A coalition of 19 Republican state attorneys general has called on Costco to reevaluate its diversity, equity, and inclusion (DEI) policies, warning that such initiatives could lead to legal risks. The group contends that DEI practices may result in discriminatory hiring and workplace policies that violate federal and state laws requiring equal treatment.
The letter, led by Arkansas Attorney General Tim Griffin, asserts that Costco’s DEI framework potentially prioritizes certain demographic groups, raising concerns about fairness and compliance with anti-discrimination laws. It follows recent shifts in corporate America, where major companies like Walmart and Target have scaled back similar initiatives in response to legal and cultural pushback.
Despite these warnings, Costco’s leadership has defended its DEI policies, emphasizing their importance in fostering an inclusive workplace for its 300,000 employees. A recent shareholder vote overwhelmingly rejected a proposal to assess the financial risks associated with the company’s DEI programs, signaling strong internal support for maintaining them.
The attorneys general have requested a response from Costco within 30 days. This development comes at a time when corporations face increasing scrutiny over the implementation and impact of DEI policies, as public and legal debates on the issue continue to intensify.