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ISSAQUAH, Wash. — Nineteen Republican attorneys general are calling on Costco Wholesale to reconsider its diversity, equity, and inclusion (DEI) policies, arguing that these initiatives might result in discrimination and pose legal risks. This request follows a recent vote in which 98% of Costco’s shareholders opposed a proposal for a report on the possible risks tied to its DEI programs, indicating strong backing for the retailer’s existing policies amidst increasing scrutiny.
Thorvardur de Shong
In a letter sent to Costco CEO Ron Vachris, as reported by Reuters, state officials accused the company of reinforcing policies that they believe compromise merit-based principles and breach federal law. The coalition, co-led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, has insisted that Costco either rescind its DEI policies or offer a comprehensive explanation for their continuation within 30 days.
Costco has not publicly responded to the letter or indicated whether it will change its policies in response to the attorney general’s demands.
The response from Republican attorneys general highlights a larger national discussion surrounding corporate DEI initiatives, which have increasingly faced political and legal scrutiny in recent years. Detractors contend that these policies might result in reverse discrimination, whereas proponents argue they are crucial for cultivating inclusive work environments and tackling systemic inequalities.
Amid pressure, Costco’s shareholders overwhelmingly back the company’s strategy. In last week’s vote, 98% opposed assessing DEI-related risks, highlighting the retailer’s commitment to diversity efforts.
The Republican attorneys general, however, remain steadfast in their opposition. “Costco’s policies prioritize identity over merit, which we believe is not only unfair but also unlawful,” said Texas Attorney General Ken Paxton. “We urge the company to reconsider its stance and align its practices with principles of equal opportunity for all.”
