Topline

In a nearly unanimous decision, Costco shareholders voted in support of Costco’s current diversity, equity and inclusion initiatives after the National Center for Public Policy Research submitted a proxy proposal to audit the company’s “litigation, reputational and financial risks.” As the Trump administration levels against DEI, Costco is swimming against a tide causing numerous large retail corporations to dial back DEI initiatives, including Amazon, Walmart, McDonald’s, Lowe’s, Tractor Supply and most recently Target.

Key Facts

According to preliminary results, over 98% of Costco shareholders voted down NCPPR’s proxy proposal that the company conduct an evaluation and publish a report on the company’s risks of maintaining its current DEI policies.

In mid-December, Costco’s board unanimously rejected NCPPR’s proposal in a proxy statement declaring the company regularly evaluates its practices “concerning compliance with law” and that the request for a study reflects a “policy bias” with which it disagrees.

The shareholder vote comes just days after President Trump issued an executive order dismantling DEI programs across the federal government, including putting employees who work in Diversity, Equity and Inclusion departments on paid leave and verifying all federal contractors don’t have DEI programs, which the administration believes violate anti-discrimination laws.

A follow-up executive order takes aim at DEI programs more broadly across the private sector, including publicly-traded corporations.

Background

The NCPPR proxy proposal to conduct and make public an audit of Costco’s DEI program seemed benign on the surface since it only called on the company to do a study not to take down or unwind its program. However, the company saw it differently. The Board stated inclusion was critical to making its employees feel valued and respected and that it welcomes diverse members from “all walks of life and backgrounds” because it drives greater employee satisfaction and enhances company “originality and creativity.” Yet, NCPPR claimed the company’s DEI program was hiding illegal “discriminatory practices” that factor race and sex in hiring and promotions. The company defended its program as being critical to its success and that all policies follow the law and Costco’s code of ethics. Shareholders agreed.

Crucial Quote

“We have always been purposefully non-political and a welcoming workforce has been integral to the company’s culture and values since its founding,” said Costco board chainman Tony James during the shareholder meeting.

Trump Adminstration Takes Aim Against Dei

In a pre-recorded message before the shareholder vote, NCPPR’s deputy director Ethan Peck declared, “DEI is illegal, immoral and detrimental to shareholder value,” and that it is “concealing a radical Marxist agenda.” The Trump administration appears to agree and is taking aim at eliminating “illegal DEI discrimination” in the private sector as well. In another executive order following that to eliminate federal DEI programs, the President directed the Office of Management and Budget to submit a report with a plan of “specific steps or measures” to deter illegal DEI programs and to identify up to nine potential organizations, including publicly-traded corporations,” that may be targets for litigation.

Tangent

Costco Teamsters, representing only about 8% of U.S. employees, have voted to strike when its current contract expires Jan. 31. The Teamsters claim the company is prioritizing corporate shareholders over the needs of “workers who made them a success.” In association with the shareholder meeting, the Teamsters held a rally outside company headquarters yesterday.

Coming Next

Apple faces an even more challenging anti-DEI proposal from the NCPPR at its upcoming shareholder meeting Feb. 28. The NCPPR proposes the company “consider abolishing its Inclusion & Diversity program, policies, department and goals.” The board recommends shareholders vote against the proposal stating it is unnecessary because the company has a well-established compliance program and maintains active oversight of legal and regulatory risks. “The proposal attempts to restrict Apple’s ability to manage its own ordinary business operations, people and teams and business strategies,” the board stated in its proxy filing.

Further Reading

Costco successfully defends its diversity policies as other U.S. companies scale theirs back (AP, 1/23/2025)

Conservative groups push banks to abandon DEI: Here are the organizations ending diversity programs – full list (Forbes, 1/22/2025)

Trump’s diversity orders rattle CEOs: What companies should know about new DEI rules (Forbes.com, 1/23/2025)

Costco Teamsters vote to strike, challenging Costco’s pro-worker stance (Forbes, 1/22/2025)

McDonald’s joins the stampede of corporations retreating from DEI (Forbes.com, 1/8/2025)

Costco is caught in the crosshairs of the DEI controversy (Forbes, 1/1/2025)

In Costco’s defense of DEI efforts: Lessons for Business Leaders (Forbes, 1/2/20205)

Conclusion

In a bold move, Costco shareholders have spoken out against the National Center for Public Policy Research’s proposal to audit the company’s diversity, equity and inclusion initiatives. This decision sends a strong message that the company is committed to its DEI efforts and will not be swayed by external pressures. As the Trump administration continues to take aim at DEI programs, it is clear that the fight for diversity and inclusion is far from over.

