Corporate Courage in the Face of Adversity
For far too long, we’ve relied on corporate leaders to champion social and economic progress. However, it’s become painfully clear that these leaders often prioritize profits over people. After the January 6, 2021, insurrection, many corporations vowed to stand up against right-wing attacks on democracy, only to renege on their promises when faced with opposition.
The False Promise of DEI
In the wake of the George Floyd killing, companies like Walmart pledged millions to diversity, equity, and inclusion (DEI) initiatives. However, when faced with anti-DEI backlash, they retreated, abandoning their commitments. Ford, Harley-Davidson, and Lowe’s also caved, refusing to provide workplace data to the Human Rights Campaign, a gay rights group.
Costco Stands Alone
Among major public companies, Costco stands out for its unwavering commitment to DEI. In its December 11 proxy statement, the company’s board explicitly rejected a shareholder resolution proposed by the right-wing National Center for Public Policy Research, which claimed that DEI programs pose “litigation, reputational and financial risks” to the company.
A Commitment to Inclusion
Costco’s board responded, “Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary… Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.” The board accused the National Center for Public Policy Research of hiding its true agenda, which is to abolish diversity initiatives altogether.
The Backlash Against DEI
The National Center for Public Policy Research has a history of opposing initiatives that combat global warming, promote cryptocurrency, and advance “neo-Marxist and neo-racist ‘equity’ agendas.” Its proposed resolution is part of a larger wave of anti-DEI activism that has led companies like Walmart to retreat from their commitments.
Costco’s Employee-Friendly Reputation
Costco is known for its favorable treatment of employees, offering health coverage with low co-pays to workers employed for at least 23 hours a week for 180 days. Although the company’s approach to union organizing activity may not be entirely welcoming, it lacks the hostility shown by retailers like Starbucks and Amazon. About 18,000 of Costco’s roughly 219,000 employees are represented by the Teamsters.
A Rare Example of Corporate Courage
Costco’s straightforward response to the National Center for Public Policy Research’s proposed resolution is a rare example of corporate courage in the face of adversity. As companies like Walmart abandon their commitments to DEI, Costco stands firm, recognizing the importance of creating opportunities for all. Its commitment to inclusion enhances its capacity to attract and retain employees who will help the business succeed.
The Power of Shareholder Resolutions
Following the Supreme Court’s decision on college affirmative action, the number of shareholder resolutions about DEI programs receiving a vote at corporate annual meetings rose significantly. Although anti-DEI proposals remain deeply unpopular, resolutions favoring such programs received support from an average of 21% of shareholders.
The Business Case for Diversity
Companies with diverse management teams demonstrate 19% higher revenues due to innovation, and those with higher racial and ethnic diversity are 35% more likely to have financial returns above their industry medians. Commitments to diversity appeal to job applicants and tend to improve productivity.
A Call to Action
As companies like Walmart retreat from their commitments to DEI, Costco stands as a beacon of hope. Its unwavering commitment to inclusion is a rare example of corporate courage in the face of adversity. Shareholders, workers, and customers may hope that other businesses follow Costco’s example, recognizing the importance of creating opportunities for all.
Leave a Reply