Republican attorneys general from nineteen states wrote a letter on Monday demanding that Costco “end all unlawful discrimination” by removing diversity, equity, and inclusion practices.
Costco has doubled down on their diversity initiatives even as other major retailers are removing such policies amid a less favorable cultural and political landscape. The officials cautioned that Costco should desist from such practices “that courts and businesses have rejected as illegal.”
“For the good of its employees, investors, and customers, Costco should ‘do the right thing’ by following the law and repealing its DEI policies,” the Republican state attorneys general wrote in the letter, referencing the motto of the retail behemoth. “Within thirty days, please either notify us that Costco has repealed its DEI policies or explain why Costco has failed to do so.”
The officials also noted the fact that the Costco board of directors recommended for shareholders to vote down a resolution that would require the company to “study and report on financial risks” related to diversity policies. The resolution had reasoned that such policies prompt legal, reputational, and financial risks of which shareholders should be aware.
Costco board members insisted that “our efforts at diversity, equity, and inclusion remind and reinforce with everyone at our company the importance of creating opportunities for all.”
The attorneys general meanwhile cautioned that even the federal government under President Donald Trump is opposed to diversity, equity, and inclusion. Trump signed an order on his second day in the White House recognizing that diversity policies “undermine our national unity.”
The letter advocated for “race-neutral practices,” referring to an opinion from Supreme Court Justice Clarence Thomas in which he contended that race-driven practices undermine the truth that “all men are created equal, are equal citizens, and must be treated equally before the law.”
Costco continues to defend their diversity policies even after Walmart, a competitor of Costco and the largest private employer in the country, ended several diversity, equity, and inclusion initiatives following the efforts of conservative activists who drew attention to the programs.
