by Seroll Burt
January 29, 2025
Costco’s board of directors said its ‘commitment to an enterprise rooted in respect and inclusion is appropriate and necessary.’
Nineteen state Republican attorneys general are heightening the pressure against Costco Wholesale to abolish its diversity, equity, and inclusion (DEI) policies, claiming concerns of legal risk and discriminationUSA Today reports.
In a letter to Costco president and CEO Ron Vachris, the officials, co-led by Texas AG Ken Paxton and Iowa’s Brenna Bird, accused the company of violating merit-based principles and federal law by standing firm with its policies.
Costco has 30 days to notify the states of its decision to repeal its DEI policies or provide the reasoning behind keeping them.
Costco is one of the few businesses that has refused to dial back on DEI policies at the hands of Republican tactics and pressure. Corporations such as Amazon, Meta, Target, and Boeing are just a few that either altogether scrapped their DEI goals or modified initiatives. Some even ended participation in the Human Rights Campaign Foundation’s corporate equity index.
Hours after Donald Trump was sworn in as the 47th President, he signed an executive order to dismantle programs at the federal level.
According to Fox News, the order pressures private-sector companies to jump on board with federal civil rights laws and stop “discriminatory” practices. Publicly traded companies, large nonprofits, foundations with significant assets, bar and medical associations, and higher education institutions with substantial endowments risk becoming targets of DEI investigations.
“It’s time to ditch DEI. While other companies right the ship and abandon their illegal, woke policies, Costco has doubled down,” Bird said in a statement. “I’m putting Costco on notice to do the right thing and eliminate discriminatory DEI. No American should be denied an opportunity because they don’t fit the woke mold.”
Kansas Attorney General Kris Kobach said he intends to “enforce the law vigorously” against Costco, claiming “racial discrimination is both immoral and illegal.”
However, Costco has the support of several civil rights leaders who celebrate the company’s willingness to continue its DEI policies. On Jan 25, Rev. Al Sharpton and members of the National Action Network formed a “buy-in” at a Costco in Harlem, NY, to highlight the company’s commitment to DEI.
Leading a buy-in with 100+ @NationalAction members at the @Costco location in Harlem, NYC to show support for the company’s strong commitment to diversity, equity, and inclusion (DEI).
This comes as DEI policies face growing attacks from both President Trump and the private… pic.twitter.com/D2eYTeAZlV
— Reverend Al Sharpton (@TheRevAl) January 25, 2025
Costco’s board said in a statement of its “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary,” the Associated Press reported. “The report requested by this proposal would not provide meaningful additional information.”
Additional Republican attorney generals in support of Costco abandoning its DEI policies are Alabama, Arkansas, Georgia, Idaho, Kentucky, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Virginia, Louisiana, Missouri, Montana, Nebraska, and North Dakota.
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