NEW YORK - Costco is pushing back on a shareholder proposal that urges the wholesale club operator to conduct an evaluation of any business risks posed by its diversity, equity and inclusion practices.
Investors were expected to vote on the proposed action during the company's annual meeting on Thursday.
A conservative think tank based in Washington that is submitting the motion argues that Costco's DEI initiatives hold "litigation, reputational and financial risks to the company."
Costco's board of directors is asking shareholders to reject the proposal.
The board said it believes "our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary."
Costco's stance contrasts with the positions other big consumer brands have taken.