Why Costco Isn’t Joining the Backlash Against DEI

In a steady parade of companies retreating from their diversity efforts, Costco Wholesale COST 0.68%increase; green up pointing triangle is standing out by holding fast.

Ahead of its annual meeting next week, the warehouse retailer has urged its shareholders to reject a proposal to assess the risks that its diversity initiatives pose to the company’s stock price. While boards typically recommend rejecting such proposals, Costco’s directors also made a vigorous case for how its diversity, equity and inclusion measures contribute to its bottom line.