Why an activist investor says the battle against Costco DEI regime isn’t over
Storch Advisors CEO and former Toys”R”Us and Target executive Gerald Storch reflects on November’s strong retail report and explains how the industry’s winners are “value-driven” players.
Costco shareholders may have overwhelmingly rejected a challenge to the company’s diversity, equity and inclusion policies on Friday, but activist investors who rail against the wholesale club’s “woke” business practices say the fight is far from over.
“A board opposing a shareholder proposal is a typical and expected part of the shareholder proposal process. almost every shareholder proposal, regardless of topic, is opposed by every board,” said Ethan Peck, deputy director of the Free Enterprise Project at the National Center for Public Policy Research (NCPR). Fox News Digital.
NCPR had asked Costco executives to investigate the company’s business risks, but the grocery club chain’s board of directors was unanimous. came out against their efforts.
COSTCO BOARD MEMBER DEFENDS DEI PRACTICES, CRASHES COMPANIES’ REMOVAL POLICY
Costco flatly rejected the challenge to its DEI policy. (Justin Sullivan/Getty Images/Getty Images)
“We owe our success to the more than 300,000 employees who serve our members every day. It’s important that they all feel included and valued, and that they pass these values on to our customers,” said Costco. chairman Hamilton “Tony” James at the shareholders’ meeting Friday. 98 percent of Costco shareholders voted against NCPR’s proposal.
Still, Peck says such setbacks are normal and predicts that Costco could follow the path of Walmart, McDonald’s, Harley-Davidson and other companies that have opted out of DEI under President Donald Trump. in the midst of a historic election victory.
“Just months before Boeing terminated DEI, they opposed a proposal from our shareholders to review their DEI efforts. So Costco’s doubling down on DEI in the proxy statement doesn’t make as much sense as it sounds.” , Peck said.
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President Trump signed an executive order banning DEI from the federal government. (JIM WATSON/AFP via Getty Images/Getty Images)
“There’s still a good chance Costco will drop DEI before the end of the year,” he added.
Costco is a high-profile defense against a growing wave of companies scaling back or abandoning their DEI policies, which can include race or gender considerations for hiring practices and workplace diversity training.
Costco board member Jeff Raikes, who previously served as executive director of the Bill & Melinda Gates Foundation, was DEI voice supporter policy and wrote that businesses should “maximize” their DEI initiatives.
WHAT CAUSED THE REBELLION AGAINST DEI IN AMERICA?
Activists say Costco could still drop DEI before the end of the year. (Marlene Awaad/Bloomberg via Getty Images/Getty Images)
“Attacks on DEI aren’t just bad for business, they’re hurting our economy. A diverse workforce drives innovation, expands markets, and drives growth. Let’s focus on building a future where all talent thrives,” Raikes wrote. November 2024 entry in X.
President Trump, who has issued executive orders banning DEI in the federal government, has slammed DEI as “discriminatory” and “absolute nonsense.” Davos speech on Thursday.
Costco did not immediately respond to a request for comment.
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