Diversity and Inclusion (DEIA)
Costco Shareholders Overwhelmingly Support Company’s DEI Policies As Other Major Retailers Retreat
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.
Diversity and Inclusion (DEIA)
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.
Diversity and Inclusion (DEIA)
Leading with Intent: Strategies for Inclusive Leaders to Create a Positive Workplace Culture
As leaders, we know that creating a positive workplace culture is crucial for the success and well-being of our employees. But what does it take to create an inclusive environment where everyone feels valued, respected, and empowered to contribute their best work? In this article, we’ll explore effective strategies for inclusive leaders to foster a positive workplace culture and achieve their goals.
Understanding the Importance of Inclusive Leadership
In today’s diverse and global workforce, inclusive leadership is more critical than ever. When leaders prioritize diversity, equity, and inclusion, they create an environment where everyone can thrive. This not only boosts employee engagement, retention, and productivity but also drives business success. Inclusive leaders understand that diversity is a strength, not a weakness, and that it’s essential to create a workplace culture that celebrates differences and promotes equal opportunities for all.
Setting the Tone from the Top
As leaders, we set the tone for our organization’s culture. When we prioritize inclusivity, we send a powerful message to our employees that they are valued and respected. Here are some key strategies to help you lead by example:
- Lead by example: Demonstrate empathy, compassion, and understanding towards all employees, regardless of their background, identity, or position.
- Communicate effectively: Use inclusive language, listen actively, and encourage open conversations to address any concerns or issues.
- Foster a sense of belonging: Create opportunities for employees to connect, build relationships, and feel part of a community.
Creating an Inclusive Workplace Culture
To create an inclusive workplace culture, leaders must focus on three key areas: diversity, equity, and inclusion. Here are some strategies to help you achieve this:
Diversity
- Diversity in the workplace: Attract, retain, and develop a diverse workforce that reflects the community you serve.
- Inclusive hiring practices: Use blind hiring processes, consider unconscious bias training, and focus on qualifications and skills.
- Employee resource groups: Support employee-led groups that foster connections, networking, and professional development.
Equity
- Fairness and equality: Ensure that all employees have equal opportunities for growth, development, and advancement.
- Addressing biases: Identify and address biases in policies, procedures, and practices that may impact employee outcomes.
- Data-driven decision-making: Use data to inform decisions and ensure that they are fair, equitable, and just.
Inclusion
- Inclusive policies and practices: Develop policies that support employees with disabilities, parents, caregivers, and others with unique needs.
- Inclusive communication: Use clear, concise language, and consider the needs of diverse audiences.
- Employee feedback and engagement: Regularly solicit feedback, listen actively, and take action to address concerns and improve the workplace culture.
Challenges and Opportunities
While creating an inclusive workplace culture is crucial, it’s not without its challenges. Here are some common obstacles and opportunities to consider:
- Resistance to change: Some employees may resist changes to the status quo or feel uncomfortable with the shift towards inclusivity.
- Limited resources: Inclusivity initiatives may require additional resources, such as training, support, and funding.
- Leadership buy-in: Leaders must be committed to creating an inclusive culture and willing to make changes to achieve this goal.
Conclusion
Inclusive leadership is key to creating a positive workplace culture where everyone can thrive. By setting the tone from the top, creating an inclusive workplace culture, and addressing challenges and opportunities, leaders can drive business success and improve employee outcomes. Remember, leading with intent requires a commitment to diversity, equity, and inclusion. By prioritizing these values, you’ll create a workplace culture that’s inclusive, respectful, and productive – and where everyone can succeed.
FAQs
- What are the benefits of inclusive leadership?
Inclusive leadership leads to increased employee engagement, retention, and productivity, as well as improved business outcomes and a positive reputation. - How can I measure the success of my inclusivity initiatives?
Track metrics such as employee satisfaction, diversity, equity, and inclusion (DEI) scores, and conduct regular anonymous surveys to gauge employee feedback and concerns. - What are some common obstacles to creating an inclusive workplace culture?
