A group of 19 state attorneys general is pushing retail warehouse giant Costco to abandon its diversity, equity, and inclusion (DEI) initiatives. Led by Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, the group—in a letter to Costco CEO Ron Vachris—alleges the company is maintaining DEI policies deemed illegal by some courts and likely in contravention of a recent executive order signed by President Donald J. Trump.
“We… urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion (‘DEI’) policies,” the attorneys general write. They add: “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.”
In addition, the letter cites recent Supreme Court precedent on race-based college admissions, suggesting Republicans at the state level may soon push for a broader ruling on DEI and other discriminatory programs. “The Supreme Court has repeatedly warned against using race-based preferences and classifications. Most recently, Students for Fair Admissions v. Harvard explained that ‘Distinctions between citizens solely because of their ancestry are by their very nature odious to a free people whose institutions are founded upon the doctrine of equality,’” the attorneys general contend.
Costco has not yet responded. Previously, the company’s shareholders rejected a proposal by the National Center for Public Policy Research to assess the risks associated with DEI practices. This proposal suggested that DEI could conceal a radical agenda.
Meanwhile, other companies like Target and Walmart are either scaling back their diversity initiatives or shuttering them entirely. This trend follows criticism from conservative activists, backed by court decisions and the subsequent Trump White House ban on DEI programs. […]
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