Costco shareholders reject anti-DEI proposal

DEI Proposal Rejection - Costco shareholders rejected a proposal to report on the risks of the company's DEI efforts with an "overwhelming margin" of 98% of shares voting against the measure [1] - The proposal was put forward by a conservative think tank, the National Center for Public Policy Research, which called DEI programs "illegal, immoral and detrimental to shareholder value" [2] - Costco's board unanimously supported the company's DEI programs and called for the proposal to be voted down, stating that the programs are "consistent with the company's values and code of ethics" [1][2] Costco's Stance on DEI - Costco's board chairman, Tony James, emphasized that the company has always been "purposefully non-political" and that a welcoming workforce has been integral to the company's culture and values since its founding [2] - The company's DEI programs are seen as aligned with its long-standing values and ethical code, distinguishing it from other retailers like Walmart and Tractor Supply Co., which have scaled back their diversity initiatives [1][2] Broader Industry Context - The shareholder vote occurred shortly after President Donald Trump issued sweeping rules to end DEI initiatives for federal agencies, which could pose new challenges for private-sector vendors and contractors doing business with the government [3] - Despite the broader political and industry shifts, Costco remains committed to its DEI programs, reflecting a divergence from trends seen in other companies [1][3]