Summary
Costco shareholders voted overwhelmingly (98%) against a proposal by a conservative think tank, the National Center for Public Policy Research, to assess risks linked to the company’s diversity, equity, and inclusion (DEI) programs.
Costco’s board supported DEI initiatives, dismissing the proposal as partisan and unnecessary.
This rejection contrasts with trends in other companies scaling back DEI efforts.
The vote comes amid new federal rules from Trump targeting DEI initiatives in federal agencies, potentially impacting private vendors working with the government.
That may a fair take, but take a moment to turn that around. The fact that fund managers are not forming their own opinion against the efficacy of DEI and influencing corporate governance accordingly is a sign that it’s simply not as harmful as Republicans let on, and may actually be helpful. Because they know how to wield that influence if they feel they need to in order to preserve their funds’ value.
I didn’t say not forming their own opinion “against;” I said “on” – i.e., not forming their own opinion about the topic at all, in either direction. It is not an argument that can be “turned around” in the way you claim.
When boards oppose DEI, fund managers support the board. When boards support DEI, fund managers support the board. My point this entire time has been that there is no influence being wielded here. The companies that are cancelling DEI policies are doing so on their own boards’/execs’ initiative with no meaningful shareholder control, and the companies that are keeping DEI policies are likewise doing so on their own boards’/execs’ initiative with no meaningful shareholder control.