Costco has made it clear that diversity, equity, and inclusion (DEI) is here to stay despite growing anti-DEI pressures. At their recent shareholder meeting, Costco’s board of directors firmly rejected a proposal challenging the risks of their DEI efforts. Unlike many corporations folding under external pressures to downsize or abandon DEI initiatives, Costco stands firm on DEI, defending its approach as both ethical and essential.
The proposal, submitted by the National Center for Public Policy Research, argued that DEI posed financial and legal risks, claiming discrimination against certain employee demographics. Costco’s response? A masterclass in standing firm. The board emphasized that their DEI efforts align with their code of ethics and enhance their ability to attract top talent, serve diverse members, and foster innovation through supplier diversity.
“Our success is rooted in respect and inclusion,” the board stated, explaining that diversity not only strengthens their workforce but also resonates with their growing diverse customer base. They highlighted the economic power of diverse communities, such as Black Americans, Latinos, and Asian Americans, whose collective spending power exceeds $6 trillion in the U.S. alone.
Costco’s actions demonstrate the business case for DEI: tapping into underrepresented markets boosts profitability and positions companies for future growth. As opponents grow louder, Costco’s stance serves as a reminder that diversity drives innovation and customer loyalty. Their approach offers a playbook for defending DEI in boardrooms and beyond, showing how inclusion is key to sustained success.
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