Although Costco shareholders rejected a proposal to challenge the company’s diversity, equity, and inclusion (DEI) policies on Friday, the activist investors leading the push against Costco’s “woke” practices argue the battle is not over.

Ethan Peck, deputy director of the National Center for Public Policy Research’s Free Enterprise Project (NCPR), emphasized that shareholder proposals are often met with opposition from company boards. “It’s typical for boards to oppose shareholder proposals, regardless of the issue,” Peck told Fox News Digital.

NCPR had asked Costco executives to assess the potential risks DEI policies posed to the company’s financial performance. However, Costco’s board unanimously rejected the proposal.

Costco Chairman Hamilton “Tony” James defended the company’s commitment to DEI, stating, “We owe our success to the more than 300,000 employees who serve our members every day. It is important that they all feel included and appreciated and that they transmit these values to our customers.” At the shareholder meeting, 98% of Costco shareholders voted against NCPR’s proposal.

Despite this setback, Peck believes the push for change is far from over. He predicts that Costco could follow in the footsteps of companies like Walmart, McDonald’s, and Harley-Davidson, which moved away from DEI policies after President Donald Trump’s 2016 election.

Peck also pointed to Boeing as an example, noting that the company opposed a shareholder proposal for a DEI audit just months before it abandoned DEI efforts. “Costco’s firm stance on DEI in its proxy statement may not be as significant as some think,” Peck said. “There’s still a good chance Costco will drop DEI by the end of the year.”

Costco remains one of the few major companies holding onto its DEI policies, which often include considerations of race and gender in hiring practices and employee training. The company’s board member Jeff Raikes, former CEO of the Bill & Melinda Gates Foundation, has been a vocal advocate for DEI. He has argued that businesses should “maximize” their DEI initiatives, claiming that a diverse workforce drives innovation and economic growth.

However, critics like President Trump, who has banned DEI in federal government contracts, continue to oppose such policies. In a recent speech at Davos, he called DEI efforts “discriminatory” and “absolute nonsense.”