Costco Board Urges Shareholders to Reject Calls to End DEI Programs

Shoppers walk out with full carts from a Costco store in Washington on May 5, 2020. Nicholas Kamm/AFP via Getty Images

Costco’s board of directors has encouraged shareholders to vote to support its “diversity, equity, and inclusion” (DEI) program after it received a proposal to reject the practice.

The National Center for Public Policy, a conservative think tank, had urged Costco’s shareholders and board to strike DEI because it promoted discriminatory practices, according to the Kirkland, Washington-based retailer in a statement to shareholders.

Several companies, including Tractor Supply Co., Harley Davidson, John Deere, Lowes, and others, have announced they will repeal their DEI policies after facing pushback from conservatives and lawmakers.

In 2024, a number of universities—including the Massachusetts Institute of Technology, Harvard University, and the University of Michigan—have ended their prior practices of soliciting DEI statements for hiring and promotions.

“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the National Center for Public Policy said in its proposal to Costco, according to the statement. “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,” it added.

Costco’s board urged its shareholders to reject the group’s proposal.

“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 its 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 proxy statement to its investors was uploaded on Costco’s website on Dec. 26, according to an Epoch Times review.

Costco also said that the think tank was trying to use a “broader agenda” that would not be for “not reducing risk for the Company but abolition of diversity initiatives.”

The company said its DEI efforts attract employees and improve store services.

“For our employees, these efforts are built around inclusion—having all of our employees feel valued and respected. Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,” Costco said. “We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed. This capacity is critical because we owe our success to our now over 300,000 employees around the globe.”

DEI policies are a part of an organizational framework that its proponents say reduce discrimination on the basis of identity or disability or provide more representation to groups that proponents say have been subject to discrimination on their identity or disability.

Such policies, however, have come under fire in recent years, particularly from Republicans, including Vice President-elect JD Vance. “DEI is racism, plain and simple,” Vance wrote in June. “It’s time to outlaw it nationwide, starting with the federal government.”

A study published earlier this year found that DEI training and policies increase prejudice in an organization.

“A growing number of high-profile cases suggest that diversity workshops and their supporting materials regularly promote questionable claims—particularly about the overarching, malicious character of the majority population. Similarly, hostility toward those who challenge DEI claims is part of the pattern,” Canadian professor David Haskell said in a study for the Aristotle Foundation for Public Policy.

The Epoch Times contacted Costco for additional comment Sunday.