The shareholders of the costco dismissed the proposal that urged the wholesale club operator to evaluate any risk arising out of its diversity, equity and inclusion practices.
According to the preliminary results shared by CostCo officials in their annual meeting late on Thursday night, more than 98% of the stocks voted against the proposal.
The proposal was submitted by the National Center for Public Policy Research, a conservative think tank in Washington, arguing that the Costco’s DEI initiative “keeps litigation, reputation and financial risk for the company and therefore financial risk for shareholders.
Think tank has made a uniform proposal to Apple, and like some American companies that have already retreated or retreated from their diversity policies, they cited the US Supreme Court’s decision in July 2023 which admitted to college Positive action was declared illegal.
But the Board of Directors of CostCo unanimously voted to reject the proposal from shareholders. The board said that it believes that “Our commitment to the venture contained in respect and inclusion is fair and necessary. The report requested by this proposal will not provide meaningful additional information.
The shareholders have been told in the message of directors how diverse employees and suppliers, in their view, have promoted creativity and innovation in the goods and services we have to offer “and lead more customer satisfaction among costco members Has done
Costco’s public stance in support of diversity, equity and inclusion programs is contrary to the posts raised in recent months by other big consumer brands including Walmart, McDonald’s and John Dere.
Last week, more than 30 Walmart shareholders, including Amalgamated Bank and Oxfam America, asked the country’s largest retailer’s CEO to tell about the commercial impact of the company’s DEI policies, a step that he called “disappointing” .
Major technology companies including Amazon and Meta – Facebook and Instagram’s original company – have also withdrawn the DEI initiative, which is facing opposition from President Donald Trump’s administration.
Encouraged by the Supreme Court’s decision on positive action in colleges and universities, orthodox groups have filed lawsuits giving equal arguments about corporations, employee resource groups and historically marginalized groups to prioritize practices Right of initiatives on keeping.
On Monday, Trump signed an executive order with the aim of abolishing the Dei programs within federal agencies. The conservatives have long condemned him, arguing that they violate the American Constitution by considering factors such as breed, gender, and sexual orientation.
The scheme involves using the Department of Justice and other agencies to investigate private companies adopting training and recruitment practices, which conservative critics consider discriminatory against those who do not belong to minority groups, such as white men .
For CostCo, the National Center for Public Policy Research alleged that at least 200,000 of the company’s 300,000 employees worldwide “potentially victims of such illegal discrimination as they are white, Asian, men or straightforward. ” The Center said that if only one part of those employees sues the costco, legal cost may be important.
Costco is a main diversity officer, but the company’s executive ranks do not reflect its customers’ diversity. According to the data published on the website of CostCo, last year about 81% of the officers of CostCo were white, and 72% of them were male. Saunders said that members of the costco’s management team usually persist for a long time in view of the company’s solid and stable financial performance.
In other ways, the costco has been slightly desired in the corporate world. It has no official corporate public relations team, and has not focused as much focus on building online business as rivals Walmart and Target.
The National Center for Public Policy Research intends to present a proposal in Apple’s 25 February shareholder meeting which is beyond the expectations of the think tank from the costco. The Center’s proposal asks the technology company to end its inclusion and equity department, policies and goals, describing them as “most corporate DEI programs than not more radical than not” if not “if not”.
Apple’s board wants shareholders to vote for this proposal, as the company “tries to create a culture of belonging where everyone can do their best.”
JP Morgan CEO Jamie Diman joined the corporate leaders this week who took a stand in support of the extended variety goals by some companies after the murder of George Floid in 2020. During an interview with CNBC, Diman defended his bank’s DEI policies.
Speaking at the World Economic Forum meeting in Davos, Switzerland on Wednesday, he said, “We will continue reaching the black community, Hispanic community, LGBT community, experienced community.” “And wherever I go, red state, blue state, green state, mayor, governor and he said that what we do is liked by them.”
According to David Glasgow, Executive Director of Maltzer Center for Diversity, Inquisition and Bilonging at NYU School of Law, Trump’s actions this week have increased potential legal risk for companies that oppose conservative response against DEI. Glasgow said, but after the Supreme Court’s decision to take positive action, most of the big companies would have consulted their lawyers or have done internal self-audit.
“So if you are an Apple or other company that has done so, and you are confident in the legitimacy of your current Dei program… I think what you should do now is to be firm,” he said.