Costco Shareholders Reject Anti-DEI Proposal From Conservative Think Tank

LOADING ERROR LOADING NEW YORK — Costco shareholders rejected a proposal urging the wholesale club operator to evaluate any risks posed by its diversity, equity and inclusion practices. The National Center for Public Policy Research, a conservative think tank based in Washington, had submitted the proposal, arguing that Costco’s DEI initiatives hold “litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.” The think tank has made a similar proposal to Apple, and like some American companies that already scaled back or retreated from their diversity policies, cited a U.S. Supreme Court decision in July 2023 that outlawed affirmative action in college admissions. Last week, more than 30 Walmart shareholders, including Amalgamated Bank and Oxfam America, asked the CEO of the nation’s largest retailer to explain the business impact of curbing the company’s DEI policies, a move they called “disheartening.” Prominent technology companies, including Amazon and Meta — the parent company of Facebook and Instagram — also have rolled back DEI initiatives, which are expected to face opposition from the administration of President Donald Trump. The National Center for Public Policy Research intends to present a proposal at Apple’s Feb. 25 shareholder meeting that goes beyond what the think tank wants from Costco. Apple’s board wants shareholders to vote down the proposal, saying the company strives “to create a culture of belonging where everyone can do their best work.” JPMorgan CEO Jamie Dimon this week joined the corporate leaders taking a stand in support of the expanded diversity goals some companies added after the 2020 police killing of George Floyd.