Nineteen Republican state attorneys general have urged Costco Wholesale Corporation to discontinue its diversity, equity, and inclusion (DEI) policies, expressing concerns about potential discrimination and legal implications. This appeal follows a recent shareholder vote where 98% opposed a proposal requesting a report on the risks associated with Costco’s DEI initiatives.
In a letter addressed to Costco CEO Ron Vachris, the attorneys general, led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, accused the company of violating merit-based principles and federal law. They have requested that Costco inform the states within 30 days whether it will repeal its DEI policies or provide an explanation for maintaining them.
“Unfortunately given board composition that is not surprising. One member of your board of directors, who previously served as CEO of the Bill & Melinda Gates Foundation, has called for companies to ‘maximize DEI efforts.’ Costco’s position runs contrary to the Supreme Court’s recent decisions and raises concerns about Costco’s compliance with State and federal laws,” the letter claimed.
This development aligns with actions taken by other major corporations. Companies such as Meta Platforms, Amazon.com, JPMorgan Chase, and Boeing have modified or ended their DEI initiatives in response to similar pressures.
As of now, Costco has not responded to requests for comment.
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