Republican AGs pressure Costco to drop 'unlawful' diversity policies — citing Trump
29 January
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A group of Republican attorneys general — including Kentucky’s Russell Coleman — is pressuring Costco “to end all unlawful discrimination imposed” by the retailer’s diversity, equity and inclusion policies.
The 19 attorneys general sent a letter to Costco CEO Ron Vachris this week citing Republican President Donald Trump’s executive order that encouraged “all agencies to enforce our longstanding civil-rights laws and to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities.”
Writing that Costco “should treat every person equally and based on their merit, rather than based on divisive and discriminatory DEI practices,” the attorneys general asked Vachris to either repeal Costco’s DEI policies or explain why the company is keeping them in place within 30 days.
Costco shareholders recently rejected a proposal from a conservative think tank to examine risks posed by its DEI policies. Nearly 98% of shareholders voted against the measure. Costco’s board had recommended rejection of the proposal.
At the Jan. 24 shareholders meeting, Costco board chair Tony E Curtis said the company’s commitment to inclusion “does not and has never included quotas or systematic preferences, nor does it mean compromising merit. The demands of our business and our steadfast commitment to serve our members mean that we cannot afford to do anything but hire and promote the most qualified individuals.”
Costco has not publicly responded to the letter. A spokesperson for the company did not immediately respond to a request for comment Wednesday.
Kentucky AG Coleman said in a statement, “Costco has a motto to ‘Do the right thing,’ but their DEI business practices are all wrong. By pushing a DEI agenda, Costco is out-of-step with the Kentuckians who just want affordable prices.”
Costco has four stores in Kentucky, according to its website.
Nationwide, some companies are rethinking their commitment to DEI, while others are standing by their diversity practices. Brands like Walmart and Meta have rolled back DEI policies while tech giants Microsoft and Apple reaffirmed their policies within the last week. Last year, Kentucky-based whiskey maker Brown-Forman suspended its DEI policies.
DEI policies are often aimed at removing bias and promoting fairness in areas like employment and education.
Former Kentucky Attorney General Daniel Cameron crusaded with other Republican attorneys general to curb DEI in the private sector, including issuing a letter to Fortune 100 CEOs calling on them to use “race-neutral principles in your employment and contracting practices” following the U.S. Supreme Court’s reversal of affirmative action in higher education.
After losing a race for Kentucky governor in 2023, Cameron became CEO of the 1792 Exchange, a group that aims to “steer public companies back to neutral on divisive, ideological issues.”
Kentucky Democratic Gov. Andy Beshear in an appearance at the World Economic Forum in Davos, Switzerland, recently defended private sector decisions to maintain DEI policies. If companies think encouraging a diverse workforce helps them, Beshear said, “the state that you’re working with should support you.”
Read the letter below
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