As American Giants Toss Out DEI and ESG, Retail Heavyweight Costco Is Defending Its Diverse Workforce and Company Culture — There’s A Lot At Stake
For over a decade, corporations have grown warmer to DEI and ESG to make themselves stand apart from their competition. And at first, many companies stood firm in their commitments — even as some were facing heat from slowing sales, changing trends, and conservative criticisms. That all changed in November as a sweep of Congress and the Presidency granted hard-pressed companies permission to kill their “progressive” policies. But as some brands face pressure to adjust their policies, firms like wholesale goliath Costco are standing against the grain.
Costco goes it alone: Some competing retailers, like Walmart, Amazon, and Target, were quick to abandon commitments to diversity, equity, and inclusion (DEI) in their workplaces, responding to conservative demands to “stop woke” and return workplaces to “merit” hiring. But Costco, based in the notoriously progressive Washington state, insists its diverse workplace is a necessary ingredient in its business.
- At Costco’s annual shareholder meeting, the organization urged shareholders to reject a proposal brought by a conservative think tank meant to evaluate risks from DEI policy, with the company saying that its commitment to diversity is “appropriate and necessary.”
- 98% of shareholders voted in favor of the retailer’s prevailing DEI policy, spurring threats from 19 Republican Attorney Generals across the US, who urged the wholesale powerhouse to repeal DEI policies or “explain why Costco has failed to do so.”
Don’t Stop Believing
Sticking to their guns might be a risky strategy, especially as the momentum of the culture war has turned in favor of Republicans — who are not afraid to corral the power of lawfare against what they see as “illegal discrimination.” But by demonstrating belief in something, has become a surprise favorite on Wall Street to start 2025.
- To start the year, stock has soared over 12%, breaking a new all-time high on Tuesday in spite of bad conservative press and worries about a strike.
- Progressive leaders in New Jersey joined Rev. Al Sharpton to lead a “buy-cott” meant to blunt the impact of conservative attacks on the business.
Forward-looking: The last few weeks have demonstrated that many businesses don’t believe in anything but the dollar. And time can only tell if Costco, which has ascended to become one of the “Big Three” domestic retailers, will step away from its “culture” if the going gets tough. And with conservative leaders bearing down, Bloomberg’s Beth Kowitt says that the membership club might need to be more communicative on what DEI looks like and why it’s important to stay ahead in the culture war.
