On Monday, Attorney General Steve Marshall and 18 other state attorneys general called on Costco to end their diversity, equity and inclusion (DEI) policies.
Multiple corporations have ended similar DEI policies after President Donald Trump began his second term last week. Trump also signed multiple executive orders targeting DEI departments and policies within the military and government agencies.
However, Costco recently took a different direction and stood by its DEI policies. Marshall and 18 other attorneys general sent a letter on Monday to Ron Vachris, president and CEO of Costco Wholesale Corporation, encouraging him to repeal the company’s DEI policies.
“Inexplicably, Costco has doubled down on DEI. Last month, Costco’s board of directors unanimously recommended that shareholders vote against a proposal requiring Costco to study and report on financial risks associated with its DEI policies. While defending the company’s DEI policies to a customer, you reportedly proclaimed that you are 'not prepared to change,'" the letter said. "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. Following the Harvard decision, State Attorneys General have diligently worked to stop unlawful discriminatory practices. Some companies have been sued over DEI policies. Other companies are under investigation for issues relating to DEI. And beyond eliminating legal exposure, repealing its DEI policies would provide Costco with time to deal with other important issues, such as questions regarding the alleged connection between Costco products and slave labor in China,” Marshall and the attorneys general wrote. “Now, the federal government is also focusing on ensuring invidious racebased discrimination no longer finds a home in woke corporations. President Trump’s executive order recognized that “[i]llegal DEI and DEIA policies not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity.”
Marshall and the attorneys general continued, “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.”
Costco, Ag Dei by Caleb Taylor on Scribd
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