Business
Column: Business leaders bow to anti-DEI activists — except at Costco
It has long been clear that relying on corporate leaders to stand fast for social and economic progress is a mug’s game.
Big business talks the talk, of course. As I’ve written before, after the insurrection of Jan. 6, 2021, many corporate leaders pledged publicly to oppose the assaults from the political right wing on democracy.
Leading corporations said they would cease making campaign contributions to lawmakers who voted against certifying Joe Biden’s election or played a role in the insurrection in Washington.
Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all.
— Costco responds to anti-DEI agitators
Some made similar promises about state laws restricting abortion or voting rights, or talked openly about reducing their activities in states enacting such measures. They promoted their commitment to programs fostering diversity, equity and inclusion, known as DEI.
When push comes to shove, however, most of these companies folded like a poker player with a bad hand. That’s been especially evident on DEI, which became a target in the “anti-woke campaign” waged by right-wing culture warriors such as Florida GOP Gov. Ron DeSantis during the late presidential campaign.
Anti-DEI activism on the right gathered steam after the Supreme Court struck down college affirmative action admission policies in June 2023.
Throughout this year, big corporations have retreated from the DEI landscape. The largest to do so is Walmart. In November, the company said it wouldn’t renew the five-year, $100-million commitment it made in establishing its Center for Racial Equity in the wake of the George Floyd killing, would cease using the term DEI and would end other diversity initiatives.
“We’ve been on a journey and know we aren’t perfect, but every decision comes from a place of wanting to foster a sense of belonging, to open doors to opportunities for all our associates, customers and suppliers and to be a Walmart for everyone,” the company said.
Ford, Harley-Davidson, Lowe’s and other companies said they would no longer provide workplace data to the Human Rights Campaign, a gay rights group, in part because the campaign’s widely published index of corporate progress enabled anti-LGBTQ+ activists to mount a backlash against participating companies.
That brings us to Costco. Almost uniquely among major public companies, Costco’s board has explicitly rejected the anti-DEI backlash.
The response from Issaquah, Wash.-based Costco came in the Dec. 11 proxy statement for its annual shareholder meeting, scheduled for Jan. 23. The meeting agenda includes a shareholder resolution proposed by the right-wing National Center for Public Policy Research, insinuating that Costco’s DEI program “holds litigation, reputational and financial risks to the Company, and therefore financial risks to shareholders.”
The resolution calls on the board to report on “the risks of the Company maintaining its current DEI … roles, policies and goals.”
The Costco board unanimously advised shareholders to vote against the resolution. “Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” it said in its response. “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 board took direct aim at the center, the resolution proponent, which it accused of hiding its true goal. Although the center “professes concern about legal and financial risks to the Company and its shareholders associated with the diversity initiatives,” the board stated, “it is the proponent and others that are responsible for inflicting burdens on companies with their challenges to longstanding diversity programs. The proponent’s broader agenda is not reducing risk for the Company but abolition of diversity initiatives.”
That swipe seems to have hit home. “The recent wave of companies walking back their DEI in response to no greater threat than merely having the truth about their DEI programs exposed,” center staff member Stefan Padfield told me by email, “makes clear that any related burden[s] these companies are experiencing are of their own making as they seek to misuse shareholders’ money to advance neo-Marxist and neo-racist ‘equity’ agendas.”
Costco says it doesn’t have any comment about the shareholder resolution beyond the board statement.
Although the Costco board didn’t go into detail, the center has assembled quite a record as a culture warrior. It’s a “partner” of the Stop Corporate Tyranny coalition, which describes itself as “a one-stop shop for educational resources exposing the Left’s nearly completed takeover of corporate America.” It has opposed initiatives to combat global warming, asserting that global warming isn’t happening, and it promotes cryptocurrency.
Costco’s straightforward response to the center’s proposed resolution may not be that much of a surprise. The company is generally known as employee-friendly, with favorable ratings from workers posting on Glassdoor. Among its benefits, health coverage with low co-pays is available to workers employed for at least 23 hours a week for 180 days.
Its approach to union organizing activity may not be entirely welcoming, but seems to lack the truculence and hostility shown by retailers such as Starbucks and Amazon.
Of Costco’s roughly 219,000 employees, about 18,000 are represented by the Teamsters. Remarkably, when 238 Costco workers in Norfolk, Va., voted to affiliate with the Teamsters a year ago, Chief Executive Ron Vachris and his immediate predecessor, W. Craig Jelinek, issued a joint statement blaming themselves.
They said they were “not disappointed in our employees; we’re disappointed in ourselves as managers and leaders…. The fact that a majority of Norfolk employees felt that they wanted or needed a union constitutes a failure on our part,” they wrote in a memo dated Dec. 29 and sent to all U.S. employees. CNN obtained a copy of the memo.
