Costco shareholders defended DEI hiring against anti-woke attacks and wonfor now
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With a swath of anti-DEI and other executive orders spilling out of the White House during the first week of Trumps second term, many companies are likewise changing or rolling back their own DEI programs or policies. That list includes Amazon, Boeing, Lowes, McDonalds, and Meta, many in the wake of a 2023 Supreme Court decision striking down certain affirmative action programs (which can be somewhat related to DEI efforts).However, one big companys shareholders are bucking the trend.Costcos shareholders rejected a proposal from a conservative think tank on Thursday, which aimed to persuade the company to roll back or nix its DEI hiring practices. Its a notable rejection, given that many other large companies have been more or less giving in to similar requests or proposals, and that Costco is the worlds third-largest retailer. In effect, its a sizable win for DEI adherents.The proposal was floated by the National Center for Public Policy Research (NCPPR), and argued that Costcos DEI policies were harmful to the company and could open it up to lawsuits.With 310,000 employees, Costco likely has at least 200,000 employees who are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight, reads a statement in support of the change, presented to shareholders prior to the vote. Accordingly, even if only a fraction of those employees were to file suit, and only some of those prove successful, the cost to Costco could be tens of billions of dollars.Costcos Board of Directors had recommended that shareholders vote against the proposal, and shareholders agreedthe proposal was voted down by 98% of them. While that was a win for DEI proponents, an uphill battle remains. This week, Trump issued an executive order aimed at terminating DEI policies.Illegal DEI and DEIA policies not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity, as they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system, the executive order reads. Hardworking Americans who deserve a shot at the American Dream should not be stigmatized, demeaned, or shut out of opportunities because of their race or sex.So while Costco shareholders may have chalked up a win for DEI proponents in this case, the larger war is still ongoing.
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