Alabama Attorney General Steve Marshall is still waiting for a response from Costco after he and 18 other attorneys general called on the company to end its diversity, equity and inclusion (DEI) practices.
While other businesses and organizations are ditching DEI following President Donald Trump's banning of such policies in the federal government, Costco has been a high-profile holdout, opting instead to double down.
"This is a company with a motto that says 'do the right thing,' yet they have employment practices that discriminate based on race, discriminate based on gender and other qualifications. If that's the way they're going to approach their employees. Clearly, they're not living up to their motto, and we demand answers," Marshall said Tuesday on Newsmax's "Finnerty."
Marshall asked Costco how its DEI policies benefit shareholders and expand the bottom line.
"Is it providing the return for your shareholders, and is it providing your customers with their best experience? They can't answer that question in the affirmative," he said. "And yet, I do believe, as a result of President Trump announcing that executive order directing the attorney general to be able to investigate corporations for these unlawful hiring practices, I think we're going to see a change in that behavior. as we've seen many of the fortune 100 companies do here recently, in the last few weeks."
Marshall said he and the other attorneys general questioning of a private company was in line with states' civil rights law and how the U.S. Supreme Court evaluated discrimination issues in college admissions.
"It's a consumer protection matter. We want to make sure that in our own states that corporations are complying with the law and doing it in a way that treats all of our citizens fairly," Marshall said.
As he waits for a response, Marshall said the AGs would continue investigating Costco and pursuing litigation if necessary.
"We can't lose sight of the fact that President Trump's executive order requested Pam Bondi, my dear friend, to engage in within 120 days a report to say what's going on in corporate America and what steps can be taken to rid DEI from our culture," Marshall said.
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