January 29th 2025.
Nineteen Republican attorneys general from various states have recently stepped up their efforts to pressure Costco Wholesale into eliminating its diversity, equity, and inclusion policies. According to a report from USA Today, these officials, led by Texas Attorney General Ken Paxton and Iowa's Brenna Bird, have expressed concerns about potential legal risks and discrimination associated with the company's policies.
The attorneys general have sent a letter to Costco's president and CEO, Ron Vachris, accusing the company of violating principles of merit-based hiring and federal laws by standing firm in its commitment to diversity, equity, and inclusion. They have given Costco a deadline of 30 days to either repeal its DEI policies or provide a valid explanation for why they should remain in place.
While many businesses have caved to pressure from Republican tactics and abandoned their DEI goals, Costco has remained steadfast in its stance. Other corporations, such as Amazon, Meta, Target, and Boeing, have either completely abandoned their DEI initiatives or made significant modifications. Some have even chosen to no longer participate in the Human Rights Campaign Foundation's corporate equity index.
The push against DEI policies began shortly after former President Donald Trump signed an executive order to dismantle such programs at the federal level. According to Fox News, this order urged private-sector companies to comply with federal civil rights laws and put an end to "discriminatory" practices. This has put publicly traded companies, large nonprofits, foundations with significant assets, bar and medical associations, and higher education institutions with substantial endowments at risk of facing DEI investigations.
Brenna Bird stated in a statement, "It's time for Costco to do the right thing and abolish discriminatory DEI. No American should be denied an opportunity because they don't fit a certain mold." Kansas Attorney General Kris Kobach has also vowed to "vigorously enforce the law" against Costco, referring to racial discrimination as both immoral and illegal.
Despite the backlash from Republican officials, Costco has received support from several civil rights leaders who applaud the company's commitment to diversity, equity, and inclusion. Reverend Al Sharpton and members of the National Action Network even held a "buy-in" at a Costco location in Harlem, New York, to showcase the company's dedication to DEI.
In response to the pressure from Republican attorneys general, Costco's board has released a statement reaffirming their commitment to creating an inclusive and respectful environment. The board believes that a report requested by these officials would not provide any meaningful additional information.
The list of Republican attorneys general advocating for Costco to abandon its DEI policies includes Alabama, Arkansas, Georgia, Idaho, Kentucky, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Virginia, Louisiana, Missouri, Montana, Nebraska, and North Dakota. It remains to be seen how Costco will respond to this pressure and whether they will continue to prioritize diversity, equity, and inclusion in their business practices.
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