Common challenges include resistance to change, limited resources, and lack of leadership buy-in. However, with a clear plan and commitment, these obstacles can be overcome. - How can I ensure that my organization is inclusive and respectful of all employees?
By setting the tone from the top, creating an inclusive workplace culture, and addressing challenges and opportunities, you can ensure that your organization is inclusive and respectful of all employees.
Diversity and Inclusion (DEIA)
Creating a Fair and Equitable Hiring Process: Best Practices for Reducing Bias
Equity in the workplace is a crucial aspect of a productive and harmonious work environment. It’s essential to ensure that all employees are treated fairly and equitably, regardless of their background, gender, race, or any other characteristic. A fair and equitable hiring process is the first step in promoting a positive and inclusive work environment. In this article, we will explore the best practices for reducing bias in the hiring process and creating a fair and equitable workplace.
Understanding Unconscious Bias
Unconscious bias can creep into the hiring process, often unintentionally, and can lead to unfair and discriminatory practices. It’s essential to understand that unconscious bias is not a personal failing, but rather a natural byproduct of our brain’s ability to categorize and make quick decisions. However, it’s crucial to recognize and address this bias to ensure a fair and equitable hiring process.
Recognizing Biases
Before we can address bias, we must first recognize its presence. It’s essential to be aware of our own biases and those that may be present in the hiring process. This can be achieved by:
* Being honest with ourselves about our own biases and how they may impact our decisions
* Being aware of our assumptions and how they may influence our judgments
* Being open to feedback and willing to learn from others
Best Practices for Reducing Bias in the Hiring Process
To reduce bias in the hiring process, it’s essential to implement best practices that promote fairness and equity. Here are some strategies to consider:
1. Standardize the Application Process
Standardizing the application process ensures that all candidates are evaluated on the same criteria, reducing the likelihood of bias. This can be achieved by:
* Using a standardized application form that asks the same questions for all candidates
* Using a blind hiring process where candidate names and other identifying information are removed
* Training interviewers to use a standardized evaluation criteria
2. Blind Hiring
Blind hiring, also known as anonymized hiring, is a strategy where candidate names, addresses, and other identifying information are removed from the application process. This helps to reduce bias by eliminating non-qualifications and focuses on the candidate’s skills and qualifications.
3. Diverse Interview Panels
Having a diverse interview panel can help to bring different perspectives and experiences to the hiring process, reducing the likelihood of bias. This can be achieved by:
* Having a diverse panel of interviewers from different backgrounds and industries
* Providing training on unconscious bias and its impact on the hiring process
* Encouraging open and respectful communication among panel members
4. Data-Driven Decision Making
Data-driven decision making is essential in the hiring process. It helps to reduce bias by focusing on facts and data rather than gut instinct. This can be achieved by:
* Using data to identify the most qualified candidates
* Setting clear and objective criteria for evaluating candidates
* Regularly reviewing and updating the hiring process to ensure fairness and equity
Conclusion
Creating a fair and equitable hiring process is crucial for a positive and inclusive work environment. By recognizing and addressing unconscious bias, implementing standardization, blind hiring, diverse interview panels, and data-driven decision making, we can reduce bias and ensure a fair and equitable hiring process. Remember, a fair and equitable workplace is essential for productivity, employee satisfaction, and overall success.
FAQs
Q: How do I recognize my own biases?
A: Recognizing our own biases can be challenging, but it starts by being honest with ourselves about our assumptions and being open to feedback and learning from others.
Q: How can I address bias in my hiring process?
A: Addressing bias in the hiring process requires a multi-faceted approach, including standardizing the application process, blind hiring, diverse interview panels, and data-driven decision making.
Q: How can I ensure a fair and equitable workplace?
A: Ensuring a fair and equitable workplace requires a commitment to recognizing and addressing unconscious bias, promoting diversity and inclusion, and fostering an open and respectful work environment.
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