Wholesale retail giant Costco has been hit by calls for a boycott from supporters of President-elect Donald Trump after the board of directors refused to end its diversity, equity, and inclusion program.
The National Center for Public Policy Research, a conservative think tank, has requested that Costco cease its DEI practices following the Supreme Court’s ruling on affirmative action at colleges, arguing that the program is discriminatory.
“It’s clear that DEI holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders,” the group wrote in a proposal.
Last week, Costco’s board of directors issued a statement to shareholders urging them to vote against the proposal ahead of their annual shareholder meeting next month.
“Our Board has considered this proposal and believes that our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the board wrote. “Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members and suppliers. Our efforts around diversity, equity and inclusion follow our code of ethics.”
Conservatives on social media quickly started calling for a lawsuit after reports of the board of directors’ statement emerged.