What Costco’s Doubling Down On DEI Means — And Doesn’t Mean

Is the anti-DEI movement losing momentum? Costco certainly isn’t a fan of it.

Several days ago, the retail giant sparked headlines for a robust defense of its diversity, equity, and inclusion (DEI) policies, in response to an anti-DEI shareholder proposal from the National Center for Public Policy Research (NCPPR). “Our focus on diversity, equity and inclusion is to enhance our culture and the well-being of people whose lives we influence,” Costco announced in its response. “Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.”

What does Costco’s doubling down actually mean? Is this the first stumble in the anti-DEI trend? Does a single company standing by its diversity efforts indicate a larger rebirth of support for biased corporate policies? The simple answer is: no. As someone whose day job involves dealing with corporate DEI, and who has helped submit shareholder proposals critical of DEI and other aspects of ESG (environmental, social, and governance issues), let me break down Costco’s DEI decision before explaining what it actually means.

What Actually Happened At Costco

To understand Costco’s decision, we first have to understand the basics of how shareholders talk to companies that they own. Under the rules of the Securities and Exchange Commission, eligible shareholders are allowed to submit proposals to the company and have those proposals featured on what’s known as a “proxy statement,” a document that goes to all shareholders of record before a company’s annual meeting. That proxy statement contains all the items of business on which a company’s shareholders vote — directors who are up for election, management issues, and whatever shareholder proposals are submitted.

In Costco’s case, the proposal was a simple one: evaluate the risks of Costco having DEI initiatives. That proposal is now on Costco’s ballot, and shareholders will vote on it later this month. The statement from Costco that generated the brouhaha is called a ‘statement of opposition,’ which company management issued in response to NCPPR’s shareholder proposal.

JOIN THE MOVEMENT IN ’25 WITH 25% OFF DAILYWIRE+ ANNUAL MEMBERSHIPS WITH CODE DW25

Now that we’re all clear on the basics, here’s the key truth about Costco’s statement on DEI: as a matter of corporate policy, this statement isn’t unusual. Companies issue statements of opposition for virtually every shareholder proposal they receive, whether it’s Lockheed Martin shareholders urging the company to ditch Israel, Google shareholders urging the company to censor pro-life pregnancy centers, or Costco shareholders urging the company to abandon DEI. As someone in the corporate engagement industry, these statements are very commonplace.

The argument that Costco’s statement, by itself, is a game-changer in the DEI debate makes no sense. It’s simply a part of the process on a matter of corporate business that hasn’t even been voted on yet.

What is Costco Actually A Litmus Test For?

That said, does the broader corporate stance behind Costco’s statement matter? Undoubtedly — and that’s also worth examining. Costco’s vision — where DEI can be simply framed as a milquetoast respect for diversity against which no one but (presumably) dysfunctional race-baiters would seriously argue — would have played quite nicely in 2021 or 2022, when the spirit of post-George Floyd racialism still permeated American corporate culture. But that vision is a hollow one in 2025. The legal/cultural backlash to DEI, combined with the reality of an incoming Republican administration that’s put DEI and ESG efforts in its crosshairs, is ushering in a new world — a world where companies with DEI programs are going to have to marshall a lot more to defend their diversity initiatives than the boilerplate rhetoric of “opportunity for all.” The microscopes of scrutiny have been brought out, by everyone from activists like Robby Starbuck to lawyers and corporate engagement professionals — and one brand’s willingness to stick to its guns now is no guarantee that it’ll do so indefinitely.

Costco’s doubling down on DEI is an unspoken appeal to a corporate zeitgeist that no longer exists. It’s a hard contrast to their competitors’ moves — such as Walmart’s admirable decision to listen to shareholder concerns about DEI. This is a different, undoubtedly shortsighted strategy: trying to peddle vaguery to shareholders and customers demanding specificity. Costco may not be the kind of company that flips overnight on biased corporate policies — but the vast majority of people working in the corporate engagement world are playing this for the long game. A short-term setback is nothing if not expected.

* * *

Isaac Willour is an award-winning journalist focusing on race, culture, and American conservatism, as well as a corporate relations analyst at Bowyer Research. His work has been featured at outlets including USA Today, the Wall Street Journal, the New York Times Opinion, C-SPAN and the Daily Wire. He is a member of the Young Voices contributor program and can be found on X @IsaacWillour.

The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.