Costco Defends Diversity Practices Against Republican Attorneys General Pressure
Costco faces pressure from 19 Republican state attorneys general to abandon its DEI practices, but the company continues to defend its commitment to diversity and inclusion.
Washington state's attorney general is supporting Costco amid pressure from 19 Republican attorneys general to abandon its diversity, equity, and inclusion (DEI) practices.
This week, the group sent a letter urging Costco to cease "unlawful discrimination" imposed by its "divisive" DEI policies.
Washington Attorney General Nick Brown, a Democrat, criticized the Republican stance, stating, "I'm surprised by my Republican colleagues' eagerness to weaponize the government against business. We don't believe in punishing private companies for making decisions that protect and enhance their workforce."
Iowa Attorney General Brenna Bird, who led the 19-state effort against Costco, emphasized the need for the company to prove compliance with federal and state laws regarding race-based and gender identity-based hiring practices.
Bird expressed her concerns, stating, "Costco needs to show us the proof that they are following the law because they have public statements that cause us great concern." She noted that many retailers have modified their DEI policies to align with federal laws.
The letter, which has a 30-day response period, includes signatures from attorneys general across multiple states, including Alabama, Texas, and Virginia.
The correspondence follows President Trump's recent executive order aimed at DEI policies in the federal sector and encouraging the private sector to abandon such practices.
Despite the pressures, Costco has remained resolute in advocating for DEI as integral to its business success. Board chair Hamilton "Tony" E. James remarked, "We owe our success to our employees. It is important that they all feel included and appreciated and that they transmit these values to our customers."
During a recent shareholder meeting, Costco shareholders decisively rejected an anti-DEI proposal from a conservative group. James reassured stakeholders that the company’s commitment to inclusion does not compromise merit or involve quotas.
Legal experts caution that businesses have the right to make their own hiring decisions within legal limits, while state attorneys general should consider the rights of corporations as well.
Fox News Digital reached out to additional state attorneys general for comments regarding potential actions against Costco following Trump's executive order.
