Costco’s battle to preserve its DEI policies against a backlash has been overwhelmingly supported by company shareholders as they approved the DEI policy on January 23. AP reported that “more than 98% of shares voted against the proposal.”
“Costco shareholders just destroyed an anti-DEI push” reported CNN on January 24. CNN quoted Lindsey Stewart, director of stewardship research and policy for Morningstar Sustainalytics: “…result at Costco suggests that even if the political environment on inclusion in the workplace is changing, investors’ low propensity to support anti-DEI resolutions is thus far unchanged.”
As we said earlier, the Costco’s Board of Directors strongly voiced their support for the Company’s DEI stance in the face of National Center for Public Policy Research’s (NCPPR) criticism on Costco’s DEI policy which said that there’s the possibility of “illegal discrimination” against employees who are “white, Asian, male or straight” from its DEI. NCPPR submitted a shareholder proposal that Costco conduct an evaluation and publish a report on “the risks of the company maintaining its current DEI roles, policies and goals” which was defeated on January 23. Costco’s Board of Directors, supporting company’s DEI, declared:
“Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers. Our efforts around diversity, equity and inclusion follow our code of ethics: For our employees, these efforts are built around inclusion — having all of our employees feel valued and respected. Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all..”
Costco is the world’s largest retailer of beef, poultry, organic produce, and wine (August 2024) is another global brand to brave an anti-DEI onslaught. Costco, a global giant in the wholesale sector, has more than 900 warehouses worldwide. Costco also entered Newsweek’s “America’s Greatest Workplaces for Diversity 2025” list, along with Walmart, Trader Joe’s, Whole Foods, ALDI and Target. In 2024, its revenues increased by 5% (from 2023) from US$254.5b.
Being a large scale global wholesaler, the fate of Costco’s DEI policy was closely watched by not only other wholesale operators but even retail chains and DEI analysts. Of Costco’s stance, Jessica Guynn and Bailey Schulz reported in USA TODAY: “Some companies are standing by their DEI programs. None have defended those programs quite as vigorously as Costco.”
During the shareholder meeting, Costco’s board chairman Tony James said: “Our position on these issues is not new.We have always been purposefully nonpolitical, and a welcoming workforce has been integral to the company’s culture and values since its founding.”
Apple, which has already defended its DEI policy and is seen as “standing with DEI defenders” along with such companies as Costco, has not faced the shareholders yet. Apple shareholders will be voting on the company’s DEI policy during February’s shareholder meeting.
