Republican attorneys general from 19 states want Costco Wholesale to ditch its diversity, equity and inclusion efforts, making the call days after the retailer successfully defended its DEI policies as good for business to shareholders.
In a letter on Monday to Costco CEO Ron Vachris, the AGs accuse the retailer of “clinging to DEI policies that courts and businesses have rejected as illegal,” and called on it to account for the legal risks of its actions.
Led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, the Republican officials instructed Costco to let them know within 30 days whether it would get rid of its DEI policies or explain why not.
Costco did not immediately respond to a request for comment.
The GOP letter came after Costco shareholders overwhelmingly rejected a proposal that the wholesale club operator evaluate any risks associated to its DEI practices. The shareholder behind the resolution, the National Center for Public Policy Research, argued that DEI “may sound benign,” but in fact is “weaponized language concealing a radical Marxist agenda.”
Costco’s board, however, urged against the conservative think tank’s motion ahead of its annual meeting.
“Among other things, a diverse group of employees helps bring originality and creativity to our merchandise offerings, promoting the ‘treasure hunt’ that our customers value,” the retailer stated. Costco’s “commitment to an enterprise rooted in respect and inclusion is appropriate and necessary. The report requested by this proposal would not provide meaningful additional information,” it added.
A day after Costco held its ground on its DEI policies, discount store chain Target joined Walmart and other corporations in scaling back on diversity initiatives under attack from conservative activists emboldened by high court decisions and President Trump, who recently banned DEI programs across the federal government.
Intended as a means of promoting fairness in the workplace and open paths for people of color, women and expanded to include sexual orientation and gender identity, DEI programs gained momentum after the 2020 murder of George Floyd.
