Costco’s board of directors are rejecting anti-diversity, equity and inclusion (DEI) efforts, noting the company will defend “respect and inclusion” as efforts are underway nationwide to strike the practices.
The National Center for Public Policy Research, a conservative think tank, has sent several companies, including Costco, a proposal that argued the organization should conduct an evaluation of the risks posed by DEI efforts.
Costco’s board of directors voted unanimously to ask shareholders to reject the motion. The company’s annual shareholder meeting is Thursday, where they are expected to vote on the matter, The Associated Press reported.
The board said it is committed to “respect and inclusion,” calling the issues “appropriate and necessary.”
“The report requested by this proposal would not provide meaningful additional information,” the board said, per the AP.
The Hill has reached out to Costco for more information on the shareholder vote, but directors were expected to tell investors how diversity within the company has fostered creativity and innovation in its merchandise and services.
“I think people generally have confidence in Costco’s management and there’s an attitude of ‘Why rock the boat? It’s sailing very nicely,’” Neil Saunders, the managing director at the consulting firm GlobalData’s retail division, told the AP.
The vote comes as several companies have scaled back DEI efforts.
Just after President Trump was inaugurated, he moved to end DEI initiatives in the federal government. All federal DEI employees were placed on leave within days of the executive order and federal agencies now must comply with reporting on steps taken to change DEI programs.
The Associated Press contributed.
