Costco To Shareholders: DEI And Inclusive Leadership Is Non-Negotiable
Costco Wholesale's actions regarding an upcoming annual shareholder meeting slated for late January 2025 are making headlines. Of particular note is a suggested agenda item for a proposal requesting a vote to report to outline the risks around Costco's diversity, equity, and inclusion (DEI) policies. Specifically, the group submitting the proposal expressed concern over financial, legal, and reputational damage to Costco if the organization stays committed to DEI. The proposals call out warnings around discriminatory lawsuits like that of Starbucks, retaining a chief diversity officer position, and citing concern over Costco's unwavering commitment to equity. However, Costco's Board of Directorsreviewed the proposal and unanimously recommended against it, citing inefficient content and evidence for rigor in structures to ensure fairness to justify investment in investigating the effectiveness of DEI at Costco. The Board response also highlighted doing the right thing for its communities and highlighted concern over ulterior motives in the proposal submission. Essentially, the Board voted to favor inclusive leadership and encouraged stakeholders to vote for inclusion. Costco's move to not cave into competitive pressures and stay the course with DEI commitments earns the title of Inclusion Hero of the Week.
A guiding principle around inclusion is ensuring that leaders walk the talk, which essentially means ensuring alignment between leader language, behaviors, and actions; otherwise, it can appear disingenuous. Costco has done so and shown commitment to inclusion in the workplace in several ways.
