- Costco shareholders rejected a proposal to report on the risks of the company’s DEI efforts.
- While several companies have walked back diversity programs, Costco’s board unanimously supported theirs.
- The result comes just days after President Trump issued sweeping rules to end DEI initiatives at federal agencies.
Costco shareholders on Thursday rejected a proposal from a conservative think tank to report on the risks of the company’s DEI efforts.
An “overwhelming margin” of 98% of shares voted against the measure in the preliminary results, Costco said.
While several companies, including retailers like Walmart and Tractor Supply Co., have walked back diversity programs, Costco’s board unanimously supported theirs and called for it to be voted down.
In pre-recorded messages to the meeting, a representative for the National Center for Public Policy Research called DEI programs “illegal, immoral and detrimental to shareholder value,” saying that the term is “concealing a radical Marxist agenda.”
In response, Costco’s board chairman, Tony James, said its programs are “consistent with the company’s values and code of ethics.”
“We have always been purposefully non-political and a welcoming workforce has been integral to the company’s culture and values since its founding,” he added.
The result comes just days after President Donald Trump issued sweeping rules to end DEI initiatives for federal agencies, which could cause new challenges for private-sector vendors and contractors that do business with the government.
This story is developing…
