Costco's board of directors urges shareholders to vote against a proposal that would eliminate the wholesale retailer's diversity, equity and inclusion (DEI) program.

“At Costco Wholesale, our success is built on serving our critical stakeholders: employees, members, and suppliers. Our efforts around diversity, equity and inclusion are aligned with our code of ethics: For our employees, these efforts are built around inclusion—it's all about making our employees feel valued and respected. “, the board of directors wrote in a message to investors, which it previously reported. The Hill. “Our diversity, equity and inclusion efforts remind and reinforce the importance of creating opportunities for everyone at our Company. We believe that these efforts enhance our ability to attract and retain the employees who will help our business succeed. This ability is critical because we currently have 300,000 employees worldwide. We owe more to our employees.”

The message was sent ahead of Costco's annual meeting of shareholders, scheduled for January 23, 2025.

Shareholders will vote on a proposal filed by the National Center for Public Policy Research, which challenged the legality of Costco's DEI program following the Supreme Court ruling. SFFA vs. Harvard discrimination on the basis of race in college admissions violates the equal protection clause of the 14th Amendment.

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The motion states that attorneys general in 13 states have warned Fortune 100 companies that the ruling is related to corporate DEI programs, and a number of lawsuits have been filed.

Customers at Costco Wholesale Corp. in Hawthorne, California on June 12, 2024. they enter a warehouse store. (via PATRICK T. FALLON/AFP Getty Images/Getty Images)

Companies that have since scaled back DEI responsibilities and/or cut staff from DEI departments include Alphabet, Meta, Microsoft, Zoom and John Deere, the filing said, although Costco's board said Microsoft later announced it was eliminating two redundant DEI roles, but still. its focus on diversity and inclusion “remains healthy.”

“And yet Costco still has such a program, although it has been afraid enough to admit it, as it recently and quietly rebranded its DEI program as 'People and Communities,'” the National Center for Public Policy Research said in a shareholder proposal. “But slapping a new label on discriminatory practices does not protect Costco and its shareholders from those risks.”

The foundation criticized Costco's rebranded program for still being public.attachment to capital,Equality of outcome, not opportunity, is what he claims – and the company still employs a “Chief Diversity Officer,” still has a supplier diversity program that selects suppliers based on race and gender, and still sees race and gender as a factor. hiring and promotion “and still gives shareholder money to organizations that advance DEI's discriminatory agenda.”

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Customers wait in line to check out at a Costco store on December 11, 2024 in Novato, California. (Justin Sullivan/Getty Images/Getty Images)

“With 310,000 employees, Costco has at least 200,000 employees who are potential victims of this type of unlawful discrimination because they are white, Asian, male or straight,” the motion claims. “Accordingly, even if only a fraction of these employees file suit, and even if only some of them succeed, Costco could be worth tens of billions of dollars.”

Despite the Supreme Court ruling, Costco's board of directors argued that its DEI practices were “legally appropriate and nothing in the proposal suggests otherwise.” The board also argued that the National Center for Public Policy Research's request for a study of Costco's DEI practices “reflects political bias” and threatens to strain company resources.

Citing a 2023 federal district court ruling, the board argued that the National Center for Public Policy Research's “broader agenda is not to reduce risk to the Company, but to dismantle diversity initiatives.” The board claims the foundation continues to be “shareholder activism,” noting how the National Center for Public Policy Research has previously expressed its commitment to “fighting evil.” awakened politicized capital and companies.”

Costco store in Richmond, California on July 11, 2024. (Justin Sullivan/Getty Images/Getty Images)

“We welcome members from all walks of life and backgrounds. As our membership diversifies, we believe that providing service with a diverse group of employees increases satisfaction,” Costco's board wrote in defense of DEI practices. “Having diversity in our supplier base, including a proper focus on small businesses, is beneficial for many of the same reasons that diversity benefits our Company. We believe it encourages creativity and innovation in the goods and services we offer our members.”

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Fox News Digital has reached out to Costco and the National Center for Public Policy Research for further comment.

“DEI is a redistribution of opportunity—for workers, potential workers, and suppliers—by race and gender,” Ethan Peck, deputy director of the National Center for Public Policy Research's Free Enterprise Project, said in a statement. “It's not only immoral, it's illegal and risks future litigation. It also comes with altruistic merit – and therefore excellence and innovation (the company has an obligation to shareholders to achieve the maximum benefit possible). change of diversity”.