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.
I understand your sentiment. Can I ask you to consider a scenario?
Imagine a company needs to hire a new employee. They have 9 white men, and need a 10th person. Whoever is hiring may not think they are prejudiced, but they need to consider how the new hire will fit in with the existing team.
They may be worried about how hiring a qualified woman will upset the dynamic. A qualified Hispanic with an accent may be overlooked if the hiring manager is concerned about their English skills. Any number of reasons that may not even be conscious, but influence the decision to hire another white man.
Do you think it is possible for DEI practices to ensure diverse and qualified candidates? Why does hiring a non-white have to mean they are less qualified? If we instead start with the assumption that qualified candidates exist from many backgrounds, hiring them in proportion to their representation in the population doesn’t seem like a crazy idea.