Levi Strauss Shareholders Resoundingly Back Diversity Programs Amid Corporate Culture Debate

Levi Strauss & Co. shareholders delivered a resounding rejection of a proposal to dismantle the company’s diversity, equity, and inclusion (DEI) programs, with over 99% of votes opposing the motion on April 23, 2025. The outcome underscores the growing divide in corporate America over DEI policies, as Levi’s leadership and investors alike reaffirmed their commitment to inclusive practices amid broader political and social tensions.

The rejected proposal, submitted by the conservative think tank National Center for Public Policy Research (NCPPR), argued that DEI initiatives risked illegal discrimination and divisiveness. However, Levi’s management and shareholders dismissed these claims, framing DEI as foundational to the company’s identity and financial success. CEO Michelle Gass emphasized that DEI has been a core value for decades, stating, “Building a diverse and inclusive workplace helps us deliver stronger results.”

The Business Case for Inclusion
Levi’s defense of DEI hinges on its alignment with long-term profitability. Senior Vice President David Jedrzejek clarified during the annual meeting that the company employs no quotas or discriminatory practices in hiring or promotions, addressing a common critique of DEI programs. This distinction may have reassured shareholders that DEI efforts focus on fairness rather than tokenism.

The vote also reflects Levi’s historical alignment with progressive social policies, including early advocacy for LGBTQ+ rights, paid family leave, and opposition to gun violence. These values resonate with a demographic increasingly prioritizing corporate social responsibility (CSR) in purchasing and investment decisions.

Broader Corporate Landscape
Levi’s stance contrasts sharply with peers like Walmart, Target, and Meta, which have scaled back DEI initiatives in recent years. Notably, Target’s decision to reduce DEI spending coincided with a 9% decline in February 2025 foot traffic, followed by a 6.5% drop in March, raising questions about the cost of prioritizing short-term political appeasement over inclusive brand loyalty.

Meanwhile, Costco Wholesale Corporation similarly rejected an anti-DEI proposal in 2024 with over 98% opposition, signaling a growing divide between firms prioritizing social values and those retreating from them.

Investment Implications
Levi’s strong shareholder support for DEI suggests investors view inclusive practices as a strategic asset. The company’s 2025 vote outcome may also deter future anti-DEI proposals, reducing governance risks for long-term investors.

However, risks persist in conservative-leaning markets, where political backlash could pressure firms to dilute DEI commitments. Levi’s leadership must balance these risks with its CSR-driven brand equity.

Conclusion
The Levi Strauss shareholder vote decisively affirms that DEI is not just a moral imperative but a strategic one. With 99% opposition to dismantling its programs, the company signals that its inclusive practices align with shareholder interests and brand strength.

Financially, Levi’s stock has historically outperformed peers like WMT and TGT when prioritizing social values, as seen in its 24% total return since 2020 compared to Walmart’s 12% and Target’s 8% over the same period. This suggests that investors reward companies embedding DEI into their core strategies.

As the DEI debate intensifies, Levi’s resolute stance positions it as a leader in the “values-driven” corporate sector. For investors, this vote underscores that brands prioritizing diversity and inclusion may not only withstand political headwinds but also capitalize on the growing consumer and investor demand for ethical practices.

In a market increasingly valuing purpose over profit alone, Levi’s decision to double down on DEI could prove a shrewd long-term bet.