Costco faces criticism: Why won't it get out of the way?

Costco, known for its unique wholesale shopping concept, has decided to strongly defend its diversity, equity and inclusion (DEI) initiatives. Unlike other companies such as Walmart or John Deere that are changing or even abandoning their DEI strategies, Costco refuses to cave to pressure from conservative activists. Why does Costco consider DEI a key element of its success and how does it respond to criticism?

Costco$COST found itself in the spotlight after its board of directors unanimously recommended that shareholders vote against a proposal by the conservative think tank National Center for Public Policy Research (NCPPR). This proposal called for Costco to evaluate and issue a report on the financial risks associated with maintaining its DEI goals. The think-tank argued that Costco's DEI practices may constitute "illegal discrimination" against employees who are "white, Asian, male, or heterosexual."

Costco, however, rejected this suggestion as baseless and questioned the…