DEI discrimination fight taken to Costco shareholders

By
Suzanne Downing
-
26

A Costco shareholder proposal brought by conservative investment activists asked the company to probe its diversity, equity and inclusion policies, and report back on whether they should be eliminated.

The company’s board has recommended against the change for the company that is one of the biggest retailers in Alaska, with five membership-only warehouse outlets. There are more than 600 of the warehouse-style stores nationwide, and another 300 overseas; Juneau’s Costco is the company’s smallest warehouse.

The activist shareholder group is working with the National Center for Pubic Policy, which says certain DEI initiatives may expose Costco to discrimination lawsuits from “white, Asian, male or straight” workers or contractors.

Already, companies such as Walmart, Tractor Supply, and others have changed their DEI policies due to public and shareholder pressure, but Costco is based near Seattle, which is Ground Zero for DEI politics.

The shareholder statement says: “Last year, the US Supreme Court ruled in SFFA v. Harvard that discriminating on the basis of race in college admissions violates the equal protection clause of the 14th Amendment. Prior legal advice regarding the legality of corporate Diversity, Equity and Inclusion (DEI) programs has been called into question post-SFFA. As such, Attorneys General of 13 States warned Fortune 100 companies that SFFA implicated corporate DEI programs. Since SFFA, a number of DEI-related lawsuits have been filed. A corporation was successfully sued for a single case of discrimination against a white employee resulting in an award of more than $25 million, and the risk of being sued for such discrimination appears to be rising. Additionally, many major companies have begun to roll back prior DEI commitments and lay off employees from DEI departments.

The statement reminds shareholders that Alphabet and Meta cut DEI staff and DEI-related investments, Microsoft laid off an entire DEI team, as did Zoom, and John Deere publicly stated that it has halted many policies that were previously part of its DEI efforts after Tractor Supply explicitly stated that it has eliminated DEI roles and retired current DEI goals.

“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the shareholder statement says. “And yet Costco still has such a program, though it was apprehensive enough to recognize this as it recently and quietly rebranded its DEI program to ‘People and Communities.'”

Sticking a new label on discriminatory practices doesn’t protect Costco and its shareholders from the risks. The renamed program still openly expresses a “commitment to equity,” employs a “chief diversity officer,” has a supplier diversity program that picks suppliers based on their race and sex. Costco factors in race and sex in hiring and promotion, and contributes shareholder money to organizations that advance the discriminatory agenda of DEI.

“All of these practices are staples of corporate DEI programs and are consistent with Costco’s DEI program prior to its rebranding. With 310,000 employees, Costco likely has at least 200,000 employees who are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight. Accordingly, even if only a fraction of those employees were to file suit, and only some of those prove successful, the cost to Costco could be tens of billions of dollars,” the shareholders say.

The Costco board of directors unanimously voted to recommend a shareholder vote against the proposal. Such a vote will take place at a later date among qualified shareholders, typically investment funds.

“For our employees, these efforts are built around inclusion – having all of our employees feel valued and respected. 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. We welcome members from all walks of life and backgrounds. As our membership diversifies, we believe that serving it with a diverse group of employees enhances satisfaction. Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value. That group also helps to provide insights into the tastes and preferences of our members. And we believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact. Having diversity in our supplier base, including appropriate attention to small businesses, is beneficial for many of the same reasons diversity benefits our Company. We believe that it fosters creativity and innovation in the merchandise and services that we offer our members,” the board statement says.

Costco heading off a run on meat by rationing to 3 items

26 COMMENTS

  1. I did not renew my membership. Between the scanners at the entrance and having employees that walk around in the warehouse barking like a dog I have had enough.

    • Irene,
      I shop at Costco every week, and my experience with the Scanners has always been positive. I believe the reason for the Scanners is to make sure that the hordes of homeless seeking free samples and use of the restroom facilities is denied.

      I note the Home Depot on Tudor has locked its restroom doors because of the homeless encampment nearby.

