‘Our Board has considered this proposal and believes that our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,’ Costco stated

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.

  • @[email protected]
    3•4 days ago

    Costco stock price is about $930, so to become “a group of shareholders”, you’d technically need three people to spend that much money and then start making their demands.

    Or at least I wasn’t able to find how large this “group of shareholders” was. If it had been a significantly large one, Costco wouldn’t have been able to brush it off so easily, I believe.

    • @[email protected]
      3•4 days ago

      It’s a stupid conservative activist organization, not some random investors.

      Costco’s most recent “Notice of Annual Meeting of Shareholders,” which contains information about business matters that will be voted on at the January 23, 2025 meeting, included an anti-DEI shareholder proposal that was submitted by the National Center for Public Policy Research.

      Value Edge Advisors describes the National Center for Public Policy Research as a “reprehensible radical right” organization that has a history of filing anti-DEI lawsuits against various companies, including Starbucks, Nasdaq, and more. Its funders include right-wing groups like the Coors foundation.

      https://boingboing.net/2024/12/28/costco-claps-back-at-reprehensible-radical-right-organizations-anti-dei-demand.html