• by Tanya Gazdik , December 29, 2024

Costco is sending a strong message to the National Center for Public Policy Research, which is pushing the company away from diversity, equity and inclusion.

"The conservative think tank requested that Costco evaluate and publish a report on the risks of the company maintaining its current DEI roles, policies and goals amid a wave of corporations slashing all references to the organizational framework,” according to The Hill. “In its response to the proposal, Costco called out the group for 'inflicting burdens” on companies through 'policy bias' and said their proposal did not aim to address financial risks but to strike down DEI efforts.”

Costco’s board of directors unanimously recommended that its shareholders vote against the proposal. The message was sent ahead of Costco's annual meeting of shareholders scheduled for Jan. 23.

“Costco said its DEI efforts help the company attract and retain a wide range of employees and improve merchandise and services in stores,” according to CNN Business.

Costco also said its members want to interact with a diverse employee base.

“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” Costco said in its proxy statement to investors. “We believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact.”

The moves come after companies such as Walmart, John Deere, Tractor Supply and Harley Davidson are changing or walking away from DEI goals and programs.

“A guiding principle around inclusion is ensuring that leaders walk the talk, which essentially means ensuring alignment between leader language, behaviors, and actions; otherwise, it can appear disingenuous,” notes Forbes. “Costco has done so and shown commitment to inclusion in the workplace in several ways. There is clear leadership buy-in for DEI as a priority. Costco's site messaging includes a quote directly from the CEO about the value of appreciation for inclusion.”

Costco has a chief diversity officer and a supplier program that focuses on expanding to small and diverse businesses. It also donates to organizations like the Thurgood Marshall College Fund that serve minorities and underrepresented groups.

The National Center for Public Policy Research “decried that Costco's renamed program still openly expresses a 'commitment to equity,' which it argues means equality of outcome, not opportunity,” according to Fox Business News.  The company “has a supplier diversity program that picks suppliers based on their race and sex, still appears to factor in race and sex in hiring and promotion and still contributes shareholder money to organizations that advance the discriminatory agenda of DEI." 

Costco's board of directors responds that its DEI practices "are legally appropriate, and nothing in the proposal demonstrates otherwise."