Costco shareholders reject anti-DEI measure

Core Viewpoint - Costco shareholders overwhelmingly rejected a proposal for a report on the risks associated with the company's diversity, equity, and inclusion (DEI) efforts, with approximately 98% voting against it [1][2]. Group 1: Shareholder Reactions - The proposal was introduced by the National Center for Public Policy Research, an activist shareholder, citing concerns about the risks of DEI programs following a Supreme Court ruling [2][3]. - Costco's board of directors unanimously opposed the proposal, asserting that their DEI efforts are legally appropriate and compliant with evolving laws [4]. Group 2: Industry Context - The rejection of the proposal occurs amidst a broader trend where support for DEI initiatives is declining in both the private and public sectors, with many major companies like Walmart, McDonald's, Ford, and Amazon scaling back their DEI initiatives [5]. - Shareholder resolutions aimed at countering DEI programs have received less than 2% support on average in 2024 [5]. Group 3: Legislative Environment - The proposal referenced warnings from attorneys general of 13 states regarding the implications of the Supreme Court ruling on corporate DEI programs, alongside the filing of several lawsuits [3]. - An executive order signed by President Donald Trump aimed to eliminate all DEI programs from the federal government, reflecting a significant shift in the legislative environment surrounding DEI initiatives [6].