As a wave of corporate retailers buckle under pressure from right-wing groups to shed their diversity, equity and inclusion *(DEI) initiatives including most recently fast food giant McDonalds Costco, the membership-only big-box warehouse club retail chain, is going on offense over their inclusive hiring policies.Activist shareholders at the retail behemoth, the countrys third largest after Walmart and Amazon, are looking to end Costcos diversity ambitions with a proposal from the conservative National Center for Public Policy Research (NCPPR) think tank that would require the warehouse retailer to evaluate and issue a report on the financial risks of maintaining its diversity and inclusion goals. Related The number of companies committed to LGBTQ+ inclusion is growing HRCs 2025 Corporate Equality Index reported an overall positive trend despite some major companies rolling back their DEI policies NCPPR argues that Costcos DEI initiatives are a form of illegal discrimination against employees who are white, Asian, male or straight, reportsCNN. The group claims victims of that discrimination could pursue legal actions against the company, potentially costing Costco tens of billions of dollars. Stay connected to your community Connect with the issues and events that impact your community at home and beyond by subscribing to our newsletter. Subscribe to our Newsletter today The retailers board of directors isnt buying the argument, and is urging shareholders to defeat the proposal.Our success at Costco Wholesale has been built on service to our critical stakeholders: employees, members, and suppliers, a statement from the board reads. Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all. We believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.The company has a chief diversity officer and a supplier program dedicated to expanding ties with small and diverse businesses. It also donates to organizations like the Thurgood Marshall College Fund that serve marginalized and underrepresented groups. Flipping the argument that DEI initiatives are discriminatory and a burden on shareholders, the board said NCPPR is inflicting a burden on Costco with challenges to DEI. The organizations broader agenda is to abolish diversity initiatives, the board asserted.The proponent professes concern about legal and financial risks to the company and its shareholders associated with the diversity initiatives, the company said. The supporting statement demonstrates that it is the proponent and others that are responsible for inflicting burdens on companies with their challenges to longstanding diversity programs. The proponents broader agenda is not reducing risk for the company but abolition of diversity initiatives.The board said Costcos DEI policies are integral to its business model. Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the treasure hunt that our customers value, the board explained. We believe (and member feedback shows) that many of our members like to see themselves reflected in the people in our warehouses with whom they interact.Robby Starbuck, a vocal opponent of corporate DEI policy who has led MAGA-based boycotts against several companies, called on supporters to boycott Costco after the boards recommendation to vote down NCPPRs proposal. For now, I suggest conservative consumers find other places to spend their money if Costco is so dedicated to doubling down on DEI. If theyre smart, Costco will do right by their shareholders and change before we turn our attention to them, Starbuck threatened in a post on X. Companies including Walmart, Stanley Black & Decker, Molson Coors, Jack Daniels, Ford Motor Company, John Deere, Lowes Hardware, Target and Harley-Davidson have publicly rolled back DEI initiatives in the face of Starbucks online threats and groups like NCPPR organizing shareholder revolts.On Monday, McDonalds, the worlds largest fast-food chain, announced it was retiring aspirational representation goals and would pause survey submissions to third-party groups including the Human Rights Campaigns Corporate Equality Index, among other concessions to anti-DEI activists.Shareholders vote on DEIs fate at Costco on January 23.Subscribe to theLGBTQ Nation newsletterand be the first to know about the latest headlines shaping LGBTQ+ communities worldwide.