That doesn’t mean that labor relations are free of conflict: Early in December, the Teamsters union filed unfair labor practice charges with the National Labor Relations Board against the company for what it called the company’s “calculated effort to undermine workers’ rights and disrupt the collective bargaining process.”
Asserting that the company’s worker-friendly reputation is undeserved, the Teamsters said Costco had “expelled union representatives from stores, harassed and intimidated workers for wearing Teamsters buttons and attire, sent employees home, and even changed locks on union bulletin boards” to prevent the union from disseminating information to workers. Costco said it has no comment on the charges.
A few words about shareholder resolutions are appropriate here. Following the Supreme Court’s decision on college affirmative action, the number of resolutions about DEI programs receiving a vote at corporate annual meetings rose appreciably, to 25 through May this year from 13 in 2023, according to the Conference Board.
To be fair, that’s still a small number among the roughly 3,000 public companies in the Russell 300 index. More notable, however, is that anti-DEI proposals remained deeply unpopular. Resolutions opposing workplace diversity programs garnered support from less than 2% of shareholders, on average; those favoring such programs received support from an average of 21% of shareholders, however. (Shareholder resolutions proposed by almost anyone other than corporate managements seldom get anywhere near majority support.)
The Conference Board, a nonprofit corporate research consultancy, has found that diversity programs aimed at managers and the rank and file enhance corporate fortunes. Companies with diverse management teams “demonstrate 19% higher revenues due to innovation,” the board says.
Those with “higher racial and ethnic diversity [are] 35% more likely to have financial returns above their industry medians.” Commitments to diversity appeal to job applicants and tend to improve productivity.
On the other side of the coin are what the center’s Padfield claimed is “the wave of customer backlash we’ve seen against DEI.” He added, “rather than doing the right thing and evaluating the relevant risks … Costco is apparently doubling down on divisive and value-destroying DEI.”
The center told me by email that “one day, Costco will no longer have a DEI program. We hope for the sake of shareholders that it’s sooner rather than later.” Shareholders, workers and customers may hope for their own sake that the opposite is true — and that other businesses follow Costco’s example.
The luxury shopping center in Pacific Palisades will reopen next month after more than $100 million in renovations forced by the January 2025 wildfire that devastated the Los Angeles neighborhood.
Palisades Village will reopen Aug. 15, owner Rick Caruso announced Wednesday. The outdoor center survived the blaze that destroyed homes and other businesses but needed refurbishment to eliminate contaminants that the fire could have spread.
Crews are putting finishing touches on mall buildings after tearing them down to the studs, treating the wood and rebuilding the walls, Caruso said.
“Everybody’s working, and stores are moving their products in,” he said. “It’s a really cool feeling that people have really locked arms and are working together.”
An electrician installs lighting for a restaurant at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
Pacific Palisades resident Allison Polhill, who is rebuilding the home of 30 years that her family lost in the blaze, said she is “thrilled” at the prospect of returning to the mall she used to frequent. Its comeback is a boost for the community, she said.
“Every single step that we make to reopen our commercial corridors is going to bring more people back into the Palisades,” said Polhill, who expects to move back into her home at the end of August.
A total of 6,822 structures were destroyed in the Palisades fire, including more than 5,500 residences and 100 commercial businesses, according to the California Department of Forestry and Fire Protection.
Caruso previously attributed the mall’s survival to the hard work of private firefighters and the fire-resistant materials used in the mall’s construction.
The $200-million shopping and dining center opened in 2018 with a movie theater and a roster of upmarket tenants, including Erewhon, which may be the only grocer in the heart of the fire-ravaged neighborhood when it opens.
Caruso’s company was able to fill the mall with tenants despite the long shutdown.
Palisades Village is 99% leased, with the majority of tenants returning, said Jackie Levy, chief financial and revenue officer. Nearly one-third of the shops and restaurants are new to the property.
A firefighter carries a hose back to his rig while walking through a destroyed home from the Palisades fire in Pacific Palisades on Jan. 7, 2025.
(Genaro Molina / Los Angeles Times)
Last year, Pacific Palisades-based fashion designer Elyse Walker said she would reopen her eponymous store in Palisades Village after losing her 25-year flagship location on Antioch Street to the inferno.
Other neighborhood shops destroyed in the fire that are reopening at the mall include K Bakery and Loomey’s Toys, which caters to children up to age 12 and used to be across the street from Palisades Elementary Charter School.
“It’s been a journey and I’m excited because I wasn’t sure that there was going to be a place to come back to,” said toy store owner Amanda Rastegar. “Hopefully we can bring some of that magic back.”
Rastegar’s home in the Palisades survived but was damaged by the fire. The family returned about eight weeks ago. Her last memory of the fire was a burning supermarket.
“I just couldn’t wrap my brain around what was happening,” she said. “By the time I left, Gelson’s was on fire.”
Among the returning tenants is Angelini Ristorante & Bar. Well-known Los Angeles chef Gino Angelini said he will be in the kitchen next month for a return of the Italian restaurant.
