Costco shareholders want to uphold DEI policies.

As AFROTECH™ previously told you, Costco’s board of directors has requested that its shareholders reject a proposal introduced by the National Center for Public Policy Research (NCPPR) to eliminate its diversity, equity, and inclusion (DEI) programs. The NCPPR argues that upholding DEI efforts should not be permitted due to the Supreme Court’s ruling on affirmative action in June 2023. The ruling struck down race-conscious affirmative action across colleges and universities, NPR notes.

However, Costco’s board of directors contends that the NCPPR has an agenda of “abolishing diversity initiatives,” and its critique of Costco’s DEI policy “reflects a policy bias,” according to Fox Business.

“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 message, per the outlet. “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.”

Costco’s shareholders are aligned with its boards. According to Axios, over 98% of its shareholders voted against an anti-DEI proposal that was brought forth in its annual meeting on Thursday, Jan. 23.

“The fact that 98% of investors voted against the proposal shows that almost all investors are not buying what the anti-ESG and anti-DEI organizations are selling,” Jonas Kron, Trillium Asset Management’s chief advocacy officer, said in a statement to Axios. “It’s also a strong indication that all the media reports of the death of DEI and ESG are way overblown. The investing community clearly understands the importance and value of these ESG and DEI approaches and are ready to express that through their votes.”

Costco’s decision is in the midst of an ongoing attack on DEI being fueled by conservative groups and the Trump administration, which recently placed federal employees working in DEI roles on paid leave as they work to shut down offices and programs related to diversity efforts. Other companies that are upholding the removal of DEI initiatives in their companies include Meta, Walmart, and Amazon.

Costso and other major companies such as JPMorgan Chase are proving that companies do not have to fold to the pressure. Jamie Dimon, CEO of JPMorgan Chase, vowed the firm will continue to maintain DEI efforts and environmental, social, and corporate governance (ESG) policies, as AFROTECH™ previously reported.

“Bring them on,” Dimon told CNBC at the World Economic Forum in Davos, Switzerland this month. “We are going to continue to reach out to the Black community, the Hispanic community, the LGBT community, the veterans community.”