Costco Faces Republican Criticism Over DEI Policies

Costco's decision to maintain its diversity, equity, and inclusion (DEI) policies has drawn criticism from a coalition of 19 Republican state attorneys general, including Texas AG Ken Paxton and Kentucky AG Russell Coleman. These officials argue that DEI initiatives are divisive and discriminatory, urging Costco to prioritize merit-based evaluations. This coalition's action follows a shareholder vote where over 98% of Costco's shareholders rejected a proposal to assess the risks of its DEI practices, indicating strong support for the company's commitment. The attorneys general's letter references President Donald Trump's executive order encouraging the private sector to end DEI programs, while other companies like Walmart and Meta have rolled back similar initiatives. Despite the pressure, Costco remains steadfast in its DEI efforts, underscoring the national debate over the role and legality of DEI in corporate America.