REPUBLICAN ATTORNEYS GENERAL FROM 19 STATES ARE CALLING ON COSTCO TO SCALE BACK ITS DIVERSITY, EQUITY AND INCLUSION POLICIES.

THIS COMES JUST DAYS AFTER 98% OF COSTCO SHAREHOLDERS VOTED DOWN A PROPOSAL TO STUDY THE RISKS OF KEEPING DEI POLICIES IN PLACE.

PRESIDENT TRUMP ALSO SIGNED AN EXECUTIVE ORDER ON INAUGURATION DAY STATING THAT DEI PROGRAMS ARE DISCRIMINATORY.

IN A LETTER TO COSTCO CEO, RON VACHRIS, THE ATTORNEYS GENERAL CO-LED BY THE AGS OF IOWA AND KANSAS WRITE IN PART “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. COSTCO SHOULD TREAT EVERY PERSON EQUALLY AND BASED ON THEIR MERIT, RATHER THAN BASED ON DIVISIVE AND DISCRIMINATORY DEI PRACTICES.”

THE LETTER ALSO CITES THE SUPREME COURT’S JUNE 2023 DECISION ON AFFIRMATIVE ACTION AT COLLEGES AND UNIVERSITIES WHICH EFFECTIVELY BANNED THE USE OF RACE AS A FACTOR IN COLLEGE ADMISSION.

THE REPUBLICAN STATES CLAIM COSTCO IS DOUBLING DOWN ON ITS DEI POLICIES AND WANT TO BE NOTIFIED WITHIN 30 DAYS WHETHER COSTCO WILL REPEAL THEM OR EXPLAIN IF IT WON’T.

COSTCO’S BOARD MEMBERS DEFENDED THE COMPANY’S DEI POLICIES AFTER THE VOTE AT LAST WEEK’S MEETING.

“OUR 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’S BOARD CHAIR TONY JAMES SAID AT THURSDAY’S MEETING.

OTHER CORPORATIONS INCLUDING AMAZON, META, TARGET AND MCDONALD’S ALL ANNOUNCED THEY WOULD BE SCALING BACK THEIR DEI POLICIES.

THE UNIVERSITY OF IOWA AND THE UNIVERSITY OF MICHIGAN ARE A FEW OF THE STATE HIGHER EDUCATION INSTITUTIONS THAT ALSO SCALED BACK DEI INITIATIES FOR PROFESSOR AND STUDENTS.

COSTCO HAS NOT YET RESPONDED TO THE ATTORNEYS GENERAL LETTER.