Costco board members take aim at the company's rollback on diversity, equity and inclusion (DEI) policies, urging the wholesaler to join a growing list of brands abandoning the controversial practice. He called on companies to instead “maximize” DEI in the face of pressure.
Jeff Lykes, co-founder of the Lykes Foundation and former CEO of the Bill & Melinda Gates Foundation, has served on Costco's board of directors since 2008, according to Costco's corporate website.
Reichs and other board members rejected shareholder requests to eliminate DEI internally and encouraged other shareholders to vote against the proposal to eliminate Costco's DEI program at an upcoming general meeting. It has been the subject of intense scrutiny in recent days.
The board's position came as a surprise to some, given recent corporate trends that are spurring widespread abandonment of DEI policies.
But a Fox News Digital review of Lykes' online history revealed him as a passionate supporter of DEI practices and someone on a mission to discourage companies from saying goodbye to them. Ta.
While companies began announcing a move away from DEI policies last year, Reichs urged companies to expand such practices in the workplace, arguing that reducing DEI in companies will have a negative impact on the economy. .
In a November post about the decline of DEI, Raikes argued that “Attacks on DEI are not only bad for business, they are bad for our economy. A diverse workforce drives innovation, expands markets, and fosters growth. All talent Let's focus on building a future where the world can flourish.'' He ended his post about X with the hashtag “Inclusive Economy.''
A month ago, Reichs similarly slammed the growing number of companies abandoning DEI policies because critics deemed them discriminatory in hiring.
“#DEI isn’t just the right thing to do; it’s essential to driving innovation and business success. Cutting back on DEI efforts weakens companies’ ability to grow, innovate, and connect with diverse markets. '' he wrote.
In a subsequent post in March, Lykes shared: A column he wrote for Forbes So he urged the private sector to “take the lead in promoting diversity, equity, and inclusion in America's workplaces,” and urged companies to buck the anti-DEI trend and “take DEI initiatives in the workplace.” He urged them to make the most of it.
He accused “opportunistic politicians” of trying to “scare and divide” the country by “making DEI a dirty word.” President-elect Donald Trump spoke out against DEI policies during his campaign.
Last month, Reichs responded to a post that the university had voted to eliminate the DEI office, reiterating the “important role that DEI plays in education” and asserting: “Removing the DEI office takes us further from equity, not closer to it.”
“It is essential to student success and a strong economy,” he wrote to X.
Costco's board of directors wrote a message last week urging investors to reject the wholesaler's push to reduce DEI at Costco's annual shareholder meeting on January 23rd.
“At Costco Wholesale, our success is built on service to our important stakeholders: our employees, members, and suppliers. Our commitment to diversity, equity, and inclusion is reflected in our Code of Ethics. For our employees, these initiatives are built around inclusivity, ensuring all employees feel valued and respected,” they wrote. Masu.
“Our commitment to diversity, equity, and inclusion reminds and reinforces the importance of creating opportunities for all. We believe this ability will improve our ability to attract and retain committed employees, which is critical because our success now depends on our more than 300,000 employees around the world.”
Their letter follows the Supreme Court's ruling in SFFA v. Harvard University that race-based discrimination in college admissions violates the College Equal Protection Clause, a National Public Policy Act challenging the legality of Costco's DEI program. This was in response to a proposal submitted by a research center. 14th Amendment.
The proposal notes that 13 state attorneys general have warned Fortune 100 companies that the ruling implicates corporate DEI programs and is prompting numerous lawsuits.
Companies that have since rescinded their DEI commitments or laid off DEI employees include Alphabet, Meta, Microsoft, Zoom and John Deere, according to the proposal, but Costco's board of directors notes that Microsoft later clarified that it had eliminated two overlapping DEI roles, but nevertheless, its focus on diversity and inclusion “remains steadfast.”
Despite the Supreme Court's ruling, Costco's board maintained that the company's DEI practices are “legally sound and there is nothing in the proposal to suggest otherwise.”
The board also argued that the National Center for Public Policy Research's request to investigate Costco's DEI practices “reflects policy bias” and could strain the company's resources.
Citing a 2023 federal district court ruling, the board argued that the National Center for Public Policy Research's “broader challenge is not to reduce our risk, but to eliminate our diversity efforts.” .
The board noted that the National Center for Public Policy Research had previously expressed a determination to “fight back” against the “awake politicized evils of capital and corporations,” and that the foundation has announced “shareholder activism.” claims to be continuing.
“We welcome members from all walks of life and backgrounds, and as our membership grows more diverse, we believe that serving a diverse group of employees increases satisfaction,” the Costco Board of Directors said. and defended the company's DEI practices. “Having diversity in our supplier base, including due consideration for small and medium-sized businesses, is beneficial for the same reasons that diversity benefits us. We believe in fostering creativity and innovation in our services.”
In response to the board's response, some activists called on customers to cancel their memberships with major retailers and wholesalers. Some encouraged consumers to shop at competitors like Sam's Club until the company's board supported relaxing the company's DEI hiring policy.
“Right now, if Costco is intent on doubling its DEI, we suggest that conservative consumers find other places to spend their money. do the right thing and change before we focus on shareholders,” said anti-DEI activist Robbie Starbuck. I wrote to X last week.
In a subsequent post, he added: “I fully support canceling my membership at this time.”
Costco did not respond to a Fox News Digital investigation into whether it had experienced a significant number of membership cancellations over the past two weeks.
But their unwavering stance on DEI seems to be upsetting some of their self-proclaimed shareholders online.
“I'm a Costco member and shareholder, so I say it's time to stop.” one user posted.
“As a shareholder, I vote to end this 'program.' Another user wrote,
“Obviously, Costco's board is very upset and needs to step down. I don't shop there, but I'm a long-term shareholder.. I will vote accordingly.” someone commented.
“It's time to call out Costco for its board's refusal to rescind its DEI policy.” user said. “I plan to vote all my shares against this foolish policy at the shareholders' meeting on January 23rd.”
Supporters of Costco's DEI policy praised the wholesaler's board of directors for sticking with DEI at a time when support for it has become increasingly unpopular.
Costco did not respond to FOX Business News' request for comment. When asked for comment, Lykes said the board's position on DEI is “unanimous” and directed the FBN to submit a letter without further comment.
Fox Business' Daniel Wallace contributed to this report.