FAQs

Q: What is the National Center for Public Policy Research’s proposal to audit Costco’s DEI program?

A: The proposal calls for Costco to conduct an evaluation and publish a report on the company’s risks of maintaining its current DEI policies.

Q: Why did Costco’s board reject the proposal?

A: The board stated that the company regularly evaluates its practices “concerning compliance with law” and that the request for a study reflects a “policy bias” with which it disagrees.

Q: What is the Trump administration’s stance on DEI programs?

A: The administration has issued executive orders dismantling DEI programs across the federal government and taking aim at eliminating “illegal DEI discrimination” in the private sector.

Q: What is the outcome of the shareholder vote?

A: According to preliminary results, over 98% of Costco shareholders voted down the NCPPR’s proposal.

Introduction

Gender equity in leadership is a pressing issue that requires the collective effort of both men and women. While women have made significant strides in breaking down barriers and achieving leadership positions, there is still a long way to go. In this article, we will explore the role of men in promoting gender equity in leadership and why it is essential for creating a more inclusive and equitable society.

The Current State of Gender Equity in Leadership

Despite the progress made, women still face significant barriers to achieving leadership positions. According to a study by McKinsey, women hold only 24% of senior leadership positions globally, and the number drops to 17% in the United States. The lack of representation at the top is not only a reflection of the gender gap but also a missed opportunity for organizations to tap into the diverse perspectives and skills that women bring to the table.

Why Men Matter

Men play a crucial role in promoting gender equity in leadership. They can use their privilege and influence to create a more inclusive and equitable environment. Here are some ways men can make a difference:

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Be an Ally

Men can be powerful allies to women in leadership. They can use their networks and influence to advocate for women and create opportunities for them to advance.
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Speak Up

Men can use their voices to challenge gender stereotypes and biases. They can speak up when they witness discrimination or harassment and create a culture of respect and inclusivity.
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Mentor and Sponsor

Men can mentor and sponsor women in leadership, providing them with guidance, support, and opportunities for growth and development.
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Be Accountable

Men can hold themselves and others accountable for creating a more inclusive and equitable environment. They can recognize and address their own biases and privilege.

Benefits of Men’s Involvement

When men are involved in promoting gender equity in leadership, it can have a significant impact on the organization and society as a whole. Here are some benefits:

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Increased Diversity and Inclusion

Men’s involvement can lead to a more diverse and inclusive workplace, where everyone has an equal opportunity to contribute and succeed.
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Improved Decision-Making

When men and women work together, they bring different perspectives and skills to the table, leading to better decision-making and more innovative solutions.
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Enhanced Reputation

Organizations that prioritize gender equity and inclusivity are seen as attractive and responsible employers, which can enhance their reputation and attract top talent.
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Better Business Outcomes

Research has shown that companies with more women in leadership positions tend to perform better financially and have higher levels of innovation and creativity.

Challenges and Solutions

While men’s involvement is crucial, there are also challenges and solutions to consider:

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Challenges

Men may face resistance or skepticism from their peers and colleagues, especially if they are seen as “taking sides” or “being too soft” on women.
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Solutions

Men can address these challenges by being clear about their intentions and goals, and by focusing on the benefits of gender equity and inclusivity for everyone.

Conclusion

The role of men in promoting gender equity in leadership is crucial for creating a more inclusive and equitable society. By being allies, speaking up, mentoring, and being accountable, men can help break down barriers and create opportunities for women to advance. When men are involved, it can lead to increased diversity and inclusion, improved decision-making, enhanced reputation, and better business outcomes. While there are challenges to overcome, the benefits of men’s involvement far outweigh the costs.

