Major Retailer Doubles Down On DEI As Other Companies Back Away

SUMMARY

Costco has urged shareholders to reject a proposal by the National Center for Public Policy Research that sought an assessment of risks tied to its diversity, equity, and inclusion (DEI) policies. Critics claim the policies perpetuate racial and gender discrimination under the guise of equity, potentially exposing Costco to massive legal and financial liabilities. The proposal highlighted that with 310,000 employees, tens of thousands—particularly white, Asian, male, or straight employees—could be victims of illegal discrimination. Critics warned this could result in lawsuits costing billions. Despite these concerns, Costco has rebranded its DEI initiatives as “People and Communities” but maintained the same practices. Costco dismissed the review request, calling it biased and reaffirming its belief that DEI efforts are both legal and integral to its culture. This decision aligns Costco with controversial policies increasingly criticized for prioritizing identity over merit.