Costco seems to have taken a firm stance on its diversity policies, much to the delight of the progressive crowd, while the GOP has stepped in to voice its discontent. Nineteen Republican attorneys general, spearheaded by Iowa’s Brenna Bird and Kansas’s Kris Kobach, have called out the retailer for what they term “unlawful discrimination” tied to its diversity, equity, and inclusion (DEI) practices. It appears that while Costco may have shelves full of wholesome snacks, its policies leave something to be desired when it comes to fairness and legality.
The GOP letter sent to Costco’s CEO, Ron Vachris, points out the irony in the company’s motto of “doing the right thing” when its actions suggest otherwise. This is the kind of logic that makes one wonder if Costco has confused its corporate role with that of a social justice warrior. DEI policies are rapidly losing favor in the business world—just ask major retailers like Walmart and Target that have begun their retreat from the DEI battlefield. But Costco seems to be digging its heels in, while attorneys general are hoping it will reconsider its position before it lands itself in hot water.
BREAKING: 19 Attorney General’s just sent a letter to Costco warning that DEI policies are illegal when they discriminate based on race.
The 19 state AG’s also demand that Costco communicates if they’ll drop DEI within 30 days or explain why they’re keeping DEI.
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It’s worth noting that Costco shareholders previously voted resoundingly against a proposal urging the company to assess the financial risks associated with its DEI initiatives. This raises the question: are Costco’s leaders more dedicated to appeasing progressive activists than protecting their shareholders’ interests? The letter from the attorneys general emphasizes that true equality should be based on merit, not on the divisive practices endorsed by some corporate elites. A quick reminder: Trump’s executive order aimed at curbing illegal DEI discrimination seems to have fallen on deaf ears at Costco.
In a twist of irony, while many companies pivot like well-practiced dancers to avoid the DEI pitfalls, Costco remains stubbornly fixed in its ways. The attorneys general caution that this could result in significant legal ramifications since Costco’s stance is at odds with recent Supreme Court rulings and state laws. Guess it’s true what they say: sometimes, even big retailers can skip the legal memo.
On the other side of the aisle, a few passionate defenders, including civil rights activist Al Sharpton, have rallied in support of Costco’s commitment to DEI. Sure, Shaw’s can usually get more attention for its “buy-in” marches than Costco can for its policies, but that doesn’t mean Costco is in the clear. Critics, like the folks at Consumers’ Research, point to those statements from Costco’s Chief Diversity Officer as evidence of a misguided corporate path, suggesting that such initiatives may even breach the law. In a world where accountability should reign supreme, it’s baffling that a major retailer would insist on such a “woke” trajectory, particularly when the majority of consumers aren’t on board with that ship.
It looks like Costco has decided on its allegiance, and while the Republicans in power continue to hold the company responsible for sticking to these contentious DEI policies, the question remains whether this giant can really take on an entire army of concerned consumers armed with their shopping carts. Whether or not Costco will reevaluate its approach remains to be seen, but one thing is certain: it’s sure stirring up some strong conservative sentiment.