FAQs

Q: Why is it important for men to be involved in promoting gender equity in leadership?

A: Men’s involvement is crucial for creating a more inclusive and equitable environment. They can use their privilege and influence to advocate for women and create opportunities for them to advance.

Q: What can men do to promote gender equity in leadership?

A: Men can be allies, speak up, mentor and sponsor women, and be accountable for creating a more inclusive and equitable environment.

Q: What are the benefits of men’s involvement in promoting gender equity in leadership?

A: The benefits include increased diversity and inclusion, improved decision-making, enhanced reputation, and better business outcomes.

Q: What are some common challenges men may face when promoting gender equity in leadership?

A: Men may face resistance or skepticism from their peers and colleagues, especially if they are seen as “taking sides” or “being too soft” on women.

Q: How can men overcome these challenges?

A: Men can address these challenges by being clear about their intentions and goals, and by focusing on the benefits of gender equity and inclusivity for everyone.

The Decision Was Then Reversed

This weekend, it was revealed that Joint Base San Antonio-Lackland, the hub of Air Force basic training that sees 35,000 recruits, among other institutions under the United States Air Force, had removed courses that contain video footage and stories of the Tuskegee Airmen, in order to comply with the commander in chief’s directive.

Who Were The Tuskegee Airmen?

The Tuskegee Airmen were the first Black pilots in the U.S. military, who got their name from their training facility in Tuskegee, Alabama. The Airmen consisted of 15,000 men and women in total, of which approximately 1,000 were pilots. Serving in combat for the U.S. Army Air Forces during World War II, their successes led to USAF being the first service branch of the government to be integrated—a process they initiated even before President Truman signed Executive Order 9981 in 1948, which desegregated the military.

The Removal of DEI Content

The removal of DEI content from the Air Force’s basic training learning materials, including videos and stories of the Tuskegee Airmen, was a result of President Trump’s executive order titled “Ending Radical and Wasteful Government DEI Programs and Referencing,” which aimed to terminate all “mandates, policies, programs, preferences and activities in the federal government” relating to DEI.

The Reversal of the Decision

On Sunday, Lt. Gen. Brian S. Robinson, head of Air Education and Training Command, said in a statement, “The documented historic legacy and decorated valor with which these units and Airmen fought for our nation in World War II and beyond will continue.” This weekend, many people from outlets across the spectrum spoke vocally about their thoughts on the removal, and the story was shared heavily on social media, with America’s new Secretary of Defense Pete Hegseth responding on X to Sen. Katie Britt (R-Ala.) as she called for a reversal: “We’re all over it, Senator. This will not stand.”

Will Black History Be Classified Under DEI or American History?

As the narrative around DEI becomes more a part of the cultural zeitgeist, a very interesting question is being raised: Will Black history be classified under DEI and thus need to be removed, to align with the “mandates, policies, programs, preferences and activities in the federal government”? Or is it time we label Black history as American history, because stories such as these should be told to everyone?

Conclusion

The removal of DEI content, including the stories of the Tuskegee Airmen, is a stark reminder of the importance of preserving our shared history and the need to honor the sacrifices of those who came before us. As we move forward, it is crucial that we continue to tell the stories of trailblazers like the Tuskegee Airmen, and work towards a future where Black history is recognized as American history.

FAQs

• What is DEI?
  DEI stands for Diversity, Equity, and Inclusion, which refers to the policies, programs, and activities aimed at promoting diversity, equity, and inclusion in the federal government.
• What is the significance of the Tuskegee Airmen?
  The Tuskegee Airmen were the first Black pilots in the U.S. military, who played a significant role in the Allied victory in World War II. Their achievements paved the way for future generations of Black military personnel and helped to break down barriers of racial segregation in the military.
• What is the impact of the removal of DEI content?
  The removal of DEI content, including the stories of the Tuskegee Airmen, has sparked concerns about the erasure of Black history and the potential consequences for future generations. It has also highlighted the need for a more nuanced understanding of DEI and its importance in promoting diversity, equity, and inclusion in the federal government.