Republican attorneys general demand Costco end DEI policies

In the United States, Costco is facing significant pressure from Republican attorneys general regarding its diversity, equity, and inclusion (DEI) policies. Recently, 19 Republican state attorneys general, including prominent figures like Texas Attorney General Ken Paxton and Iowa Attorney General Brenna Bird, signed a letter demanding that the company either repeal its DEI policies or provide a compelling explanation for maintaining them. This demand follows a backdrop of increasing scrutiny on DEI initiatives, especially in light of recent rulings by the U.S. Supreme Court against affirmative action, which have galvanized conservative activism against diversity programs in corporate settings. On January 23, 2025, Costco's shareholders overwhelmingly rejected a proposal that sought to evaluate the potential risks associated with the company's DEI efforts. A staggering 98% of shareholders voted against the resolution. The board of directors defended their commitment to DEI, asserting that such initiatives are critical not only for ethical considerations but also for enhancing the company's ability to attract and retain talented employees who contribute to the business’s success. Their statement emphasized a commitment to creating an environment of respect and inclusion, which they argue aligns with their code of ethics. This wave of opposition to DEI efforts at Costco is part of a broader nationwide trend where several corporations, emboldened by the Trump administration's focus on merit-based hiring practices, have begun to dismantle or reevaluate their diversity programs. President Trump signed an executive order in January 2025 aimed at eliminating federal DEI programs, encouraging both federal agencies and private companies that receive federal contracts to abandon such initiatives. As a result, many corporations, including Target and Meta, have opted to reduce or eliminate their DEI policies, following the demand from Republican leaders and the changing political landscape. The response from Costco's leadership indicates a steadfast commitment to DEI, despite the risk of losing consumer support in light of negative public sentiment fostered by comments from activists. Costco’s approach underscores a larger ideological divide surrounding DEI programs in the current socio-political climate, highlighting differing views on the role of inclusion in business practices. The debate continues, as conservative groups press companies to align more closely with traditional values around merit and hard work, while supporters of DEI policies assert that such initiatives are vital for creating equitable opportunities for a diverse workforce.