As pressure to drop diversity, equity and inclusion initiatives ramps up on the private sector, 19 state attorneys general have sent a letter to Costco CEO and President Ron Vachris, calling on the warehouse retailer to fall in line.
The effort is being co-lead by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird.
“We, the undersigned Attorneys General of 19 States, urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion policies,” the letter reads. Although Costco’s motto is ‘do the right thing,’ it appears that the company is doing the wrong thing—clinging to DEI policies that courts and businesses have rejected as illegal.”
Last week, Costco defended its DEI policies when it rejected a call from a conservative think tank to evaluate any risks posed by its practices. More than 98% of shareholders voted against the proposal.
Costco’s public stance in support of diversity, equity and inclusion programs contrasts with the positions taken in recent months by other big consumer brands, including Walmart, McDonald’s, Target and John Deere.
Prominent technology companies, including Amazon and Meta — the parent company of Facebook and Instagram — also have rolled back DEI initiatives, which are expected to face opposition from the administration of President Donald Trump.
Trump earlier in January signed an executive order aimed at terminating DEI programs within federal agencies. Conservatives have long condemned them, arguing they violate the U.S. Constitution by considering factors such as race, gender and sexual orientation.
Costco has a chief diversity officer, but the company’s executive ranks do not reflect the diversity of its customers. Nearly 81% of the executives Costco had in place last year were white, and 72% of them were men, according to data published on its website.
“The Supreme Court said it best: ‘Eliminating racial discrimination means eliminating all of it.’ For the good of its employees, investors, and customers, Costco should ‘do the right thing’ by following the law and repealing its DEI policies. Within 30 days, please either notify us that Costco has repealed its DEI policies or explain why Costco has failed to do so. We look forward to your response,” the letter from attorneys general concludes.
