Costco facing serious pressure from Republican attorneys general to ditch DEI policies
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Several Republican state attorneys general have written to Costco signaling they want the company to end its diversity, equity and inclusion policies amid President Donald Trumpโs crackdown on the programs across the federal government.
Nineteen Republican attorneys general โ including Texasโs Ken Paxton and Iowaโs Brenna Bird โ have signed a letter demanding Costco either tell states it will repeal its own DEI policies or explain why they will be maintained.
โWe…urge Costco to end all unlawful discrimination imposed by the company through diversity, equity, and inclusion (โDEIโ) policies,โ the letter reads. โAlthough Costcoโs motto is โdo the right thing,โ it appears that the company is doing the wrong thingโclinging to DEI policies that courts and businesses have rejected as illegal.โ
The Independent has contacted Costco for comment.
Ninety-eight percent of U.S. Costco shareholders voted against a proposal requesting the company evaluate and report on the risks associated with their DEI efforts last week.
“Our efforts around diversity, equity and inclusion follow our code of ethics,” Costcoโs Board of Directors said in a statement regarding the proposal, per ABC News.
“Our efforts at diversity, equity and inclusion remind and reinforce with everyone at our Company the importance of creating opportunities for all,โ the statement continued. โWe believe that these efforts enhance our capacity to attract and retain employees who will help our business succeed.โ
The letter to Costco comes after Trump issued an executive order on the first day of his presidency directing agency leaders to dismantle DEI policies at federal agencies and private companies that receive federal contracts. This order also means all federal DEI workers have been put on leave.
Amid Trumpโs order, several private companies have also chosen to repeal their own DEI programs in recent weeks.
Target โ the seventh-largest U.S. retailer, according to the National Retail Federation โ announced last week it would end the Racial Equity Action and Change program, which was established to support Black employees and Black shoppers while promoting Black creators and vendors.
The policy was implemented in 2020 following the death of George Floyd, a Black man murdered by a Minneapolis police officer.
โThroughout 2025, weโll be accelerating action in key areas and implementing changes with the goal of driving growth and staying in step with the evolving external landscape. We will continue to monitor and adjust as needed,โ the company said in a statement. โCurrent actions includeโฆconcluding our Racial Equity Action and Change (REACH) initiatives in 2025 as planned.โ
The company will also no longer have a presence at the Twin Cities Pride celebration this year, CBS News reports.
Meta, which owns Instagram and Facebook, also announced its plan to repeal DEI programs โ which came before Trump took office. Instead, the company will โfocus on how to apply fair and consistent practices that mitigate bias for all, no matter your background,โ a spokesperson told the Associated Press on January 10.
Meta CEO Mark Zuckerberg attended Trumpโs inauguration soon after the announcement.
However, other companies are standing their ground and maintaining their DEI policies. These companies include Goldman Sachs and JPMorgan Chase.
“We strongly believe that organizations benefit from diverse perspectives, and Goldman Sachs is committed to operating our programs and policies in compliance with the law,โ a spokesperson for Goldman Sachs told ABC News.
