According to the Associated Press, shareholders of Costco have decisively turned down a proposal from a conservative think tank that sought to dismantle the diverse hiring practices of the company.
The decision places Costco as a notable exception among many U.S. corporations that are scaling their diversity, equity as well as inclusion (DEI) efforts.
The board of directors recommended that shareholders reject the proposal from the National Center for Public Policy Research (NCPRP). It emphasized that it contradicted Costco’s dedication to fostering a respectful workplace.
The important vote took place on Thursday during a shareholder’s meeting which was held at the headquarters of the company in Issaquah, Washington. At this meeting, an overwhelming 98% of shareholders opposed the proposal.
Before the vote, Costco’s brand staunchly defended its DEI initiatives, focusing that they are beneficial for business. They all stated, “Our commitment to diversity, equity, and inclusion serves as a reminder to everyone in our company about the significance of creating opportunities for all. We believe these initiatives enhance our ability to attract and retain the talent necessary for our success.”
The board further clarified, “We continuously assess our practices to ensure compliance with legal standards, including the evolving decisions from the Supreme Court. We are confident that our DEI efforts are legally sound, and the proposal fails to provide evidence to the contrary.”
In contrast to this, several major companies like Walmart, McDonald’s, Meta, John Deere, Lowe’s, etc recently opted to scale back or eliminate their DEI programs. The decision came after the U.S. Supreme Court’s ruling in Students for Fair Admissions v. Harvard. It determined that race-based admissions policies violate the equal protection clause of the 14th Amendment. McDonald’s earlier this month announced that it would no longer go for aspirational representation goals, instead opting to include inclusion throughout their system.
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