Former NYSE Executive Governor Jay Woods explains why some major companies may be scrapping their DEI initiatives on Cavuto: Coast to Coast.
Costco shareholders roundly rejected a proposal requiring a report on the risks associated with retention Diversity, Equity and Inclusion (DEI) Efforts in place, the wholesale club said on Thursday.
Preliminary results show that around 98% of shareholders voted against the measure, according to company.
Costco shareholders overwhelmingly vote against the risk assessment of maintaining the company’s DEI program. (Angus Mordant / Bloomberg via Getty Images / Getty Images)
Last month, Costco’s board of directors unanimously came out against a proposal brought by activist shareholder the National Center for Public Policy Research, which raised concerns about the risk of Costco’s DEI program after the Supreme Court’s ruling in SFFA v. Harvard This discrimination on the basis of race in admitted colleges violates the equal protection clause of the 14th amendment.
Targeted Scaling of DEI Policies After Trump Signs Executive Order
The motion states that attorneys general from 13 states have warned Fortune 100 companies that the ruling has affected corporate DEI programs, and several lawsuits have been filed.
Openthebooks CEO John Hart talks about how billions of taxpayer dollars are being wasted on DEI measures, on the “Bottom Line”.
But Costco’s board defended its programs.
“Consistent with our commitment to ‘obey the law,’ we regularly evaluate our practices in accordance with the law, including evolving Supreme Court decisions,” the board wrote in response to the proposal. “We believe our diversity, equity and inclusion efforts are legally adequate, and nothing in the proposal indicates otherwise.”
What caused the revolt against DEI in America?
Costco’s and its shareholders’ continued embrace of DEI comes as support for the programs collapses in the private sector as well as the public sector.
| Cube | Safety | Last | Change | Change % |
|---|---|---|---|---|
| Cost | Costco Wholesale Corp. | 939.68 | -2.48 |
-0.26% |
Over the past year, more than a dozen major companies, including Walmart, McDonald’s, Ford and Amazon, have scaled back their DEI initiatives and shareholder resolutions at US corporations seeking to oppose DEI programs and other corporate social considerations have garnered less than 2% support in on average in 2024.
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President Donald Trump signed an executive order Monday to eliminate all federal government DEI programs.
Fox Business’ Danielle Wallace and Reuters contributed to this report.
