At Costco’s annual shareholders meeting on Thursday, more than 98% of shareholders voted against a proposal seeking to assess the risks associated with the company’s diversity, equity, and inclusion (DEI) efforts.
The preliminary results of the vote came as part of a broader conversation surrounding the future of DEI initiatives, which have been increasingly challenged in both corporate and governmental spheres.
The anti-DEI proposal, filed by the National Center for Public Policy Research (NCPPR), a conservative think tank, has gained traction in recent years as part of a wave of similar proposals targeting corporate DEI policies. The proposal called for an evaluation of the potential risks that DEI efforts may pose to companies like Costco.
Costco’s board of directors, however, strongly rejected the proposal, voting unanimously to ask shareholders to vote against it. The board emphasized that the company remains committed to fostering a culture of respect and inclusion, deeming these efforts as both appropriate and necessary for the company’s continued success. Costco’s management argued that the requested report would not add meaningful value to the company’s strategy and would not be in line with the company’s established practices.
The vote results reflect strong backing for Costco’s ongoing DEI initiatives, which the company has said have been central to promoting innovation and creativity in its merchandise and services. In a statement, Jonas Kron, Chief Advocacy Officer at Trillium Asset Management, praised the outcome, stating that the overwhelming rejection of the proposal was indicative of the broader investment community’s support for DEI and environmental, social, and governance (ESG) approaches.
“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,” Kron remarked. “It’s also a strong indication that all the media reports of the death of DEI and ESG are way overblown.”
This development comes amid a shift in US government policy. In recent days, President Trump issued an executive order revoking several diversity and affirmative action practices in the federal government, further fueling the national debate over DEI and ESG initiatives.
