Republican attorneys general call out Costco for maintaining DEI policies
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GOP AGs Call on Costco to End DEI Programs
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Above: A Costco store in Monterey Park, California. Image copyright: Eric Thayer/Stringer/Getty Images News via Getty Images
The Facts
Nineteen Republican state attorneys general, led by Texas' Ken Paxton and Iowa's Brenna Bird, issued a letter to Costco CEO Ron Vachris on Monday, urging the company to abandon its diversity, equity, and inclusion (DEI) policies within 30 days.
This follows Costco shareholders' overwhelming rejection (98%) last week of a proposal to evaluate risks associated with DEI practices, submitted by the National Center for Public Policy Research at the company's annual meeting.
Previously, Costco's board unanimously recommended against the anti-DEI proposal, stating that diversity initiatives enhance customer service and bring creativity to merchandise offerings. The board also maintained that their commitment to inclusion is appropriate and necessary.
The Spin
Republican narrative
DEI policies are discriminatory and value companies looking woke rather than subscribing to merit-based principles. Costco should follow Trump and the federal government's lead and do the right thing by scrapping these policies, which may be illegal in the eyes of the courts.
Democratic narrative
Diversity initiatives are essential for business success and customer service, helping companies attract talent and serve diverse communities effectively. A diverse workforce brings creativity and innovation to business operations, making it both a moral and practical necessity.
