Costco Faces Shareholder Pushback on DEI Policies

Costco's shareholders recently shot down a proposal questioning the wholesale club's diversity, equity, and inclusion (DEI) policies. The activist investors leading the charge, however, aren't ready to throw in the towel just yet. Ethan Peck, deputy director of the National Center for Public Policy Research's Free Enterprise Project, sees this as an expected bump in the road. He believes Costco could follow in the footsteps of companies like Walmart and McDonald's, which have revisited their DEI policies. Despite Costco's chairman, Hamilton "Tony" James, highlighting the importance of DEI for their over 300, 000 employees, Peck remains optimistic about a potential shift. With 98% of shareholders voting against their proposal, the NCPR isn't deterred. They point to similar cases, such as Boeing, which initially opposed their DEI audit proposal but later dropped it. The retail giant is one of the few high-profile companies still holding onto DEI policies, despite others moving away. Costco board member Jeff Raikes has strongly supported DEI initiatives, believing they drive innovation and growth. However, with President Trump's criticism of DEI as discriminatory, the debate continues to heat up.