In a significant display of support for its diversity, equity, and inclusion (DEI) initiatives, Costco shareholders voted overwhelmingly against a proposal presented by the National Center for Public Policy Research, a conservative think tank. Over 98% of shareholders opposed the measure, which sought to assess the risks associated with maintaining DEI programs, indicating a strong endorsement of Costco's commitment to diversity.

The shareholder vote, held during the annual meeting on January 23, 2025, comes at a time when many U.S. corporations, including major retailers like Walmart and McDonald's, have scaled back their DEI efforts due to political pressures and a recent U.S. Supreme Court decision banning affirmative action. Costco, however, reiterated its belief that such initiatives encourage "creativity and innovation" among employees and improve customer satisfaction.

The National Center for Public Policy Research argued that maintaining DEI initiatives could pose "litigation, reputational and financial risks to the company," claims Costco's board unanimously dismissed, arguing that the report requested would not contribute meaningful information to shareholders. This decisive vote illustrates a broader divide in corporate America regarding DEI practices, especially as the political climate shifts under the Trump administration, which has taken measures to dismantle similar programs across federal agencies.

Notably, Costco's board has consistently promoted an inclusive workplace, emphasizing that their policies do not rely on quotas and are aligned with maintaining qualification standards for hiring. The board's chairman, Tony James, noted that a diverse workforce is essential to the company's culture. "A welcoming workforce has been integral to the company’s culture and values since its founding," he stated during the meeting.

The pushback against the shareholder proposal aligns with prevailing market sentiments, as noted by Lindsey Stewart, director of stewardship research at Morningstar Sustainalytics, who indicated that investor support for anti-DEI resolutions remains low.

This momentous vote is reflective of a larger resistance to the rollback of inclusive practices in the workplace, as the trend of corporate America grapples with the potential fallout of political and legal challenges surrounding DEI policies intensifies. Costco's stance may set a precedent for other companies reevaluating their diversity strategies amid scrutiny.

For more insights into the implications of this vote and corporate diversity trends, visit AP News.