Costco defends its diversity policies as other US companies scale back on their DEI practices

NEW YORK — Costco is objecting to a shareholder suggestion that calls for an assessment of potential business risks linked to its diversity, equity, and inclusion practices. The proposal was on the agenda for voting at the company’s yearly gathering on Thursday.

The National Center for Public Policy Research, a conservative organization in Washington, put forth the proposal, claiming that Costco’s DEI efforts could expose the company to legal, reputational, and financial hazards, which could ultimately impact its shareholders.

Drawing parallels, the think tank also proposed a similar evaluation to Apple. It pointed out that following a U.S. Supreme Court ruling in July 2023 prohibiting affirmative action in college admissions, a number of American companies have modified or pulled back on their diversity strategies.

Costco officials could not be reached for comment on the DEI proposal.

But Costco’s board of directors voted unanimously to ask shareholders to reject the motion. The board said it believes “our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information.”

The directors’ message to shareholders details how having diverse employees and suppliers has, in their view, fostered “creativity and innovation in the merchandise and services that we offer” and led to greater customer satisfaction among Costco members.

Neil Saunders, managing director of consulting firm GlobalData’s retail division, said Costco can be confident the proposal will be rejected.

“I think people generally have confidence in Costco’s management, and there’s an attitude of ‘Why rock the boat? It’s sailing very nicely,'” Saunders said.

Costco’s public stance in support of diversity, equity and inclusion programs contrasts with the positions taken in recent months by other big consumer brands, including Walmart, McDonald’s and John Deere.

Last week, more than 30 Walmart shareholders, including Amalgamated Bank and Oxfam America, asked the CEO of the nation’s largest retailer to explain the business impact of curbing the company’s DEI policies, a move they called “disheartening.”

Prominent technology companies, including Amazon and Meta – the parent company of Facebook and Instagram – also have rolled back DEI initiatives, which are expected to face opposition from the administration of President Donald Trump.

Emboldened by the Supreme Court’s decision on affirmative action at colleges and universities, conservative groups have filed lawsuits making similar arguments about corporations, targeting initiatives such as employee resource groups and hiring practices that prioritize historically marginalized groups.

On Monday, Trump signed an executive order aimed at terminating DEI programs within federal agencies. Conservatives have long condemned them, arguing they violate the U.S. Constitution by considering factors such as race, gender and sexual orientation.

As for Costco, the National Center for Public Policy Research alleged that at least 200,000 of the company’s 300,000 employees worldwide “are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight.” If only a fraction of those employees were to sue Costco, the legal costs could be significant, the center said.

Costco has a chief diversity officer, but the company’s executive ranks do not reflect the diversity of its customers. Nearly 81% of the executives Costco had in place last year were white, and 72% of them were men, according to data published on its website. Saunders said members of Costco’s management team typically stay a long time given the company’s solid and stable financial performance.

In other ways, Costco has been a bit of a maverick in the corporate world. It doesn’t have an official corporate public relations team, and it hasn’t focused on building up online business as much as rivals Walmart and Target.

The National Center for Public Policy Research intends to present a proposal at Apple’s Feb. 25 shareholder meeting that goes beyond what the think tank wants from Costco. The center’s resolution asks the tech company to abolish its inclusion and equity department, policies and goals, describing them as “consistent with, if not more radical than, most corporate DEI programs.

Apple’s board wants shareholders to vote down the proposal, saying the company strives “to create a culture of belonging where everyone can do their best work.”

MORE: Trump administration directs all federal diversity, equity and inclusion staff be put on leave

President Donald Trump’s administration is directing that all federal diversity, equity and inclusion staff be put on paid leave.

Copyright © 2025 by The Associated Press. All Rights Reserved.

You May Also Like
Outgoing Chicago Public Schools CEO Pedro Martinez attends last CPS school board meeting, vote on charter school renewals

Chicago Public Schools CEO Pedro Martinez attends final board meeting, vote on renewing charter schools

CHICAGO (WLS) — Chicago Public Schools CEO Pedro Martinez attended his final…
Is ‘9-1-1’ On Tonight? Here’s When ‘9-1-1’ Returns With New Episodes On ABC

“When Will ‘9-1-1’ Return with New Episodes on ABC?”

It has been three weeks since the heartbreaking conclusion of the latest…
Shocking footage shows Saudi police beat women and girls inside secret prisons where families send 'disobedient' females to be locked away and punished for YEARS to break their spirit

Video shows Saudi police assaulting females in hidden jails where families send rebellious women and girls to be imprisoned and disciplined for an extended period to crush their will.

Shocking footage obtained by MailOnline reveals Saudi police beating women who are…
Gigi and Bella Hadid's stunning secret SISTER revealed as lookalike from humble beginnings

The Unveiling of Gigi and Bella Hadid’s Remarkable Secret Sister: A Lookalike with a Humble Beginning

Bella and Gigi Hadid have a stunning secret half-sister who has become part…
The CNN reporter whose tweets annoyed Pete Hegseth so much he 'tried to ban her from overseas trip'

CNN reporter irritated Pete Hegseth with her tweets, leading him to attempt to prevent her from joining an international trip.

Secretary of Defense Pete Hegseth reportedly tried to remove a CNN reporter…
Putin masses 50,000 troops on Ukraine's north front as Trump again agrees to meet Russian, Ukrainian leaders

50,000 Russian troops gather on Ukraine’s northern border while Trump plans to meet with Russian and Ukrainian leaders for the second time

Approximately 50,000 troops have been gathered by Russian President Vladimir Putin near…
Illinois prosthetics service seeks to help those with limb loss throughout lives

“Supporting individuals with limb loss at every stage of life: Illinois prosthetic service”

JUSTICE, Ill. — Vikram Choudary doesn’t just talk the talk; he walks…
Big Bear bald eagle couple Jackie and Shadow's eaglets get closer to flying

Jackie and Shadow’s Eaglets Making Progress Towards Flight in Big Bear

BIG BEAR, Calif. (KABC) — There’s lots of eyes focused on the…
Teen from Allen, Texas wins Scripps National Spelling Bee with 'eclaircissement'

Allen, Texas Teen Emerges Victorious in Scripps National Spelling Bee with ‘eclaircissement’ Win

After correctly spelling “éclaircissement” in the 21st round of the Scripps National…
‘And Just Like That…’ Season 3 Episode 1 Recap: Phone Sex and Virgin Nuns

Recap of Season 3 Episode 1 of ‘And Just Like That…’: Exploring Phone Sex and Virgin Nuns

It’s hard to believe that it’s been almost two years since the…
Liverpool parade car crash today: Driver crashes into soccer fans, injuring 45 people; incident not believed to be terrorism

Paul Doyle, the driver, faces charges for causing serious injuries after nearly 80 people were hurt in a car collision during a soccer parade in Liverpool.

LONDON — A driver who injured nearly 80 people when his car…
Trump biographer reveals the real reason furious Melania broke cover to deny disgusting rumor about Barron

Melania Trump Breaks Cover to Deny Rumor About Barron: Insights from Trump Biographer

To address a circulating rumor that her son Barron had faced rejection…