Costco Stands Firm on Diversity Despite Critics

Costco, the popular warehouse retailer, is taking a strong stance against a growing wave of opposition towards diversity, equity, and inclusion (DEI) efforts. The company recently advised its shareholders to reject a proposal from a conservative think tank, the National Center for Public Policy Research. This group wants Costco to assess and report on the financial risks of keeping its DEI goals. The think tank claims Costco might be engaging in "illegal discrimination" against white, Asian, male, or straight employees. Costco, however, believes DEI helps create a unique "treasure hunt" shopping experience. It has a chief diversity officer and programs that support small, diverse businesses. The company also donates to organizations like the Thurgood Marshall College Fund, which helps minorities. Costco says its DEI efforts attract and retain diverse employees, improve store offerings, and meet member expectations. The company argues that the think tank is hiding its anti-diversity agenda behind the guise of risk reduction. Costco asserts that the think tank and others are burdening companies by challenging longstanding diversity programs. Costco's stance gained attention on social media this week. DEI generally involves practices to boost representation of various groups. The shareholder resolution claims Costco's DEI practices could be discriminatory, but Costco says its policies are legal and non-discriminatory. Costco pays high retail wages and is considered a progressive employer. It's backing DEI despite pushback from right-wing activists and the incoming Trump administration. Many companies are modifying DEI terminology or advertising their efforts less to avoid pressure.