the board wrote. “We believe that our diversity, equity and inclusion efforts are legally appropriate, and nothing in the proposal demonstrates.