At Costco's annual meeting, shareholders voted more than 98% against a proposal to scrutinize potential risks from its diversity, equity, and inclusion (DEI) policies. Presented by a conservative think tank, the proposal expressed concerns over litigation and reputational harm. Costco's board argued that their DEI commitment promotes respect and inclusion, ensuring no significant risks exist, while enhancing creativity and customer satisfaction. Analysts noted shareholder confidence in Costco's management, suggesting the company is effectively navigating its DEI initiatives despite external pressures.
According to preliminary results shared by Costco executives at its annual meeting Thursday, more than 98% of shares voted against the proposal.
The National Center for Public Policy Research, a conservative think tank based in Washington, had submitted the proposal, arguing that Costco's DEI initiatives hold "litigation, reputational and financial risks to the company, and therefore financial risks to shareholders."
The board said it believes "our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information."
Costco’s directors assert that diverse employees foster creativity and lead to greater customer satisfaction among Costco members.
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