Costco's shareholders overwhelmingly voted against a proposal that would scale back the company's diversity, equity and inclusion efforts, stating that these efforts have allowed for "creativity and innovation in the merchandise and services that we offer."
On Thursday, shareholders voted on a proposal presented by The National Center for Public Policy Research, a Washington-based conservative think tank. The proposal aimed to prevent employees from becoming "victims of this type of illegal discrimination because they are white, Asian, male or straight."
The proposal further argued that DEI-fostering measures being implemented by Costco held "litigation, reputational and financial risks to the company, and therefore financial risks to shareholders," reported AP News.
However, Costco executives shared the initial results of the vote at the company's annual meeting on Thursday, revealing that 98% of shares voted not to implement the proposal. Furthermore, the company's board of directors voted unanimously in asking shareholders to reject the proposal.
"Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers. 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 a recommendation against the proposal.
"Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all. We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed. This capacity is critical because we owe our success to our now over 300,000 employees around the globe," they continued.
Neil Saunders, managing director of consulting firm GlobalData's retail division, was confident the proposal would be rejected even before the meeting had begun.
"I think people generally have confidence in Costco's management, and there's an attitude of 'Why rock the boat? It's sailing very nicely,'" Saunders told AP.
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