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Diversity and Inclusion (DEIA)

Costco Shareholders Overwhelmingly Support Company’s DEI Policies As Other Major Retailers Retreat

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Costco Shareholders Overwhelmingly Support Company’s DEI Policies As Other Major Retailers Retreat

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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.

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Diversity and Inclusion (DEIA)

Cutting DEI in Medicine: A High-Stakes Impact

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Cutting DEI in Medicine: A High-Stakes Impact

Could Lives Be Endangered by Cutting DEI?

Over the past several days, the U.S. Food and Drug Administration has quietly taken down its guidance detailing Diversity Action Plans for clinical trials, which were set up to evaluate drugs, devices and other medical-specific products.

Importance of Diversity in Clinical Trials

To improve the results across a wider cross section of patient groups that have been historically excluded from these trials.

Lack Of Representation Has A Financial And Social Cost

Lack of representation in trials has long had high financial and social costs. Ensuring that patients have a longer life expectancy, a disability-free life, and increased number of years in the labor force translates to an additional hundreds of billions of dollars infused into the U.S. economy over the next three decades. Conversely, poor outcomes are a tremendous drain on both the economy and the healthcare system overall. If better representation in clinical trials reduces health disparities by even a modest amount, the analysis found that achieving diverse representation in research would be worth billions of dollars in savings to the United States.

Impact on Oncology and Other Fields

For example, Black women are three times more likely to die from a pregnancy-related cause than white women and pain is assessed differently by physicians in Black versus white patients. It is the ongoing policies within the medical industry often rooted in historically biases practices and access to resources determined by race and ethnicity that build up this disparity. The result was the FDA’s priority to address this.

Is The Time Now To Lean On Pharma Companies?

While the FDA is being directed to address diversity in clinical trials, one solution to the inclusion gap may lie in pharmaceutical companies investing in more inclusive practices in this area.

A Call to Action for Pharma Companies

In the last several years, clinical trial initiatives have become a growing focus for pharma giants. Companies such as Amgen, Merck & Co., Eli Lilly and GSK have recently begun new efforts to boost diversity in trials.

I contacted Batool Kazmi, PhD, and Sabrina Modellas of Hero Collective Health—a healthcare communication agency that helps pharmaceutical companies with inclusive clinical trials, recruitment and communications—to discuss this topic.

Conclusion

By continuing to evangelize the tangible benefits of diversity in clinical trials—such as improved recruitment efficiencies, meeting enrollment goals and launching trials more effectively—pharma can demonstrate that inclusivity isn’t just ethical; it’s also critical for operational success and advancing health equity.

FAQs

Q: Why is diversity in clinical trials important?

A: Diversity in clinical trials is important to improve the results across a wider cross section of patient groups that have been historically excluded from these trials.

Q: What is the impact of lack of representation in clinical trials?

A: Lack of representation in trials has long had high financial and social costs. It also perpetuates health disparities, denying marginalized groups access to innovative therapies and leaving them with less effective care.

Q: Can pharmaceutical companies take the lead in promoting diversity in clinical trials?

A: Yes, pharmaceutical companies have the power to step up where the FDA has stepped back. They can leverage key community partnerships to build trust and access, set and publicize measurable goals for inclusive enrollment and practices, and form industry coalitions to share best practices for achieving inclusive trial objectives.

Q: What are the benefits of inclusive clinical trials?

A: Inclusive clinical trials can lead to improved recruitment efficiencies, meeting enrollment goals and launching trials more effectively, and ultimately, achieving better health outcomes for all populations.

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Diversity and Inclusion (DEIA)

From Tokenism to Inclusion: The Power of Diversity Training in the Workplace

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From Tokenism to Inclusion: The Power of Diversity Training in the Workplace

In today’s diverse and globalized workplace, diversity training programs have become a crucial aspect of fostering a culture of inclusion and respect. With the growing recognition of the importance of diversity, equity, and inclusion (DEI), companies are recognizing the need to move beyond tokenism and create a truly inclusive environment where all employees feel valued, respected, and empowered to contribute their unique perspectives and talents.