“We won’t do a big celebrity open,” he said. “We want to have a very soft opening and see our customers come back.”
Construction takes place at Rick Caruso’s Palisades Village on Thursday. The shopping center is scheduled to reopen mid-August.
(Myung J. Chun / Los Angeles Times)
An elaborate celebration would not feel “correct for me,” Angelini said, because the devastation has been “very sad” for so many.
Other new tenants include local chef Nancy Silverton, who has agreed to move in with a new Italian steakhouse called Spacca Tutto. Women’s activewear retailer LESET will open its first West Coast location.
Caruso said he is optimistic that customers will return to the center, even though many Pacific Palisades residents are still dispersed. One tracking system estimated that about 30% of the Village’s customer base was impacted by the fire, he said.
“That means 70% did not get impacted, so there’s a lot of customers still left out there,” Caruso said. Historically, the center drew customers from as far away as Beverly Hills and Calabasas, as well as Malibu, Brentwood and Santa Monica.
He also hopes many will be inspired to visit the revived mall.
“I believe in the goodness of people and I believe that people are going to want to support the Palisades,” he said. “They’re going to want to be there and support the businesses that have had the courage and the heart to reopen.”
Walmart is rapidly expanding its network of electric vehicle chargers designed for customers to use while they shop.
The network could help fill gaps in EV infrastructure in states with greater need for chargers. Walmart, which has more than 5,000 locations in the U.S. and hundreds in California, says more than 90% of Americans live within 10 miles of one of its stores.
The chargers also offer an incentive for customers to choose Walmart — Walmart Plus members will receive a 10% discount off an average price of $0.46 per kilowatt-hour of energy at the company’s chargers.
Walmart chargers are already available at more than 75 locations in 17 states, with Texas boasting the most charging stations, followed by Florida and Arizona.
Matthew Nelson, Walmart’s director of energy policy, said last week on LinkedIn that the network will soon reach 29 states, including California.
“We are delivering on the promise of affordable, reliable and convenient charging,” Nelson said in his post.
According to Walmart’s website, six charging stations are coming to California soon, though the company did not offer a specific timeline.
The chargers will be installed at stores in Antelope, Brea, Fresno, Stockton, Suisun City and Vallejo.
Most charging sites in California will include eight to 16 fast-charging stalls, said Walmart spokesperson Kelsey Bohl.
The company first announced plans in April 2023 to install its own EV chargers at Walmart and Sam’s Club stores, with a goal of installing thousands of chargers by 2030. Partnering with ABB E-Mobility and Alpitronic, it added 25 new charging sites this past May and six more in June.
“Walmart is building a leading retail-integrated EV fast-charging network, focused on delivering an affordable, reliable and convenient charging experience where customers already shop,” Bohl said in an emailed statement. “Customers can charge while they shop, access stations through the Walmart app they already use, and benefit from affordable pricing.”
The charging stations already available include 612 individual charging stalls using 400-kilowatt chargers. Each stall has a dual charging cord with both Combined Charging System and North American Charging Standard connectors. The standard connectors, designed by Tesla, are smaller and lighter than the combined systems.
The primary way to pay for the chargers is through the Walmart app, but the company is also experimenting with built-in credit card readers to allow those without the app to use the stations.
Customers can check charger availability on the Walmart app. The company said the chargers will be available 24 hours a day.
Robotaxis could be turning into robocops.
A self-driving Waymo reported two teens to San Mateo, Calif., police on Monday after they were found drinking alcohol and shooting toy guns in the back of the vehicle.
According to a social media post from the San Mateo Police Department, officers detained two 15-year-olds after the Waymo they were riding in contacted the department and stopped in a parking lot until law enforcement arrived.
“Parents do you know where your teens are?” the San Mateo Police Department wrote on Facebook following the incident. “Waymo does!”
Officers removed both teens from the vehicle and determined they were using toy guns to shoot Orbeez out the windows. Orbeez are small, water-absorbing beads sold at toy stores.
“Toy guns, water guns, and BB guns all pose real dangers, especially to an untrained eye,” the Police Department said. “The simple handling of them can cause fear in [passersby].” “
A video posted on Facebook shows at least five officers and a police dog responding to the scene and approaching the Waymo with their weapons raised.
Waymo did not immediately respond to a request for comment.
Waymo vehicles have internal cameras and microphones that may be used in an emergency or to “promote safety and security,” according to Waymo’s online support page.
The cameras are also used to ensure the vehicles are clean and to help find lost items, according to the support page.
The company said it does not use facial recognition or other biometric identification technologies to identify individuals.
“In more urgent circumstances, support may access live video during a trip,” the Waymo page said.
The San Mateo Police Department’s Facebook post has garnered nearly 60 comments, with one user accusing Waymo of “snitching.”
“At least they got a designated driver?!” one user commented.
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