"Costco won't join DEI backlash. Why shareholders rejected anti-'woke' proposal"

Costco shareholders voted down an investor proposal from a conservative think tank that urged management to investigate the business risks of its diversity initiatives. 

... "We owe our success to the more than 300,000 employees who serve our members every day. It is important that they all feel included and appreciated and that they transmit these values to our customers," James said.

... Ethan Peck from the National Center for Public Policy Research – the right-leaning shareholder advocacy group that submitted the proposal – argued in a prerecorded message that DEI is "illegal, immoral and detrimental to shareholder value" and poses litigation risks for the company.

... increasingly, companies are facing a DEI showdown at the shareholder ballot box.

Apple recently recommended investors vote against a shareholder proposal to eliminate the company’s DEI programs. 

... This proxy season, Walmart and Starbucks face similar proposals. 

... Facing a rapidly shifting political environment and under fire from conservative foundations, think tanks and political operatives, a growing list of major corporations have dialed back diversity efforts.

Some companies retreated from DEI commitments shortly before Trump took office. Among them was Facebook and Instagram owner Meta as CEO Mark Zuckerberg looked to align his social media company with the Trump administration.

... Some companies are standing by their DEI programs. None have defended those programs quite as vigorously as Costco. 

... Costco’s board of directors voted unanimously to recommend shareholders reject the measure, arguing that diverse employees and suppliers fuel innovation in the merchandise it stocks and the services it offers. 

“Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the directors said. “The report requested by this proposal would not provide meaningful additional information.”