Unless you've been living under a rock, you've likely seen many of the celebratory headlines posted by defenders of DEI (diversity, equity, and inclusion) proclaiming that the recent Costco shareholder vote showed that 98% of Costco shareholders support DEI. That's flat wrong.
To understand why, start by reflecting on the actual proposal submitted by the National Center for Public Policy Research (where I work). It merely asked Costco's board to "conduct an evaluation and publish a report ... on the risks of the Company maintaining its DEI roles, policies and goals." Given all the obvious risks surrounding DEI these days, including reputational, legal, and regulatory risks, this request is squarely focused on appropriate shareholder concerns. So why vote against it?