Costco Shareholders Vote Down Anti-DEI Proposal in Near-Unanimous Decision

Following the lodging of a formal proposal made by the National Center for Public Policy Research (NCPPR), Costco shareholders were asked to vote on the matter of whether the company should “conduct an evaluation and publish a report, omitting proprietary and privileged information, on the risks of the Company maintaining its current DEI (including ‘People & Communities’) roles, policies and goals.”

That question was posed to Costco shareholders during the annual shareholders meeting, held on Jan. 23, and was defeated resoundingly. According to Axios, approximately 98% of votes cast were lodged against the NCPPR’s resolution, per preliminary vote tallies.

Speaking to Axios, Jonas Kron, chief advocacy officer for Trillium Asset Management, said: “The fact that 98% of investors voted against the proposal shows that almost all investors are not buying what the anti-ESG and anti-DEI organizations are selling.”

“It’s also a strong indication that all the media reports of the death of DEI and ESG are way overblown,” Kron continued. “The investing community clearly understands the importance and value of these ESG and DEI approaches and are ready to express that through their votes.”

Costco Previously Urged Shareholders To Vote Against Anti-DEI Proposal

After the NCPPR proposal had been filed — but in advance of the vote — Costco’s board of directors issued a statement delineating its position on the subject after reproducing the text of the proposal in full.

In comments following the proposal’s text, Costco’s board went on to advise shareholders to vote against the proposal, citing a number of factors. In particular, the board noted that the NCPPR had an ideological mission rather than an actual business-related concern, citing language used in previous documents wherein the think tank had referred to shareholder activism as “fighting back” against “the evils of woke politicized capital and companies.”

Further language used by the NCPPR described “CEOs and other corporate executives who are most woke and most hard-left political in their management of their corporations” as “inimical to the Republic and its blessings of liberty” and “committed to critical race theory and the socialist foundations of woke” or “shameless monsters who are willing to sacrifice our future for their comforts.”

Costco Stands Behind Its DEI Policy

While other companies — including Walmart, Molson Coors, Ford, and Harley-Davidson — have backed away from previous DEI policies, Costco remained stalwart.

The company spoke of several factors behind its stance, including the diversity of its suppliers leading to a fun “treasure hunt” for Costco members, as well as the fact that shoppers enjoy seeing themselves reflected in the frontline workforce at warehouses, with whom they interact.

Finally, Costco mentioned that its view of DEI may be closer to the guiding principles of the practice, rather than the version critics often put forth.

“All decisions regarding recruiting, hiring, promotion, assignment, training, termination, and other terms and conditions of employment will be made without unlawful discrimination on the basis of race, color, national origin, ancestry, sex, sexual orientation, gender identity or expression, religion, age, pregnancy, disability, work-related injury, covered military or veteran status, political ideology or expression, genetic information, marital status, or other protected status,” the board outlined.