      • Since a card is required , the homeless population does not come in and eat the samples and use the restrooms. To
        The the shopper costco looks perfect.
        To the employee costco does not hold up to their word. They promote DEI , pass up deserving employees and expect the deserving employee to train them. Management is at its worst since DEI PROMOTION. And if you are a white male or female your screwed. Currently we have 3 white females over 50 out on mental health leave due to the treatment and overworking of targeted employees. The dei promoted employees and workers., dump all there work on other people because they cannot do it. Costco had to hire a 3rd party to handle fmla,short and long term disabilty form ,because they DID hire dei and they openly say I can’t do that. I’ve seen it ,heard it . Managers are barking because they lack leadership skills. And employees have lost respect, the result outcome are the employees end up doing 4times the work load. Don’t believe the costco lie. Next time you see a homeless person buy them a chicken bake and a coke And give it to them. Anyone came become homeless, never forget that. It’s the fat obese members coming in with their entire family to eat all the samples ,not the homeless.
        The scanners were put in to eliminate time at checkout. Its shows if a person membership needs to be renewed before they enter ,which in turn speeds up the process at checkout. , because they are directed to membership to renew instead of holding up the lines.

  2. To quote the article, “We believe that it (diversity) fosters creativity and innovation in the merchandise and services that we offer our members, the board statement says.” Actually, the board’s statement is false. In reality, creativity and innovation arise from the minds and hearts of creative and innovative people… regardless of their race, creed or color.

  3. Costco “…contributes shareholder money to organizations that advance the discriminatory agenda of DEI. ”

    That’s good to know – it guarantees I will shop less there. Also, it will be a relief to not be around the extremely rude customers that frequent the Dimond store.

  4. My last return to Costco was for a lousy product, but when the clerk asked why I was returning, I told him the product was sexist. It actually influenced my decision.
    The product label said, “Woman-owned Business.’” The clerk smiled but I asked him to list it and let his management know.
    I used to be so impressed with Costco’s selection of products. They knew what the average customer wanted—good quality at a fair price with minimal frills. Now, one of us is changing.
    They are moving away from great to woke. It is no wonder shareholders are speaking up.

    • Yeah, I don’t go there for a hit of political activism, ideological products, or inclusion. I go for certain products and to push a cart while my wayward wife wanders to and fro in a crowded store. Like Mr. Hancock above, what I notice are the crowds of customers, not the employees, management, or ideology.

  6. Imo on the more extreme side, this ideology of DEI simply put is evil and has been made complicated to confuse. It is an issue that’s been with humanity for a long time. Early philosophers condemned certain of the extreme specific aspects of this ideology as a plague on humanity that completely destroy society and the cities we live in. Simply put, It’s an evil perversion. Example, a family with children in the marketplace being exposed to a dude acting like a women and wearing a dress is a terrible crime and an evil psychological perversion.

  8. I sincerely doubt there are many “barriers” to anyone getting a job at Costco as a shelver, or even a clerk. Of course, they probably expect all races and sexes to show up on time for work, which we were informed is a “white” trait. They probably also expect them not to steal, to speak politely and clearly, and to take orders without too much kvetching. Also, unfortunately, “white” traits. Just as the Smithsonian.

    • Costco’s DEI is not about hiring. It’s about who will be promoted. The problem is Costco’s warehouse managers deny promotions to senior employees because of their sexual orientation, gender or ethnicity. Imagine being passed over for a job because you are middle aged, straight, Asian, or white.

      • This person must work there. Because they are 200% right on the money.
        This is what they are doing. And it could be their undoing. but they hire within and promote within, do their inventory within. So no one really knows what is going on unless you work there. They repect DEI ,not their long time loyal employees.
        Costco is not what it used to be

  9. The greatest innovation, creativity, and market success come from employing the brightest, most competent people. Hiring should be based with that in mind. Costco’s shareholders benefit best by hiring the best and brightest. Colorblind, not discriminatory.
    I do draw a line at tranny greeters – I said something about the in-your-face attitude to the Fairbanks store manager, who said it was corporate policy (about 2 years ago…). That greeter has since disappeared.
    You can’t successfully fight racism with more racism – it just perpetuates the problem.

  10. Costco had a brilliant business model. Then Covid entered group behaviors. The people began to be ruled by tyrants who unwittingly usurped constitutional liberties. Cohesive rules “My management wife wants your wife to wear a CCCP product on her face before she is “invited” in” and etc with the new genre of rulership garden party social dictates that are contrary to the forgotten US Constitution. “put that thing away ‘cuz I said so” became the buzzword. In lieu of defense of constitutional rights. Searching searching for the bottom on this going down elevator to exit.

  12. Costco’s DEI program is an affront to common sense. it’s so simple. Just hire the most credible person for the job and leave it at that. I own 25 shares of Costco and would vote against the DEI proposal if I could figure out how to do it online. It’s preposterous.

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