The Problem with Tokenism

Tokenism, a common approach to diversity, involves hiring and promoting a few individuals from underrepresented groups to give the appearance of diversity, without making any meaningful changes to the organization’s culture or practices. This approach can lead to a range of negative consequences, including:

Perception of Inauthenticity

When a company prioritizes tokenism over genuine inclusivity, it can lead to a perception of inauthenticity. Employees may feel that the company is not truly committed to diversity and is only paying lip service to the idea of inclusion.

Isolation and Marginalization

Token employees may feel isolated and marginalized, as they are often the only representatives of their group in a sea of predominantly homogeneous colleagues. This can lead to feelings of disconnection and disengagement from the organization.

Lack of Trust and Loyalty

Tokenism can also damage trust and loyalty within the organization. Employees may feel that the company is not committed to creating a positive and inclusive work environment, leading to decreased job satisfaction and increased turnover.

The Power of Inclusive Diversity Training

In contrast, diversity training programs that focus on inclusion can have a profound impact on employees, the organization, and the bottom line.

Increased Engagement and Retention

Inclusive diversity training can lead to increased employee engagement and retention, as employees feel valued and respected. This, in turn, can result in improved productivity, reduced turnover, and lower recruitment costs.

Improved Communication and Collaboration

Diversity training can also enhance communication and collaboration across different teams and departments, leading to better decision-making, increased creativity, and improved problem-solving.

Enhanced Reputation and Attractiveness

Inclusive organizations are more likely to attract top talent and be seen as a desirable place to work, leading to a competitive advantage in the job market.

Components of Effective Diversity Training

So, what makes an effective diversity training program? Here are some key components to consider:

Training for Managers and Employees

Effective diversity training should be comprehensive, covering both managers and employees. This includes training on unconscious bias, microaggressions, and inclusive communication.

Interactive and Experiential Learning

Interactive and experiential learning approaches, such as role-playing, case studies, and group discussions, can help to create a more immersive and engaging learning experience.

Culture Change and Accountability

To be successful, diversity training must be accompanied by a commitment to culture change and accountability. This involves setting clear goals, tracking progress, and holding individuals and teams accountable for advancing inclusion.

Conclusion

In conclusion, moving from tokenism to inclusion is a critical step in creating a positive and productive workplace culture. By recognizing the importance of diversity training and implementing effective programs, organizations can:

* Increase employee engagement and retention
* Improve communication and collaboration
* Enhance their reputation and attractiveness
* Achieve a competitive advantage in the job market

By prioritizing diversity training and inclusion, organizations can unlock the full potential of their employees, drive business success, and create a more positive and inclusive work environment.

Frequently Asked Questions

Q: What is the difference between diversity training and inclusion training?

A: While diversity training focuses on the characteristics of underrepresented groups, inclusion training focuses on creating an environment where all employees feel valued, respected, and empowered to contribute.

Q: How do I know if my diversity training program is effective?

A: Look for metrics such as increased employee engagement, improved communication and collaboration, and improved job satisfaction. Also, conduct regular assessments and feedback sessions to ensure the program is meeting its intended goals.

Q: How do I get started with diversity training?

A: Start by assessing your organization’s current culture and needs. Identify areas for improvement and develop a comprehensive plan for implementing diversity training. Engage a professional trainer or consultant to help guide the process.

Q: What are some common myths about diversity training?

A: Some common myths include that diversity training is a one-time event, that it’s only necessary for underrepresented groups, or that it’s a replacement for genuine inclusion. The truth is that diversity training is an ongoing process that requires commitment and effort from all employees.

