A coalition of 19 state attorneys general has issued a warning to Costco, demanding the company put an end to what they consider unlawful discrimination stemming from its diversity, equity, and inclusion (DEI) policies. This action aligns with former President Donald Trump's executive order that calls for a review of DEI practices in both public and private sectors, highlighting that any race-based hiring methods contravene existing state and federal laws. Kansas Attorney General Kris Kobach emphasized to Fox News that racial discrimination is immoral and illegal, and he plans to enforce the law strictly.
Trump's executive order aims to eliminate discriminatory DEI practices and tasked attorneys general with identifying organizations that may be in violation. The order also encourages private companies to conform with federal civil rights statutes by ending any practices deemed discriminatory. Potential targets for these investigations include publicly traded companies, large nonprofits, and educational institutions that possess substantial financial resources.
While some large retailers like Target and McDonald's have abandoned their DEI policies, Costco recently faced scrutiny from activist shareholders who sought to require the company to disclose risks associated with its DEI stance. However, the Costco board defended its approach, claiming their commitment to inclusion is critical and that the requested report would not yield additional valuable insights.
Iowa Attorney General Brenna Bird criticized Costco's persistence in what she termed "illegal, woke policies," stressing the importance of creating race-neutral opportunities for all applicants. In contrast, Rev. Al Sharpton recently led a group at a Harlem Costco in support of the company’s DEI policies, promoting a message of solidarity within the community.
The letter sent to Costco CEO Ron Vachris by the attorneys general urged the company to respond within a month, either by indicating their intent to repeal DEI policies or providing reasons for their continuation. Signatories of the letter included attorneys general from multiple states, but Costco had not responded to inquiries regarding the matter at the time of publication.
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