Costco's dedication to diversity and inclusion is facing heightened examination by Republican officials. A group of 19 attorneys general has penned a letter to CEO Ron Vachris, urging the company to terminate its DEI initiatives. This development follows the rejection of a proposal by Costco shareholders to disclose potential DEI risks.
Letter to CEO Ron Vachris
The focus is now on Costco as the wholesale retailer finds itself under the microscope. The 19 Republican attorneys general have raised concerns about what they perceive as "divisive and discriminatory DEI practices" within the company. The letter, spearheaded by Iowa Attorney General Brenna Bird and Kansas AG Kris Kobach, calls for an end to any discriminatory practices imposed by Costco through its diversity, equity, and inclusion policies.
Reaction to Executive Order
Furthermore, the attorneys general reference a recent executive order by former President Donald Trump, which encouraged private entities to discontinue DEI-related efforts and sought to halt similar programs at federal agencies. They assert that Costco should not engage in discriminatory hiring practices based on race or gender.
Legal Concerns and Shareholder Vote
While the attorneys general did not pinpoint specific instances of discrimination resulting from Costco's DEI policies, they highlighted past lawsuits against companies related to similar initiatives. They argue that discontinuing these programs would mitigate legal risks for the company. This action comes on the heels of a resounding 98% rejection by Costco shareholders of a proposal to report on legal and financial risks tied to DEI policies.
Response Deadline and Industry Trends
In response to the letter, Costco has been given a 30-day window to either confirm the termination of its DEI programs or provide justification for their continuation. Amidst a trend of companies like Meta, McDonald's, and Walmart retracting or ending DEI initiatives, Target recently announced the cessation of multiple programs to align with the changing external landscape.
Support for DEI
Conversely, some companies, including Costco, have opted to uphold their commitment to DEI. JPMorgan CEO Jamie Dimon, for instance, affirmed the bank's dedication to diversity initiatives, emphasizing outreach to various communities. In light of these developments, Costco employees wishing to share their viewpoints are encouraged to reach out to Dominick via email or phone.
For further details, refer to the original article on Business Insider.
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By: dreuter@businessinsider.com (Dominick Reuter)
Title: Costco’s DEI Programs Under Scrutiny by 19 Republican Attorneys General
Sourced From: www.businessinsider.com/costco-dei-letter-republican-attorneys-general-2025-1
Published Date: Tue, 28 Jan 2025 20:37:53 +0000
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