Costco refuses to crumble when challenged, rejects the demand to end ‘diversity, equity, and inclusion’ at the company

Costco is proving its values don’t stand just for show. A conservative think tank thought that they could mask their agenda as a proposal backed by research, but Costco is not that easily persuaded.

The National Center for Public Policy Research demanded Costco stop its DEI (Diversity, Equity, Inclusion) programs and fire its Chief Diversity Officer. According to the group, DEI is a risky business, legally and financially. They even called upon the 2023 Supreme Court decision in SFFA v. Harvard, a decision that bans universities from using race considerations in their admission process. “It’s clear that DEI holds litigation, reputational, and therefore financial risks to shareholders,” the group wrote in a letter supporting their proposal.

Fortunately, there are brands in the world that actually have values. Costco’s Board of Trustees held a vote to advise shareholders to reject the proposal. And, the best part? The vote passed unanimously. “Our efforts around diversity, equity and inclusion follow our code of ethics: For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected,” the Board wrote in its response. The company also denied the notion that its DEI policies violate the law. The company explained that all employment decisions are made without discrimination and in full compliance with legal requirements.

And, as expected, when something good happens in the world, people will cheer. X users voiced support for Costco. One user captured exactly how we feel about the company’s actions: “If you crumble when your values are tested, they weren’t values, they were marketing campaigns. Well done, Costco!” This is the type of leadership we need in a time when we are divided by politics.

The proposal now goes to a shareholder vote scheduled for January 23. This will be the final decision. Let’s hope that those invested in the company, agree with the Board and understand Inclusion is not a risk; it can be a responsibility. It’s a long-term investment that will attract potential employees. Many companies scaled back DEI programs because of conservative pushback, so Costco’s commitment is something we look up to.