Costco Wholesale Corporation

There is limited information regarding Costco’s overall commitment to gender equality and women’s empowerment across its full value chain. The company does not disclose how it integrates these issues into its governance structure, strategy, processes or management systems, or how it engages with stakeholders to manage and improve its gender impacts.

The company has a gender-responsive grievance mechanism that considers the specific needs of its women employees, for instance guaranteeing confidentially, allowing concerns to be anonymously reported to someone other than the direct supervisor via a telephone line, and non-retaliation and protection of the aggrieved party. Information on raising a concern is also available in multiple languages. Furthermore, the company allows supply chain workers to access its grievance mechanism.

Costco screens for gender-related issues among its suppliers as part of its audit processes, including sexual harassment and discrimination against women based on their pregnancy or marital status. It also requires corrective action to be taken if these issues are identified.

There is limited information available to indicate whether Costco considers the fair representation of women in the workplace. The company discloses the gender balance of its workforce by occupational function as well as the gender composition of its workforce across various levels of leadership. With a workforce that is 44% female, women are underrepresented on the board of directors (27%), among senior executives (7%) and in senior management (5%) and middle management (32%) positions. No information was found regarding the gender breakdown of employee turnover or absenteeism rates. Neither were there details about the company’s professional development opportunities that offer specific support to women employees.

In the supply chain, Costco requires its suppliers to have a non-discrimination policy that explicitly protects pregnant and married women workers. Furthermore, suppliers are prohibited from giving pregnancy tests or birth control as a condition of employment.

Costco has made a public commitment to actively procure from women-owned businesses, though no information was found concerning the company’s procurement spend directed to these businesses.

Though no details were available regarding recognition agreements with local trade unions or collective bargaining agreements currently in place, the company expects suppliers to respect the rights of workers to establish and join organisations without risk of discrimination, harassment, interference or retaliation.

While Costco reports on its gender pay gap in the United Kingdom, thereby complying with national regulation, no information was found regarding how the company specifically addresses the gender pay gap across its global operations to ensure its women employees receive fair compensation for their work. In terms of family-friendly benefits, the company does not have a global policy of providing at least 14 weeks of paid primary carer leave or two weeks of paid secondary carer leave, as recommended by the International Labour Organization.

In the supply chain, no information was found on how Costco considers key family-friendly benefits to support workers’ unpaid care burden. Neither were there details on whether the company requires its suppliers to pay a living wage or offer formal contracts. It does, however, help ensure suppliers support formal work by requiring them to disclose subcontractors and seek approval by the company.

No information was found to suggest that Costco covers any additional costs surrounding the maternal, mental or sexual and reproductive health needs specific to its women employees.

In the supply chain, Costco requires suppliers to provide their workers with a safe and healthy work environment, including access to toilets separated by gender, drinking water, adequately lit factory facilities, personal protective equipment and training in proper chemical handling. However, the company has not made a public commitment to provide workers with gender-responsive health information and services, for example by requiring suppliers to have an on-site clinic with credentialed health providers.

Costco seeks to prevent violence and harassment in the workplace through its mission statement and code of ethics, in which it pledges to provide employees with an atmosphere free from harassment or discrimination. The company also states that it prohibits all forms of harassment and discrimination among customers, suppliers and third parties. Likewise, in the supply chain, suppliers are required to prohibit violence and any form of harassment, including sexual harassment. However, no details were found regarding the company’s effective remedy for violence and harassment grievances reported by its employees or supply chain workers, such as not requiring private arbitration or silencing agreements.

No information was found regarding how Costco addresses non-discriminatory practices in marketing and advertising, for example by committing to avoid harmful gender stereotypes or ensuring gender-responsive communications and engagement with its customers to support gender equality and women’s empowerment.

No information was found regarding Costco’s broader efforts to drive gender equality and women’s empowerment in the communities where it operates.

Costco has responded to the COVID-19 pandemic by requiring employees and customers to wear face coverings. It has also instituted return restrictions and product limitations on certain items to help ensure more customers are able to purchase necessity goods. Furthermore, the company is temporarily allowing priority access to stores for members who are healthcare workers and first responders.