Republican Attorneys General Urge Costco to Abandon DEI Policies
Nineteen Republican attorneys general are urging Costco Wholesale to discontinue its diversity, equity, and inclusion (DEI) policies, expressing concerns regarding potential discrimination and legal complications.
This follows a recent vote where 98% of the retailer’s shareholders rejected a proposal to assess the risks associated with its diversity and inclusion efforts, reflecting a backlash against increasing scrutiny of such policies.
Costco has not yet responded to a request for comment from Reuters outside of normal business hours.
In a letter to Costco’s CEO Ron Vachris, the state officials accused the company of reinforcing policies they claim contravene merit-based standards and federal regulations.
The attorney generals, led by Texas’s Ken Paxton and Iowa’s Brenna Bird, have demanded that Costco inform the states within 30 days whether it plans to eliminate its DEI policies or provide reasons for their continuation.
The pressure from these Republican officials follows an executive order from former President Donald Trump that called for the elimination of DEI policies within federal agencies, among government contractors, and in the private sector.
Several companies, including Meta, Amazon, JPMorgan Chase, and Boeing, have altered their DEI initiatives, abandoned their DEI objectives, or ceased participation in the Human Rights Campaign Foundation’s corporate equity index.