Costco shareholders reject proposal to investigate the company's DEI policies

Costco shareholders have rejected a proposal that questioned the company’s diversity, equity, and inclusion practices.

The proposal, which was submitted by the National Center for Public Policy Research, a think tank based in Washington, D.C., called on Costco’s board to conduct an evaluation of the company’s current DEI roles, policies, and goals.

Preliminary polling indicated 98% of shareholders were against the proposition.

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Tony James, the chairman of Costco’s Board of Directors, urged shareholders to vote against the proposal, emphasizing the company’s commitment to inclusion.

“We owe our success to the more than 300,000 employees who serve our members every day. It is important they all feel included and appreciated, and that they transmit these values to our customers,” James said.

The shareholder who presented the resolution at Thursday's meeting called DEI “illegal, immoral and detrimental to shareholder value."

The shareholder's proposal statement cited roll backs on DEI commitments from companies like Alphabet, Meta, and John Deere, writing, "it's clear that DEI holds litigation, reputational and financial risks" to Costco, and "financial risks to shareholders."

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