Republican state officials pressure Costco to abandon its DEI policies

After doubling down on its diversity, equity and inclusion policies, wholesale giant Costco is being pressured by Republican state officials to abandon its commitment.

In a letter to Costco CEO Ron Vachris signed by 19 attorneys general and led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, the group of top state legal officers argues that the retail company’s DEI policies are “unlawful” and discriminatory

“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,” reads the letter.

The Republican attorneys general requested that the company reply within 30 days by either repealing its DEI policies or explaining “why Costco has failed to do so.”

The letter cites the 2023 Supreme Court rulings that ended race-based affirmative action in college admissions as justification for their argument that DEI policies in corporate America are “illegal.” President Donald Trump has made the same argument to justify his recent executive orders eliminating DEI federal programs and offices and rescinding decades-old executive orders meant to strengthen the enforcement of the Civil Rights Act of 1964.

Last month, Costco’s shareholders rejected a proposal that would’ve required the company to study and report on financial risks associated with its DEI policies. In the letter, the Republican attorneys general slammed the decision, citing that it “runs contrary to the Supreme Court’s recent decisions and raises concerns about Costco’s compliance with State and federal laws.”

However, the Supreme Court’s ruling was not a sweeping overturning of DEI or affirmative action beyond education; however, there have been successful challenges to federal and private racial equity programs, like the Biden administration’s debt relief program for Black farmers and the Fearless Fund grant for Black women business owners.

National Urban League President Marc Morial told theGrio that the recent focus on companies who have maintained their DEI policies is a “campaign of intimidation.”

“A number of other companies have told us that they are going to stand firm, because they are not going to be intimidated,” he said.

“They’re running around threatening companies,” he added. “They’re on a crusade. They have a lot of money. They’re backed by powerful conservative interests, and they’re trying to turn the country back.”