Retail company Costco Wholesale (COST) refuses to join the trend of companies scaling back their diversity, equity, and inclusion (DEI) efforts amid growing pressure from conservative activists. The company has publicly defended its commitment to DEI initiatives.
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This stance puts Costco in direct conflict with the National Center for Public Policy Research (NCPPR), a conservative activist group, which is pushing the company to release a report on the risks linked to its DEI initiatives.
The NCPPR believes Costco’s DEI programs are unfair and could lead to legal and financial issues for the company. They claim that Costco’s “People and Communities” initiative, which focuses on hiring and promoting people based on race and gender, is part of its broader DEI efforts.
COST Argues DEI Initiatives Are Essential
Despite facing criticism from conservative groups, Costco’s board of directors has defended its DEI initiatives, claiming they are vital for the company’s success. The company argues that its DEI programs offer equal opportunities and fair wages to all employees, regardless of their backgrounds. Costco also dismissed claims that it uses hiring quotas based on race or gender.
In addition, the company believes that its commitment to DEI initiatives is crucial for attracting and retaining a skilled and diverse workforce, which is essential for its continued success.
Costco has also urged shareholders to reject a proposal to review the company’s DEI programs at the upcoming annual meeting on January 23.
Is COST a Buy or Sell?
Turning to Wall Street, COST stock has a Moderate Buy consensus rating based on 17 Buys and eight Holds assigned in the last three months. At $1,058.84, the average Costco price target implies a 14.66% upside potential. Shares of the company have gained 8.85% over the past six months.
