THE WHAT? Colgate-Palmolive has said it will defend its use of diversity, equity and inclusion (DEI) criteria — including race, gender and sexual orientation — in identifying future board members, despite a shareholder proposal seeking to eliminate the practice.

THE DETAILS The National Legal and Policy Center (NLPC), a conservative nonprofit, has filed a proposal to bring the issue to a shareholder vote at Colgate’s upcoming annual meeting. Colgate plans to recommend that shareholders vote against the proposal, arguing that it “unduly interferes” with the board’s nominating committee, which aims to maintain a broad range of experiences, skills and perspectives.

The company stated that considering attributes such as “race, ethnicity, gender, sexual orientation, gender identity and cultural background” is legally appropriate and aligned with its strategy, noting that two-thirds of its sales are generated outside the US. Colgate said diverse perspectives are crucial for innovation, anticipating consumer trends and driving global growth.

Colgate’s stance contrasts with a broader corporate shift away from explicit DEI language in board selection criteria. According to workplace data firm PeopleReturn, the share of S&P 500 companies disclosing race and gender criteria for directors has dropped from around 50% in 2024 to under 14% in 2026. Companies including Goldman Sachs, American Express, Deere & Co. and Johnson & Johnson have recently scaled back such policies.

THE WHY? Colgate’s position reflects its view that board diversity supports global business performance and long-term strategy, even as political and regulatory pressure mounts in the US to roll back formal DEI frameworks.

Source: Bloomberg

The post Colgate to Defend DEI-Based Board Selection Criteria Amid Shareholder Challenge appeared first on Global Cosmetics News.