Costco board member defends DEI practice, scolds companies for scrapping policy

A Costco Board member Diversity, equity and inclusion (DEI) policies have taken aim at organizations lagging behind, instead calling on businesses to “maximise” DEI as wholesalers face pressure to join a growing list of brands ditching the controversial practice.

Jeff Raikes, co-founder of the Raikes 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. Raikes and other board members have come under scrutiny in recent days after they shut down a shareholder request to break up DEI internally and Calling other shareholders to vote against Costco's proposal to drop the DEI program at an upcoming meeting.

The board's position came as a surprise to some in light of recent corporate trends that have fueled widespread Waiver of DEI policy. But a Fox News Digital assessment of Raikes' online history revealed a staunch proponent of the DEI practice — and a man intent on discouraging companies from saying goodbye to them.

Other major retailers defended the Costco DE program, excluding the controversial diversity push

When businesses began announcing their departure from DEI policies last year, Raikes urged companies to expand such practices in the workplace, stressing that reducing DEI in businesses would hurt the economy.

In a November post about DEI's decline, Raikes argued, “Attacks on DEI aren't just bad for business—they hurt our economy. A diverse workforce drives innovation, expands markets, and fuels growth. Let's build a future.” Focus is where all talent flourishes.” He ended his post on X with the hashtag “inclusive economy”.

A month earlier, Raikes similarly railed against a growing number of companies abandoning DEI policies that critics saw as discriminatory in hiring.

“#DEI isn't just the right thing to do; it's essential to driving innovation and business success. Scaling DEI efforts undermines companies' ability to grow, innovate and connect to diverse markets,” he wrote.

Walmart has backed DEI policies, becoming the latest US company to join the growing trend

In a subsequent post from March, Raikes shared a He writes columns for Forbes where he called on the private sector to “lead the way to foster diversity, equity and inclusion in America's workplace” and urged businesses to buck anti-DEI trends and instead “maximize DEI efforts” in the workplace.

He blamed “opportunistic politicians” for trying to “fear and divide” the country by “making DEI a dirty word”. President-elect Donald Trump has been vocal against DEI policies on the campaign trail.

Last month, Raikes responded to a post about colleges voting to abolish DEI offices by reiterating “the important role DEI plays in education,” arguing that “Moving the DEI offices moves us further from equity, not closer.”

“It is essential to student success and a strong economy,” he wrote in X.

Last week, the Costco board of directors wrote a message to investors rejecting a push by the wholesaler to scale back DEI at the upcoming annual Costco shareholders meeting on Jan. 23.

“Our success at Costco Wholesale is built on serving our critical stakeholders: employees, members and suppliers. Our efforts around diversity, equity and inclusion follow our Code of Ethics: For our employees, these efforts are built around inclusion – All have our employees feel valued and respected,” they wrote.

“Our efforts in the areas of diversity, equity and inclusion remind and reinforce the importance of creating opportunities for everyone at our company. We believe these efforts serve our employees. Increases our ability to attract and retain people who will help our business succeed. This ability is important because we owe our success to our now 300,000 employees around the world.”

Their letter was in response to a motion brought by the National Center for Public Policy Research that challenged the validity of Costco's DEI program after the Supreme Court ruling. SFFA vs. Harvard Discriminating on the basis of race in college admissions violates the Equal Protection Clause of the 14th Amendment.

The proposal cites how attorneys general of 13 states have warned Fortune 100 companies that the incumbent corporates have engaged in DEI programs and several lawsuits have been filed.

Companies that have scaled back DEI commitments and/or cut employees from DEI departments include Alphabet, Meta, Microsoft, Zoom and John Deere, the proposal said, although Costco's board said Microsoft later clarified that it had eliminated two redundant DEI roles. , yet its focus on diversity and inclusion “remains steadfast.”

Despite the Supreme Court's ruling, Costco's board of directors insisted that its DEI practices were “legally appropriate, and nothing in the proposal shows otherwise.” The board also claimed that the National Center for Public Policy Research's request for a study of Costco's DEI practices “reflects a policy bias” and threatens to strain the company's resources.

Citing a 2023 federal district court decision, the board argued that the National Center for Public Policy Research's “broad agenda is not reducing risk for companies but rather eliminating diversity initiatives.” The board claims the foundation is continuing its “shareholder activism,” noting how the National Center for Public Policy Research has previously expressed its commitment to “fighting evil.” The politics of capital has awakened and company.”

Walmart CEO addresses rollback of DEI programs: 'We will continue to make the best decisions we can'

“We welcome members from all walks of life and backgrounds. As our membership is diverse, we believe that serving with diverse employees increases satisfaction,” Costco's board wrote in defense of its DEI practices. “Having diversity in our supplier base, with a proper focus on small businesses, benefits many for the same reasons diversity benefits our company. We believe it encourages creativity and innovation in the products and services we offer our members.”

The board's response prompted some activists to call on customers to cancel their memberships at major retail wholesalers. Others have urged consumers to shop at competitors like Sam's Club, until the board supports softening the company's DEI hiring policy.

“For now, I suggest that conservative consumers find somewhere else to spend their money if Costco is committed to doubling down on DEI. If they're smart, Costco will do right by their shareholders before we turn our attention to them. will change.” Anti-DEI activist Robbie Starbuck Wrote in X last week.

“I fully support canceling membership at this point,” he added in a later post.

Costco did not respond to inquiries from Fox News Digital about whether it had canceled a significant number of members in the past two weeks.

Their unwavering DEI stance, however, has apparently upset some alleged shareholders online.

“I'm a Costco member and shareholder and I say that — has to go,” Posted by a user.

“As a shareholder, I am voting to end this 'program.' Another user wrote,

“Certainly, Costco's board is very up and going. I don't shop there but I've been a long-term shareholder.. I will vote accordingly.” One person commented.

“It's time for the board to call out Costco for refusing to drop their DEI policy,” a User said. “I plan to vote all my shares at the January 23 shareholder meeting against this stupid policy.”

Get Fox Business on the go by clicking here

Proponents of Costco's DEI policy applaud the wholesaler's board of directors for sticking to DEI at a time when doing so is becoming increasingly unpopular.

Costco did not respond to Fox Business News' request for comment. When reached for comment, Raikes said the board's position on DEI was “unanimous” and directed FBN not to comment further on their letter.

Fox Business' Daniel Wallace contributed to this report.