A coalition of GOP attorneys general has demanded Costco abandon its DEI policies, saying they violate anti-discrimination laws.
A coalition of attorneys general representing 19 Republican-led states has called on Costco to eliminate âillegal and discriminatoryâ diversity, equity, and inclusion (DEI) policies.
In a Jan. 27
letter to Costco CEO Ron Vachris, the coalition urged the wholesale giant to ditch DEI in favor of a race-neutral and discrimination-free approach to its corporate activities and policies.
âAlthough Costcoâs motto is âdo the right thing,â it appears that the company is doing the wrong thingâclinging to DEI policies that courts and businesses have rejected as illegal,â the letter reads. âCostco should treat every person equally and based on their merit, rather than based on divisive and discriminatory DEI practices.â
The letter comes about a month after Costcoâs board of directors unanimously
opposed a shareholder proposal requesting a report on the financial risks associated with its DEI policies and defended its approach.
âOur efforts at diversity, equity, and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,â read a Costco
proxy statement. It stated that board members âbelieve that these efforts enhance our capacity to attract and retain employees who will help our business succeed.â
Supporters of DEI say that such policies enhance diversity and strengthen organizational culture, while detractors say they are discriminatory and undermine meritocracy.
Co-led by Iowa Attorney General Brenna Bird and Kansas Attorney General Kris Kobach, the coalition of attorneys general alleged in the letter that Costcoâs stance conflicts with the U.S. Supreme Courtâs
decision in Students for Fair Admissions v. Harvard, which ended race-based discrimination in college admissions. They also cited President Donald Trumpâs
executive order instructing federal agencies to review and dismantle all government programs that prioritize considerations of race, ethnicity, or gender in decision-making, and to combat any private-sector DEI initiatives and mandates deemed unlawful.
âItâs time to ditch DEI,â Bird said in a
statement. âWhile other companies right the ship and abandon their illegal, woke policies, Costco has doubled down. Iâm putting Costco on notice to do the right thing and eliminate discriminatory DEI. No American should be denied an opportunity because they donât fit the woke mold.â
âRacial discrimination is both immoral and illegal,â Kobach said in a
statement. âRace-based employment hiring violates state and federal law, and as the chief enforcement officer of Kansas, I intend to enforce the law vigorously.â
Iowa and Kansas co-led the letter alongside Alabama, Arkansas, Georgia, Idaho, Kentucky, Louisiana, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and Virginia.
Noting that some companies have been sued over their DEI policies, the coalition is demanding that Costco confirm within 30 days that it has repealed its DEI policies or provide an explanation for its refusal.
Costco did not respond to a request for comment regarding the coalitionâs demands by publication time.
A growing number of companiesâincluding Caterpillar, McDonaldâs, Southwest Airlines, Toyota, and Walmartâhave revised or dropped their DEI policies in recent months, with a number of them opting to end their participation in the Human Rights Campaignâs Corporate Equality Index.
The Human Rights Campaign has
criticized the corporate DEI retreat, warning of negative consequences including boycotts.
