Jan 27 (Reuters) - Nineteen Republican attorneys general
have called on Costco Wholesale ( COST ) to abandon its
diversity, equity, and inclusion policies, citing concerns about
discrimination and legal risks.
This comes after 98% of the U.S. retailer's shareholders
last week voted against a proposal requesting a report on the
risks tied to its diversity and inclusion initiatives, pushing
back against the growing scrutiny such policies face.
Costco did not immediately respond to a Reuters request for
comment outside regular business hours.
State officials in a letter to Costco's top boss Ron Vachris
accused his company of doubling down on policies they allege
violate merit-based principles and federal law.
The 19 Republican officials, co-led by Texas Attorney
General Ken Paxton and Iowa Attorney General Brenna Bird have
demanded Costco notify the states within 30 days whether it will
repeal its DEI policies or provide an explanation for
maintaining them.
The pressure from the Republicans comes after U.S. President
Donald Trump issued an executive order directing government
agency chiefs to dismantle DEI policies at federal agencies,
federal contractors and in the private sector.
Companies such as Meta Platforms ( META ), Amazon.com ( AMZN )
, JPMorgan Chase ( JPM ) and Boeing ( BA ) have modified
their initiatives, scrapped their DEI goals or ended
participation in the Human Rights Campaign Foundation's
corporate equity index.