Costco Faces Boycott Threats Over Defense of DEI Program

The retailer's board rejects a shareholder proposal to reassess diversity policies, drawing backlash from conservative groups and praise from DEI advocates.

• Costco's Board of Directors urged shareholders to vote against a proposal from the National Center for Public Policy Research (NCPPR) that called for a review of the company's DEI initiatives.
• The board reaffirmed its commitment to diversity, equity, and inclusion, stating these efforts align with its code of ethics and enhance employee retention and business success.
• Conservative activists, including filmmaker Robby Starbuck, have called for a boycott of Costco, accusing the company of prioritizing DEI over shareholder interests.
• Costco’s stance contrasts with other major corporations like Walmart, Ford, and Lowe’s, which scaled back their DEI programs following increased scrutiny and legal challenges in 2024.
• The shareholder vote on the proposal is scheduled for January 23, but similar anti-DEI resolutions have historically received minimal support from shareholders.

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