Summary

Costco’s board rejected a shareholder proposal to end its diversity, equity, and inclusion (DEI) policies, arguing they foster respect, innovation, and cultural alignment with customers and employees.

Shareholders claimed DEI could lead to lawsuits citing “illegal discrimination” against white, Asian, male, or straight employees, referencing legal cases like Students for Fair Admissions v. Harvard.

Costco countered that its DEI efforts comply with the law and enhance its culture, rejecting claims of legal risk.

The proposal will be voted on at Costco’s January 23 shareholder meeting.