Costco is pushing back on a shareholder proposal that urges the wholesale club operator to conduct an evaluation of any business risks posed by its diversity, equity, and inclusion practices. Investors were expected to vote on the recommendation during the companys annual meeting Thursday.The National Center for Public Policy Research, a conservative think tank based in Washington, submitted the proposal, arguing that Costcos DEI initiatives hold litigation, reputational and financial risks to the company, and therefore financial risks to shareholders.The think tank has made a similar proposal to Apple, and like some American companies that already scaled back or retreated from their diversity policies, cited a U.S. Supreme Court decision in July 2023 that outlawed affirmative action in college admissions.Costco officials could not be reached for comment on the DEI proposal.But Costcos board of directors voted unanimously to ask shareholders to reject the motion. The board said it believes our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information.The directors message to shareholders details how having diverse employees and suppliers has, in their view, fostered creativity and innovation in the merchandise and services that we offer and led to greater customer satisfaction among Costco members.Neil Saunders, managing director of consulting firm GlobalDatas retail division, said Costco can be confident the proposal will be rejected.I think people generally have confidence in Costcos management, and theres an attitude of Why rock the boat? Its sailing very nicely,' Saunders said.Costcos public stance in support of diversity, equity, and inclusion programs contrasts with the positions taken in recent months by other big consumer brands, including Walmart, McDonalds, and John Deere.Last week, more than 30 Walmart shareholders, including Amalgamated Bank and Oxfam America, asked the CEO of the nations largest retailer to explain the business impact of curbing the companys DEI policies, a move they called disheartening.Prominent technology companies, including Amazon and Metathe parent company of Facebook and Instagramalso have rolled back DEI initiatives, which are expected to face opposition from the administration of President Donald Trump.Emboldened by the Supreme Courts decision on affirmative action at colleges and universities, conservative groups have filed lawsuits making similar arguments about corporations, targeting initiatives such as employee resource groups and hiring practices that prioritize historically marginalized groups.On Monday, Trump signed an executive order aimed at terminating DEI programs within federal agencies. Conservatives have long condemned them, arguing they violate the U.S. Constitution by considering factors such as race, gender, and sexual orientation.As for Costco, the National Center for Public Policy Research alleged that at least 200,000 of the companys 300,000 employees worldwide are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight. If only a fraction of those employees were to sue Costco, the legal costs could be significant, the center said.Costco has a chief diversity officer, but the companys executive ranks do not reflect the diversity of its customers. Nearly 81% of the executives Costco had in place last year were white, and 72% of them were men, according to data published on its website. Saunders said members of Costcos management team typically stay a long time given the companys solid and stable financial performance.In other ways, Costco has been a bit of a maverick in the corporate world. It doesnt have an official corporate public relations team, and it hasnt focused on building up online business as much as rivals Walmart and Target.The National Center for Public Policy Research intends to present a proposal at Apples February 25 shareholder meeting that goes beyond what the think tank wants from Costco. The centers resolution asks the tech company to abolish its inclusion and equity department, policies and goals, describing them as consistent with, if not more radical than, most corporate DEI programs.Apples board wants shareholders to vote down the proposal, saying the company strives to create a culture of belonging where everyone can do their best work.Anne DInnocenzio, AP Retail Writer