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Diversity and Inclusion (DEIA)

Policies Divide, Not Prosper

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Policies Divide, Not Prosper

The Impact of USA Immigration

The Story of Beto Yarce

Beto Yarce arrived in the US from Mexico in 2003 with only a tourist visa, and spent his first five years in the country undocumented. Despite holding a master’s degree, he found himself taking low-paying jobs due to his documentation status. Today, Yarce is a successful business owner and community leader who has created jobs and contributed significantly to his local economy. His story exemplifies both the resilience of immigrants and the untapped potential that restrictive immigration policies leave on the table.

The Impact of Immigrants on the US Economy and Culture

Despite rhetoric claiming immigrants ‘take American jobs,’ the data tells a different story. According to the National Bureau of Economic Research, immigrants are 80% more likely to start businesses than native-born Americans. This entrepreneurial spirit translates into significant economic impact: the Center for American Entrepreneurship found that in 2023, 45% of Fortune 500 companies were founded by first or second generation immigrants.

“Immigrants are the backbone of the U.S. economy, culture, and communities, making invaluable contributions across industries and states,” shared Fiona McEntee, Managing Attorney of McEntee Law Group and author of U.S. Immigration Options for Startups: Accelerate Your American Dream. “As an immigration lawyer, and an immigrant myself, I’m privileged to see these contributions firsthand every day. The U.S. has always thrived when it welcomes and harnesses the talent, resilience, and dreams of immigrants.”

The Impact of Foreign-Born Workers

Foreign-born workers made up 18.6% of the civilian labor force in 2023, up from 15.3% in 2006, according to Bureau of Labor Statistics data. This growth has become increasingly crucial as the U.S. faces demographic challenges: without foreign-born labor, the U.S. labor pool would shrink due to lower birth rates and an aging workforce, making it harder to finance programs such as Social Security.

The Impact of Immigrants on Innovation and Technology

Priyanka Kulkarni, who spent a decade leading AI initiatives at Microsoft before founding immigration tech platform Casium, reflected on this. “As an immigrant founder, I know firsthand how life-changing the chance to build and innovate in the U.S. can be,” she shared. “When we make the immigration process more efficient and transparent, we’re not just helping individual companies or immigrants – we’re strengthening America’s ability to attract and retain the world’s best talent.

The Impact of the Current Environment on the Lives of Immigrants

Despite the positive impacts that immigrants have on the economy and culture in the US, recent policy changes are causing many of them significant harm. Schools have reported significant drops in attendance following immigration enforcement announcements, and agricultural operations across the country face labor shortages as workers stay home out of fear.

The Impact of the Current Environment on the Lives of Immigrants

“The psychological toll is immense,” said Natasha Tous, a Latina immigrant and CEO of Éclat. “Even as a U.S. citizen, I find myself questioning how far this could go. Could my husband, a Venezuelan immigrant who recently became a citizen, be at risk? Could my mother-in-law, who holds conditional residency, be forced to leave? These are not hypotheticals; they are real fears being lived in Latino households across America.”

Conclusion

The tension between America’s immigration policies and its economic needs presents a critical challenge for the nation’s future. With the Congressional Budget Office projecting an $8.9 trillion contribution to GDP from immigration over the next decade, policies that deter or remove immigrants could significantly impact America’s economic growth and innovation potential.

FAQs

Q: What is the impact of immigration on the US economy?
A: According to the Congressional Budget Office, immigration could add $8.9 trillion to US GDP over the next decade.

Q: What is the entrepreneurial spirit of immigrants?
A: According to the National Bureau of Economic Research, immigrants are 80% more likely to start businesses than native-born Americans.

Q: What is the impact of foreign-born workers on the US labor force?
A: Foreign-born workers made up 18.6% of the civilian labor force in 2023, up from 15.3% in 2006, according to Bureau of Labor Statistics data.

Q: What is the impact of immigrants on innovation and technology?
A: According to Priyanka Kulkarni, founder of Casium, immigrants are not just helping individual companies or immigrants – they’re strengthening America’s ability to attract and retain the world’s best talent.

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