Rev. Al Sharpton led 100 members of the National Action Network (NAN) this week in a significant demonstration at a Costco located at 517 E. 117th Street, East Harlem. This protest, termed a "buycott," was intended to show support for the company’s commitment to diversity, equity, and inclusion (DEI) policies amid increasing backlash from conservative circles, particularly under the Trump administration.
Citing the importance of economic support, Sharpton commented, "Justice is not just about marching, it’s about where we spend our dollars." This statement reflects the growing sentiment among many activists who believe economic power can influence corporate policies. The buycott was seen as not just direct support for Costco but as a rejection of the aggressive attacks on DEI principles spearheaded by right-wing officials and organizations.
Since taking office, President Trump has made DEI initiatives one of his administration's focal points for rollback, signing numerous executive orders signaling his intent to dismantle such policies within federal agencies. This push mirrors broader trends where companies are reevaluated and, often, retract their commitments to diversity efforts. Major retailers such as Target and Walmart have faced criticism after ending similar initiatives like their Racial Equity Action and Change programs, which were initially put forth as responses to systemic racism following George Floyd's murder.
Despite this atmosphere of resistance, the Costco board has taken a firm stand on its DEI commitments. Recently, shareholders overwhelmingly rejected the National Center for Public Policy Research's proposal to assess the risks associated with continuing DEI practices, with more than 98% standing against the motion. This decisive response from shareholders serves as both affirmation of Costco's current policies and as potential leverage for other companies facing similar scrutiny.
Lindsey Stewart, director of stewardship research and policy for Morningstar Sustainalytics, noted, "Even if the political environment on inclusion in the workplace is changing, investors’ low propensity to support anti-DEI resolutions is..." This suggests shareholders remain steadfastly supportive of DEI initiatives, even as external pressures mount.
The demonstration at Costco emphasized the need for companies to be held accountable for their promises to support racial equity. Sharpton remarked, "For Donald Trump to be able to cancel a commitment they made is an outright affront to the Black community …" This broad sentiment reflects frustration shared by many within the activist community who feel companies are yielding to political pressures at the expense of marginalized communities.
During their visit, NAN members not only expressed solidarity through their purchases but also engaged with Costco employees, emphasizing their backing of businesses upholding DEI values. The event served as both support and protest, illustrating how the community can mobilize economic forces to influence corporate decisions.
Moving forward, Sharpton announced plans for more extensive campaigns targeting companies abandoning DEI practices. He stated, "Companies think they can renegotiate on their commitments to do right by racial minorities will feel impact from Black buying power. We will begin sending the message of economic accountability to the businesses involved."
Such strategies reflect lessons learned from previous civil rights movements where economic boycotts played pivotal roles. Recent estimates suggest Black shoppers contribute approximately $29.9 million per day to Target's revenue. Sharpton highlighted the potential impact of even temporary boycotts, which could cost companies like Target significant losses, potentially amounting to $897 million within just 30 days.
The power dynamics at play are compounded by pressures from conservative groups who have recently ramped up their efforts, with 19 Republican attorneys general urging Costco to align with other corporations against DEI policies, labeling them "illegal" and "discriminatory." This mounting pressure intensifies the scrutiny placed on businesses headlining DEI initiatives.
Nevertheless, companies like Apple, JPMorgan Chase, Delta, Cisco, and Microsoft have remained resolute amid this political climate, continuing their support for DEI practices. Such fortitude may offer models for other corporations at risk of straying from established commitments.
With the changing political environment and rising social activism, corporate boards will face growing scrutiny over their DEI strategies. Costco's strong shareholder support for its diversity programs may serve as both inspiration and cautionary tale for other corporations. Decisions taken today will shape the future of corporate America, particularly the battle for racial equality and representation.
Given the events surrounding the buycott and the current backlash against DEI initiatives, it remains clear: the intersection of corporate responsibility and social justice is more relevant than ever, challenging businesses to not only support but actively engage with the communities they serve.