Republican Attorneys General Urge Costco to Drop DEI Policies
A group of 19 Republican attorneys general has called on Costco Wholesale to remove its diversity, equity, and inclusion policies as they might lead the company into discrimination, exposing it to legal risks.
Demand comes after a recent vote by 98% of Costco shareholders opposing a proposal to consider the risks associated with DEI strategies. The sharply rejected proposition reflects growing resistance to DEI initiatives in the corporate world.
A letter addressed to Costco CEO Ron Vachris has been sent by the state officials led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, arguing that the retailer is violating merit-based principles by allegedly undermining those principles. It further warned the company that the federal law could be violated by DEI policies of the company. The letter asks Costco to indicate within 30 days whether the company intends to rescind the DEI policies or explain the reasons for their continuation.
The attorneys general’s move comes in the wake of efforts to curtail DEI initiatives, including an executive order issued by former President Donald Trump. The order directed federal agencies, contractors, and private sector organizations to dismantle DEI programs and prioritize merit-based hiring practices.
Many large companies, including Meta, Amazon, JPMorgan Chase, and Boeing, have already dialed back or eliminated their DEI targets, with some dropping out of the Human Rights Campaign Foundation’s corporate equity index.
Costco has yet to comment publicly on the letter or address the issue.
