Costco Rejects Shareholder Proposal to Scale Back DEI [Video]

Costco is rejecting a shareholder proposal that calls for a review of the business risks posed by its diversity, equity, and inclusion (DEI) policies, highlighting its commitment to a workplace grounded in respect and inclusion.

As other U.S. companies scale back their DEI initiatives, Costco remains steadfast in defending its approach, urging shareholders to reject the motion during the company’s annual meeting on Thursday.

Newsweek has reached out to Costco for comment via email.

Why It Matters

This development reflects the ongoing debate surrounding corporate diversity practices, particularly after the U.S. Supreme Court‘s decision in July 2023 to outlaw affirmative action in college admissions.

The controversy surrounding Costco’s DEI initiatives comes as several major U.S. corporations have retreated from similar programs, fearing legal and reputational risks. Costco’s decision to maintain its stance provides insight into how large companies navigate the complex intersection of diversity policies and shareholder interests.